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Dow plunges nearly 800 points on rising fears of an economic slowdown

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Dow plunges nearly 800 points on rising fears of an economic slowdown

Old 12-04-2018, 05:48 PM
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vette6799
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Default Dow plunges nearly 800 points on rising fears of an economic slowdown

Dow down 799 and change. Just volatility or a harbinger of things to come? Bank stocks got killed.

https://www.cnbc.com/2018/12/04/stoc...kepticism.html


Trading Nation: S&P 500 Nears Death Cross 1 Hour Ago | 04:16Stocks fell sharply on Tuesday in the biggest decline since the October rout as investors worried about a bond-market phenomenon signaling a possible economic slowdown. Lingering worries around U.S.-China trade also added to jitters down Wall Street.

The Dow Jones Industrial Average fell 799.36 points, or 3.1 percent, to close at 25,027.07 and posted its worst day since Oct. 10. At its low of the day, the Dow had fallen more than 800 points.

The S&P 500 declined 3.2 percent to close at 2,700.06. The benchmark fell below its 200-day moving average, which triggered more selling from algorithmic funds. Financials were the worst performers in the S&P 500 plunging 4.4 percent. Utilities was the only positive sector in the S&P 500, rising 0.16 percent.

The Nasdaq Composite dropped 3.8 percent to close back in correction territory at 7,158.43. The Russell 2000, which tracks small-cap stocks, dropped 4.4 percent to 1,480.75, marking its worst day since 2011. Trading volume in U.S. stocks was also higher than usual on Wall Street.

The yield on the three-year Treasury note surpassed its five-year counterpart on Monday. When a so-called yield curve inversion happens — short-term yields trading above longer-term rates — a recession could follow, though it is often years away after the signal triggers. Still, many traders believe the inversion won't be official until the 2-year yield rises above the 10 year yield, which has not happened yet.

Stocks began falling to their lows of the day after Jeffrey Gundlach, CEO of Doubleline Capital, told Reuters this inversion signals that the economy "is poised to weaken."

The flattening yield curve caused investors to bail on bank stocks on concern the phenomenon may hurt their lending margins. The SPDR S&P Bank ETF (KBE) dropped 5.3 percent. Shares of J.P. Morgan Chase, Citigroup and Bank of America all declined more than 4 percent. Citigroup and Morgan Stanley both reached 52-week lows along with Regionals Financial, Citizens Financial and Capital One.

The SPDR Regional Banking ETF dropped 5.5 percent and closed 20 percent below its 52-week high. It also notched its worst day since June 2016.

"No good deed goes unpunished," said Art Hogan, chief market strategist at B. Riley FBR. "As we get headwinds from trade worries fading, you get an inverted yield curve and another brick added to the market's wall of worry."

Trading volume rose on Tuesday. More than 159 million shares of the SPDR S&P 500 ETF trust (SPY) exchanged hands. The SPY's 30-day volume average is 110.5 million. These moves come as the U.S. stock market will be closed on Wednesday out of respect for former President George H.W. Bush's funeral.

You can see the utilities positive on the day, but financials are getting hammered on the flatter curve while industrials are likely down on the tariffs headlines," said Jack Ablin, founding partner of Cresset Wealth.

Doubt about a permanent deal between the U.S. and China crept into investors' minds following a stellar rally in the previous session.

The U.S. and China agreed over the weekend to hold off on any additional tariffs on each other's goods on January 1, in order to allow trade talks to continue. Leaders from the two countries met over dinner at the G-20 summit in Argentina. The news sent stocks surging on Monday, with the Dow rallying more than 300 points. Stock futures surged Sunday night as investors initially cheered the news. Dow futures jumped nearly 500 points before Monday's open.

But discrepancies over when that truce would begin has led to confusion. While President Donald Trump's economic advisor, Larry Kudlow, told reporters Monday that the cease-fire would start from January 1, the White House later issued a corrected statementsaying that the 90-day truce period would start on December 1.


