Stocks slumped further after news broke of a developing active shooter situation in an area one hour outside of Los Angeles, California. Reports indicate up to 20 people have been injured in the shooting with three dead. Markets were already lower after crude oil closed below the $40 level for the first time since late August. Prices were under pressure after domestic inventories rose for the tenth straight week in a row and ahead of OPEC's meeting on Friday. A December rate hike looked even more likely after the Federal Reserve's 'Beige Book' backed up Chair Janet Yellen's optimism over the improving economy. The collection of anecdotes suggested consumer spending was overshadowing the transitory effects of the strong dollar and weak global demand on manufacturing.
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How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.