The major indices were lower at the open and then tanked.
Then after lunch, stocks dropped again, eventually end the day near session lows.
Why the market sell-off today?
Profit Taking – With the end of the 2nd quarter in sight, a little profit taking shouldn’t come as a surprise. Right now the S&P is up an impressive 16.4% for the quarter. The last trading day of the 2nd quarter is on Tuesday.
Coronavirus Concerns – As the last full week of trading in the second quarter came to end, multiple states imposed new restrictions on public businesses. Both Texas and Florida announced they would close bars and limit restaurant capacity to “slow the curve” of COVID-19 infections.
Here’s where the major markets ended the day:
*As of market close
Remember those bank stocks like Goldman Sachs (GS) and Bank of America Corporation (BAC) that we’re killing it yesterday? Today was a different story.
After conducting stress tests, the Fed voted to require large banks to suspend stock buybacks. They also voted to cap dividend payouts for the 3rd quarter. The reaction was delayed but today Goldman Sachs closed 8.7% lower and Bank of America lost 6.4%.
Big Lots (BIG) bucked the overall trend and jumped +27.2% on a stellar earnings report. Bruce Thorn President and CEO attributed the positive earnings to strong spending and increased participation in its customer loyalty program.
Tech heavy companies that sell advertisement took a beating today…
Several large companies announced they would pause campaigns on Facebook’s advertising platform. Other companies such as Google and Twitter were also heavily affected by this news. The not-so-surprising move comes as political tensions spill over into the digital realm.
Facebook (FB) shares closed 8.3% lower after the news that Verizon (VZ) and Unilever (UL) would pause their advertising.
Alphabet (GOOG) closed 5.7% lowerand Twitter B (TWTR)lost 7.4%.