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25Aug2017 Market Close: Wall Street Takes A Last Minute Plunge Because Concerned Investors Are Unable To See The Trump Rally Continue, The US Dollar Also Fell To The Mid 92 Level

Written by Gary

US stock markets closed mixed with the small caps closing down fractionally and the large caps up moderately (SPY +0.2%). A key White House official said tax reforms were on the horizon and Fed chairwoman remained silent on monetary policy.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

Yellen: Financial rules have made economy stronger, changes should be 'modest'

JACKSON HOLE, Wyo. (Reuters) - Reforms put in place after the 2007 to 2009 crisis have strengthened the financial system without impeding economic growth and any changes to these rules should remain modest, Federal Reserve Chair Janet Yellen said Friday in her fullest defense yet of the regulations enacted after the Great Recession.

Wall Street gains ground in wake of Yellen's remarks

NEW YORK (Reuters) - U.S. stocks rose slightly on Friday though they were off session highs after Federal Reserve Chair Janet Yellen stayed silent on monetary policy in a much-anticipated speech, and a key White House official said tax reforms were on the horizon.

Yellen to Trump: don't expect a flip-flop on financial reforms

JACKSON HOLE, Wyo. (Reuters) - Janet Yellen delivered a message to President Donald Trump on Friday, making it clear that if he re-nominates her as Federal Reserve chair she will not turn her back on the raft of U.S. financial reforms that Republicans want to roll back.

U.S., Mexico, Canada ink non-disclosure agreements for NAFTA talks

MEXICO CITY (Reuters) - The United States, Mexico and Canada signed non-disclosure agreements before the first round of negotiations to revamp the North American Free Trade Agreement (NAFTA), Mexico's Economy Ministry said on Friday.

Samsung leader Jay Y. Lee given five-year jail sentence for bribery

SEOUL (Reuters) - The billionaire head of South Korea's Samsung Group, Jay Y. Lee, was sentenced to five years in jail for bribery on Friday in a watershed for the country's decades-long economic order dominated by powerful, family-run conglomerates.

Philippines says will lift Uber suspension if hefty fine paid

MANILA (Reuters) - The Philippine transport regulator said on Friday it would lift a one-month suspension on Uber Technologies Inc [UBER.UL] if it paid a penalty of 190 million pesos ($3.7 million), a fine nearly 20 times greater than Uber had offered to pay.

Fiat Chrysler says will always evaluate deal inquiries

MILAN (Reuters) - Fiat Chrysler (FCA) said on Friday it would evaluate any inquiries about potential transactions, but did not have anything to add to its previous comments on reported interest from China's Great Wall Motor in its Jeep brand.

Senator questions quick approval of Amazon's Whole Foods purchase

WASHINGTON (Reuters) - A U.S. Democratic senator on Friday questioned the Federal Trade Commission's quick approval of Inc's purchase of Whole Foods Market Inc this week, less than three months after the $13.7 billion deal was announced.

General Motors details Brazil investments

SAO PAULO (Reuters) - U.S. automaker General Motors Co on Friday announced 1.9 billion reais ($603 million) of investments in its Joinville factory in southern Brazil and 1.2 billion reais of capital spending in its plant on the outskirts of São Paulo.

Man Shot Dead In Brussels After Attacking Soldiers With A Knife While Shouting "Allahu Akbar"

In what appears to be the latest weekly terrorist attack in Europe, 7 days after the deadly events in Barcelona, Sky News and Reuters report that a man was shot in the center of Brussels on Friday evening after attacking two soldiers with a knife, according to state broadcaster RTBF reported.

Police confirmed to the Belgian media that the suspect - who brought a knife to a gun fight - was shot dead, the VRT broadcaster reports. According to RTBF, the attacker was a Somali man about 30 years old, who shouted "Allahu Akbar" during his assault. The soldiers suffered slight injuries to the hand and face

#BREAKING Soldiers shot a man who attacked them with machete in Brussels: Belgium media

— Guy Elster (@guyelster) August 25, 2017

The attacker was not known to have links to terrorism, according to Belgian prosecutors cited by Reuters. He was known to police for his earlier involvement in "minor offenses," according to the VRT.


Fidelity Says Baby Boomers Haven't Even Saved Enough To Cover Their Healthcare In Retirement

While statistics are somewhat sketchy on the topic, most research suggests that the average retirement-age household has managed to set aside roughly $200,000-$250,000 for their golden years. Unfortunately, they'll need more than that just to cover their healthcare costs. Per Bloomberg notes today, the average 65-year-old couple will need roughly $275,000 to cover their healthcare costs during retirement...and that's with Medicare.

