Wall Street extended losses after the opening bell and continues to melt down (SPY -0.6%) on increasing volume. Crude prices fell in North American, falling to the lowest level in nearly three weeks after data showed that oil supplies in the U.S. rose for the second week in a row. Indicators are bearish.
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%. Following a major market correction, the conditions for safe re-entry are when:
a) Daily $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
(Reuters) - Facing a severe cash crunch, Tesla Motors Inc plans to raise additional money this year to help fund development and production of its new Model 3 sedan and build out a giant battery factory, the company said on Wednesday.
(Reuters) - Two U.S. senators on Wednesday called on the National Transportation Safety Board to investigate the Aug. 22 crash and explosion of a truck carrying Takata Corp air bag parts that killed a woman and injured four others.
FRANKFURT (Reuters) - Top executives of Deutsche Bank and Commerzbank held talks on a potential combination of Germany's two biggest banks earlier this month, a source familiar with the matter said on Wednesday.
DUBLIN (Reuters) - Ireland's cabinet could not agree on Wednesday on whether to appeal a European Commission ruling against Dublin's tax dealings with Apple and will meet for further talks later this week, a government source told Reuters.
WASHINGTON (Reuters) - Contracts to buy previously owned U.S. homes surged in July after two straight months of declines as demand rose almost across the board, suggesting the housing market remains on solid ground despite last month's drop in home resales.
BEIJING (Reuters) - Chicago Federal Reserve Bank President Charles Evans on Wednesday said he is increasingly convinced that U.S. economic growth has slowed permanently, a situation that will keep U.S. interest rates low for a long time ahead.
DUBLIN (Reuters) - Faced with a $14.5 billion windfall after an EU ruling on Apple's tax affairs, carer Louise O'Reilly knew exactly what the Irish government should do with the money: spend it on pensioners who are struggling to get by.
Negative Interest Rates: The Tax On Capital Written by Jeff Nielson
So-called "negative interest rates" are illegal. This is an inescapable conclusion of law, arrived at simply by applying some of the most fundamental principles of our entire legal system. But let's put aside this issue of legality, it is a topic which will be dealt with comprehensively, in a sequel to this piece.
There is no such thing as a "negative interest rate". By definition, an "interest rate" is a positive number ...
In a move that is certain to spark another round of what much of the left-of-center media has dubbed "unfounded conspiracy theories" about the health of Hillary Clinton, overnight President Obama's former physician, Dr. David Scheiner told CNN that he believes Democratic nominee Hillary Clinton should have a neurological examination due to her history of brain injury.
In the interview, Scheiner argued that Clinton's letter from her doctor, which details that Clinton had follow-up testing in 2013 that showed a full recovery from a concussion and that she tested negative for clotting disorders, is not enough.
Obama's fmr doc, Dr David Scheiner, says Hillary should have "THOROUGH Neurological Examination!"???? #HillarysHealth pic.twitter.com/sufwAStjR1
— Boston Bobblehead (@DBloom451) August 31, 2016
"I think she should have had a neurological examination, a thorough neurological examination in 2016," Scheiner said Tuesday night. "We know what happens to football players who have had concussions, how they begin to lose some of their cognitive ability. I think both of them should release their records."
To be fair, Scheiner also criticized Trump's health, saying he believes the GOP nominee needs to release real medical records that include information like height and weight. He also panned Trump's doctor's note, which the doctor said was written in five minutes. "I think you need real details, I think you need actual medical records," he continued. "I'd like to know his height and weight. He looks a little bit overweight to me."
After the biggest short squeeze in history - thanks to a well-placed and entirely useless Saudi statement about OPEC freeze discussions - oil prices have slipped notably - now back below $45 once again...
As we said before - the short-squeeze ammo has run out - and record gluts, record production, and slumping demand realities are biting.
Several months after dozens of merger arb funds had their worst day in years when the US government effectively killed the Pfizer-Allergan deal, moments ago both Deere and Monstanto stocks dropped, after the DOJ filed a lawsuit seeking to block Deere's deal for Monsanto's Precision Planting.
U.S. FILES ANTITRUST SUIT AGAINST DEERE AND MONSANTO
DEERE DEAL FOR MONSANTO'S PRECISION PLANTING OPPOSED BY U.S.
U.S. FILES ANTITRUST LAWSUIT IN CHICAGO FEDERAL COURT
JUSTICE DEPARTMENT SUES TO BLOCK DEAL AS ANTICOMPETITIVE
AGRICULTURE SECTOR SEEING CONSOLIDATION WAVE WITH PENDING DEALS
The news promptly dragged down the entire ag complex...
DOW, DUPONT, SYNGENTA DROP ON DEERE, MONSANTO NEWS
... as it now appears that the US government has shifted away from blocking tax inversion deals, and is instead focusing on the US agri space.
As a reminder, in November 2015, Monsanto and Deere struck a deal to strengthen their cooperation in the emerging business of big-data services that help farmers improve crop performance. Deere agreed to buy Monsanto's line of high-tech planting equipment, called Precision Planting, and in return make it easier for farmers to link their John Deere machinery to Monsanto's Climate Corp. unit, which crunches data on crop performance and weather conditions to formulate farming advice. Terms of the deal weren't disclosed.
The deal "benefits all our customers and will allow for more information and better data-driven insights to come out of Climate," Mike Stern, president of the division at Monsanto, said Tuesday.
The National Association of Realtors (NAR) seasonally adjusted pending home sales index again increased. For the second month in a row, our analysis of pending home sales is more negative than the NAR's, and we are forecasting little growth in August existing home sales. The quote of the day from this NAR release:
... There's little doubt there'd be more sales activity right now if there were more affordable listings on the market ...
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