Markets opened lower as expected and have traded sideways in a relative narrow channel as investors weighed the pros and cons of a market direction change. Energy and healthcare stocks weighed on Wall Street this morning as investors also awaited the outcome of the U.S. Federal Reserve's two-day policy meeting. Crude prices fell 3 percent today, extending losses for a second straight day, No afternoon rally is expected.
Here is the current market situation from CNN Money
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
NEW YORK (Reuters) - Oil fell 3 percent on Tuesday, extending losses for a second straight day, as market participants cited technical resistance after prices ran above $40 a barrel and worry that U.S. crude stockpiles had continued to rise despite falling production.
(Reuters) - Big Wall Street banks, after spending massive amounts of money and time to get their old, creaking systems in better shape, are now trying to sell technology they've developed in-house to other companies.
WASHINGTON (Reuters) - Lockheed Martin Corp has "no regrets" about buying Sikorsky for $9 billion despite a drop in oil prices that has led to a bigger-than-expected decline Sikorsky's commercial helicopter sales, Chief Executive Marillyn Hewson said Tuesday.
LOS ANGELES (Reuters) - Cesar Trejo broke his Chipotle habit after the chain's string of food safety lapses last year. This week, a free food offer lured him back, along with the urging of three friends who had returned without getting sick.
LONDON (Reuters) - Barclays almost halved the value of shares awarded to its top executives this year due to a share price fall, handing them stock worth 8.7 million pounds ($12 million) compared with 16.4 million pounds a year earlier.
(Reuters) - The International Brotherhood of Teamsters said its local branches on the U.S. East Coast and California had recommended members reject a contract offer from warehouse club retailer Costco Wholesale Corp .
Remember last week, when China was "fixed" because after the National People's Congress a record-smashing short-squeeze hyped on the back of stimulus hope sent Iron Ore prices soaring 20% in a day? Well that's all over...
Last week, analysts and traders alike were stunned by "the departure from fundamentals" as "the iron ore and steel markets have gone berserk."
As we noted last week, while at the annual National People's Congress at the weekend, the authorities said they'd allow a record high deficit and higher money-supply target to support growth of 6.5 percent to 7 percent; they also vowed to help cut overcapacity in steel, potentially curbing demand for iron ore.
"We expect the current rally to be short-lived," analysts Christian Lelong and Amber Cai said in a note predicting further growth in iron ore supply in the quarters ahead.
"The causality will revert sooner rather than later, and steel raw materials will one again drive steel prices rather than the other way around."
Recent gains in iron ore probably won't last, Goldman Sachs Group Inc. said in a report received on Monday, forecasting a drop back to $35 a ton in the final quarter. This year's rally has been driven by rising steel prices in China, a reversal of the normal relationship seen between the raw material and the manufactured product, Goldman said.
Just as Goldman warned - the commodity rally was unsustainable..
With Valeant down nearly 50%, and Pershing Square fielding an unknown number of margin calls and redemption requests as of this moment, Bill Ackman just did the only thing he could do at this moment: send a letter to anyone who still cares, defending his disastrous investment, yet again.
Pershing Square Holdings, LTD. Sends Communication to Investors Regarding Valeant
Dear Pershing Square Investor,
Today, Valeant reported preliminary unaudited earnings for Q4, updated guidance for Q1, full year 2016 and the next twelve months. In particular, management shocked the market with revenue and earnings guidance for the next twelve months (Q2 2016 to Q1 2017) which does not appear to foot with continued favorable prescription trends and management's commentary on the call about the strength of the underlying businesses. Furthermore, the company's 10-K has been delayed requiring the company seek a waiver under its credit agreement. While we believe that it is highly likely that the banks will provide a waiver, uncertainty about the potential for a default creates enormous investor fear.
The above factors have caused investors to lose total confidence in the company as reflected by the current 44% decline in Valeant's stock price.
Last week, Steve Fraidin, our Vice Chairman, joined the board. We are going to take a much more proactive role at the company to protect and maximize the value of our investment. We continue to believe that the value of the underlying business franchises that comprise Valeant are worth multiples of the current market price. Getting to those values, however, will require restoration of shareholder confidence in the management and governance of the ...
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