US markets closed down, but significantly off morning lows ending a choppy and struggling market. WTI crude sold off dramatically this afternoon as warnings of serious oversupply and tumbling stock markets around the world spooked investors. U.S. stocks reached into the solid green late in the session, but investors remained cautious and pushed the averages into the red.
SAN FRANCISCO (Reuters) - Global economic uncertainty and worries about weak spending on information technology are forcing investors in cloud computing stocks and related enterprise companies to take a reality check.
WASHINGTON (Reuters) - Monsanto Co will pay $80 million to settle civil accounting violations after it allegedly misstated its earnings in connection with its top-selling Roundup product, U.S. securities regulators said on Tuesday.
WASHINGTON/FRANKFURT (Reuters) - German automaker Daimler said on Tuesday it would recall 840,000 U.S. vehicles with Takata airbag inflators that could be defective, a step that would result in a charge of 340 million euros ($383.96 million).
WASHINGTON (Reuters) - U.S. job openings surged in December and the number of Americans voluntarily quitting work hit a nine-year high, pointing to labor market strength despite a slowdown in economic growth.
WASHINGTON/SAN FRANCISCO (Reuters) - Federal Reserve Chair Janet Yellen will defend the U.S. central bank's first rate hike in a decade and likely insist that further rises this year remain on track, albeit at a slower pace, when she addresses Congress on Wednesday.
NEW YORK (Reuters) - Burberry Group Plc , the British luxury fashion brand, sued J C Penney Co Inc on Tuesday, accusing the U.S. retailer of selling "scarf coats" and jackets featuring exact copies of its trademarked "Burberry check."
One would imagine that in a market as skittish for risk as this one, that selling $24 billion in 3 Year paper would be if not as easy as pie, then as simple as last month's issuance, when not a cloud was visible when the Treasury sold 3 Year paper. One would be wrong, because moments ago the US Treasury managed to sell precisely that amount in February 2019 paper, however at a notable concession to the When Issued, with the high yield of 0.844% tailing the When Issued by 0.7 bps, while the Bid to Cover of 2.742 was the lowest since July of 2009.
The internals were likewise ugly: while the Directs of 15% were modestly higher than the 11% TTM average, the Indirect takedown tumbled from 62.8% to 41.5% the lowest since November, while Dealers were left holding 43.5% of the final auction, far higher than last month's near record low 27.8%, and suggesting the foreign central banks may have had their fill of short-term paper.
The question then is why was demand for the short-end so weak at a time when the Fed itself may be relenting and not only halting its rate hike, but proceeding with outright NIRP, something which would lead to major capital gains for anyone who bought into today's auction. The answer may be revealed as soon as tomorrow during's Yellen's semi-annual congressional testimony.
Global equity market investors have lost a stunning $16.5 trillion of their newfound CB-fueled "wealth" in the last six months. This has erased half of the gains from the 2011 lows (but of course leaves all the debt created still in place). However, what is perhaps more troubling given the unprecedented money-printing since the last crisis peak, is that global equity market "wealth" is now down 10% from its November 2007 prior highs.
Trillions of money printed and debt created and equity "wealth" is now down $6 trillion from the 2007 highs...
Japanese stocks tumbled and the benchmark government bond yield fell into negative territory for the first time, as a global flight to safety threatened to unravel the delicate market balance that Prime Minister Shinzo Abe and the Bank of Japan have tried to build.
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