U.S. stocks reversed earlier gains as the divergence in global monetary policy became clear. Fed Chair Janet Yellen voiced her optimism over the economy in a testimony to Congress, paving the way for a December rate hike. Just hours earlier, the ECB committed to extending its stimulus to revive the eurozone. The Fed had its pick of data to analyze before the key jobs report out Friday. Growth in the U.S. services sector slowed in November, falling the most since 2008. New orders, business activity and employment fell over the month. Dollar General (DG) climbed after quarterly sales of food and seasonal items drove same-store sales higher over its recent quarter. However, analysts were expecting stronger sales, a disappointing sign ahead of the holiday shopping season.
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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.