AuthorTopic: Big Slide v2.0 Begins  (Read 100022 times)

Offline Eddie

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Re: Big Slide v2.0 Begins
« Reply #570 on: June 19, 2018, 12:33:49 PM »
I understand that it's a matter of principle for you, and I respect that. I still don't want to see a good man suffer. You ARE a good man. Palloy, for all our arguing, is a good man.

But.....I don't think it will matter much. As much as I'd like to see mankind wise up and take our collective medicine, I don't think it's likely. We will crash. It will suck. People will die early and often. I am getting ready for that, not for whatever song and dance is happening this week or this month.

If I thought we could reverse that die-off, practically speaking, and that our fearless leaders could and would make the kind of hard decisions that well-intentioned folks like you would like to see, I'd be more like you and Palloy, and rooting for the crash.

They won't, and I'd rather have plenty to eat for as long as I can, given the circumstances.
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Offline Eddie

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Re: Big Slide v2.0 Begins
« Reply #571 on: June 19, 2018, 12:48:07 PM »
(And with respects to the reserve currency stuff)

 I just get tired of hearing about how we stand on the shoulders of the starving billions, eating cake while they eat crumbs. Too many people want to shame other people over that, as if we were doing it on purpose.

It isn't that simple, and neither of us has the slightest control of how that came to be, or even what happens with that going forward.

I didn't cause it. When it changes, it won't be due to anything I did or didn't do. (I don't have any stocks either, at the moment. But that's beside the point.)

I'm happy for you to report on the markets. I just think speculation about impending market crashes gets way overdone on the Diner.

It's a decade since the last crash, and somebody has been predicting another crash at least once a week around here for five years. I don't think we'll see it for at least two more years, and it might be longer.
« Last Edit: June 19, 2018, 12:50:50 PM by Eddie »
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Online RE

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This is like dropping unemployed people off the UE Stats when their bennies run out.  Don't count the failing companies in the average!

RE

https://www.npr.org/2018/06/19/621659846/dow-jones-drops-ge-a-member-of-the-original-industrial-average-in-1896

Dow Jones Drops GE, A Member Of The Original Industrial Average In 1896

June 19, 201811:51 PM ET

Christopher Dean Hopkins


Specialist John McNierney works at the post that handles General Electric on the floor of the New York Stock Exchange in January. The struggling company is being dropped from the Dow Jones industrial average.
Richard Drew/AP

When the Dow Jones industrial average was created more than 120 years ago, it included 12 companies. Nearly all of the names faded away long ago: United States Leather Co., Distilling & Cattle Feeding Co., Chicago Gas Light And Coke Co.

All but one: General Electric, which is finally being dropped from the now 30-company stock index in favor of the parent company of the Walgreens chain of pharmacies. The change, announced Tuesday, will take effect June 26.

General Electric was off and on the average repeatedly in its early years, but had been a fixture since 1907. Standard Oil descendant ExxonMobil is the next longest-tenured company, first added in 1928. All but two other companies, United Technologies and Procter & Gamble, were added after 1975.
GE Struggles To Show It Still Has Magic Touch
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GE Struggles To Show It Still Has Magic Touch

"With its addition, the DJIA will be more representative of the consumer and health care sectors of the U.S. economy," said David Blitzer, managing director of Dow Jones Indices, said in a press release. "Today's change to the DJIA will make the index a better measure of the economy and the stock market."

As recently as 2005 according to Reuters, General Electric was the most valuable publicly traded company in the United States. The industrial conglomerate — originally assembled out of the various business interests of Thomas Edison in 1889 — was long without peer in the business world.
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General Electric To Sell Majority Of Finance Arm, Real Estate Holdings

But in recent years the company has been through a painful restructuring that has included the loss of its once highly profitable finance division, reports NPR's Jim Zarroli. It also sold off its century-old railroad business, and its stock has fallen by half in the past year.

GE will be replaced by the drug store chain Walgreens Boots Alliance, which has more than 13,000 retail pharmacies in 11 countries, as well as nearly 400 pharmaceutical distribution centers.

The Dow, initially intended as a representative sample of the U.S. industrial sector, is now more reflective of the economy as a whole, and regularly updates its roster of 30 companies in an effort to maintain that. Other changes this decade were dropping AT&T in favor of Apple in 2015; replacing Alcoa, Bank of America and Hewlett Packard with Nike, Visa and Goldman Sachs in 2013; and adding insurer UnitedHealth in place of Kraft Foods in 2012.
Walgreens Cashes In On Department Stores' Pain
Business
Walgreens Cashes In On Department Stores' Pain

It should be noted that removal from the Dow is no corporate death knell — even some of the first companies taken out still exist in some form. Chicago Gas Light And Coke Company, for instance, dropped in 1898, existed as a standalone company until 2007 and has been incorporated into regional utility provider Wisconsin Utility Corporation.

And Reuters notes that Bank of America, dropped in 2013, has outperformed the industrial average significantly since then.
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📉 Wall Street tumbles on renewed U.S.-China trade jitters
« Reply #573 on: June 29, 2018, 05:48:03 AM »

https://finance.yahoo.com/news/stock-futures-point-lower-trade-114105720.html

Wall Street tumbles on renewed U.S.-China trade jitters


By April Joyner

NEW YORK (Reuters) - U.S. stocks fell on Wednesday on renewed uncertainty regarding the U.S. stance on Chinese investments in American technology companies, reversing gains earlier in the session.

At the market open, stocks rose as President Donald Trump said he will use a strengthened national security review panel — the Committee on Foreign Investment in the United States (CFIUS) — to deal with potential threats from Chinese acquisitions of U.S. technology, instead of imposing China-specific restrictions.

The decision was seen by investors as a somewhat softer approach than plans reported earlier to block firms with at least 25 percent Chinese ownership from buying U.S. tech firms.

