The S&P 500 and the Dow closed slightly lower on Monday, as a drop in oil prices dragged down energy stocks, while tech names Apple and Alphabet helped lift the Nasdaq to its highest close in over a year. The S&P 500 had hit a record high earlier in the session, but was unable to hold gains as U.S. crude (CLc1) slumped to below $40 a barrel, its lowest level since April, before settling at $40.06. (from Reuters)
WASHINGTON (Reuters) - U.S. manufacturing activity eased in July amid shrinking order backlogs and declining employment, while an unexpected drop in construction spending in June suggested second-quarter economic was probably even weaker than reported last week.
(Reuters) - The S&P 500 and the Dow closed slightly lower on Monday, as a drop in oil prices dragged down energy stocks, while tech names Apple and Alphabet helped lift the Nasdaq to its highest close in over a year.
BRUSSELS (Reuters) - Anheuser-Busch InBev and SABMiller , the world's two largest brewers, set out a timetable on Monday for the final stages of their $100 billion-plus merger, with completion of the deal expected in a little more than two months.
(Reuters) - SolarCity Corp agreed to Tesla Motors Inc's $2.6 billion offer to buy the solar panel installer, the companies said on Monday, clearing one obstacle in the way of Elon Musk's ambitious plans for a carbon-free energy and transportation company.
NEW YORK (Reuters) - U.S. crude tumbled below $40 per barrel on Monday for the first time since April, as oil prices settled down nearly 4 percent on heightened worries of a crude glut despite peak summer fuel demand.
NEW YORK (Reuters) - Gawker Media Chief Executive Nick Denton filed for personal bankruptcy protection on Monday, according to court documents that name his largest creditor as Hulk Hogan, a former professional wrestler who won a $140 million court judgment against the news website over a sex tape it posted.
(Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon said on Monday that Britain's decision to leave the European Union could lead to duplicate costs to provide banking services to European customers.
(Reuters) - Verizon Communications Inc said on Monday it would buy GPS vehicle tracking firm Fleetmatics Group Plc for about $2.4 billion in cash to bolster its expansion into the connected vehicle and fleet management market.
What do you do when you are one of the biggest indices in Europe and are unable to rise simply because two of your biggest constituents, if not so much in market cap any more but certainly in terms of systemic importance, just can't catch a bid? Why you delete them, of course even if the two names in question happen to be Europe's two largest banks, Deutsche Bank and Credit Suisse.
Moments ago, STOXX Ltd, the operator of Deutsche Boerse Group's index business, announced component changes in the STOXX Europe 50 Index due to the fast-exit rule. All changes become effective with the open of markets on Aug. 8, 2016.
What is the Fast Exit rule? "The rule states that a component is deleted from the Dow Jones EURO STOXX 50 or Dow Jones STOXX 50 indexes if it ranks 75 or below on the respective index's monthly selection lists for a consecutive period of two months. Deleted components for all three indexes will be replaced by the highest ranking non-components on the monthly selection list. Component changes will be announced on the first trading day of the month following the publication of the monthly selection lists, implemented on the close of the fifth trading day and effective the next trading day."
In other words, someone did not like how DB and CS were trading and decided to kick them out.
And here are the replacements.
What does this really mean from a price index standpoint? Simple: the following.
This article by David Haggith was first published on The Great Recession Blog.
Oil today plunged unrestrained below $40 per barrel, taking oil prices down more than 20% from their high a little over a month ago. That officially defines a bear market in oil. As of today, oil has also moved below its 50-day, 100-day and 200-day moving averages. July has again turned out to be a huge disappointment for oil producers who mistakenly thought price recovery had come to stay.
Submitted by Lance Roberts via RealInvestmentAdvice.com,
There has been a litany of articles written recently discussing how the stock market is set for a continued bull rally. The are some primary points that are common threads among each of these articles which are that interest rates are low, corporate profitability is set to recover and the Central Banks monetary accommodations continue to put a floor under stocks. I do not disagree with any of those points.
The concern with each of those points, which are supporting higher asset prices, is they are all artificially influenced by outside factors. Interest rates are low because of the Federal Reserve's actions, corporate profitability is high due to accounting rule changes following the financial crisis and Central Banks globally are pushing liquidity directly into the financial system.
The stock market has rallied sharply in direct correlation to the expansion of the Fed's balance sheet yet economic growth has floundered much to the dismay of the Federal Reserve.
Wall Street hit new historic highs this morning and then fell sharply to mixed status leaving the $NDX high and dry at +0.5%. WTI crude has plunged into the 40 handle support and may seek lower prices. Despite weak economic data and the sell-off in crude, as investors chewed over remarks from Fed officials.
We hear anywhere from 10 to 200 lies a day. And although we've spent much of our history coming up with ways to detect these lies by tracking physiological changes in their tellers, these methods have proved unreliable. Is there a more direct approach? Noah Zandan uses some famous examples of lying to illustrate how we might use communications science to analyze the lies themselves.
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