Written by Gary
The Dow posted tripled digit losses Wednesday as plunging oil prices sent energy stocks tumbling, and a rout in global markets hurt performance. The Dow fell about 0.54%. The S&P 500 declined 1.11%, while the Nasdaq Composite dropped about 1.23%. WTI crude oil prices fell 3% to settle at $65.01 to settle at two-month lows Wednesday after data showed a an unexpected build in US crude supplies, while domestic production resumed expansion. Brent fell 2.10% to trade at $70.94 barrel.
Todays S&P 500 Chart
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The Market in Perspective
| Here are the headlines moving the markets. | |
 | Cisco tops revenue estimates as newer bets pay offCisco Systems Inc reported quarterly revenue above Wall Street estimates on Wednesday, driven by growth in the network gear maker’s newer businesses such as cyber security. |
| Qatar to aid Turkey, lira rallies, U.S. rejects lifting tariffsThe United States on Wednesday ruled out removing steel tariffs that have contributed to a currency crisis in Turkey if Ankara frees a U.S. pastor, as Qatar pledged $15 billion in investment to Turkey, supporting a rise in the Turkish lira. |
| Wall St. ends lower on escalating trade worriesU.S. stocks closed lower on Wednesday, with the S&P 500 posting its biggest daily percentage decline since June, as investors turned risk averse on a series of disappointing earnings and escalating global tariff worries. |
| White House condemns Turkey’s tariffs on U.S. importsThe White House on Wednesday condemned Turkey’s doubling of tariffs on U.S. cars, alcohol and tobacco imports, calling the action “a step in the wrong direction.” |
| Uber narrows loss but is a long way from finding profitUber Technologies Inc [UBER.UL] said on Wednesday it narrowed its quarterly losses from a year earlier, although the ride-hailing company is still a long way from proving it can be profitable as it gears up to go public in 2019. |
| Google provides data on U.S. political advertisingGoogle has added a section to its twice-yearly transparency report to show who buys U.S. election ads on its platform and how much money is spent on political advertising, the search engine giant said on Wednesday. |
| Turkish finance minister says Turkey-Qatar will improve cooperationTurkey and Qatar will improve cooperation after Doha pledged to invest $15 billion in Turkey, Turkish Finance Minister Berat Albayrak said on Wednesday. |
| U.S. says EU stalling on Airbus, blocks request for WTO compliance panelThe United States said on Wednesday the European Union and four of its planemaker states have failed to bring subsidies for Airbus into line with a WTO ruling of last May, an accusation refuted by the EU. |
| Global stocks, commodities tumble; emerging markets hit as dollar rises, yuan fallsEquities around the world took a dive on Wednesday, with emerging market stocks set to confirm a bear market and the dollar hitting a 13-month high, while weakness in China’s yuan rattled investors’ nerves. |
| Foreigners Dumped US Treasurys In June: Japan Holdings Drop To 7 Year LowsWith Russia no longer even figuring among the top holders of US Treasurys following two straight months of liquidations in April and May, which brought Moscow’s holdings of US government bonds to virtually nil amid a major push to diversify away from the dollar…
… bond traders were looking to see if the example set by Putin would be copied by another nation in the month of June. The answer is that, indeed, the month of June saw aggressive selling of long-term US Treasurys, with foreign official (central bank, reserve fund managers) and private investors selling $48.6 billion in Treasurys, the largest one month total since October 2016. |
| Carnage… Everywhere Except Bonds & BitcoinSo much for the “all is well” signal from yesterday’s markets that we pointed out had the stink of a dead-cat-bounce about it… Big trouble in tech china combined with a major QT redemption day sparked carnage across global markets. So where to start… Despite constant imploring that there is no contagion, Commodities (blue), EM FX (orange), Global Systemic Banks (red), World Stocks (grey), & FANG/TATS (pink) all got clubbed like a baby seal…
The only bid in the world was for bonds and bitcoin… |
| US Unit Labor Costs Slump Most In 4 Years… ‘Spark’ Productivity GainsGreat news America – US worker productivity jumped in Q2 by 2.9% QoQ, the best gain since Q1 2015. However, unit labor costs (what Americans are being paid to be productive) tumbled 0.9% QoQ in Q2, the biggest slump since Q3 2014. So, do you want the good news… or the bad news? As Bloomberg notes, the data indicate that the lift to growth in the quarter from Republican-backed tax cuts also came with a boost to productivity. That gives President Donald Trump another economic point to cheer, though many analysts are skeptical that the administration’s policies will deliver a large, sustained acceleration in efficiency. The latest advance in productivity compares with a 1.3 percent average pace over the period spanning 2007 to 2017, and a 2.7 percent average from 2000 to 2007.
However, what Americans made from all that ‘improved efficiency’ tumbled 0.9% QoQ – the worst drop since Q3 2014 – and well; below the +1.4% QoQ average of the last 10 years |
| Twitter CEO Jack Dorsey Explains Alex Jones Suspension, “Timeouts”In the latest media pit stop, Twitter CEO Jack Dorsey sat down with NBC News’ Lester Holt, where he defended the company’s decision to put Infowars’ Alex Jones under a seven-day timeout over an offensive tweet linking to a video in which Jones encourages his audience to “act on the enemy before they do a false flag,” and to get “battle rifles” ready. Dorsey said that despite calls to ban Jones last week amid a seemingly coordinated multi-platform blacklisting, he resisted until now. “We can’t build a service that is subjective just to the whims of what we personally believe,” Dorsey told Holt, while saying he believes a suspension can be an effect deterrent which can change user behaviors. “I feel any suspension, whether it be a permanent or a temporary one, makes someone think about their actions and their behaviors,” Dorsey added – though he admitted he has no idea if Jones’ timeout will result in any changes in behavior.
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| Why Turkey’s Trials Are Rippling Into EuropeEmerging-market currencies aren’t the only ones affected by Turkey’s crisis, the euro is too. |
| 15Aug2018 Midday Update: Wall Street Slides As Strong Dollar, Trade Fears Trigger Risk Aversion, DOW Over 200 Points, Crude Prices Sink 3 Percent, US Business Inventories Edge Up In JuneWritten by Gary US three major Wall Street indexes slid more than 1 percent today (SPY -1.0%) in a broad decline over concerns about the strengthening dollar, Turkey’s currency crisis and United States’ trade relations with its partners.
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| Baxter Black: Pet Yer Dog
There’s never a dull moment with our favorite cowboy poet, Baxter Black. What can you say about dogs? There aren’t enough words. Unconditional love loyalty, friendship, courage. All ways happy to see you. If you don’t like dogs, there is something wrong with you. |
| Market Snapshot: U.S. stocks close lower as Turkey, trade worries continue to weighU.S. stocks came off intraday lows but still closed down Wednesday as worries surrounding Turkey’s currency crisis and continued trade tensions weighed on investors’ confidence. |
| Macy’s may have beat earnings estimates but is still losing market shareMacy’s reported an earnings beat but says changes to the calendar impacted same-store sales in the second quarter. |
| Handbag sales help carry Coach brand back to ‘full health’GlobalData Retail says Coach is back to “full health” after fiscal fourth quarter earnings that show growth in North America across the handbag business. |
Summary of Economic Releases this Week
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