But later on Wednesday, White House economic adviser Larry Kudlow said in an interview on Fox Business Network that Trump's announced plan did not indicate a softened stance on China.

"The market took that as a sign that the hardline approach to China has not waned," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

The S&P 500 technology sector (.SPLRCT) fell 1.5 percent, weighing the most on the broader S&P 500 index. Chipmakers, which derive much of their revenue from China, fell even more. The Philadelphia semiconductor index (.SOX) slid 2.5 percent.

Stocks were pressured further by a rise in the U.S. dollar. A jump in oil prices to their highest in more than three years boosted the S&P 500 energy index 1.3 percent, but some investors raised concern that they may have a negative effect on other sectors.

"It was a combination of (trade) and the dollar strength. Oil is really strong today. You've a rally in Treasuries, too. A lot of it is snowballing," said Mark Kepner, equity trader at Themis Trading in Chatham, New Jersey.

The Dow Jones Industrial Average (.DJI) fell 165.52 points, or 0.68 percent, to 24,117.59, the S&P 500 (.SPX) lost 23.43 points, or 0.86 percent, to 2,699.63 and the Nasdaq Composite (.IXIC) dropped 116.54 points, or 1.54 percent, to 7,445.09.

The small-cap Russell 2000 index (.RUT) declined 1.7 percent. It has recently rallied on uncertainty in trade relations, given that small-cap companies are more domestically focused than their large-cap counterparts.

Conagra Brands Inc (CAG.N) dropped 7.3 percent after it said it would buy Pinnacle Foods Inc (PF.N) for about $8.1 billion in cash and stock. Pinnacle Foods fell 4.3 percent after the deal announcement.

Declining issues outnumbered advancing ones on the NYSE by a 2.58-to-1 ratio; on Nasdaq, a 4.11-to-1 ratio favored decliners.

The S&P 500 posted 13 new 52-week highs and 16 new lows; the Nasdaq Composite recorded 54 new highs and 81 new lows.

Volume on U.S. exchanges was 7.72 billion shares, compared to the 7.33 billion average for the full session over the last 20 trading days.



(Additional reporting by Sruthi Shankar in Bengaluru and Sinéad Carew in New York; Editing by Shounak Dasgupta and Tom Brown)
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Offline agelbert

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It's just volatility - Nothing to see here - move along
« Reply #574 on: June 29, 2018, 01:37:21 PM »

Leges         Sine    Moribus      Vanae   
Faith,
if it has not works, is dead, being alone.

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😧 Suckerbug gets Facepalmed
« Reply #575 on: July 26, 2018, 04:14:10 AM »



Facebook stock drops more than 20% after warning that revenue growth will take a hit
https://www.marketwatch.com/story/facebook-stock-crushed-after-revenue-user-growth-miss-2018-07-25?mod=pulse_full_story

Published: July 25, 2018 8:40 p.m. ET


Facebook earnings include ‘nightmare guidance’ that lopped more than $100 billion off its market cap in after-hours trading
Bloomberg News
Facebook Inc. may finally be feeling the effects of its data-privacy controversies.

By
Max A. Cherney
Tech reporter

Facebook Inc. is evidently not bulletproof.

The social-media behemoth’s stock lost roughly one-fifth of its value in the extended session Wednesday after its earnings report missed expectations on revenue and showed slowing user growth. Weak guidance also rattled investors.

Facebook FB, -19.74%  stock dropped about 7% immediately after the earnings report was released, then plummeted to a loss of more than 20% as a conference call with analysts progressed. Close to 34 million shares changed hands in the extended session, well above the average volume of 17 million shares for a regular trading session over the past month.

Should the losses hold into Thursday’s regular session, Facebook would lose more than $100 billion in market capitalization and lose the stock’s gains for the year thus far. As the after-hours session wrapped up, Facebook was trading at $173.50, down 20%.

Facebook stock had recovered from a decline earlier this year in the wake of the Cambridge Analytica scandal, one of several controversies and warning signs that the company had managed to weather with little damage to its stock. But declining revenue and user growth, topped by a warning from executives that it will continue, seemed to end that run.



See Also
IBM's Bridget van Kralingen: How I Work

“The guidance, it’s nightmare guidance,” GBH Insights head of technology research Daniel Ives said. “If you look at their forecast for the second half of the year in terms of user growth, and the expense profile, it refuels the fundamental worries about Facebook post-Cambridge Analytica.”

Don’t miss: #DeleteFacebook has not had effect, but it will take years to fix Facebook

The Menlo Park, Calif.-based company reported $5.12 billion in net income for the quarter, which amounts to $1.74 a share, up from $3.89 billion or $1.32 a share in the year-ago period. The bottom-line beat was above analysts’ average estimates of $1.71 a share.

Profits were not what rattled investors, though. Facebook recorded sales of $13.04 billion, a 41.9% increase from a year ago, but that was lower than analyst estimates and previous growth rates. User growth was flat in the U.S. and Canada, and declined in Europe from the previous quarter.

But the stock didn’t fall off a cliff until Chief Financial Officer David Wehner disclosed that the social-media giant expects the revenue-growth slowdown to continue.

“Our total revenue-growth rates will continue to decelerate in the second half of 2018, and we expect our revenue-growth rates to decline by high-single-digit percentages from prior quarters sequentially in both Q3 and Q4,” he said on the conference call. Wehner also said Facebook still expects expenses to grow 50% to 60% from last year.

See also: Zuckerberg effectively defends right of Holocaust deniers to be heard on Facebook

In the past, founder and Chief Executive Mark Zuckerberg has said the company planned to hire 20,000 people to handle safety and security on its platforms in response to controversies such as use of Facebook to push fake news ahead of the 2016 U.S. election. The company disclosed that its head count has increased 47% to 30,275 since the year-earlier period, part of that outsize spending.

“As I’ve said on past calls, we’re investing so much in security that it will significantly impact our profitability,” Zuckerberg said. “We’re starting to see that this quarter.”

