Written by Gary
Heading into Tuesday’s plunge, there was a veritable cornucopia of excuses (SPY +1.3%). US stock markets may wobble into a crash as tangible market headwinds increase.
Here is the current market situation from CNN Money | |
 | European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.25% while London’s FTSE 100 is up 1.09% and France’s CAC 40 is up 0.89%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | LVMH scraps $16.2 billion deal with TiffanyLouis Vuitton owner LVMH is scrapping its $16.2 billion acquisition of Tiffany. |
| AstraZeneca shares drop after company announces ‘routine’ safety pause in coronavirus vaccine trialAstraZeneca shares were lower in premarket trading after the company said on Tuesday its late-stage trial for a potential coronavirus vaccine had been put on hold due to safety concerns. |
| Lululemon quarterly sales top expectations, CEO ‘cautiously optimistic’ for rest of 2020CEO Calvin McDonald said the retailer is “cautiously optimistic” about the rest of the year. Lululemon is not offering a 2020 outlook at this time. |
| Qiagen to launch rapid coronavirus test it says could be used in airports and stadiumsIn a statement, Qiagen CEO Thierry Bernard added that the antigen tests are meant to supplement, not replace, the molecular, or PCR, tests, which are the most accurate tests on the market. |
| AstraZeneca trial pause is ‘not necessarily’ a setback, British health minister saysThe U.K.’s health minister on Wednesday rushed to defend AstraZeneca’s decision to pause a closely-watched coronavirus vaccine trial due to safety concerns. |
| Home Depot adapts 2020 holiday shopping season to pandemic era with 2 months of Black Friday dealsHome Depot on Wednesday previewed its 2020 holiday shopping season “ adapted to pandemic times, when crowds are taboo but customers still want Black Friday deals. |
| History says one feared market factor isn’t the trigger in this selloffStocks are selling off, especially in the tech sector, but the Dow and S&P 500 have a history of strong performance in the months right before, and after, a presidential election. |
| Apartments on stilts that use solar power installed above a parking lot in EnglandThe eleven apartments boast a number of sustainable features. |
| 5 things to know before the stock market opens WednesdayU.S. stock futures pointed to a bounce at Wednesday’s open after the Nasdaq dropped 10% in three sessions. |
| Tesla is a ‘tech on wheels’ company, and that gives it room to run, trader saysTesla may be down 30% in the past week, but don’t count the stock out, says Ascent Wealth Partners managing director Todd Gordon. |
| Coronavirus live updates: WHO stresses safety and Dr. Fauci says pause in major vaccine trial is ‘not uncommon’The coronavirus has infected more than 27.6 million people around the world so far, killing at least 898,200 people. |
| Fauci says a coronavirus vaccine is ‘unlikely’ by U.S. electionInfectious disease experts and scientists have said they worry the vaccine approval process in the U.S. could be polluted by politics, not science. |
| Disney under fire for ‘Mulan’ credits that thank Chinese groups linked to detention campsDisney is facing backlash after the final credits for its latest film “Mulan” thanked government entities in Xinjiang, the province where Muslims have faced human rights abuses. |
| After The Plunge, What’s Next For The Market?After The Plunge, What’s Next For The Market? Tyler Durden Wed, 09/09/2020 – 08:55 Heading into Tuesday’s plunge, there was a veritable cornucopia of excuses (which traders had generously ignored) to resume last week’s deleveraging as investors were already anchored to more tangible market headwinds: Lack of progress on CARES 2.0 (consensus still sees $1.5-$2T getting passed although even Goldman is becoming more skeptical) Gamma reset in megacap Tech due to the SoftBank doxxing (massive upside vol structures should begin to roll off, however) Record equity issuance upcoming ($308BN so far YTD in the US or the 100th %-tile back to 2008) September trading seasonality (see MSZZMOMO SEAG on Bloomberg) Diminishing systematic bid (Morgan Stanley now sees only a few $B of global equities to buy vs prior growth estimates) Diminishing bid from retail (next round of stimulus checks may matter) Elevated HF exposure (nets and gross at the 66th and 89th %-tile per MS PB Content) Mutual fund year-end (will we finally see outflows/profit taking if tax loss selling was pulled forward in August?) Election permutations (Senate races should remain in focus for those in fear of new tax proposals) US-China re-escalation (hence focus on SMIC over the weekend) Setbacks in the reopenin … |
