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21Apr2016 Market Close: DOW Down Triple Digits, Crude Settles At Mid 43's, Short-Term Indicators Moderately Bearish For Tomorrow

Written by Gary

Markets closed down with some negative aftermarket action concerning GOOGLE missing revenue. DOW down 114 points, Spooze down a half percentage point and WTI crude off fractionally. Investors are expecting another down day tomorrow.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

VW forges U.S. deal arising from diesel emissions scandal

SAN FRANCISCO/WASHINGTON (Reuters) - Volkswagen AG, driving to move beyond a scandal that has disrupted its global business and sullied its reputation, announced a sweeping deal on Thursday to buy back or potentially fix about a half million polluting diesel cars and set up environmental and consumer compensation funds.

Solar developer SunEdison in bankruptcy as aggressive growth plan unravels

(Reuters) - SunEdison Inc, once the fastest-growing U.S. renewable energy company, filed for Chapter 11 bankruptcy protection on Thursday after a short-lived but aggressive binge of debt-fueled acquisitions proved unsustainable.

U.S. jobless claims hit 42-1/2-year low as labor market firms

WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits unexpectedly fell last week, hitting its lowest level since 1973, suggesting an apparent sharp slowdown in economic growth in the first quarter could be temporary.

Wall Street retreats after mixed bag of earnings

(Reuters) - Wall Street retreated on Thursday, heading for its first loss in four sessions after a mixed bag of quarterly reports and a warning by Verizon Communications that a strike by workers would likely impact its bottom line.

Oil falls on oversupply concern; euro slips

NEW YORK (Reuters) - Oil prices slipped on Thursday on further evidence of oversupply and a stronger dollar, while the euro eased against the U.S. dollar after European Central Bank President Mario Draghi pledged to keep monetary policy loose.

Viacom shares soar after deal to renew Dish contract

(Reuters) - Viacom Inc said on Thursday it has renewed a multiyear distribution contract with satellite TV provider Dish Network Corp, lifting the media company's shares over 11 percent.

GM earnings beat estimates on strength in North America

DETROIT (Reuters) - Demand for big trucks in North America and an improved performance in Europe propelled General Motors Co's quarterly results well past investors' expectations, and company executives on Thursday affirmed their bullish outlook for the year.

U.S. April auto sales seen rising 4.9 percent: JD Power-LMC

DETROIT (Reuters) - J.D. Power and LMC Automotive on Thursday said April U.S. total light vehicle sales will rise 4.9 percent to 1.523 million vehicles, for an annualized rate of 17.6 million vehicles.

Mitsubishi Motors shares dive, Japan officials raid facility

TOKYO (Reuters) - Japanese officials raided a facility belonging to Mitsubishi Motors Corp on Thursday after the carmaker admitted to overstating the fuel efficiency of 625,000 cars, a revelation that has sent its shares into a tailspin.

When Doves Die: Stocks, Bonds, Oil Slump As Silver Pumps'n'Dumps

Stocks suffer their biggest down day in 2 weeks...

It all looked so hopeful early this morning as those pajama-players bid us back to cycle highs...and then it all fell apart...

As metals were smacked lower by a China margin hike...

Dow lost 18,000, S&P lost 2,100 but Trannies were the worst on the day...Nasdaq managed tro get green at the death...

The last few minutes saw a Dow 18k hunt as VIX was slammed again...and WTYF was that at the close - total fail to clam VIX to get Dow >18k

And Dow and S&P rapidly caught down to Nasdaq's weakness on the week...

The Faith Is Gone: The Middle Class Flees The Market As Record Low Number Of Americans Own Stocks

Three recurring laments heard in the corridors of the Marriner Eccles building are why, with stocks at record highs after levitating in more or less a straight line for the past 7 years, i) has the economic recovery not been stronger, ii) has inflation not been higher, and iii) have consumer spending and sentiment never really recovered. A just released Gallup survey may have the answer.

According to a poll of over 1,000 American adults, even with the Dow Jones industrial average near its record high, only slightly more than half of Americans (52%) say they currently have money in the stock market, matching the lowest ownership rate in Gallup's 19-year trend.

The current figure is down slightly from 2014 and 2015, and continues a secular decline that started in 2007.

But most troubling is that the generation which is expected to take over the stock ownership reins when the Baby Boomers start selling their equity holders, middle-class adults, especially those younger than 35, are the least likely to invest. As Gallup notes, "although Americans in all income groups are less likely to have stock investments now than before the Great Recession, middle-class Americans have been the most likely to flee the market"

Gallup's conclusion: "Fewer Americans -- particularly those in middle-income families -- are benefiting from the recent gains in stock values than would have been the case a decade ago."

Which is the worst possible news for Janet Yellen, because no matter how hard the Fed works to prop and boost the market, nearly half of Americans no longer have any faith left in what has become clear to most is just a tool to push some crooked, crony-capitalist policy, but mostly to make the richest even richer.

One Commodity Trader Writes: "What Is Happening Has Absolutely No "Reasonable" Explanation"

One commodity trader writes in with some very unique observations. From trader "Peter"

* * *

The insanity has now fully spilled into the commodity markets - a market which I professionally made a transition to after the 2008 crisis from the financial markets, simply because I believed it was a market that would still function according to true fundamentals...

I guess that only lasted so long...

The commodity markets have been prone to excessive speculation for years, but at the end, the thought of specializing in something "tangible" that EVENTUALLY would have to revert back to true supply and demand fundamentals made all the sense in the world. Specially with the true circus that the financial markets have become since 2008...

* * *

To: "Peter"
Sent: Wednesday, April 20, 2016 1:35 PM
Subject: volume totals today

774K of soybeans traded today and that would be a record by nearly 160K contracts as yesterday set the record at 615K.

Over 88K Jly/Nov traded today and 97K May/Jly traded. Unheard of non-roll numbers.

Meal volume was 270K and we have to think that was a record as well but not 100% on that one.

Lots of ideas around to try and explain the move: from commercial short hedgers blowing out, Chinese pricing, product switching from Argentina to the US.

Not really sure if all or any of this is true but it was quite a wild session

* * *

From: "Peter"
Sent: Wednesday, April 20, 2016 2:41 PM
Subject: RE: Some staggering volume totals today

Man... I would be VERY surprised if this was due to any of the reasons people are mentioning...

Chinese pricing - I am very positive it does have something to do with it, but for the overnight session - not the daytime.
& ...

Why Viacom's Dish Deal Has Investors Cheering

Viacom's deal with Dish removes a major overhang for its shares.

ECB Corporate Bond Buying: Size Will Matter

The ECB is looming over the eurozone corporate bond market. Investors face a competitor with deep pockets.

Caterpillar Won't Emerge From Cocoon Yet

Investors betting the worst is over for Caterpillar may want to think again.

Apple suffers another iPhone blow

Apple supplier Qualcomm's disappointing outlook may be a signal the iPhone is still suffering a hangover.

The Tell: Elon Musk had a bond trade idea. He's lucky his boss rejected it

Say what you will about Elon Musk's ability to make cars, or spaceships. The'™re probably better than his ability to trade bonds, his own view notwithstanding.

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