Mixed earnings news caused the continued decline in the value of social media, cloud computing and biotechnology companies. The deteriorating situation in eastern Ukraine also influenced investor behavior as we head into the weekend.
Standard & Poor’s Rating Services cut Russia’s sovereign debt rating, citing the political and military tensions in Ukraine and the likelihood of more sanctions being imposed by the United States and European leaders.
Despite the U.S. market’s downward trajectory, the consumer sentiment index, which offers a measure of consumers’ feelings about the economy, exceeded forecasts. The U.S. economy is dependent upon the consumer sector for most of its growth. If more Americans are feeling upbeat about the economy, that can bode well for the market’s performance during the remainder of the year.
The Dow Jones Industrial Average dropped 140 points to 16,361. The S&P 500 Stock-Index fell 15 points to 1,863.
“Market Matters” is a Ketchum Keystone commentary column by Suzanne Hazlett, a CERTIFIED FINANCIAL PLANNER™ and president of the independent firm, BOULDER financial alliance llc, based in Ketchum.
Securities are offered through Raymond James Financial Services, Member FINRA/SIPC. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this column. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. This information is not a complete statement of all available data necessary for making an investment decision and does not constitute a recommendation nor is it intended as a solicitation or an offer to transact any security referred to herein.