Even though Ives says that the quarter was far from disastrous — it was decent with a few rough patches — he expects investors to continue punishing the stock in the near-term.

“The quarter itself had geographic soft spots and disappointed the bulls,” Ives said. “There are a lot of natural headwinds [Facebook is] seeing, this is going to be one quarter that puts the stock in the penalty box for a while until they can prove that advertising tailwinds and user growth are back on the right track.”

Read also: Facebook likely to profit from new European rules on data privacy, analyst says

Facebook’s numbers in Europe declined in large part due to the European Union’s General Data Protection Regulation, which went into effect during the quarter. Some analysts had speculated that GDPR might actually benefit giants such as Facebook and Alphabet because they would be able to implement the new requirements unlike smaller companies, but Zuckerberg and other executives said GDPR was the reason for Europe’s slowing user count. It dropped by 3 million daily users and 1 million monthly users since the first quarter.

“We did see a decline in monthly actives in Europe, down by about 1 million people as a result, and at the same time, it was encouraging to see the vast majority of people affirm that though want us to use context, including from websites this they visit, to make our ads more relevant and improve their overall product experience,” Zuckerberg said on the earnings call with analysts.

Chief Operating Officer Sheryl Sandberg said on the call that the GDPR has not affected the company’s top line.

See: 5 things to know about the GDPR rules taking effect Friday — which could cost big, bad tech billions

The one saving grace for Facebook could be continued support from advertisers. Less subject to the quarterly demands of investors, advertisers aren’t yet seen as planning to ease back on Facebook budgets.
TimeFacebook Inc. Cl ASep 17Nov 17Jan 18Mar 18May 18Jul 18
US:FB
$140$160$180$200$220$240

“There’s still unprecedented scale, the best ad tech in the industry,” said PMX Agency Facebook lead Jesse Math. “In the short term, Facebook is still viable. Really this quarter and this year it’s focused on a long-term strategy, everything they do is focused on making Facebook a place where users want to be. All the changes it’s been making to the platform, the algorithms, the tools advertisers use are for the long term.”

As Facebook stock plummeted after hours, it also brought social-media rivals Twitter Inc. TWTR, -3.78%  and Snapchat parent company Snap Inc. SNAP, -4.33%  to the party, sending both stocks down by single-digit percentages. Facebook stock has gained 23% this year, as the S&P 500 index  SPX, +0.91%  rose 5.5%.
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Offline Eddie

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Re: 😧 Suckerbug gets Facepalmed
« Reply #576 on: July 26, 2018, 06:15:25 AM »



Facebook stock drops more than 20% after warning that revenue growth will take a hit
https://www.marketwatch.com/story/facebook-stock-crushed-after-revenue-user-growth-miss-2018-07-25?mod=pulse_full_story

Published: July 25, 2018 8:40 p.m. ET


Facebook earnings include ‘nightmare guidance’ that lopped more than $100 billion off its market cap in after-hours trading
Bloomberg News
Facebook Inc. may finally be feeling the effects of its data-privacy controversies.

By
Max A. Cherney
Tech reporter

Facebook Inc. is evidently not bulletproof.

The social-media behemoth’s stock lost roughly one-fifth of its value in the extended session Wednesday after its earnings report missed expectations on revenue and showed slowing user growth. Weak guidance also rattled investors.

Facebook FB, -19.74%  stock dropped about 7% immediately after the earnings report was released, then plummeted to a loss of more than 20% as a conference call with analysts progressed. Close to 34 million shares changed hands in the extended session, well above the average volume of 17 million shares for a regular trading session over the past month.

Should the losses hold into Thursday’s regular session, Facebook would lose more than $100 billion in market capitalization and lose the stock’s gains for the year thus far. As the after-hours session wrapped up, Facebook was trading at $173.50, down 20%.

Facebook stock had recovered from a decline earlier this year in the wake of the Cambridge Analytica scandal, one of several controversies and warning signs that the company had managed to weather with little damage to its stock. But declining revenue and user growth, topped by a warning from executives that it will continue, seemed to end that run.



See Also
IBM's Bridget van Kralingen: How I Work

“The guidance, it’s nightmare guidance,” GBH Insights head of technology research Daniel Ives said. “If you look at their forecast for the second half of the year in terms of user growth, and the expense profile, it refuels the fundamental worries about Facebook post-Cambridge Analytica.”

Don’t miss: #DeleteFacebook has not had effect, but it will take years to fix Facebook

The Menlo Park, Calif.-based company reported $5.12 billion in net income for the quarter, which amounts to $1.74 a share, up from $3.89 billion or $1.32 a share in the year-ago period. The bottom-line beat was above analysts’ average estimates of $1.71 a share.

Profits were not what rattled investors, though. Facebook recorded sales of $13.04 billion, a 41.9% increase from a year ago, but that was lower than analyst estimates and previous growth rates. User growth was flat in the U.S. and Canada, and declined in Europe from the previous quarter.

But the stock didn’t fall off a cliff until Chief Financial Officer David Wehner disclosed that the social-media giant expects the revenue-growth slowdown to continue.

“Our total revenue-growth rates will continue to decelerate in the second half of 2018, and we expect our revenue-growth rates to decline by high-single-digit percentages from prior quarters sequentially in both Q3 and Q4,” he said on the conference call. Wehner also said Facebook still expects expenses to grow 50% to 60% from last year.

See also: Zuckerberg effectively defends right of Holocaust deniers to be heard on Facebook

In the past, founder and Chief Executive Mark Zuckerberg has said the company planned to hire 20,000 people to handle safety and security on its platforms in response to controversies such as use of Facebook to push fake news ahead of the 2016 U.S. election. The company disclosed that its head count has increased 47% to 30,275 since the year-earlier period, part of that outsize spending.

“As I’ve said on past calls, we’re investing so much in security that it will significantly impact our profitability,” Zuckerberg said. “We’re starting to see that this quarter.”

