Top News

  • Today - Monday, October 15, 2018
    • Twilio (NYSE:TWLO) will acquire email API platform SendGrid (NYSE:SEND) in an all-stock transaction valued at about $2B.
    • The deal breaks down to approximately $36.92/share. The transaction is expected to close in 1H19.
    • SendGrid will continue to exist as a subsidiary and both companies will report earnings on November 6.
    • Twilio will have a conference call today at 5:30 ET PM to discuss the purchase with a webcast available here.
    • Twilio shares are down 4.1% aftermarket to $73.02.
    • SEND shares are up 13.6% to $35.15.
    • Post and title updated to include SendGrid movement.
    • Stocks wobbled between gains and losses before sliding lower in the final hour of trading, weighed by renewed weakness in the tech (-1.6%) and financial (0.5%) sectors that thwarted follow-through buying interest from Friday's rally.
    • The S&P 500 (-0.6%) closed below its 200-day moving average (2,766.54) and the tech-heavy Nasdaq (-0.9%) was the day's worst performer among the major indexes, while the small-cap Russell 2000 outperformed (+0.6%).
    • Notable tech components that fell included Apple (-2.1%) and Microsoft (-1.8%), while the financials sector was unable to gain any traction after an underwhelming response to Bank of America's (-1.9%) better than expected earnings report.
    • Among sectors bucking the broader downward trend were consumer staples (+0.6%), real estate (+0.5%) and utilities (+0.4%).
    • U.S. Treasury prices ticked lower, with the 10-year yield adding 2 bps to 3.16% and the two-year yield gaining a basis point to 2.85%.
    • Crude oil prices remained relatively subdued despite rising U.S.-Saudi Arabia tensions following the disappearance and alleged murder of Washington Post columnist Jamal Khashoggi; November WTI settled +0.6% at $71.78/bbl.
    • After plenty of downside volatility last week, this week so far is getting off to a quiet start. The Dow and S&P 500 are about flat, while the Nasdaq is down a modest 0.4%.
    • Earnings season is just beginning to pick up a little steam, perhaps meaning investors will focus on company performance rather than the macro (interest rates, trade wars).
    • Among names reporting today, Bank of America is down 1.3% despite topping estimates.
    • Stocks start lower, adding to last week's losses over worries about higher borrowing costs and their potential effects on the global economy; Dow -0.2%, S&P -0.5%, Nasdaq -0.9%.
    • European bourses are mostly higher, with France's CAC flat, U.K.'s FTSE +0.2% and Germany's DAX +0.6%; in Asia, however, Japan's Nikkei closed -1.9% and China's Shanghai Composite settled -1.5%.
    • In U.S. earnings, Bank of America (-2%) and Charles Schwab (-1%) both trade lower after BofA reported better than expected earnings and Schwab posted in-line top and bottom lines.
    • Tensions between the U.S. and Saudi Arabia over the disappearance and alleged murder of Jamal Khashoggi have failed to boost oil prices, with WTI -0.2% to $71.16/bbl.
    • Weakness in the tech sector (-1.3%) weighs on the broader market in early trading, while consumer staples (+0.4%) and real estate (+0.3%) are the early sector leaders.
    • The U.S. Dollar Index, which tracks the dollar against six major currencies, -0.2% to 94.73, nearing a two-week low.
    • ACRX +21% on positive Ad Com vote for Dsuvia and positive analyst action.
    • ABCD +19% on merger agreement with Veritas Capital.
    • SLS +11% on presenting interim and updated final clinical data of Phase 2b Results of NeuVax + Herceptin.
    • RKDA +10% on receiving US patent for extended shelf life wheat trait.
    • RIOT +7%.
    • PEIX +8%.
    • NXTD +7%.
    • CRON +7% on partnering with Technion Research & Development Foundation for cannabinoid-based skin care treatments.
    • INO +7% on encouraging Ebola vaccine data.
    • SBGL +7% on better outlook.
    • LLL +6% on merger with Harris.
    • TLRY +5% on launching comprehensive portfolio of adult-use cannabis brands.
    • Sept. Retail Sales+0.1% M/M vs. +0.6% consensus, +0.1% prior (unrevised).
