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13Oct2016 Pre-Market Commentary: Wall Street Tumbling After Chinese Poor Trade Data, Falling Yuan, Rising US Dollar, Investor Unrest Of A Continuing Market Slide

Written by Gary

U.S. stock index futures pointed to a sharply lower open this morning (DOW -0.6%, SPY -0.7%, SP500 -0.6%, Nadaq -0.6%), as traders eyed the release of data and earnings. The dollar has risen to fresh seven-month highs, Chinese trade data came in well below expectations and US Jobless claims fall for second straight week.

Here is the current market situation from CNN Money

European markets are sharply lower today with shares in France off the most. The CAC 40 is down 1.47% while Germany's DAX is off 1.36% and London's FTSE 100 is lower by 1.08%.

Looking at the last three columns, the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.

What Is Moving the Markets

Here are the headlines moving the markets.

Wells Fargo CEO John Stumpf quits, replaced by Tim Sloan

NEW YORK (Reuters) - Wells Fargo & Co's veteran chairman and chief executive officer, John Stumpf, abruptly departed on Wednesday bowing to pressure over its sales tactics that has damaged the bank's reputation and put Wall Street under renewed scrutiny.

Weak China data, stronger dollar send global stocks skidding

LONDON (Reuters) - World stocks stumbled to three-week lows on Thursday and developed market bond yields dipped, after Chinese data showed a sharp decline in exports, reviving concerns about the health of the world's second-biggest economy.

Deutsche Bank alerts managers to hiring freeze: source

FRANKFURT (Reuters) - Deutsche Bank has introduced a hiring freeze as it seeks to cut costs amid a deep strategic overhaul, a source familiar with the matter told Reuters on Thursday.

Disappointing China trade data spurs fears recovery may be faltering

BEIJING (Reuters) - China's September exports fell 10 percent from a year earlier, far worse than expected, while imports unexpectedly shrank after picking up in August, suggesting signs of steadying in the world's second-largest economy may be short-lived.

Wells Fargo's new CEO faces immediate test

NEW YORK (Reuters) - Tim Sloan will not have much time to prepare his pitch for Wall Street.

Amazon to hire 120,000 temporary workers for holiday season

(Reuters) - Inc said it would hire more than 120,000 seasonal workers in the United States for the holiday season, 20 percent more than last year, highlighting the growing threat the e-commerce giant poses to traditional retailers.

South Korea's Hanjin Shipping to sell major businesses

SEOUL (Reuters) - South Korea's Hanjin Shipping Co Ltd is selling major businesses, including its Asia-U.S. route network, and will receive letters of intent by October 28, the company said on Thursday.

Chevron confirms is in discussions for potential Bangladesh sale

DHAKA (Reuters) - Chevron Corp confirmed that the company is in "commercial discussions" regarding its Bangladesh assets, as the second-largest U.S. energy company moves forward with plans to sell assets amid a prolonged slump in energy prices.

Israel, Turkey discuss joint gas pipeline as ties resume after six-year rupture

ISTANBUL (Reuters) - Israel and Turkey have discussed the possibility of building a natural gas pipeline between the two countries, Israel's energy minister said on Thursday, in the first Israeli ministerial visit to Turkey since ties were ruptured six years ago.

US Import Prices Drop For 26th Straight Month As UK Exports Most Delfation

US import prices have now fallen year-over-year for 26 straight months - the longest non-recessionary streak in US history. The 1.1% decline is slightly worse than expected as China's exported deflation was flat at 6 year lows but UK 'exported' the most deflationary pressure.

26 months in a row... probably nothing.

And while China was flat at 6 year lows, UK is now exporting deflation rapidly...

Time to hike rates?

Charts: Bloomberg

Washington State Democratic Elector May Not Vote For Clinton In Electoral College

Submitted by Mike Krieger via Liebrty Blitzkrieg blog,

Well this is interesting.

The Hill reports:

A Democratic elector in Washington says that if his party's presidential nominee, Hillary Clinton, wins the state, he may shirk his duty to cast his vote for her in the Electoral College.

"How can I say and do and be who I am and then cast a vote for somebody that's the same as [GOP nominee Donald] Trump?" Robert Satiacum Jr. asked Politico in an interview published Wednesday.

Satiacum, an activist member of Washington's Puyallup Tribe, is one of 12 Democrats designated to cast electoral votes for Clinton should she win the state. Clinton is expected to easily carry Washington, where she leads by double digits. The state has gone Democratic in the last seven presidential elections.

"They may be male, female, but they're in the same canoe. I have to either step down from being this thing I was elected to be or I've got to step down from being myself. That's the teeter totter I'm on."