Even though Ives says that the quarter was far from disastrous — it was decent with a few rough patches — he expects investors to continue punishing the stock in the near-term.

“The quarter itself had geographic soft spots and disappointed the bulls,” Ives said. “There are a lot of natural headwinds [Facebook is] seeing, this is going to be one quarter that puts the stock in the penalty box for a while until they can prove that advertising tailwinds and user growth are back on the right track.”

Read also: Facebook likely to profit from new European rules on data privacy, analyst says

Facebook’s numbers in Europe declined in large part due to the European Union’s General Data Protection Regulation, which went into effect during the quarter. Some analysts had speculated that GDPR might actually benefit giants such as Facebook and Alphabet because they would be able to implement the new requirements unlike smaller companies, but Zuckerberg and other executives said GDPR was the reason for Europe’s slowing user count. It dropped by 3 million daily users and 1 million monthly users since the first quarter.

“We did see a decline in monthly actives in Europe, down by about 1 million people as a result, and at the same time, it was encouraging to see the vast majority of people affirm that though want us to use context, including from websites this they visit, to make our ads more relevant and improve their overall product experience,” Zuckerberg said on the earnings call with analysts.

Chief Operating Officer Sheryl Sandberg said on the call that the GDPR has not affected the company’s top line.

See: 5 things to know about the GDPR rules taking effect Friday — which could cost big, bad tech billions

The one saving grace for Facebook could be continued support from advertisers. Less subject to the quarterly demands of investors, advertisers aren’t yet seen as planning to ease back on Facebook budgets.
TimeFacebook Inc. Cl ASep 17Nov 17Jan 18Mar 18May 18Jul 18
US:FB
$140$160$180$200$220$240

“There’s still unprecedented scale, the best ad tech in the industry,” said PMX Agency Facebook lead Jesse Math. “In the short term, Facebook is still viable. Really this quarter and this year it’s focused on a long-term strategy, everything they do is focused on making Facebook a place where users want to be. All the changes it’s been making to the platform, the algorithms, the tools advertisers use are for the long term.”

As Facebook stock plummeted after hours, it also brought social-media rivals Twitter Inc. TWTR, -3.78%  and Snapchat parent company Snap Inc. SNAP, -4.33%  to the party, sending both stocks down by single-digit percentages. Facebook stock has gained 23% this year, as the S&P 500 index  SPX, +0.91%  rose 5.5%.

When the LBO Kings of Wall Street come for Mark Zuckerberg, they'll turn him into roadkill. What a putz.
What makes the desert beautiful is that somewhere it hides a well.

Online RE

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🤮 Facepalm PUKES!
« Reply #577 on: July 27, 2018, 12:26:53 AM »
How LOW can it GO?  ???

RE

https://www.huffingtonpost.com/entry/facebook-braces-for-stock-wipeout_us_5b59d4f7e4b0b15aba9618df

 BUSINESS 07/26/2018 10:13 am ET Updated 10 hours ago
Facebook Heads For Biggest One-Day Wipeout In U.S. Stock Market History

CEO Mark Zuckerberg stands to lose $15.8 billion in net worth.
Vibhuti Sharma and Munsif Vengattil

By Vibhuti Sharma and Munsif Vengattil


Facebook’s founder and CEO Mark Zuckerberg speaks at the Viva Tech start-up and technology summit in Paris, France, May 24, 2018. (REUTERS/Charles Platiau)
(Reuters) - Facebook Inc Chief Executive Officer Mark Zuckerberg’s fortune took an almost $16 billion hit on Thursday, as the social media giant headed for the biggest one-day wipeout in U.S. stock market history, a day after executives forecast years of lower profit margins.

At least 16 brokerages cut their price targets on Facebook after Chief Financial Officer David Wehner startled an otherwise routine call with analysts by saying the company faced a multi-year squeeze on its business margins.

That “bombshell”, as one analyst termed it, played into concerns on Wall Street that Facebook’s model could be under threat after a year that has been dominated by efforts to head off concerns over privacy and its role in global news flow.

Shares fell as much as 19.6 percent to $174.78, a decline that if sustained would wipe about $124 billion off the company’s value - or nearly four times the entire market capitalization of Twitter Inc.

Dismal revenue, which initially pulled the stock down nearly 9 percent on Wednesday, clearly was not the end for wounded investors.

“Over the next several years, we would anticipate that our operating margins will trend towards the mid-30s on a percentage basis,” Wehner told the results conference call with analysts.

Facebook’s margin fell to 44 percent in the second quarter from 47 percent a year ago as it spent heavily on security and initiatives to convince users the company was protecting their privacy.

The company also said that revenue growth from emerging markets and the company’s Instagram app, which has been less affected by privacy concerns, would not be enough to repair the damage.

The impact on the rest of the FAANG group of high-flying tech stocks was marginal.

Shares in Alphabet were unchanged while those in Apple Inc and Netflix Inc dipped just a third of a percent. Amazon.com Inc fell 2.8 percent ahead of its own results report later on Thursday.
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Of 47 analysts covering Facebook, 43 still rate the stock as “buy”, two rate it “hold” and only two rate it “sell”. Their median target price is $219.30.

MoffettNathanson analysts called the company’s forecast “either the new economic reality of their business model or a very public act of self-immolation to stave off further regulatory pressure”.

The $15.8 billion in net worth that Zuckerberg stands to lose in the move is equal to the wealth of the world’s 81st-richest person, currently Japanese businessman Takemitsu Takizaki, according to Forbes real time data.

Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, in recent years has trimmed, but not eliminated, the amount of Facebook shares in his clients’ accounts, and he said he sees the company as a three-year investment.

“We own it for its leadership in the tech industry,” he said. “It’s the F in FAANG, but what’s to say that, 10 years from now, Facebook isn’t the next Myspace and something else has taken its place?”

