It was a rocky day on Wall Street on Wednesday. The Dow fell 268 points, the S&P 500 fell 33 points, and the Nasdaq dropped 82 points. Oil prices also took a hit, with Brent crude at one point breaking below $65 and WTI breaking below $61. Via Dave Lutz of JonesTrading, here's a quick overview of what trader's were talking about on Wednesday: Oil off 5%+ on OPEC/Saudi headlines, and heavy inventory builds. Commodity losses were mitigated some after floor trading closed, but those oil levered companies closed lower. Rails and regional banks were lower on oil weakness. Texas/ND regional banks were strong for most of the session, but collapsed in the afternoon. High yield bonds came under stress as the 'HYG' ETF broke lower due to a 15% weight on energy companies. The US dollar was weakening as investors piled into Treasury bonds. The euro gathered upward momentum as traders tried to cover their shorts in a crowded trade and the prospect of European QE was questioned in a "leaked" FT document. The yen also continued to rally against the dollar – felt like a "big" buyer (of dollars vs. yen) going out at 118. Some damage done on inflation breakevens, with 5-year breakevens nearing a test of 2010 lows. Fed funds futures noticed the damage and pushed out the 1st hike 1 month today. Greek fears are still weighing on the market. Shares of the National Bank of Greece are down 18% in 2 days. The 'GREK' ETF tracking Greek stocks is down 10%. Breaking Tuesday's support level in the S&P 500 set off some stop-losses. 2,025 is a key level for the bulls going forward. US homebuilders sold off after the Toll Brothers' quarterly report and comments regarding "zero pricing power" to improve gross margins. Market-on-close orders came in weak, with $2.3 billion coming up for sale into the close. Can't blame the late day sell off on oil. High yield looks to have bottomed at around 2:45 pm ET. The close was an exodus from financials: regional banks were off 3.2% on double normal volume. SEE ALSO: Stocks Crushed, Oil Tanks Join the conversation about this story »
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