The Dow components are weak because the Fed is threatening to slow the economy down. Its cyclical components are the ones that are most sensitive to that.
More Quotes from Larry Wachtel:
There's a cautious backdrop (on Wall Street). We're heading to that glide path toward the Fed meeting. I think there has been a gravitation toward the cyclical stocks and away from the blue chips. And I think we'll continue to see movements into the papers and the metals.Larry Wachtel
Attention will be focused on the statement that follows the 215 p. m. ET rate announcement, as it will give us a better indication on the Fed's future course of action. Noteworthy is that the tendency has been for the market to rally ahead of the Fed meeting and to sell-on-the-news after the announcement, ... While the market is advancing, it is on light volume due to this being a Monday in the slow month of August in front of tomorrow's economic policy uncertainty.
Larry Wachtel
The earnings numbers are still respectable, but they are softening. The psychology is that you can't make projections about future earnings without having some sense about where the price of oil is going and what the consumer will do.
Larry Wachtel
Cisco reports earnings tomorrow (Tuesday) and certainly that stock is at a price where there may be a split.
Larry Wachtel
The market finished sloppy yesterday and it rolled over into today. We've been resilient, though. We're coming to the end of the quarter, so there's a lot of speculation popping up as to what earnings are going to look like.
Larry Wachtel
This is the first day of the month, you may have seen some end-of-the-month portfolio selling dissipating, ... And this is the day that Microsoft is distributing 33 billion in cash, so there is some anticipation of that finding its way back to the market.
Larry Wachtel
Readers Who Like This Quotation Also Like:
I cannot think of any character below the flatterer, except he who envies him.Richard Steele
I like when people take chances.
Joshua Homme
I don't sit in the corner waiting for death: death has to pursue me. I'm going strong. I hope to reach 100 and ask for an extension, just like my grandmother did.
Compay Segundo