(Click here for a graphic on Facebook’s slowing revenue growth)

Reporting by Vibhuti Sharma, Munsif Vengattil and Devbrat Saha in Bengaluru and Noel Randewich in San Francisco; Editing by Robin Paxton and Patrick Graham
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Offline azozeo

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Zuck loses $16,800,000,000.00 - Tracebook Fire Sale Ignites
« Reply #578 on: July 27, 2018, 07:16:36 AM »



http://www.shtfplan.com/headline-news/zuckerberg-loses-16-8-billion-as-facebook-plunges-and-insiders-sell_07262018
I know exactly what you mean. Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world.
You don’t know what it is but its there, like a splinter in your mind

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📉 Stock Indexes Close Sharply Lower As Market Faces This Critical Test
« Reply #579 on: August 16, 2018, 01:49:17 AM »
https://www.investors.com/market-trend/stock-market-today/stock-indexes-close-lower-market-faces-test-support/

    Stock Market Today

Stock Indexes Close Sharply Lower As Market Faces This Critical Test


    JUAN CARLOS ARANCIBIA
    8/15/2018

Stock indexes pared losses Wednesday after the day's broad losses left the market looking to a key indicator for signs on its future direction.

The S&P 500 slid 0.8% on the stock market today. The Nasdaq composite fell 1.2% for its largest loss since July 30. The Dow Jones industrial average lost 0.5%.

Nasdaq and S&P 500 lows coincided with the 50-day moving averages. Indexes often bounce from that price-trend indicator, as the Nasdaq did in late June and late July.

The bounce in the final hour of Wednesday's trading suggested another rebound is possible, a potentially good sign. But if the Nasdaq and Dow sink below the moving averages, it would be reason to be more cautious. Thus, the test of support is the most important signal for the market's immediate future.

Small caps did not escape selling, as the Russell 2000 slid 1.2% at the closing bell.

Volume rose sharply from Tuesday's levels, leaving little doubt that institutional investors participated heavily in the market sell-off. Institutional selling had been restrained in the past several weeks, but now investors have to watch for a return of big-volume selling.

Energy, mining, retail and semiconductor sectors were Wednesday's weakest.

Macy's (M) underscored the weakness in retail. Shares tumbled 16% Wednesday, just one day after enthusiasm ahead of this morning's earnings report sent the stock above a 41.04 buy point in big volume. But investors dumped shares despite Macy's positive report. The company beat profit views and raised guidance. The loss resulted in a sell signal for Macy's.

Investors sought shelter in yield-type investments. The SPDR Utilities ETF (XLU) climbed 0.9%. The yield on the 10-year Treasury note fell 4 basis points to 2.85% in a rush for bonds. Real estate stocks — which include dividend-rich REITs — also climbed.

Other defensive groups stood tall, including tobacco and soap companies and food-related industries.

As for the rest of the market, there was gloom just about everywhere. Declining stocks led advancers by 7-2 on the Nasdaq and by 9-4 on the NYSE.

The IBD 50 fell 1.4% based on unconfirmed numbers. Yet only a few stocks suffered any serious damage. Palo Alto Networks (PANW) closed below the 50-day line. Match Group (MTCH) slid 3% and is below its 48.75 buy point. Orion Engineered Carbons (OEC) closed below the 34.05 buy point of its Aug. 3 breakout.

A rout in Chinese stocks continued while other emerging markets tumbled. IShares MSCI Emerging Markets ETF (EEM) fell nearly 3% to its lowest level in more than 13 months. IShares China Large-Cap ETF (FXI) fell 3.5% and also hit a 13-month low.

RELATED:

Global Economic Boom Over: Copper Slides, Dollar Surges On Trump Tariffs, Fed Rate Hikes

China Internet Stocks Hammered As Tencent Earnings Show Surprise Miss

When Will The Dow Jones Or Nasdaq Show A Major Stock Market Top?
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📉 Don’t Bet on a Market Crash If Trump Gets Ousted
« Reply #580 on: August 25, 2018, 12:59:34 AM »
It's already Priced In.  Everyone expects Trumpofsky to be Impeached now.

RE


Markets
Don’t Bet on a Market Crash If Trump Gets Ousted

Based on the past, major political events don’t have much effect.
By Barry Ritholtz
August 24, 2018, 10:07 AM AKDT

The stock market will be fine. Photographer: David Hume Kennerly/Archive Photos/Getty Images

Barry Ritholtz is a Bloomberg Opinion columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He is the author of “Bailout Nation.”
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On Tuesday, after two key allies of Donald Trump — his former campaign manager and his personal attorney — become felons, the president declared in an interview on “Fox & Friends”:

    If I ever got impeached, I think the market would crash. I think everybody would be very poor. Because without this thinking, you would see numbers that you wouldn't believe in reverse ... I got rid of regulations. The tax cut was a tremendous thing. 

It is an assertion that deserves closer scrutiny: What happens when external events roil markets? How do impeachments, or for that matter, military or terror attacks or even presidential assassinations, affect equity markets?

The short answer: Truly unanticipated events — think Pearl Harbor, Sept. 11 or John F. Kennedy’s assassination — cause markets to temporarily wobble under the strain of the emotional shock. Once that subsides in a few days or weeks, markets then resume their prior trends.

The more telegraphed events, where probabilities were well understood — and I believe we can include the 2003 invasion of Iraq, the impeachment of Bill Clinton, even Brexit and the election of Trump — hardly affect markets at all. Let’s take a closer look at these events to see what we can learn.

 • Nixon and Clinton: The impeachment of Clinton in December 1998 and President Richard Nixon’s resignation to avoid being impeached in August 1974 each took place in very different market and economic environments. Clinton’s travails occurred amid a roaring expansion, modest inflation and a technology boom. The torrid stock market shook off the impeachment, and finished the year strongly. 

