Perhaps Santa is stuck in the chimney in Whoville, and Grinch snatched the Santa Claus rally (the last five trading day of 2015 and the first two in 2016). The only thing the markets seem to have in common with Santa is the color red. Apple is getting hit again, slipping more than 2% and taking its food chain (suppliers) with it (SWKS, NVDA, AVGO, NXPI, QCOM, etc). In a report released by the Nikkei Asian Review, Apple is expected to cut its iPhone 6S and 6S Plus production between January and March by 30% due to a backlog.
Oil is down about 2%, hovering around $36, and is weighing on the markets. Energy, industrials and materials are the biggest drag on the S&P 500, which is barely hanging on to the 2000 level. Some analyst are calling for earnings estimates for the S&P to decline by 5 percent in the next quarter, with 6 out 10 sectors expected to report negative profit growth year-over-year according to S&P Capital IQ.
One sector that is soaring today is the gun makers. In a teary speech from the White House, President Obama announced his latest executive actions intended to reduce gun violence. If you plan on selling a firearm at a gun show, over the internet or in a store you will now have to be licensed and conduct a background check of your buyer. Obama stated "The constant excuses for inaction no longer do, no longer suffice. That's why we're here today — not to debate the last mass shooting, but to do something to try to prevent the next one" He went on to say "We do not have to accept this carnage as the price of freedom."
All this negativity, along with global concerns is adding to investor uneasiness. It is also setting up some amazing buying opportunities.
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