A Dow(n) Day
For the first time in 110 days, the Dow and S&P 500 indexes both ended the trading day by declining more than 1%. Stock indexes and stocks in general have been performing rather well in the last 110 days, with the Dow itself breaking new records and hitting extraordinary milestones.
Why are indexes suddenly now declining? For one, the market can’t just go up all the time. A healthy stock market makes increases and decreases, and a 109-day period of mostly sizable increases is incredibly rare. Also, the uncertainty surrounding the American Health Care Act is causing investors to become more cautious about the Trump administration. Since Republicans will undoubtedly have a difficult time passing the AHCA, they’ll also have a hard time passing tax cuts and other laws beneficial to Wall Street. Investors fear that the delay or lack of pending tax cuts could hurt the economy, put a damper on its growth, or cause some sort of panic. While nothing’s happened yet, it’s the idea that it could happen that’s worrying the finance world. This shouldn’t, however, discourage you from investing.
Maybe Sears Doesn’t Have a Plan?
Sears ($SHLD), who recently rallied investors based on their several-point plan for their future, is now expressing doubt about their existence. The company says there is “substantial doubt” that its physical stores could survive in an environment where e-commerce is king. The company is currently shutting down many of their locations as they scramble to make up for a $2.2 billion loss in 2016. Head over to The New York Times for more on Sears’ recent disclosure.
Bebe = Online Only
Bebe ($BEBE) is no longer a physical store chain. The company is allegedly in the process of renegotiating all 170 of their leases in attempts to close them. Bebe’s clothes, however, will be available for sale on their website. In response to this report, first broken by Bloomberg, shares of $BEBE increased by over 14% this morning.