A 65-year-old couple retiring this year will need $275,000 to cover health-care costs throughout retirement, Fidelity Investments said in its annual cost estimate, out this morning. That stunning number is about 6 percent higher than it was last year. Costs would be about half that amount for a single person, though women would pay a bit more than men since they live longer.

You might think that number looks high. At 65, you're eligible for Medicare, after all. But monthly Medicare premiums for Part B (which covers doctor's visits, surgeries, and more) and Part D (drug coverage) make up 35 percent of Fidelity's estimate. The other 65 percent is the cost-sharing, in and out of Medicare, in co-payments and deductibles, as well as out-of-pocket payments for prescription drugs.

And that doesn't include dental care—or nursing-home and long-term care costs.

< ...

23 Of The Last 24 Times, This Prompted A Market Plunge

While FundStrat's Tom Lee has not been banned from ESPN, he may well be banished from mainstream business media as not only is he bullish Bitcoin, and the S&P's most-bearish strategist (target 2,275 year-end), he is now calling for a 5% correction in stocks as market breadth collapses...

"The constellation of evidence is growing supporting such a drawdown," Lee explained in a note this morning, pointing to the percentage of stocks on the New York Stock Exchange that are trading below their 200-day moving average as a signal that is flashing red warning signs...

"When [this indicator] moves below 50, it is saying fewer stocks are supporting the overall index and our analysis shows, such deterioration historically results in the S&P 500 ultimately falling below its 200-day - this happened 23 of 24 times," Lee wrote.

That would imply "a move of about a 4%-5% decline in the next month towards 2,300 or so."

Lee is not alone. While we have been noting the divergences between market internals and headline strength, a cluster of Hindenburg Omens has appeared (notably picking up on divergences bet ...

Draghi Fears "Return Of Protectionism"; Warns Regulators Against "Rekindling Incentives That Led To Crisis"

As a reminder, it was in Jackson Hole three years ago that Draghi laid the groundwork for the launch of the ECB's 2.3 trillion-euro asset-purchase program.

They looked pensive before he spoke...

Following Yellen's "unhawkish" nothing-burger of a speech (which has sent the broad dollar index to 2 year lows), all eyes were on whether ECB President Mario Draghi would mention the euro's strength, but he disappointed, instead focusing on global trade and protectionism. Draghi failed to mention policy in general, but did warn regulators (similar to Yellen) that...

When monetary policy is accommodative, lax regulation runs the risk of stoking financial imbalances.

By contrast, the stronger regulatory regime that we have now has enabled economies to endure a long period of low interest rates without any significant side-effects on financial stability, which has been crucial for stabilising demand and inflation worldwide.

With monetary policy globally very expansionary, regulators should be wary of rekindling the incentives that led to the crisis.

Meanwhile, while Draghi is warning about "rekindling the incentives that led to the crisis" with one hand, with the other, the central bankers - i.e. global systemic regulators, are doing this:

Trump Gets Yellow Light From Yellen on Bank Deregulation

Fed Chairwoman Janet Yellen defended strict bank regulation at Jackson Hole, but she opened the door to some changes

Where's Crypto? Let's Play Geographic Roulette

Investors can play geographic roulette with Exio Coin, a cryptocurrency like Bitcoin that is allegedly endorsed by some sovereign nation to be revealed at a later date.

Buyout Funds Have Money to Burn, and That's a Problem

Private equity has a $600 billion problem. The problem is how to spend it on deals, because company valuations are very high and buyout volumes have slipped since 2015.

The Ratings Game: Analysts turn bearish on Ulta as beauty sector, same-store sales growth slows

Ulta Beauty's same-store sales deceleration, as well as a slowdown in the beauty sector, is a cause for concern for some analysts

Why the Amazon-Whole Foods combo is not an immediate threat to rival grocers

A joint announcement from and acquiree Whole Foods on Thursday drove down shares of rival grocers. But analysts at SunTrust Robinson Humphrey say the near-term threat to competitors in the space is limited. Here's why.

Called to Account: Earnings season is still a headache, and shareholders shouldn't stand for it

Once again, earnings season was a confused mix of badly-written releases with missing numbers and tables, all issues that should raise red flags.

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