Wall Street is down sharply (SPY -1.4%) after Alcoa's revenue misses expectations third quarter profit. Red volume is picking up as we enter the afternoon session. Analysts are talking about a serious market correction in the making. Indicators very bearish.
Here is the current market situation from CNN Money
SEOUL (Reuters) - Samsung Electronics Co Ltd scrapped its flagship Galaxy Note 7 smartphone on Tuesday less than two months after its launch, dealing a huge blow to its reputation and outlook after failing to resolve safety concerns.
ISTANBUL (Reuters) - Igor Sechin, Russia's most influential oil executive and the head of state-controlled energy giant Rosneft, said his company will not cap oil production as part of a possible agreement with OPEC.
NEW YORK (Reuters) - Oil fell almost 2 percent on Tuesday, retreating from one-year highs, after mixed responses by Russian oil industry officials toward an OPEC call for all major crude producers to cut output.
NEW YORK (Reuters) - Two measures of U.S. inflation expectations fell in September, with one hitting a low water mark, according to a Federal Reserve Bank of New York survey that also found Americans predicted less earnings growth in the year ahead.
CALGARY, Alberta (Reuters) - Climate-change activists were arrested on Tuesday after they shut down five pipelines carrying crude from Canadian oils sands into the U.S. market, the latest move by environmental groups to disrupt movement of oil across North America, an activist group said.
WASHINGTON (Reuters) - The U.S. Supreme Court on Tuesday signaled a willingness to reduce the potentially huge penalties imposed for ripping off a patented design as it heard arguments in the legal fight over the amount Samsung should pay Apple for copying the iPhone's distinctive appearance.
Over the past several years, there have been two primary sources of upside for the stock market: trillions in corporate buybacks, as companies themselves engaged in record repurchases of their own stock, often at price indiscriminate levels in a bid to not only raise the stock price but also the stock-linked compensation of management , and a similar amount of dividend payments which in a time of negligible yields, became one of the main drivers for buyers to scramble into the "safety" of dividend paying stocks. Collectively these account for an unprecedented amount of payouts to shareholders.
Today, Barclays' head of equity strategy Jonathan Glionna quantifies just how much corporate cash flow has and will be used to fund these payouts.
Glionna finds that in aggregate the companies within the S&P 500 are returning a record amount of cash to shareholders through dividends and buybacks. Since 2009 dividends have increased by more than 100%, reaching $98 billion in the most recent quarter. Meanwhile, gross buybacks have tripled and Barclays forecasts that they will reach $600 billion in 2016. In fact, buybacks plus dividends could surpass $1 trillion in 2016, for the first time ever.
Just like Goldman Sachs, Glionna says that "we believe the substantial increase in distributions is one of the primary justifications for the gains in the price of the S&P 500 during this business cycle (Figure 1).
However, this unprecedented surge in distributions may be coming to an end and as Barclays puts it, "alas, nothing continues forever. The growth rate of payouts, which has averaged 20% since 2009, will all but disappear in 2 ...
Cable has retraced back down over 60% of its flash crash collapse...
"The sentiment on sterling is closely tied to expectations of hard Brexit," said Georgette Boele, a currency and commodity strategist at ABN Amro in Amsterdam.
BOE officials' "comments are not helpful at all. Saunders said that he was concerned about volatility in sterling as it pushed up inflation. Despite this, we think that the BOE is more focused on growth than on inflation at this point in time."
While record food-stamps, sinking real wages, and soaring healthcare and shelter costs are all in the realm of peddled fiction; US Retailers are never shy of alternative excuses for their underperformance. It's too-hot, it's too-cold; it's too-low gas prices; it's too-high gas prices; but now, as Bloomberg reports, US retailers and restaurants are floating another excuse to explain their lackluster performance - it's the election, stupid!
To hear retail executives tell it, the battle for the presidency between Republican Donald Trump and Democrat Hillary Clinton is causing Americans to put off buying everything from romance novels at Barnes & Noble and jeans from the Gap to burritos at Yum! Brand Inc.'s Taco Bell. They might even be delaying wedding engagements, not good news for companies like Signet Jewelers Ltd.
"The preoccupation with this election is keeping them at home, glued to their TVs and at their desktops," said Len Riggio, the founder and chief executive officer of Barnes & Noble Inc. This election is "unprecedented in terms of the fear, anger and frustration being experienced by the public."
Retailers and restaurants have used a handful of well-worn excuses over the years with varying levels of legitimacy. There's the usual culprit, the weather, and shifts in the calendar, such as Easter coming early. Now they've added presidential politics.
Interestingly, the relative underperformance of retail stocks has tracked rather closely with Clinton's lead over Trump...
Econintersect wants your comments,
data and opinion on the articles posted. As the internet is a
"war zone" of trolls, hackers and spammers - Econintersect must balance its
defences against ease of commenting. We have joined with Livefyre
to manage our comment streams.
To comment, using Livefyre just click the "Sign In" button at the top-left corner of
the comment box below. You can create a commenting account using your
favorite social network such as Twitter, Facebook, Google+, LinkedIn or
Open ID - or open a Livefyre account using your email address.
You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com