| EUR Spikes On ECB Optimism HeadlinesEUR Spikes On ECB Optimism Headlines Tyler Durden Wed, 09/09/2020 – 08:54 Bloomberg reports that, according to euro-area officials familiar with the discussions, tomorrow’s ECB statement will show some European Central Bank policy makers have become more confident in their forecasts for the region’s economic recovery, potentially reducing the need for more monetary stimulus this year. GDP for this year will be revised up, one person said, with private consumption in particular doing much better than expected. The headline alone was enough to send EURUSD up 60 pips… |
| Blain: It Might Wobble Into A Crash As “Cataclysm Of Long-Denied Bad News” Hits MarketBlain: It Might Wobble Into A Crash As “Cataclysm Of Long-Denied Bad News” Hits Market Tyler Durden Wed, 09/09/2020 – 08:30 Authored by Bill Blain via MorningPorridge.com, Correction, Or What? “If it smells like, tastes like, and looks like, then it probably is…” It feels the current correction is going deeper. It might even wobble into a crash. A cataclysm of long-denied bad news is hitting the market; rising pandemic infections (but death rates way down), renewed social distancing rules ” no more than 6 people together in the UK, and a string of negative corporate news. Markets are likely to suffer more bad news as October marks rising unemployment and ongoing pandemic misery. Â On the other hand ” central banks can’t afford a market crash, and Donald Trump can’t either. The American’s look poised to push another stimulus package and the Fed will do what the Fed has to do.. Will it work..? I suspect there is something more fundamental going on the hive mind of the market ¦ but more of that later this week.. Yep ¦ I’ve got an idea..and its not just trying to explain how MMT might work. |
| OECD Exposes 15 Trillion Reasons Why US Schools Need To Open Now!OECD Exposes 15 Trillion Reasons Why US Schools Need To Open Now! Tyler Durden Wed, 09/09/2020 – 08:14 The Organization for Economic Cooperation and Development (OECD) is out with a dire prediction, saying that America’s economy is facing down a $15 trillion hit. The study out Tuesday by the intergovernmental economic organization, which includes 37 member countries sought, to evaluate the economic impact of school closures world-wide among member nations, and assumed that current students amid coronavirus shutdowns from last spring into this year would miss up to one-third of the school year total. |
| Rio Tinto: Church of England condemns Aboriginal destructionThe boss of Rio Tinto faces calls to step down over the destruction of a cultural site in Australia. |
| Ryanair boss Michael O’Leary calls UK travel quarantine ‘a shambles’Michael O’Leary says the UK needs to embrace testing at airports to help revive international travel. |
| David Beckham’s Guild Esports to float on London stock marketFirm wants £20m to boost performance in global online games Fortnite, CS:Go, Rocket League and Fifa. |
| Financial situation in Pondy ‘very critical’Financial situation in Pondy ‘very critical’Puducherry CM said the fiscal situation of the territorial government was ‘very critical’ as the flow of revenue had fallen considerably during the ongoing COVID-19 period. |
| Rhea in Byculla jail, bail plea tomorrowRhea in Byculla jail, bail plea tomorrowIn addition to Rhea, brother Showik’s bail plea, too, will be heard tomorrow. |
| Number of women bank borrowers treble in six yearsNumber of women bank borrowers treble in six yearsBesides loans for agriculture, these loans are essentially for small businesses, kirana stores, food stall, catering, self employment or even home and vehicle purchases say bankers. |
| NewsWatch: Why an approved coronavirus vaccine may not end the pandemic quicklyA vaccine with just 60% effectiveness probably won’t alter the on-the-ground situation very much. |
| AstraZeneca’s coronavirus vaccine setback shows why Big Pharma would rather be safe than sorryBefore the AstraZeneca announcement about pausing vaccine trials, its chief executive and the top executives of eight other big pharmaceutical companies gave an unusual statement. |
| AstraZeneca stock falls as drugmaker pauses vaccine trial after volunteer’s ‘unexplained illness’News comes as England set to announce new measures to curb the spread of the virus after a sharp rise in cases. |
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