The Euro is tanking on the European debt issues. This is causing the Dollar to surge to the upside. The stronger Dollar is putting more pressure on the U.S. markets. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is sharply higher, trading at $21.67, +0.25 (1.17%).
This drop in the markets is coming on the back of a monstrous rally in the markets over the last two weeks. The Dow Jones Industrial Average was up more than 6% in less than two weeks. Friday, the rally finally started to fail as the Non Farm Payrolls numbers came in sharply below expectations. With just 18,000 jobs created last month, the markets dropped. Master the markets by learning and trading with the pros. Take the seven day free trial to the Research Center.
All sectors are taking a hit today but banks are under extreme pressure. This is due to their exposure to credit default swaps, stemming from the issues in Europe. Should European countries default, a new financial crisis would erupt. Goldman Sachs Group, Inc. (NYSE:GS) is trading at $131.85, -2.23 (-1.66%), JPMorgan Chase & Co. (NYSE:JPM) is trading at $39.52, -1.22 (-2.99%) and Wells Fargo & Company (NYSE:WFC) is trading at $27.65, -0.65 (-2.30%).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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