    • Core Retail Sales -0.1% M/M vs. +0.4% consensus, +0.2% prior (revised).
    • Ex-autos: flat M/M vs. +0.4% expected, +0.1% prior (revised).
    • Control group +0.5% M/M vs. +0.3% consensus, +0.0% prior (revised).
    • Sears (NASDAQ:SHLD) has filed for bankruptcy after years of staying afloat through financial maneuvering, a merger with Kmart and relying on billions of CEO Eddie Lampert's own money.
    • It's set to shutter 142 stores towards the end of the year end and begin liquidation sales shortly.
    • While Lampert will step down as CEO, he'll remain Sears chairman, as his ESL Investments negotiates a debtor in possession loan and other funding to support what was once the country's biggest retailer through bankruptcy.
    • Previously: Sears bankruptcy filing expected in early Monday hours (Oct. 14 2018)
  • Saturday, October 13, 2018
    • See a week over week comparison below for the following indices, equities, commodities, bonds and currencies.
    • Where will the markets be headed next week? Current trends and ideas? Add your thoughts to the comments section.
    • U.S. Indices
    • Dow -4.2% to 25,339. S&P 500 -4.3% to 2,768. Nasdaq -3.7% to 7,496. Russell 2000 -4.9% to 1,546. CBOE Volatility Index +36% to 21.31.
    • S&P 500 Sectors
    • Energy -4.4%. Materials -6.3%. Industrials -6.2%. Consumer Discretionary -2.9%. Consumer Staples -2.3%. Health Care -3.1%. Financials -5.4%. Information Technology -3.5%. Telecommunication Services -3.1%. Utilities -1.8%. Real Estate -3.6% .
    • World Indices
    • FTSE 100 -3.7% to 6,995. CAC 40 -3.6% to 5,095. DAX -3.9% to 11,523. Nikkei 225 -3.6% to 22,713. Shanghai Composite -5.8% to 2,606. Hang Seng -3.8% to 25,801. BSE Sensex +1.5% to 34,733.
    • Commodities and Bonds
    • Crude Oil WTI -4% to $71.51/bbl. Gold +2.6% to $1221.50/ounce. Natural Gas +0.6% to 3.161s. Treasuries -9 bps to 3.14%
    • Forex and Cryptos
    • EUR/USD +0.45% USD/JPY -0.54% GBP/USD +0.73%. Bitcoin -5.7%. Litecoin -11.4%. Ethereum -14.9%. Ripple -14.3%. Bitcoin Cash -16%.
    • Top Stock Gainers
    • Youngevity (NASDAQ:YGYI) +83%. Cormedix (NYSEMKT:CRMD) +74%. Pyxus (NYSE:PYX) +53%. Avenue Therapeutics (NASDAQ:ATXI) +52%. IDT Corp. (NYSE:IDT) +48%.
    • Top Stock Losers
    • Arbutus Biopharma (NASDAQ:ABUS) -54%. Altimmune (NASDAQ:ALT) -43%. China Internet Nationwide (NASDAQ:CIFS) -41%. China Advanced Construction (NASDAQ:CADC) -38%. Menlo Therapeutics (NASDAQ:MNLO) -36%.
    • Uniting two big providers of defense communications and electronics, Harris (NYSE:HRS) and L3 Technologies (NYSE:LLL) are nearing an agreement to merge, with the goal of completing an all-stock deal as early as this weekend, WSJ reports.
    • The $33.5B combination would add to a flurry of aerospace and defense M&A amid increased military spending and a boom in jetliner sales.
    • TransDigm agreed this week to buy Esterline Technologies for $3.6B and Boeing closed its purchase of components distributor KLX.
  • Friday, October 12, 2018
    • Regulators may vote as soon as next week on removing federal oversight from Prudential Financial (NYSE:PRU) -- the last remaining nonbank firm with the "systemically important financial institution" designation, The Wall Street Journal notes.
    • That wouldn't be a surprise move, as it's been expected at some point since the beginning of the Trump administration. As recently as 2016, four nonbank firms were SIFI designated (AIG, GE Capital and MetLife have since been removed).
    • PRU is up 1.3% after hours.