Trading Nation: S&P 500 Nears Death Cross 1 Hour Ago | 04:16Stocks fell sharply on Tuesday in the biggest decline since the October rout as investors worried about a bond-market phenomenon signaling a possible economic slowdown. Lingering worries around U.S.-China trade also added to jitters down Wall Street.

The Dow Jones Industrial Average fell 799.36 points, or 3.1 percent, to close at 25,027.07 and posted its worst day since Oct. 10. At its low of the day, the Dow had fallen more than 800 points.

The S&P 500 declined 3.2 percent to close at 2,700.06. The benchmark fell below its 200-day moving average, which triggered more selling from algorithmic funds. Financials were the worst performers in the S&P 500 plunging 4.4 percent. Utilities was the only positive sector in the S&P 500, rising 0.16 percent.

The Nasdaq Composite dropped 3.8 percent to close back in correction territory at 7,158.43. The Russell 2000, which tracks small-cap stocks, dropped 4.4 percent to 1,480.75, marking its worst day since 2011. Trading volume in U.S. stocks was also higher than usual on Wall Street.

The yield on the three-year Treasury note surpassed its five-year counterpart on Monday. When a so-called yield curve inversion happens — short-term yields trading above longer-term rates — a recession could follow, though it is often years away after the signal triggers. Still, many traders believe the inversion won't be official until the 2-year yield rises above the 10 year yield, which has not happened yet.

Stocks began falling to their lows of the day after Jeffrey Gundlach, CEO of Doubleline Capital, told Reuters this inversion signals that the economy "is poised to weaken."



Flattening yield curve spooks markets — Here's what three experts say that means for investors 2 Hours Ago | 03:33The flattening yield curve caused investors to bail on bank stocks on concern the phenomenon may hurt their lending margins. The SPDR S&P Bank ETF (KBE) dropped 5.3 percent. Shares of J.P. Morgan Chase, Citigroup and Bank of America all declined more than 4 percent. Citigroup and Morgan Stanley both reached 52-week lows along with Regionals Financial, Citizens Financial and Capital One.

The SPDR Regional Banking ETF dropped 5.5 percent and closed 20 percent below its 52-week high. It also notched its worst day since June 2016.

"No good deed goes unpunished," said Art Hogan, chief market strategist at B. Riley FBR. "As we get headwinds from trade worries fading, you get an inverted yield curve and another brick added to the market's wall of worry."

Trading volume rose on Tuesday. More than 159 million shares of the SPDR S&P 500 ETF trust (SPY) exchanged hands. The SPY's 30-day volume average is 110.5 million. These moves come as the U.S. stock market will be closed on Wednesday out of respect for former President George H.W. Bush's funeral.


"You can see the utilities positive on the day, but financials are getting hammered on the flatter curve while industrials are likely down on the tariffs headlines," said Jack Ablin, founding partner of Cresset Wealth.

Doubt about a permanent deal between the U.S. and China crept into investors' minds following a stellar rally in the previous session.

The U.S. and China agreed over the weekend to hold off on any additional tariffs on each other's goods on January 1, in order to allow trade talks to continue. Leaders from the two countries met over dinner at the G-20 summit in Argentina. The news sent stocks surging on Monday, with the Dow rallying more than 300 points. Stock futures surged Sunday night as investors initially cheered the news. Dow futures jumped nearly 500 points before Monday's open.

But discrepancies over when that truce would begin has led to confusion. While President Donald Trump's economic advisor, Larry Kudlow, told reporters Monday that the cease-fire would start from January 1, the White House later issued a corrected statementsaying that the 90-day truce period would start on December 1.

Why you shouldn't panic when stocks are getting slammed 9:47 AM ET Fri, 12 Oct 2018 | 02:11China and the U.S. have been engaged in a tense sparring match over trade, with both countries hitting each other's economies with levies on imported goods. Trump's administration has so far slapped tariffs on $250 billion worth of Chinese imports, while Chinese President Xi Jinping's government has imposed tariffs on $110 billion in U.S. goods.

Trump said in a series of tweets Tuesday that a deal between the two countries would get done if possible. "But if [it's] not possible remember ... I am a Tariff man."