Nixon faced the opposite set of economic and market conditions. Inflation became worrisome in 1972, and was aggravated by the 1973 oil embargo. The Standard & Poor’s 500 Index peaked in early 1973 and then proceeded to plunge 47 percent by October 1974.

Nixon’s resignation on Aug. 9, 1974, was in the late innings of the market collapse. Stocks were already in a steep decline before Nixon departed, and that trend continued for several months after he left office. In other words, there’s nothing here to suggest that either presidential event played any role in the direction of the stock markets, either before or after.

 • The JFK assassination: When Kennedy was inaugurated, the markets had been rising at a healthy pace. The assassination on Nov. 22, 1963, certainly shocked the market. The S&P 500 fell 2.8 percent that day. But it quickly rebounded in the ensuing days, resuming its upward trend. Sam Stovall, chief equity strategist at S&P Capital IQ, told USA Today on the 50th anniversary of the killing that “Wall Street assessed very early on that the assassination, while tragic, would not alter U.S. or global growth ... It’s not as if the death of the president would close shipping lanes, or cause oil wells to shut off or interest rates to spike.” Stocks gained 25 percent during the next 12 months.

 • Pearl Harbor, Sept. 11: When each of these surprise attacks occurred, markets around the world reacted immediately. The day after the Japanese attack on the U.S. military facilities at Pearl Harbor, equities fell 4.4 percent; the following day they dropped another 3.2 percent, then stabilized. Anyone who was a buyer the week after the attacks saw surprisingly strong gains through the end of the war.

The 9/11 attacks on a Tuesday forced the New York Stock Exchange to close for the rest of the week in the longest shutdown since 1933. When the exchange opened the next Monday, the Dow Jones Industrial Average fell 7.1 percent while the S&P 500 declined 4.9 percent. Although these declines were big, directionally they were in keeping with market trends since March 2000, which marked the peak of the dot-com boom.

Having a better understanding of what drives long-term market returns is helpful when analyzing these external geopolitical events. Politics tends to be noisy and distracting, and while it makes for good headlines, it is typically not relevant to investing.

The more relevant questions to ask are: How do these events affect revenues and earnings? Could this event have an impact on inflation, and therefore interest rates? Last, will this damp investor sentiment and thus affect risk appetites?

Global capital markets are vast, taking in hundreds of trillions of dollars. To derail that takes more than a temporary event involving the legal status of the American president. A large part of the world’s interest in the U.S.’s stock market is the institutional support for the rule of law, and although Trump has recklessly attacked it, this institutional framework remains in place.

What about a President Mike Pence? The things the equity markets like about Trump — tax cuts, deregulation and deficit spending — are likely to continue under a Pence administration.

I suspect the markets would be just fine with that.
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📉 Stock prices tumble as interest rate fears grip Wall Street
« Reply #581 on: October 04, 2018, 02:35:06 PM »
https://www.cbsnews.com/news/stock-prices-tumble-as-interest-rate-fears-grip-wall-street/

 CBS/AP October 4, 2018, 4:27 PM
Stock prices tumble as interest rate fears grip Wall Street


NEW YORK – Just one day after the Dow Jones industrials average closed at a record high, global stocks nose-dived Thursday as interest rates in the U.S. continue to rise. The S&P 500 index suffered its biggest drop in months as internet and technology companies fell. The yield on the 10-year Treasury note climbed again, to 3.19 percent, after hitting a seven-year high just a day ago.

Strong reports on job gains and the service industry have sent bond prices tumbling over the last two days as bond traders bet the U.S. economy will keep growing. Government bonds are stable investments that look most appealing when economic growth is shaky. But the big drop in bond prices is pushing interest rates sharply higher, a development that worries investors because it can eventually slow economic growth by making borrowing more expensive for consumers and businesses.

After being hammered lower by more than 350 points earlier on Thursday, the Dow Jones industrials index ended the day down 201 points, or 0.75 percent, at 26,627. The S&P 5oo lost 24 points, or 0.8 percent, to close at 2,902. The Nasdaq Composite took the day's hardest fall, tumbling 146 points, or 1.8 percent, ending at 7,880.

Google's parent company Alphabet fell nearly 3 percent, while Microsoft and Amazon lost around 2 percent each. Apple gave up 1.8 percent.

Thursday's drop ends three months of relative calm on the stock market as investors were heartened by the state of the U.S. economy and were growing less concerned about trade tensions between the U.S., China and other countries.

At 3.19 percent, the 10-year Treasury yield is at its highest level since May 2011, following encouraging signs on hiring by private companies and growth for services companies.

That data suggests the economy should keep growing at a solid pace. That translates to bigger profits for U.S. companies and continued increases in interest rates by the Federal Reserve, which raises rates to keep inflation in check. But as interest rates rise, it becomes more expensive for consumers and businesses to borrow money, and growth gradually slows.

Sameer Samana, strategist for the Wells Fargo Investment Institute, said after months of positive economic data, traders in the bond market are selling because they've decided yields are too low for them to get a good return on their investments.

"Economic data for months has been strengthening," he said. "The bond market has completely ignored it until recently."

Samana said investors aren't shying away from the stock market, because they're buying shares of companies that have been left out of the market's recent gains. Bank stocks are flat this year, while the S&P 500 index of industrial companies is up 4 percent and energy companies have risen about 7 percent. The S&P 500 itself is up 8 percent.

Tech stocks, which have led the market this year took sharp losses. But banks, which rallied Wednesday, kept rising. Higher yields mean they make bigger profits on mortgages and other types of loans. Bank of America added 1.4 percent to $30.43, and Wells Fargo rose 1.6 percent to $53.51.

