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25Oct2017 Market Update: Lackluster Earnings Cool Wall Street Rally, DOW Down Triple Digits, BTFDers Are Currently Testing The Waters

Written by Gary

US equities market took a nose dive at the opening after investors balked on lackluster earnings (SPY -0.7%). WTI crude and the US dollar have also suffered fractional weakness.

Here is the current market situation from CNN Money

Traders Corner - Health of the Market

Looking at the last three columns (below), 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.

Lackluster earnings cool Wall St. rally

(Reuters) - Wall Street's rally paused on Wednesday after the latest bunch of earnings from companies, including AT&T and Boeing, failed to impress investors.

U.S. House speaker says tax plan entering most difficult phase: Reuters interview

WASHINGTON (Reuters) - U.S. House of Representatives Speaker Paul Ryan said on Wednesday that Republican plans to enact sweeping tax cuts are entering their choppiest waters as corporate lobbyists try to pressure lawmakers to protect tax breaks.

U.S. business spending on equipment robust, new home sales surge

WASHINGTON (Reuters) - New orders for key U.S.-made capital goods increased more than expected in September and shipments rose for an eighth straight month, pointing to robust business spending that should help to mitigate the impact on the economy from the hurricanes.

Deutsche Bank to pay $220 million in U.S. Libor probe

(Reuters) - Deutsche Bank AG has agreed to pay $220 million to settle U.S. regulatory charges that it defrauded government and nonprofit entities by manipulating Libor and other benchmark interest rates.

Exclusive: Canada pushed for Airbus deal as Bombardier courted China

MONTREAL/PARIS (Reuters) - The Canadian government encouraged Bombardier to make a deal with Airbus SE for its CSeries planes to thwart a potential venture with Chinese investors, according to five sources familiar with the matter.

Coke's North American sales rise fuels market share gains over Pepsi

(Reuters) - Coca-Cola Co topped profit and revenue estimates for the third quarter on a 3 percent rise in North American sales, gaining market share over arch rival PepsiCo Inc as it sold more Sprite, teas and coffees.

T-Mobile, Sprint ready board committees to decide on merger: sources

(Reuters) - T-Mobile US Inc and Sprint Corp are laying the groundwork for special committees of their boards of directors to decide on a merger between the third and fourth largest U.S. wireless carriers, according to people familiar with the matter.

Carlyle Group unveils new leadership as founders step back

(Reuters) - Carlyle Group LP said on Wednesday that Glenn Youngkin and Kewsong Lee would become its co-chief executives, in the U.S. private equity firm's biggest shakeup since it was founded by David Rubenstein, William Conway and Daniel D'Aniello 30 years ago.

Deutsche Bank to bolster asset management with Sal. Oppenheim ops: source

FRANKFURT (Reuters) - Deutsche Bank plans to integrate parts of its Sal. Oppenheim subsidiary into its asset management division ahead of that division's planned spin-off, a person familiar with the matter told Reuters.

VXX Short Squeezed As VIX Beta Hits -19, Highest Since September 2008

Whether it is because bond yields finally broke out of 6 month ranges, due to nerves ahead of tomorrow's ECB tapering announcement, because the SNB is taking a long lunch break, or simply because investors finally realized that stocks have never been more expensive...

... but something odd is taking place today: selling, and nowhere is it more obvious than in the VIX ETN complex, where the VXX is suddenly caught in a vicious short squeeze.

... as the VIX is spiking, up 1.5vols to 12.63 and rising fast.

And while we recently showed that gross Vega outstanding on levered and inverse VIX derivatives including ETNs and ETFs has never been higher... everyone scrambles to buy S&P calls at a rate not seen since 2007...

NYU's 'Dean Of Valuation': Bitcoin's Not A Fraud, It's A Currency

Aswath Damodaran, a professor of finance at the NYU's Stern School of Business, disagrees with JPMorgan Chase CEO Jamie Dimon that bitcoin is a "fraud," and explains that, in his view, the cryptocurrency is a currency rather than an asset in a new blog post.

Often referred to as Wall Street's "Dean of Valuation," Damodaran concludes:

"I don't believe cryptocurrencies are now or ever will be an asset class," or that they will change the "fundamental truths of risk, investing and management."

Via Musings on Markets blog,

As I have noted with my earlier posts on crypto currencies, in general, and bitcoin, in particular, I find myself disagreeing with both its most virulent critics and its strongest proponents. Unlike Jamie Dimon, I don't believe that bitcoin is a fraud and that people who are "stupid enough to buy it" will pay a price for that stupidity. Unlike its biggest cheerleaders, I don't believe that crypto currencies are now or ever will be an asset class or that these currencies c ...

Amazon Is Asking Customers To Hand Over Their House Keys

Would you feel comfortable giving Jeff Bezos your house keys? Amazon is hoping that the answer is yes.

The e-commerce behemoth and creator of a global deflation impulse on Wednesday introduced a connected door-lock and security-camera system to let package carriers, guests and dog walkers into your home using an app, WSJ reports. The so-called "Amazon Key" will be available for the bargain price of $25. "This is not an experiment for us," said Peter Larsen, vice president of delivery technology at Amazon. "We think this is going to be a fundamental way that customers shop with us for years to come."

Of course, one Amazon executive insisted that the key isn't an experiment: the e-commerce monopolist fully expects this entry process will soon be common features of the homes of Prime customers, giving Amazon direct access to millions of homes. And that's no accident: The key is essentially Amazon's coup de grace in its battle to master "the last mile" of delivering packages - a phrase denoting the last leg of a package's journey as it's processed, placed on a delivery truck, and spirited to the customer's door.

As we reported last week, Amazon recently struck a deal with some of the largest landlords in the country to install electronic lockers that delivery people will be able to access for the purposes of dropping off packages. The lockers have a dual purpose: They will help landlords reduce the building staff's workload (and wages) while also cutting down d ...



Get Ready for an Imperial China

Xi Jinping, China's most powerful leader in decades, has failed to anoint a clear successor in a sharp break from previous convention.

Surprise Capital Demand Signals Uncertainty for Banks

Any investor who thought British banks had escaped demands for higher capital just got a shock, with Lloyds told by U.K. regulators to boost its buffer.

India's Big Bank Boost Can't Afford to Fail

India has finally sent its flailing state-owned banks the big lifeboat they need. Investors should jump aboard cautiously.

September 2017 Headline New Home Sales Improve

Written by John Lounsbury and Steven Hansen

The headlines say new home sales improved and was well above market expectations. Our analysis also shows acceleration of new home sales.

Key Words: Schumer talks tough on tax reform and blasts Mnuchin's warning about stocks

President Donald Trump has been feuding with Republican senators as he seeks votes for tax cuts, and his relationship with Democratic Sen. Chuck Schumer also could be cooling.

Outside the Box: The 'momentum' rally in U.S. stocks might have a twist ending

Simon Maierhofer reviews previous momentum rallies to consider how to time the current one.

Here's where you'll live when self-driving cars rule the roads

Automated vehicles will bring about big changes in the way Americans form communities and pick homes.

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