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10Aug2017 Market Close: Wall Street Closes Down Sharply, DOW Off 205 Points, Crackpot Kim Is Rattling His Nuclear Marbles, One More Down Market Day And We Should See Green Again

Written by Gary

US stock markets ended today's session with the SP 500 falling1.5% (SPY -1.4%) as investors worry about escalating global tensions. US producer prices unexpectedly fell, recording their biggest drop in nearly a year.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

Wall Street falls as investors flee risk on North Korea concerns

(Reuters) - The S&P 500 index was on track for its first daily drop of more than 1 percent in almost three months on Thursday as investors grew cautious over escalating tensions between the United States and North Korea.

Uber investor sues to force former CEO Kalanick off board

(Reuters) - Venture capital firm Benchmark Capital is suing former Uber Chief Executive Officer Travis Kalanick to force him to leave the board of the ride services company and rescind his ability to fill three board seats, according to a copy of the lawsuit obtained by news website Axios.

Exclusive: Amazon in talks to offer event ticketing in U.S.- sources

NEW YORK/SAN FRANCISCO (Reuters) - Inc is seeking to partner with U.S. venue owners to sell event tickets, four sources have told Reuters, a move that could loosen Ticketmaster's powerful grip on the lucrative ticketing business.

U.S. producer prices record biggest drop in 11 months

WASHINGTON (Reuters) - U.S. producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate hike.

Ford says it is cooperating in German diesel investigation

BERLIN (Reuters) - Ford said German motor authorities were investigating a diesel-engined model of its mid-sized Mondeo car, adding that none of its cars was equipped with illegal emissions cheating software.

Wells Fargo likely to appoint former community banker to head board: WSJ

(Reuters) - Betsy Duke, a former Federal Reserve official and community banker from Virginia, is likely to become chairwoman of the board of Wells Fargo & Co , investors, analysts and two people with knowledge of board discussions told Reuters.

Exclusive: Husky hires Goldman Sachs for $4 billion sale - sources

(Reuters) - Husky Injection Molding Systems Ltd, a Canadian supplier of injection molding equipment to the global plastics industry, has hired investment bank Goldman Sachs Group Inc to explore a sale that it hopes could value it at close to $4 billion, including debt, according to people familiar with the matter.

ADP CEO slams Ackman's research and 'spoiled brat' antics

NEW YORK (Reuters) - The CEO of Automatic Data Processing Inc ADP.O slammed investor William Ackman on Thursday, likening the hedge fund manager to a "spoiled brat," and skewering the billionaire's research efforts into the payroll processor.

UK fraud office expects decision on GSK, Rolls-Royce cases next year

LONDON (Reuters) - The UK Serious Fraud Office (SFO) said on Thursday it expects to decide next year whether it will file criminal charges in bribery investigations related to drugs giant GlaxoSmithKline and aero engine company Rolls-Royce .

"Black Sky Hazards": Feds To Wargame "Widespread Power Outages" And "Cascading Infrastructure Failures"

As the world teeters on the brink of a nuclear confrontation with North Korea, FEMA and the U.S. Department of Energy are preparing to wargame so-called "Black Sky Hazards" that could result in a "subcontinent scale, long duration power outage, with cascading failure of all our other increasingly interdependent infrastructures." Here's how EarthEx2017 described the exercise:

Concerns have grown over the potential for severe malicious or natural "Black Sky" hazards associated with subcontinent scale, long duration power outages, with cascading failure of all our other increasingly interdependent infrastructures. This creates a grim and difficult dilemma: Restoration of any sector will only be possible with at least minimal operation of all the others.

To deal with this deadlock, careful sector by sector and cross-sector resilience planning is crucial. However, such plans, to be effective, must be exercised. With the diversity and the national and global scale of the infrastructures we now depend on, this requires an unprecedented, multi-sector, national and international exercise series.

EarthEx defines "Black Sky Hazards" as a "catastrophic event that severely disrupts the normal functioning of our critical infrastructures in multiple regions for long durations." Here are a couple of examples of things EarthEx is prepping for:

More Really Bad Ideas: "Government Debt Isn't Actually Debt"

Authored by John Rubino via,

The failure of fiat currency and fractional reserve banking to produce a government-managed utopia is generating very few mea culpas, but lots of rationalizations.

Strangest of all these rationalizations might be the notion that government debt is not really a liability, but an asset.

Where personal and business loans are bad if taken to excess, government borrowing is not just good on any scale, but necessary to a healthy economy.

Here's an excerpt from a particularly assertive version of this argument:

What if every government paid off its national debt?

( - It might make you feel better but tomorrow if the US Federal Government, or Australia or the UK repaid the entirety of its national debt, it would make not one dollar's difference to your bank account.

