Written by Gary
A broad sell-off of technology stocks pushed all three major U.S. stock indexes lower today (SPY -0.5%). Morgan Stanley: “The Selling Has Just Begun; This Correction Will Be The Biggest Since February”.
Todays S&P 500 Chart
Nasdaq posts biggest 3-day loss since March as Facebook, Amazon and Netflix drop
Jamie Dimon says he’s hoping Trump’s trade methods work but fears negative outcomes
Tech stocks are dropping hard — again — as investors start to lose faith
Trump: I am ready to meet with Iran ‘anytime they want to’ – with no preconditions
CBS board to seek outside counsel to investigate Les Moonves, but makes no decision about his role
Jamie Dimon says health care initiative with Buffett and Bezos may start small like Amazon did with books before expanding
The Market in Perspective
Here are the headlines moving the markets. | |
Wall St. ends lower; Nasdaq leads the declineA broad sell-off of technology stocks pushed all three major U.S. stock indexes lower on Monday, with the Nasdaq Composite posting its third consecutive loss of more than 1 percent for the first time in three years just days after hitting a record high. | |
GE hires bankers to mull sale of digital assets: WSJGeneral Electric Co has hired an investment bank to organize an auction for its digital assets, the Wall Street Journal reported on Monday citing people familiar with the matter. | |
With nimbler bikes, Harley sharpens Asia focus to revive growthHarley-Davidson Inc is launching lightweight motorcycles in Asia and electric bikes globally in the hope of reviving demand, as it faces falling sales in the United States and the threat of trade tariffs adding to its costs. | |
Bitcoin slips below $8,000 as investors step away from riskBitcoin briefly fell below $8,000 on Monday as investors scaled back their exposure to cryptocurrenices, after a sell-off in shares of technology and internet companies spilled over into other risky assets. | |
Tech stocks pull down equity markets, euro gainsThe dollar slipped against the euro on Monday ahead of several central bank monetary policy meetings this week, and a gauge of global equity markets fell, pulled down by a slide in U.S. technology heavyweights. | |
Starbucks and China’s Alibaba to partner on delivery: media reportsStarbucks Corp and e-commerce company Alibaba Group Holding Ltd are set to join forces on coffee delivery, according to media reports, as the coffee retailer seeks to rebound from a sales slump in the once-booming China market. | |
Caterpillar paints upbeat picture of global economyCaterpillar Inc on Monday gave a promising outlook for the global economy despite ongoing trade tensions and mounting cost concerns, and the heavy equipment maker lifted its full-year earnings forecast after quarterly profits nearly doubled. | |
Wary of China’s rise, Pompeo announces U.S. initiatives in emerging AsiaU.S. Secretary of State Mike Pompeo announced $113 million in new technology, energy and infrastructure initiatives in emerging Asia on Monday, at a time when China is pouring billions of dollars in investments into the region. | |
Walmart stumbles with its ‘last mile’ package delivery planStanding before an audience of 14,000 people last year, Walmart Inc executives described a radical plan to help it fend off Amazon.com Inc and other online delivery services from stealing its customers. | |
Stocks, Bonds, Dollar Dumped On Worst FANGover In 30 MonthsCommission-takers and asset-gatherers desperate to reassure their clients that a 15-20% collapse in their favorite stocks in 3 days is “just a fleshwound”… China stocks closed lower overnight, with CHINEXT (China Tech-heavy index) leading the slide… CHINEXT is back near its lowest since Jan 2015… European stocks were lower, led by DAX once again… | |
Morgan Stanley: “The Selling Has Just Begun; This Correction Will Be The Biggest Since February”At the same time as Morgan Stanley’s institutional traders were warning that the current tech sell is “different this time”, warning that “you can’t have a >$100bn loss in a well held name and not have collateral damage” and calculating that “the performance of HF longs based on 13F holdings shows the last few weeks have been a ~2 standard deviation loss event”, Morgan Stanley’s chief US equity strategist, Mike Wilson, had some even harsher words: “the selling has just begun and this correction will be biggest since the one we experienced in February.” The reason for that is the same one Nomura discussed on Friday: “the most important trade of the past decade is now reversing” namely the reversal of the growth/value which has also commingled with the “momentum trade”, abd which means that the growth/tech “market leadership” that defined the market for the past decade is now gone at least for the time being. The reason for that is simple: after the stock prices of tech stocks got carried away in the first half, their Q2 earnings, even though for the most part significan … | |
Russia Explains Why It Liquidated Its US TreasurysAs we detailed here first, during the months of April and May, as the Yuan-denominated oil futures were launched, trade war threats escalated, and sanctions were unleashed, Russia liquidated almost 90% of its US Treasury holdings. The question most had was simple – why? Speculation ran the gamut from this action being a dress-rehearsal – carefully coordinated with Beijing to field test what would happen if/when China also starts to liquidate its own Treasury holdings; to forced sales to cover liquidity needs on sanctioned Russian entities. | |
“No Preconditions”: Trump Will Meet Iran’s Rouhani “Anytime They Want”President Trump said on Monday that he is willing to meet with Iranian President Hassan Rouhani with “no preconditions,” exactly one week after he blasted out a fiery all-caps threat to the regime over Twitter. “I would certainly meet with Iran if they wanted to meet. I don’t know if they’re ready yet,” Trump said, responding to a reporter’s question during a White House press conference alongside Italy’s new Prime Minister Guiseppe Conte.
Watch for the MSM to follow the North Korea playbook on this one – blasting Trump for failing to follow “protocol” as he carves a new path through international relations. Following a warning from Rouhani earlier in the month that hostile US policies could trigger the “mother of all wars,” after which Trump blasted back via Twitter:
Trump’s decis … | |
Intel Serves Up an Opportunity for AMDMuch smaller chip maker will have a big head start with new data-center processors. | |
August 2018 Economic Forecast: At Highest Level Since December 2014Written by Steven Hansen Econintersect’s Economic Index (EEI) improvement cycle continues and remains well into territory associated with normal expansions. Our index is now at the highest level since December 2014. | |
MarketWatch First Take: Bernie Sanders, the shareholder activistMoving the responsibility for paying for health insurance from companies to the government could be a net win for shareholders. | |
The Moneyist: My ex-wife stopped payments on our home and racked up credit-card debt in my nameThis man says his credit score was damaged by his former partner’s shenanigans. | |
Want to delete Facebook? Read what happened to these people firstSome social networkers had enough of cat videos, while others were spooked by the Cambridge Analytica scandal |
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