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25Jun2015 Market Close: Markets Close Down, Grexit Remains A Serious Possibility, Investors Seeking Safe Havens As Market Outlook Dims

Written by Gary

Financial models are predicting another down session opening tomorrow, but the outlook is very cloudy from that point. Too many factors to compute whether or not the 'bumps' in the road are going to upset the apple cart and send the market into a full blown correction. I doubt that a Grexit alone could do it, but negative financial contagion from Europe, Asia and falling oil prices may be able to set the markets tumbling.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

US stocks slip as investors balance Greece, consumer spending data; Health care sector gains

NEW YORK (AP) — U.S. stocks are closing lower as it appeared Greece's debt talks will have to be extended until the weekend. Health care stocks rose Thursday after the Supreme Court upheld the Affordable Care Act's insurance subsidies. The Dow Jones industrial average fell 75 points, or 0.4 percent, to 17,890. The Standard & Poor's 500 index lost six points, or 0.3 percent, to 2,102. The Nasdaq composite gave up 10 points, or 0.2 percent, to 5,112.

U.S. stocks end choppy session lower

U.S. stocks ended Thursday's choppy session lower as losses among energy and industrials companies weighed on broader indexes. Big losses in the Dow Jones Transportation Average DJT, -0.85% which tipped over into correction territory, also contributed to negative sentiment, according to analysts. Dow Transports fell 0.8%, to 8,249.25 and is down more than 10% from its peak reached last November. The S&P 500 SPX, -0.30% closed 6.25 points, or 0.3%, lower at 2,102.33. The Dow Jones Industrial Average DJIA, -0.42% shed 75.37 points, or 0.4%, to 17,890.360. The Nasdaq Composite COMP, -0.20% ended the day down 10.22 points, or 0.2% at 5,112.19.

Supreme Court to Health Insurers: Deal On

The Supreme Court's decision to uphold Obamacare is good news for investors banking on health-insurance mergers.

Greece's Slippery Grip on Global Markets

Greece and its creditors are still hunting an agreement. Markets, however, are showing signs that they don't want to wait for one. Greece isn't the only thing to think about, after all.

More Utility Losses Won't Be a Shocker

Utilities have slumped this year as bond yields have risen. More carnage is likely.

For The First Time Ever, QE Has Officially Failed

Over two years ago in "Desperately Seeking $11.2 Trillion In Collateral", Zero Hedge first warned that as a result of relentless central bank monetization of debt, liquidity in bond markets would decline at an ever faster pace even as, paradoxically, these same central banks added "phantom liquidity" (the topic of another post from two years ago) to equity markets in their attempt to artificially inflate stock prices to record levels without fundamental justification.

Sure enough, with the usual 2-5 year delay, in 2015 the primary financial topic sweeping the mainstream financial media and all the "serious" pundits, is the collapse in bond market liquidity.

Some, the more naive ones, blame regulation. Others, such as iconic Citigroup credit strategist Matt King strategist explained - once again - that Dodd Frank is a negligible reason for the total plunge in bond market liquidity which is the result of, just as we warned, central bank intervention and the relentless ascent of algorithmic trading.

But even as everyone is finally arguing about the cause of the plunging bond market liquidity and has no clue how to resolve this biggest nightmare for what once used to be the deepest and most liquidity of markets (at least not without forcing central banks to sell the trillions in bonds they hold, a step which would free up collateral but also result in the biggest market crash ever), a far more ominous question has reappeared. One which, as usual, we

Lululemon hit by recall of women's top due to elastic draw cords

TORONTO (Reuters) - Lululemon Athletica Inc , which was hit by high-profile recall of overly sheer yoga pants in 2013, is recalling more than 300,000 women's tops due to the risk from the product's elastic draw cords, Canadian and U.S. government websites said on Thursday.

Icahn Cashes In His Netflix Chips

The billionaire investor sold his remaining stake in the video-streaming firm, banking more than $2 billion in profits, according to regulatory filings, in part because he is worried financial markets are overheated.

