The Catalyst Behind Thursday's Stock Sell Off

Profit from the Pros The Catalyst Behind Thursday's Stock Sell Off Yesterday we discussed the zero sum consolidation game taking place these days for the market. Up 1%. Down 1%. Around and around we go. Certainly the -1.2% loss on Thursday can be lumped into that same game. However, there was one interesting piece of news on the day that does put a damper on recent optimism. This came in the form of a weak Chain Store Sales announcement from retailers that were so bad that the group sold off by -2.7%. This news is especially surprising given that more of the Easter shopping season was pushed into March which should have provided a boost to results. On the surface everything should be just peachy for consumers with improving employment picture, low inflation, strong dollar and ample energy savings to pad their wallets. Yet this is one of many recent signs that they are being more cautious with spending. That caution showed up in greater risk aversion from investors as they keep running to the safe haven of the 10 year Treasury pushing rates down to 1.69% from a recent high of 2%. Often bond investors get the big picture before the stock investors. If the risk aversion found in the bond market spills over more to stocks, then a retesting of the 200 day average at 2015 may come sooner rather than later. Best, Steve Reitmeister Executive Vice President, Zacks Investment Research Sponsor [Where Is Steve Moving His OWN Money Now?] Time's running out to look at the major shift in Zacks EVP Steve Reitmeister's personal portfolio. He's now pursuing big profits on a market development that could ignite at any hour. From 2010-2015, his trades outperformed the market with a stellar +124.4% overall gain. Unsurprisingly, they are now in exceptional demand. Access must close to new investors midnight Sunday, April 10. [See 6 Live Trades Right Now >>] [Is Your Portfolio Fit? 5 Stocks to Buy on World Heath Day] On World Health Day, let's find out stocks that are fit enough to fight market vagaries and emerge successful. [Read More »] [China Stock Roundup: Trina Solar Wins Turkish Contract, JinkoSolar Supplies to Puerto Rico] Markets suffered during a holiday shortened week as financial stocks took losses and investors considered the state of forex reserves. [Read More »] [Making Money if You Have a Neutral to Bearish Outlook] Kevin Matras goes over a neutral to bearish call strategy that you put on as a credit in your account. [Read More »] [Minimum Wage Brings Robots to Fast Food] Dave Bartosiak says, "Welcome to Econ 101. Profits equal revenue minus cost. Corporations will always try to increase their profits." [Read More »] [What will Q1 Earnings Season Bring?] Earnings growth is on track to be in the negative for the fourth quarter in a row. [Read More »] Sponsor [Increase Investment Returns with Free Zacks' Portfolio Tracker] Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including time recommendation changes, earnings announcements and, most importantly, earnings estimate revisions. [Click to Learn More>>] [Bull of the Day: Universal Forest Products (UFPI)] As volatility starts to pick up into earnings season this stock might present an attractive point of entry. [Read More »] [Bear of the Day: Core Labs (CLB)] Exposure to lower oil prices continues to keep investors away from this stock. [Read More »] [Customize Your Profit from the Pros Delivery] Connect with Us: [Facebook] [Twitter] [StockTwits] Contact Info: Phone: 1.800.767.3771 ext. 9339 Email: [support@zacks.com] [Terms] | [Privacy] | [Unsubscribe] [Zacks] You are registered to receive this "Profit From The Pros" e-mail newsletter at {EMAIL}