Stock Market Closes Down Due to Corporate Downgrades Jan. 12, 2017

Daily Stock Market News Jan. 12, 2017:  Between disappointment over Trump’s first press conference since becoming the president-elect, as well as the downgrading of a number of large corporations, stocks fell today.  The Dow dropped as much as 170 points early this morning, but recovered enough to close down only 63 points.  See more of today’s news, as well as the closing numbers.

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U.S. Stock Market Closing Prices Jan. 12, 2017:

Dow Jones Industrial Averages:  19,891.00  -63.28  (-0.32 percent)

S & P 500:  2,270.44  -4.88  (-0.21 percent)

NASDAQ:  5,547.49  -16.16  (-0.29 percent)

Crude Oil:  $53.10 a barrel

Today’s Stock Market and Economic News:

The stock market fell sharply after the open this morning.  Within two hours, the Dow had fallen 150 points.  At the worst point, it was down 170 points.  Some of the decline was blamed on disappointment over Trump’s press conference yesterday, because some analysts had hoped for more information on how he plans to stimulate the economy.  However, as you will see below, there was other market news today, too.

Another concern is that Trump’s tax cuts could hurt the U.S. credit rating, especially because they are expected to increase the size of our national debt.

Many investors were also nervous about Trump’s criticism of the bio-tech industry, which caused the value of many pharmaceutical companies to drop:

The uncertainty is causing some analysts to recommend that people back off their exposure to equities as their only investment and diversify more.

Amazon’s online sales continue to be strong.  Things are going well enough that they announced this morning they expect to add 100,000 new full-time jobs over the next 18 months.

In order to fulfill their pledge to cut production and bolster oil prices, the Saudi’s have cut their own oil output to the lowest level in two years.  In addition, they have pledged further reductions.  This could help balance out increases from any countries which cheat on their pledged production cuts.  The price of oil recovered this morning.

Unemployment continues to remain low in the U.S., with weekly jobless claims rising less than expected.  This is one of the last jobless claims reports during the Obama Administration.

Despite the good economic news reported above, several companies reported problems this morning which were also a drag on the stock market.  You can see some of the seriously affected companies mentioned in the Tweets below were Delta and Fiat-Chrysler:

In addition, trading in shares of Fiat-Chrysler was halted this morning pending an announcement they were being accused of excess diesel emissions.

Next week we will be hearing more about the Brexit plans:

Last Year’s Stock Market and Economic Highlights for 2016:

If you wish to compare 2017 to 2016, here are a few of the most notable events in the stock market and the economy last year:

The Dow Jones Industrial Average rose 13.4 percent during 2016.

The S&P 500 climbed over 9 percent in 2016.

The Nasdaq was up over 7 percent during the year.

Average hourly wages were up over 2.4 percent during the year.

Unemployment dropped to 4.7 percent by the end of 2016.

Over 2 million new jobs were added to the economy during the 2016 (11.3 million jobs created during the Obama administration, with job growth for a record 75 straight months).

In 2016, auto sales hit a new record high of 17.5 million.

According to the Openfolio app, 77 percent of investors in the stock market made money in 2016.  The average investor made just over 5 percent in 2016.

The Federal Reserve raised their benchmark interest rate once … in Dec., 2016.

Home prices ended the year at all-time highs.

Resources: / MSN Money / Market Watch / YahooFinance / Bloomberg / Reuters / Wall Street Journal and other public news sources

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