Feb 7, 2018
Some of Jason's observations about the economy and investing.
Dow falls 300 points as slump extends into second day
The Dow dropped more than 300 points Tuesday.
Jeff Bezos, Warren Buffett and Jamie Dimon's plan to get into the health insurance business sent health care companies tumbling. UnitedHealth (UNH) fell 3%, CVS(CVS) was off 5%, and Walgreens (WBA) shed 3%.
The Wall Street Journal also reported that Apple will make 20 million fewer iPhone X's this coming quarter than it had originally planned. The iPhone X, Apple's newest and most expensive phone, hit stores in November. Apple will give investors an update on sales Thursday during its year-end earnings report.
Apple (AAPL) sank 1% early Tuesday.
The market selloff so far is just minor turbulence in a relentless climb. The Dow closed down 177 points Monday, its worst day since September.
If the Dow closes down by more than 100 points Tuesday, it will be the first time since April 19 and only the third time since the November 2016 election that the Dow has fallen triple digits two sessions in a row.
"With higher interest rates globally and the State Of The Union speech on tap tonight, this could simply be some end of month jockeying," said Ryan Detrick, senior market strategist with LPL Research.
The Dow is up 8,000 points since President Trump's election. A growing global economy, strong corporate earnings and a wave of consumer confidence are pushing stocks higher. Congress' tax cuts and Trump's deregulation agenda have investors and CEOs feeling optimistic.