    • The Financial Stability Oversight Council's Tuesday agenda has a closed-door discussion of “an update on the annual re-evaluation of the designation of a nonbank financial company" which must be Prudential.
    • Nine of the council's 10 voting members are Trump appointees.
    • Stocks recouped a chunk of their weekly losses in a volatile session, as the S&P 500 added as much as 1.7% in the early going but losing most of it intraday before rallying to finish 1.4% higher.
    • The Dow settled with a 1.2% gain after briefly turning negative, and the tech-heavy Nasdaq outperformed with a 2.3% surge, but small caps lagged, as the Russell 2000 posted a slim 0.1% gain.
    • For the week, the Dow sank 4.2%, the S&P slumped 4.1% and the Nasdaq tumbled 3.7%.
    • The financials sector finished today's trade just 0.1% higher after adding as much as 1.6% following earnings reports from J.P. Morgan, Citigroup and Wells Fargo; 10 of 11 S&P sectors finished in the green, led by tech's 3.2% boost.
    • The FAANG stocks, which were some of the biggest casualties of this week’s rout in stocks, rebounded: Facebook +0.2%, Apple +3.6%, Amazon +4%, Netflix +5.7%, Google +2.8%.
    • U.S. Treasury prices finished roughly flat, with the benchmark 10-year yield up a basis point to 2.14%, while the U.S. Dollar Index gained 0.3% to 94.96 in rebounding from a more than two-week low, and November WTI crude oil climbed 0.5% to $71.34/bbl.
    • It was shaping up to be another ugly session as the averages gave up big early gains and turned negative in early afternoon trade. But there's been another reversal and the Dow (+1%), S&P 500 (+1.2%), and Nasdaq (+2%) have all moved back to near session highs with 20 minutes to go before the closing bell.
    • SoftBank (SFTBY +2.4%) is readying what may be the biggest initial public offering in history for its Japanese mobile business, with reports on the sale ranging from an offering of ¥2.3T to ¥3T (some $20B-$27B worth).
    • Reports have the conglomerate choosing Goldman Sachs (GS -0.3%), Nomura (NMR -1.3%) and Deutsche Bank (DB -0.7%) as lead underwriters, with Mizuho and SMBC Nikko Securities also underwriting.
    • The company reportedly expects to complete the offering by late December.
    • Alibaba sold $25B worth of shares in New York in 2014, still the biggest-ever IPO.
    • SoftBank is looking to the Tokyo Stock Exchange to list and most of the issue will be pitched at domestic investors.
    • This morning's big rally in the Dow and S&P 500 has been completely snuffed out in early afternoon action, with the Nasdaq - earlier up more than 2% - is clinging to a 0.65% gain.
    • Financials are leading the fade as investors sell the mostly good earnings news. Also in the red is the industrial sector, led by a 2.25% decline in GE after that company - under new management - delayed its Q3 report.
    • In an update to the September security issue that allowed the possible theft of account access tokens, Facebook (FB -1.1%) says the issue affected fewer people than the company expected.
    • "Of the 50M people whose access tokens we believed were affected, about 30M actually had their tokens stolen," the company says.
    • The vulnerability came in a feature called "View As" that lets account holders see their profile as it looks to other users. Stolen access tokens can be used as "digital keys" to take over people's accounts.
    • The company's been "working around the clock" to investigate, it says. It will send customized messages to the 30M affected people, and all users can determine whether they were affected in Facebook's Help Center.
    • This attack did not include Messenger, Messenger Kids, Instagram, WhatsApp, Oculus, Workplace, Pages, payments, third-party apps, or advertising or developer accounts, Facebook says.
    • In the run-up to AT&T's (T +1.2%) $85B acquisition of Time Warner, CEO Randall Stephenson floated the idea of selling CNN to ease Justice Dept. concerns over the merger, Bloomberg reports.
    • That news from a deposition conflicts with Stephenson's public stance that he didn't offer to sell CNN to mollify the DOJ.
    • Stephenson raised the issue during a November meeting with antitrust chief Makan Delrahim, according to the deposition, which the government is citing in its appeal of the court decision that allowed the merger to go forward.
