Wall Street closed down after trading mostly sideways after weak U.S. economic data disappointed investors, but off the session low. WTI crude settled in the mid 39's ahead of weekly API inventory report today as oversupply concerns remain, the US dollar finished lower at the 95 handle and gold ended the day at 1372.
NEW YORK (Reuters) - Wall Street fell on Tuesday, with each of the major indexes on track for their worst day in over a month, as economic data and weaker than expected auto sales spurred growth concerns.
BEIJING (Reuters) - A raft of global risks that could adversely affect the United States remains on the horizon and requires close monitoring, Dallas Federal Reserve Bank President Robert Kaplan said on Tuesday.
DETROIT (Reuters) - The biggest U.S. automakers on Tuesday reported July U.S. sales that disappointed Wall Street as skittish investors feared the industry's long pleasure trip of strong sales may soon be over, sending their shares skidding about 4 percent.
DETROIT (Reuters) - Elon Musk and key institutional investors will probably tighten their control over electric car maker Tesla Motors Inc after it acquires sister company SolarCity Inc , a Reuters analysis shows.
WASHINGTON (Reuters) - Thirty-eight large financial companies will get an additional year to develop plans for how to unwind their business in an orderly way in the event of bankruptcy, U.S. banking regulators said on Tuesday.
WILMINGTON, Del. (Reuters) - A U.S. bankruptcy judge refused on Tuesday to allow Sports Authority to pay up to $2.85 million in bonuses to four executives for overseeing the winding down of the national sporting goods chain.
LONDON (Reuters) - A company that provides banks with anti-money-laundering controls has teamed up with a bitcoin security firm to try to curb nefarious uses of the digital currency, such as drug trafficking and terrorism financing.
NEW YORK (Reuters) - Pfizer Inc on Tuesday said it has reached a $486 million settlement of litigation accusing it of causing big losses for shareholders by concealing safety risks associated with its Celebrex and Bextra pain-relieving drugs.
Ever since Brexit, traders - and mostly bears - have been scratching their heads over not only by the S&P500's tremendous rally but also but the market's seeming ability to immediately digest through any incremental negative news, both economic and geopolitical and rebound immediately from a support level at around 2,150. And while there has been speculation of central bank intervention to prop up the S&P any time it approaches this key level (something which several years ago would be considered ridiculous but now is all too possible), it turns out there is another - perhaps even more unexpected - reason why the market remains "pinned" in its historic trading range of 2,150 to 2,180.
Here it the explanation from JPM's head quant, Marko Kolanovic.
Lets look at the recent collapse in US equity realized volatility (realized volatility over ~3 weeks of only 4.5%). Over the past 14 trading days, the market did not move more than ~50bps on any given day, and on 8 days it moved ~10bps only. Figure below shows S&P 500 making "Uturns" and virtually staying unchanged most of the days since July 14.
Naively assuming a normal distribution of returns, one would expect this scenario to happen once every ~10,000 years. The fact that we see this type of behavior demonstrates market inefficiency—in this case driven by hedging of option exposure. Quite literally, the market was pinned. Over the past 3 weeks, the amount of call options exceeding put options (in terms of gamma exposure) averaged almost $40bn (per 1%), which is the largest call to put gamma imbalance ever observ ...
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