U.S. Stocks Drop Sharply

U.S. stocks dropped sharply on Tuesday as corporations reported earnings that disappointed and orders for U.S. business equipment unexpectedly declined in December.

“If you live in the northeast, and you work from home, you’re trying to figure out why the market is down 400 points,” Art Hogan, market strategist at Wunderlich Securities, referring to the snowstorm that halted transit in and around New York City overnight before ending earlier Tuesday.

“It’s a combination of an increase in volatility when you have a decrease in volume, and a transition period between seeing the ill effects of lower energy prices on companies hurt by the stronger dollar and weaker commodity prices, before we see the benefits of better consumer spending,” said Hogan, who believes lower gasoline prices will eventually translate into increased discretionary purchases.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.