As we noted earlier, today’s action in the market is exactly what you’d expect to see more of if the wheels came off the economy. Stocks down, deflation across various markets.
But that’s a long-term way of thinking. What about the short term?
First, HP shares are getting crushed after earnings. After initially sliding by 4-5%, the stock is off 11% after the conference call. Granted, the company may have its own issue, but it’s obviously going to weigh on the market in some manner.
Then, look at Apple. The stock was off in the early going on rumours of delays for the iPhone and iPad, but by the end of the day it was clear that the iPad rumour was unfounded. A date of March 2 (next week!) has been et for the announcement of the next iPad. And yet the stock didn’t respond at all. It ended at its lows of the day, off 3.4%.
And then, finally, there’s just the fact that the market basically ended at its lows for the day. The dip buyers were whacked in a way that they’re unaccustomed to.
We’ll be back soon to update you on the Asian markets.