Barnes & Noble climbed 21.8 percent to $6.65 after the bookseller said it will review offers from potential buyers, including one from founder and chairman Leonard Riggio, the company's biggest shareholder. Even after Thursday's gain, Barnes & Noble stock is slightly lower in 2018 and has lost almost two-thirds of its value since July 2015.
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📉 Rising U.S. bond yields hit global markets, Asian stocks wobble
« Reply #582 on: October 05, 2018, 01:44:14 AM »
https://www.reuters.com/article/us-global-markets/rising-us-bond-yields-hit-global-markets-asian-stocks-fragile-idUSKCN1MF04H

Business News
October 4, 2018 / 5:35 PM / Updated an hour ago
Rising U.S. bond yields hit global markets, Asian stocks wobble
Tomo Uetake


TOKYO (Reuters) - Asian shares wobbled on Friday after benchmark U.S. Treasury yields surged to a fresh seven-year high and strong economic data fanned concerns about the risk of faster-than-expected interest rate rises.
FILE PHOTO: An electronic board showing the Nikkei share average is seen as market prices are reflected in a glass window at the Tokyo Stock Exchange (TSE) in Tokyo, Japan, February 6, 2018. REUTERS/Toru Hanai

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6 percent, while Japan’s Nikkei average closed down 0.8 percent and Hong Kong’s Hang Seng slipped 0.1 percent.

“Rapidly rising Treasury yields are rocking equity markets around the globe, with high price-to-earnings tech stocks leading the decline,” said Yasuo Sakuma, chief investment officer at Libra Investments.

While most Asian shares are seen ending their session in the red, financial spreadbetters expect London’s FTSE to open 21 points higher, Frankfurt’s DAX to rise 3 points and Paris’s CAC to add 2 points.

The yield on the benchmark 10-year note hit a fresh seven-year high of 3.232 percent overnight after figures out earlier were seen as increasing the odds Friday’s payrolls report would also be stronger than expected.

Graphic: U.S. Treasury yields at multi-year highs - reut.rs/2OA5ClY
Reuters Graphic


Wall Street stocks fell broadly on Thursday, with the Dow suffering its first decline in six sessions and both the S&P 500 and Nasdaq seeing their worst day since June 25.

The Dow Jones Industrial Average fell 0.8 percent, while the S&P 500 lost 0.8 percent and the Nasdaq Composite dropped 1.8 percent.

The CBOE Global Markets volatility index, known as Wall Street’s “fear gauge”, jumped as high as 15.84, its highest since Aug. 15.

The Japanese equivalent of VIX also rose, with the Nikkei volatility index surging as high as 19.07, its highest in seven weeks.

Fed Chairman Jerome Powell said earlier this week the economy can expand for “quite some time,” which also helped the yield curve steepen to its highest in two months.

Jeffrey Gundlach, chief executive of Doubleline Capital, told Reuters on Thursday that the 30-year U.S. Treasury bond yield has broken above a multi-year base, which should lead to significantly higher in financial markets.

Graphic: U.S. 30-year yield "double tops - reut.rs/2OvIZiH
Reuters Graphic


“As I have been saying, two consecutive closes above 3.25 percent on the benchmark 30-year Treasury means that my statement in July 2016 that we were seeing the low - I said italicized, underlined and in boldface - is now, looking at the charts, thoroughly corroborated,” he said.

On Thursday, the 30-year Treasury note closed at 3.35 percent, compared with 3.34 percent on Wednesday.

The surge in Treasury yields has also prompted a rise in government bond yields across the globe, with a major exception being Italy, where borrowing costs dropped after the government said it would cut budget deficit targets from 2020.

Japanese government bond yields eased slightly after hitting 2-1/2-year highs on Thursday, the highest levels since the Bank of Japan introduced negative rates in early 2016.

The spread between junk bonds and long-end U.S. Treasuries shrank to the narrowest since 2007 on Wednesday as government debt was sold off heavily, with analysts closely watching to see if that could signal a imminent end to the credit cycle.

The premium investors are paid, or the average spread, of U.S. corporate “junk” bond yields over Treasury debt, fell to 3.16 percentage points on Wednesday, the tightest since just before the financial crisis, according to the ICE BofAML U.S. High Yield Master II Option-Adjusted Spread

Graphic: High yield spread over Treasuries - reut.rs/2OE5HVH
Reuters Graphic


The U.S. dollar was steady but lingered near recent highs against the euro and the yen as investors assessed U.S. economic data and Powell’s remarks.

The dollar index was little changed at 95.787, with the euro softening 0.1 percent to $1.1509. The Japanese yen was flat versus the greenback at 113.93 per dollar.

Investors are expected to scour the U.S. government’s September payroll report scheduled for release on Friday and look closely for signs of wage growth, especially in light of anecdotal indications of rising wages.

“Although we are likely to see strong payroll figures later today, we could see some corrections in markets ahead of a long weekend in the United States and Japan,” said Naoki Iwami, fixed income chief investment officer at Whiz Partners.

Oil prices rose on Friday, two days after hitting four-year highs, as traders anticipated a tighter market due to U.S. sanctions against Iran’s crude exports, which are set to start next month. [O/R]

U.S. crude oil futures rose 0.7 percent to $74.88 barrel and Brent crude futures gained 0.5 percent to $85.03 barrel.

Gold prices were steady on Friday as investors remained cautious after U.S. Treasury yields hit multi-year peaks. Gold gained 0.6 percent for the week, and was on track to mark its biggest weekly gain in six. [GOL/]

Reporting by Tomo Uetake; Editing by Kim Coghill and Eric Meijer
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📉 Chinese stocks fall almost 5% in market bloodbath
« Reply #583 on: October 08, 2018, 09:37:49 AM »
https://www.thisisinsider.com/chinese-stocks-plunge-after-market-returns-from-holiday-2018-10

Chinese stocks fall almost 5% in market bloodbath as investors digest a week of bad news in a single day
Will Martin
3h


A man at a brokerage house in Shanghai in 2010. REUTERS

    Chinese stocks plunged Monday, with the China A50 index losing more than 4.8% in trading.

