Pullbacks like this are not uncommon historically and happen frequently in normal market cycles. In an average year there are typically pullbacks in a range of 5%-10% with an average recovery time lasting about a month. We hadn’t seen a 3% correction in 445 days until yesterday, which is the longest run in history. This pullback appears to be a very normal event. (Main Mgmt)
The S&P 500 fell 3.8% last week, for the worst weekly decline since early 2016. Volatility continues to rule so far in 2018, as the S&P 500 has now gained or lost at least 2% for the week 3 of the 5 weeks so far this year. To put this into perspective, not a single week last year changed 2% up or down. The 4.6% drop yesterday was the single largest drop for the S&P 500 since August 2011. (LPL)
The Institute of Supply Management index of non-manufacturing activity hit 59.9 in January. Anything above 50 denotes growth.
The Federal Reserve imposed penalties against Wells Fargo blocking its ability to grow and firing four board members following widespread consumer abuses. Wells Fargo will not be allowed to grow its $1.95 trillion in assets until the Fed approves a remediation plan. (AP)
The S&P 500 is down 54 and the NASDAQ is down 86. The MSCI international index is lower.
Oil is down 79 cents at $63.36 a barrel.
Gold is up $5 at $1341 a Troy ounce.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.