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Old 12-04-2018, 05:49 PM
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Bracing for hurricane maxie
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Old 12-04-2018, 05:51 PM
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Good.
Another 5000 points to go, as far as I'm concerned.
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Old 12-04-2018, 05:57 PM
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Originally Posted by PatternDayTrader View Post
Good.
Another 5000 points to go, as far as I'm concerned.
20 percent down? Possible but earnings should be strong over the next few quarters as the tax cut for corps kicks in on corporate bottom lines for the year. I doubt that GDP will be as high as last quarter. Last quarter was an aberration due to lots of purchasing before tariffs.
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Old 12-04-2018, 06:01 PM
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The Stock Market reminds me of Republicans and Democrats......No Spine.....Along for the Ride.....Scared of their own Shadow.
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Old 12-04-2018, 06:03 PM
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Originally Posted by vette6799 View Post
20 percent down? Possible but earnings should be strong over the next few quarters as the tax cut for corps kicks in on corporate bottom lines for the year. I doubt that GDP will be as high as last quarter. Last quarter was an aberration due to lots of purchasing before tariffs.
I have no idea how far down it will or wont go. It just seems really top heavy. Today was another good day to shake out the loose holders though. Plus, being short hasn't really worked for years now, so its nice to be on that side of things.
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Old 12-04-2018, 06:09 PM
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Boy, a new the market is crashing thread. How is this one different from all the other ones?
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Old 12-04-2018, 06:11 PM
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Originally Posted by sjjames View Post
Boy, a new the market is crashing thread. How is this one different from all the other ones?
It assists with fear-mongering.
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Old 12-04-2018, 06:22 PM
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Originally Posted by 'Shifter View Post
It assists with fear-mongering.
Purposely done to profit on it. They claim to be respectable citizens, nonetheless though.

Just wait.



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Old 12-04-2018, 06:24 PM
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Originally Posted by MagRedConv View Post
Bracing for hurricane maxie

Does that have something to do with Maxi-Pads?
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Old 12-04-2018, 06:28 PM
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Originally Posted by MagRedConv View Post
Bracing for hurricane maxie


Ever since it looked like the Dems would take back the House, the stock market has not done as well.
We warned.
Idiots don't listen.
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Old 12-04-2018, 06:31 PM
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Originally Posted by virtue4u View Post


Ever since it looked like the Dems would take back the House, the stock market has not done as well.
We warned.
Idiots don't listen.
Yes. Business doesn't like those that do everything they can to ruin it.
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Old 12-04-2018, 06:33 PM
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Obama's fault ...... .. ....
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Old 12-04-2018, 06:43 PM
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Originally Posted by CuzzinJack View Post
Obama's fault ...... .. ....
Pelosi will do wonders for the Trump economy.
Just watch and see.

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Old 12-04-2018, 06:52 PM
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Dems answer to the economeyOcasio-Cortez 'Doesn't Have a Working Knowledge of Basic Economics', and Crazy Mazie, Mad Maxine, etc.

Stock market goes down and they wonder why?

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Old 12-04-2018, 06:55 PM
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This stock market is a joke.....and anyone who thinks it makes any ******* sense is way smarter than me. Up, down, every time some reason....tomorrow another disaster, following by another report, followed by another low, followed by, on and on. For those who find this amusing, I guess it fills some time. For me, when I try to have hope for a retirement on a 401K, all I know is I can't count on nothing. I wish it all made more sense.
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Old 12-04-2018, 06:57 PM
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Originally Posted by virtue4u View Post
Pelosi will do wonders for the Trump economy.
Just watch and see.
Trump doesn't need any help from Pelosi and friends. His assinine Tariffs are responsible for this one.
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Old 12-04-2018, 07:04 PM
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Flaw news....what a dork liberal the OP is....
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Old 12-04-2018, 08:20 PM
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Originally Posted by CuzzinJack View Post
Obama's fault ...... .. ....
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Old 12-04-2018, 08:29 PM
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800 points? That's nothing...just watch the market in January when Piglosi gets the gavel...
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