Bears returned to the market today, our domestic credit crisis grizzly and the recent unexpected guest Russian bear, pushing pricing lower by the closing bell. The Dow finished down 139.88 or 1.19 per cent, the S & P was off 15.73 or 1.21 per cent, and NASDAQ lost 9.34 or .38 per cent.
Fresh downgrades by analysts on major banks stopped the stock market recent rally. The fighting between Russia and Georgia added anxiety to a market that was beginning to find its sea legs after a volatile June and July.
Moscow stated that it would withdraw its troops after days of intense warring, now that Georgian troops have pulled back from their Abkhazia and South Ossetia provinces. Movement by Russian troops leaving the area has not been detected, to date.
Oil and Gold both closed lower extending their unwinding from recent highs. The September contract for West Texas Intermediate ended its trading session $113.01 a barrel, off its low of $112.31. Gold dropped intraday to $802.90, then rallied to finish at $814.50.
The June trade deficit, reported by the Bureau of Economic Analysis, shrank to $56.6B from an expected $61.5B. This is one more clue suggesting that our economy is slowing down this quarter.
With state tax receipts down this year and in all likelihood going lower, states are considering a digital download tax. Retail e-commerce sales are expected to hit $130 billion this year.
The dollar traded mixed against major currencies.