Satiacum said the penalty is "not even a factor" while he considers a final decision ahead of Election Day.

Thai Stocks, Currency Rally As 'Investors' Buy The Dead King Dip

The last few days have seen carnage in Thailand's currency and stock markets following reports that the King's condition was unstable on Sunday. But the news that the world's longest reigning monarch has died this morning has prompted a buying panic in stocks and the Baht.

Thai King Bhumibol Adulyadej, the world's longest reigning monarch, has died, according to an announcement from the palace. He was 88.

Bhumibol has been a symbol of unity in Thailand, which had 10 coups during his seven-decade reign. He had been ill for years, making limited public appearances and spending most of his time in the hospital.

Thailand's stock market and the baht have fallen this week after the royal palace said Sunday the king's condition was unstable. Prime Minister Prayuth Chan-Ocha's government had earlier urged citizens not to panic over rumors circulating on social media.

But it appears the "relief" rally now that he has died is well underway...

Crown Prince Maha Vajiralongkorn, 64, is the king's only son and heir apparent. While his father is beloved for his royal works, Vajiralongkorn doesn't have the same adulation.

One has to wonder whether the Thai central bank stepped in here to manage the hysteria?

US Joins Yemen Conflict With Cruise Missile Strikes On Anti-Saudi Targets

We can now put away any speculation whether the US will limit its support and arming of Saudi Arabia in its ongoing campaign over Yemen over "war crime" concerns.

Overnight, the U.S. military not only did not rebuke the Saudis for a military campaign that has claimed nearly 10,000 innocent civilian lives, but became the latest entrant in the Yemen offensive, when it launched cruise missile strikes on Thursday to knock out three coastal radar sites in areas of Yemen controlled by Iran-aligned Houthi forces, in what was supposedly a retaliation after failed missile attacks this week on a U.S. Navy destroyer, U.S. officials said.

Cited by Reuters, U.S. officials speaking on condition of anonymity, said U.S. Navy destroyer USS Nitze launched the Tomahawk cruise missiles around 4 a.m. (0100 GMT). The strikes, authorized by President Barack Obama, represent Washington's first direct military action against suspected Houthi-controlled targets in Yemen's conflict.

The US Navy released the following video of the airstrikes:

As we reported previously, U.S. officials said there growing indications - if no official proof - that Houthi fighters, or forces aligned with them, were responsible for Sunday's attempted strikes, in which two coastal cruise missiles designed to target ships failed to reach the destroyer.

And like on all previous occasions when the US got involved in a nation's sovereign affairs, the Pentagon stressed the limited nature of the strikes, aimed at radar that enabled the launch of at least three missiles against the U.S. Navy ship USS Mason on Sunday and Wednesday. What it did, however, was make Saudi incursions into Yemen even easier, providing the Saudi airforce a corridor deep into the country which mak ...

These Health Insurance Mergers Aren't Alike

Two health insurance mergers under regulatory scrutiny seem to be taking different paths.

Ultralow Rates Hurt Banks in More Ways Than One

Ultralow interest rates aren't just a problem for banks' lending books, but falling bond yields in the third quarter could also push some U.K. bank pension plans into deficit.

Fast Retailing's Problems Aren't Going Away Quickly

Uniqlo-owner Fast Retailing will have to rely on low prices to compete with the likes of Zara and H&M, leaving paltry margins vulnerable to swings in costs or competitive pressure.

08 October 2016 Initial Unemployment Claims: Rolling Averages At Lowest Level Since December 8, 1973

Weekly Initial Unemployment Claims

The market expectations for weekly initial unemployment claims (from Bloomberg / Econoday) were 245,000 to 255,000 (consensus 254,000), and the Department of Labor reported 246,000 new claims. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 252,750 (reported last week as 253,500) to 249,250. The rolling averages generally have been equal to or under 300,000 since August 2014.

Rail Week Ending 08 October 2016: Short Term Rolling Averages Mixed

Week 40 of 2016 shows same week total rail traffic (from same week one year ago) contracted according to the Association of American Railroads (AAR) traffic data. The weekly data was worse compared to last week.

'The Amazon effect' and 3 other things to watch for this holiday shopping season

Retailers are preparing for a few key issues in order to make holiday 2016 a success

Market Extra: Wells Fargo earnings: Here's what to expect as embattled lender's CEO steps down

Here's what to look for from Wells Fargo's third-quarter results on Friday.

Fed minutes release—here's how stocks tend to perform the day after

The day after Fed minutes, stocks have had a tendency to deflate in 2016 once the details of the inner thoughts of the Federal Open Market Committee is digested by market participants

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