Aetna close to buying Humana: Bloomberg

(Reuters) - U.S. health insurer Aetna Inc is close to buying rival Humana Inc and a deal could be signed as early as this weekend, Bloomberg reported, citing people familiar with the matter.

No deal for Greece, creditors; top-level talks resume Saturday

BRUSSELS (Reuters) - Greece failed again to clinch a deal with its international creditors on Thursday, setting up a last-ditch effort on Saturday to avert a default next week amid fears of financial market turmoil.

U.S. Consumer Spending Surges, Brightening Economic Outlook

Spending rose 0.9 percent in May, the largest gain since August 2009, indicating that cheaper gas prices and more hiring are having an impact.

Merkel "Won't Be Blackmailed By Greece", Demands Deal Before Market Open On Monday

The Eurogroup meeting between EU finance ministers has broken up for the day and will reconvene on Saturday according to reports.

As noted earlier, Greece is now refusing to agree to the IMF's hardline stance on pension cuts and the VAT, while the IMF isn't interested in a deal that sees Athens escaping long-term fiscal reform by resorting to short-term, unenforceable solutions such as tax hikes.

As EU leaders convene for a two-day summit in Brussels (where it will be all Greece, all day, despite what anyone says), German Chancellor Angela Merkel now looks to be leaning towards drawing a line in the sand consistent with her finance minister, her lawmakers, and her central bank chief.


GERMANY'S MERKEL TOLD EU PARTY LEADERS THERE MUST BE DEAL ON GREECE BEFORE MARKETS OPEN ON MONDAY -PARTICIPANTS

MERKEL ALSO TOLD CONSERVATIVE EPP LEADERS "WE WON'T BE BLACKMAILED" BY GREECE -PARTICIPANTS

This marks a critical turn of events. Until now, Merkel had been relucant to fold under pressure from Wolfgang Schaeuble as the Chancellor viewed the geopolitical risks of Grexit as too great given the situation in Ukraine and recent friction between Europe and Russia including the extension of economic sanctions, an anti-trust suit against Gazprom, and the seizure of Russian state assets in France, Belgium, and Austria.

Now, it appears Merkel's patience has run out, and understandably so given not only the fact that sending a strong message to Greece is critical ...

S&P Tumbles Below Key Support As VIX Hits 14

The clever people said "Greece didn't matter"...


'Green Bond' Sales Struggle

Growth has stalled this year for sales of "green bonds," meant to finance projects that mitigate climate change, amid concerns about whether those goals are being met.

What Would A Saudi-Russian Partnership Mean For World Energy?

As we recently noted, Russia and Saudi Arabia appear oddly allied in recent weeks. What happens when two nations, that together account for more than fourth quarter of global oil production, begin collaborating on future energy projects?

OilPrice.com's Gaurav Agnihotri explains...

Russian President Vladimir Putin met Saudi Prince Mohammad in St. Petersburg on June 18 at a meeting in which Saudi Arabia and Russia, the world's leading two oil giants, decided to form a working group for joint energy projects.

"At the end of the year, in October, we will summon a meeting of the intergovernmental commission, which hasn't operated for five years," Russia's Energy Minister Aleksandr Novak said recently at the St Petersburg economic forum. He further clarified that his country was not looking to replace its existing oil and gas partners but wanted to create newer ones. "There are no specific projects in the energy field yet, we only have an agreement to create a working group between our ministry and the Saudi Arabian oil ministry, which, together our companies will work on specific projects," the Energy Minister told reporters.

Image Source:

Taylor Swift to Stream '1989' Album on Apple Music

The singer's move apparently ends her dispute with Apple over its plan not to pay royalties to artists during three-month trial periods of the new app.

Kansas City Fed: Manufacturing Contraction "Better" in June 2015

Of the four regional manufacturing surveys released to date for June, two show weak manufacturing growth and two are in contraction.

Fed Gains Fizzle As Trannies Tank

But, but, but... dovish-er Fed; good news bad data; Greek Deal; Greece "doesn't matter"...

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To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

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