Stocks Looking at Another Losing Week (7 of 9 for NASDAQ, S&P) with Exchanges Closing for Good Friday; Gold Rips Higher

Stocks took another beating on Wednesday. Without a doubt, something is not right. Probably a lot of things aren't right. President Trump's unpredictable nature has the world on edge, and, as has been reiterated here more than enough times, markets do not like uncertainty.

The brightest spot in the universe right now is probably the price of gold. It simply continues to rise and rise. Year-to-date, gold is up - at the overnight price of $3,364.20 - 29 percent, which is extraordinary and likely not yet finished. In consideration of the instability in world politics today, the price of gold could easily surpass $4000, even $5000, this year.

The price of gold is giving every indication that the global economy is about to undergo a radical redesign, one that has gold at its core, because, more than 110 years since the establishment of the U.S. Federal Reserve, fiat currencies and the people who support them and suppress the value of true money - gold and silver - have had their day, run their course, and are ready to be put out to pasture, or, even better, led, kicking and screaming to the financial slaughterhouse.

Conditions in the world are out of balance. The U.S. has lost prestige, due to its inability to honor its commitments. Europe is ready for a shallow grave. The days of colonial power having long passed, Asia is rising, as it should, shaking off the chains of central banks, free-floating currencies, fractional reserves, debt issuance and counterfeiting.

The world needs stability rather than chaos, understanding instead of conflict, and, peace, not war.

What is alarming is that major nations are gearing up for enlargement of military commitments. Russia is conscripting more young men than it has in 40 years. The proposed U.S. defense budget is over $1 trillion. China, already far ahead of its peers, has amassed the world's largest naval fleet and stands ready to defend itself from any and all who might oppose it.

China's dominance in trade and finance is unmistakable. Certain elements of the United States government are having a difficult time accepting that. There are still far too many neocon voices and actors in the U.S. government, moron war hawks bent on domination and supremacy. It's not likely to work out well for them or for the American people.

So now, rather than bombs and shells and death, the two great powers wage economic war. For now, that's fine, but one wonders where it leads.

After markets closed Wednesday, Alcoa (AA) reported first quarter EPS that beat estimates, though revenue fell short. Shares were flat after markets closed.

Taiwan Semiconductor (TSM) projected second quarter sales above estimates. Shares rose four percent in pre-market trading.

United Health (UNH) sent Dow futures plummeting Thursday morning, as the company reported EPS of $7.20 that was short of estimates and lowered its fiscal year 2025 estimate of adjusted EPS to 26.00 to 26.50, well below consensus projections of $29.74.

Shares of the Dow heavyweight were down 20 percent or more, with Dow futures down nearly 600 points (1.46%).

Another Dow component, American Express (AXP), posted solid numbers as consumer spending remained robust. The stock was trending slightly lower in pre-market trade.

DR Horton (DHI) posted fiscal second quarter EPS of $2.58, behind estimates for $2.67. The largest U.S. homebuilder also slashed fiscal 2025 forecasts, citing lagging demand for new homes. Shares of the company slipped three percent pre-market.

Regions Financial (RF), Ally (ALLY), and Fifth Third Bank (FITB) all reported figures mostly in line with estimates. After Thursday's close, Netflix (NFLX) reports. No big names are reporting Friday, as the market is closed in observance of Good Friday.

The shortened week probably is a relief to many traders weary from continued volatility, but it also pushed roughly $2 trillion in options expiring to Thursday, which might trigger even more volatility as another rough week comes to a close.

As of Wednesday's closing bell, the Dow is down 543 points for the week and likely to fall even further. The NASDAQ is down 417, approaching its seventh weekly loss in the last nine. The S&P is down 87 points for the week, which, like the NASDAQ would be seven losers out of the last nine.

Stock futures near 9:00 am ET: Dow: -552; NASDAQ: +150; S&P: +28.

Initial unemployment claims were flat, but Housing Starts were down 11% month on month, but Building Permits were up 1.6%, a very mixed picture.

Gold is near record highs, hitting $3365 overnight. Silver got as high as $33.01, but has since tailed off. It will be interesting to track gold and silver prices on Friday, with U.S. markets shut down.

At the Close, Wednesday, April 16, 2025:
Dow: 39,669.39, -699.57 (-1.73%)
NASDAQ: 16,307.16, -516.01 (-3.07%)
S&P 500: 5,275.70, -120.93 (-2.24%)
NYSE Composite: 18,245.65, -184.39 (-1.00%)