By the Numbers
Most observers expect stock volatility to continue. Volatility certainly showed up in the stats. The S&P 500 ($SPX) on Wednesday closed up 1.9%, bucking historical record-keeping that has shown September 30 to be one of the weakest days for the broader stock market. In fact, FactSet data shows that yesterday's 1.9% gain was the fourth strongest performance this year and the third strongest for a September 30 going back to 1928. But that was just one day. The SPX closed a rough Q3 with a nearly 7% drop, with only the typically defensive utility sector logging a positive finish. Of course, oil—and the broader commodities slump—has done its part to drive stocks lower. Both NYMEX-traded U.S. crude and Europe's Brent crude contract shed some 24% in Q3, and have logged declines for four of the past five quarters.Blue-Chip Dow, Too
The blue-chip Dow Jones Industrial Average ($DJI) joined Wednesday's party but that may only mask what truly has been a notable losing streak. The DJIA surged 236 points on Wednesday, but has lost 1,335 points, or 7.6%, since the end of June. The Dow had lost 156.61 points, or 0.9%, over Q2 and 46.95 points, or 0.3%, over Q1—narrowly lower results, yes, but negative nonetheless. The last time the Dow had a three-quarter losing streak was during the 2009 recession.Good, For Now
The House of Representatives passed a bill Wednesday, by a vote of 277 to 151, to keep the federal government operating through Dec. 11. The bill was passed earlier by the Senate and now signed by President Barack Obama. Without the stopgap bill the government would have shut down Thursday, the first day of the new fiscal year. The White House and Republicans are now negotiating a longer budget deal. Good trading, JJ @TDAJJKinahan This piece was originally posted here by JJ Kinahan on October 1, 2015.Market volatility, volume, and system availability may delay account access and trade executions. Past performance of a security or strategy does not guarantee future results or success.
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