    A weeklong holiday for Chinese markets meant investors had an entire five days of news and data to digest in just one session, including an escalation of the trade war between China and the US.

    News also emerged over the weekend that China's central bank would cut the required reserve ratio for Chinese banks by 1%.

    You can follow global market movements with Markets Insider.

Chinese stocks took a hammering Monday as traders returned to work after a weeklong holiday in the world's second-largest economy.

Losses on major indexes in mainland China were as high as 4.8% in a major market rout, with the China A50, which includes major companies from both the Shenzhen and Shanghai indexes, as the biggest loser. The Shanghai Composite lost 3.7% of its value, while the Shenzhen Composite was down just over 4% at the close of the day's trading.

The reasons behind the crash are numerous but include Chinese investors' catching up to their Asian counterparts after a week of losses in Hong Kong, Japan, and South Korea.

The main driver, however, appears to be a failure from markets to believe that fresh stimulus from China's central bank, the People's Bank of China, will help prevent US President Trump's trade war from causing an economic slowdown in China. The PBOC cut its required reserve ratio for Chinese banks by 1% over the weekend.

"Chinese investors were primarily reacting to a week's worth of news and data, and they have a lot to digest, including the prospect of a slowing and maturing economy and a bubbling trade dispute with the United States," Fiona Cincotta, a senior market analyst at City Index, said in an email.

"China is moving towards a more mature economic model from the one that has driven its remarkable growth in the last 20 years and experiencing growing pains in the process," she added.

The fall in Chinese equities comes just a few days after the US bank JPMorgan cut its outlook from overweight to neutral on the country's stock market as a result of the likely negative impact of the trade war on the country's growth.

"China sectors such as energy, IT and industrials will be most impacted based on our analysis, while sectors such as real estate, insurance, diversified financials, telecom and utilities generate virtually no revenue from the US," a team led by Pedro Martins said in a note.
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📉 The stock market’s nightmare may be far from over
« Reply #584 on: October 13, 2018, 03:29:42 AM »
https://www.marketwatch.com/story/the-stock-markets-nightmare-may-be-far-from-over-2018-10-12

The stock market’s nightmare may be far from over

Published: Oct 12, 2018 6:08 p.m. ET


Awful start to the final quarter bodes ill for remainder of the year

By
Sue
Chang
Markets reporter
Everett Collection
It’s a scary time for stock investors.

After a nail-biting week with the Dow Jones Industrial Average sinking nearly 1,400 points over two sessions, the jury is still out on whether the selloff signals a fundamental shift in the stock market or a brief episodic correction.

But one thing is certain: Investors should brace for more market drama in the coming days as corporate earnings, rising interest rates and economic data all converge to create an angst-ridden trading backdrop.

Stocks bounced back decisively on Friday with major indexes finishing in positive territory even though they were sharply lower for the week. The fact the market closed on a strong note heading into the weekend negates some of the “technical damage” wrought earlier, according to Jeffrey Saut, chief investment strategist at Raymond James.

But the mood on Wall Street was one of caution rather than euphoria.

Tony Dwyer, chief market strategist at Canaccord Genuity, believes the market may not have found its bottom yet.

“When you get this kind of correction in the broad equity market and surge in volatility, there is typically a bit more downside — either right away or on a retest,” he said in a Friday tweet.

It certainly has not been pretty. The S&P 500 SPX, +1.42% fell 5.1% in the first two weeks of October, its worst start to a fourth quarter since 2008. When the large-cap index drops 5% or more during the first 10 trading days of a quarter, it falls 79% of the time for an average quarterly decline of 11.3%, according to the Dow Jones Data Group.

Still, Dwyer told MarketWatch that he is not revising his upbeat outlook.

“Nope, haven’t changed it yet,” he said, sticking with his year-end target of 3,200 for the large cap index.

To be sure, investors may have been lulled into a false sense of complacency with the S&P 500 not having had a 1% move in 74 days until things went haywire on Wednesday. Yet, market observers were quick to point out that dramatic swings are a normal part of trading and investors should prepare for volatility to pick up going forward.

“We believe investors should expect a more normal amount of volatility from stocks versus what we experienced when interest rates were at their ultra-low levels, since higher yields on bonds and short-term cash now provide a better competitor to stocks,” said Bill Stone, co-chief investment officer at Avalon Advisors LLC, in a note to clients.

Since 1928, the S&P 500 has logged a 5% decline about every two months and a 10% drop every six months.

“On average the S&P 500 has experienced intrayear declines of almost 14% since 1980 despite going on to post annual gains in over 75% of those 38 years,” he said.

And higher volatility is not necessarily the bogeyman that it’s made out to be.

Jonathan Golub, chief U.S. equity strategist at Credit Suisse, reiterated his bullish call on stocks, pointing out that investing in times of volatility spikes pays off.


The Cboe Volatility index VIX, -14.69% also known as Wall Street’s fear index, soared to above 28 this week, a level it had not traded at since February.

Aside from earnings, a slew of economic data from retail sales to industrial production as well as FOMC minutes are likely to provide a more in-depth look into the state of the economy with the Federal Reserve widely expected to hike interest rates again by the end the year.

But in the wake of the market’s blood-letting, Matthew Luzzetti, senior economist at Deutsche Bank, suggested that the Fed could back off from its hawkish stance if stocks continue to swoon.

“All else equal, a further 10% decline in equities, which would amount to a roughly 15% decline from the recent peak, that would erase this year’s gains, would be needed to tighten financial conditions by enough to materially impact the Fed,” he said in a report.

When all is said and done, it’s worth noting that the historic crashes of 1929, 1987, and 2008 happened in October and things could get even more choppy this year due to a number of factors, according to Jeff Hirsch, editor of the Stock Trader’s Almanac.


“We may get some more downside this year than the average October, but with all the midterm machinations, Fed activity, frothy sentiment and rich valuations that is understandable,” he wrote in a recent blog post.
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