The S&P 500 Drops Below 1,570

The stock market is taking another hit again this morning, and this time the culprit appears to be China. Financial stocks in China dropped 7% yesterday. The Chinese Fed posted a message on its website which essentially told big banks to deal with tighter money. Just like last week, bonds and gold are down as well.

Today’s move is more classically defensive. The major cyclical areas like materials and energy are down big while the more stable areas like staples and healthcare are down the least.

While the big Fed meeting was last week, there will be seven speeches this week by Fed members. These might provide important clues into the Fed’s thinking. On Wednesday, we get an earnings report from Bed Bath & Beyond ($BBBY).

Posted by on June 24th, 2013 at 9:56 am


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