In fact the economy would tank.

"If America repaid all its national debt tomorrow, we very likely would crash into the mother of all great depressions long before the debt is 'paid off'", says economist, Professor Randall Wray.

There were six times in US history in which budget surpluses were achieved for long enough to retire a significant amount of debt. Five of those were followed by depressions, the last of which culminated in the Great Depression of the 1930s.

The last time America ran a significant budget surplus (about 2.5 years) was under President Clinton. The 2002 recession is a dir ...

Trump Escalates War Of Words With N.Korea: "Things Will Happen To Them Like They Never Thought Possible"

The verbal "war of words" ping-pong between Trump and North Korea notched up another level on Thursday afternoon, when instead of de-escalating growing US threats (which are now backed by the US air force ready to conduct a preemptive strike on N.Korean missile and nuclear facilities at a moment's notice) Trump told reporters in Bedminster, NJ that "if anything" his statement on "fire and fury" "was not tough enough," in response to questions on North Korea's regime calling the U.S. leader's warning "nonsense."

President Trump answering several questions from press says his comments on North Korea "maybe wasn't tough enough"

— Brooke Baldwin (@BrookeBCNN) August 10, 2017

Trump said that if North Korea does anything to U.S. or its allies "they can be very, very nervous" and said that "It's not acceptable" what North Korea has "been doing and what they've been getting away with."

He also said that the American people should feel "comfortable," regarding N. Korean threats and added that "the people of our country are safe, our allies are safe." The president also touched on the recent Mattis comments and said he "may have taken it a step beyond what I said."

"We're backed 100% by our military, we're backed by everybody, and we're backed by many other leaders" and "it's about time someone stood up for the people of our country."

Trump also took another shot at China, saying he thinks "China can and will do more on North Korea", although that appears unlikely after today's latest "provocation", in which a

Goldman Warns S&P, VIX, Credit Signals "Suggest Period Of Corrective Price Action Has Begun"

Goldman Sachs' Technical Analysis Team is concerned as signals from the equity (S&P), volatility (VIX), and credit (CDX IG) markets are suggesting this is more than a brief dip to buy.


The index has finally seen follow-through since the bearish key day reversal high on Tuesday. The balance of signals suggest potential to have started a period of corrective price action (overlapping/ lower).

a) S&P Intraday/Daily - There was some small attempt at a relief rally on the day following the key day pattern (Wednesday). Historically, this tends to be the case, prior to seeing continuation of the initial decline. As previously discussed, seven of the past seven bearish key day reversals have had some follow-through in trend (between 1 and 4%). With this in mind, the index is now right on top of a trendline formed across the lows since May as well as a minor ABC target at 2,448-2,446. The next two retrace levels below there come in at 2,429 and 2,391 (38.2% and 61.8% since April). And if this is truly a 4th wave to a sequence that started in Feb. '16, it has scope to run as far as ~2,368 over time. This would mean retracing 23.6% of the length of wave 3 since June. It's worth noting that wave 2 (the Jun. 7th/27th '16 selloff) was fairly sharp/quick. This would imply that wave 4 could be more complex and take time to fully materialize.

View: Focus shifting lower. Next immediate support at 2,448-2,446. R ...

Altice-Charter Chatter May Be Just Talk

How would European cable billionaire Patrick Drahi fund a bid for Charter Communications? It's the obvious question -- but perhaps it misses the point.

Glencore Bets Heavy on an Electric Car Future

Glencore is betting that being in the "right" commodities for a battery and electric car dominated future is more important than big cash payouts now.

Chipotle Is a Recipe for Trouble

To justify its high stock price, Chipotle needs to keep growing like crazy while simultaneously regaining customers' trust. That will be difficult to pull off

Trump Today: Trump Today: President says his 'fire and fury' warning to North Korea wasn't 'tough enough'

President Donald Trump on Thursday said maybe his "fire and fury" statement on North Korea didn't go far enough as he issued a fresh warning to Pyongyang, hinted he would call on Senate Majority Leader Mitch McConnell to step aside if he couldn't pass an Obamacare replacement and named a new chairman of the Federal Energy Regulatory Commission.

The Tell: Signs the battered buck may be entering an upswing, according to B. of A.

The yearlong weakness in the U.S. dollar may have one clear bright side for enterprising investors: opportunity. That is according to Bank of America Merrill Lynch.

Market Extra: Wall Street's 'fear gauge' nears 4-month high as 'fire and fury' sparks stock-market slump

A popular gauge of fear and volatility on Wall Street surges on Thursday and was nearing its highest level since April amid rising geopolitical tensions centered on North Korea.

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