    • Asked if he was the first one to raise the subject of CNN with Delrahim, Stephenson said “Oh, yeah ... I asked Mr. Delrahim, I think my language, this will be pretty close: ‘If I were to walk in here tomorrow and tell you I had gotten my head around selling CNN, would that allow you to wave this deal through?’ And he said, unequivocally, ‘No.’ ”
    • The government took that as a proposal to sell; shortly after that meeting, Stephenson said publicly that he didn't propose selling the network: “Throughout this process, I have never offered to sell CNN and have no intention of doing so."
    • Up more than 1% earlier in the session, the S&P 500 is now ahead 0.9% and Dow just 0.6%.
    • The banks were nicely higher early today after JPMorgan, Citigroup, Wells Fargo, and PNC reported pleasing Q3s. The big players have given up much of their gains though, and the regionals are sharply lower, with some pointing to disappointing loan growth out of PNC. The SPDR S&P Bank ETF (KBE -1.6%).
    • The Nasdaq remains very strong, up 1.5%, though it was ahead well over 2% about 90 minutes ago.
    • Stocks spring out of the gate, with each of the major U.S. indexes jumping more than 1%; Dow +1.4%, S&P +1.6%, Nasdaq +2.2%.
    • Tech shares (+2.5%) are staging a big rebound from steep losses earlier this week, and financials (+1.4%) are higher after big banks JPMorgan Chase (+1.2%) and Citigroup (+2.8%) both beat earnings estimates while Wells Fargo (+1.3%) came up short.
    • Battered FAANG stocks open with solid gains: Facebook +1.2%, Amazon +3.9%, Apple +2.5%, Netflix +4.9%, Google +2.5%.
    • The only sector lower so far is utilities (-0.2%), which has been one of this month's strongest performers.
    • European markets post modest gains, with U.K.'s FTSE +0.5% while Germany's DAX and France's CAC both +0.6%; in Asia, Japan's Nikkei +0.6% and China's Shanghai Composite +0.9%.
    • In the U.S. Treasury market, the yield curve seeks to reverse yesterday's flattening move, with the benchmark 10-year yield up 3 bps to 3.16%, and the two-year yield flat at 2.86%.
    • U.S. WTI crude oil +0.7% at $71.50/bbl.
    • Still ahead: consumer sentiment
    • General Electric (NYSE:GE) -1.4% pre-market after announcing it will push back the date of its Q3 earnings release by five days to Oct. 30.
    • GE says it is making the delay "to allow GE Chairman and CEO Larry Culp to complete initial business reviews and site visits following his appointment on Oct. 1."
    • GE had been expected to report on Oct. 25.
    • IMDZ -41% on announcing updates & portfolio prioritization for G100 and CMB305.
    • VSTM -8% on pricing registered direct offering of $150M convertible notes.
    • SPEX -6%.
    • Automobile sales in China plummeted 11.6% in September to 2.39M units, according to data from the China Association of Automobile Manufacturers.
    • Passenger vehicle sales (sedan, MPV, SUV and crossover utility vehicles) were down 12.0% during the month.
    • The monthly drop was the largest in China since 2011 and marks the third straight month of declines amid trade issues.
    • The Chinese auto market is up 1.5% YTD through the end of September to 20.49M vehicles.
    • The three-month downturn in auto sales in China is a negative factor for global automakers as well as domestic producers due to their heavy investments in China on the expectation of a solidly growing market.
    • "It’s very alarming and is even causing panic among some automakers and suppliers. That’s because the market has been growing non-stop every year for more than twenty years, and those companies make plans based on growth," notes a Shanghai-based analyst from research firm Automotive Foresight.
    • Related automaker stocks: OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, OTCPK:GELYF, OTCPK:GELYY, OTCPK:BYDDY, OTCPK:BYDDF, KNDI, OTCPK:DNFGY, OTCPK:DNFGF, OTCPK:DDAIF, OTCPK:VWAGY, OTCPK:BMWYY, GM, OTCPK:GNZUF, OTCPK:GNZUY, TSLA, F, OTCPK:NSANY, TM, OTCPK:MZDAY, HMC.
    • The third quarter earnings season kicks off in earnest today on the heels of a backup in interest rates and a selloff on Wall Street.
    • JPMorgan, Wells Fargo, Citigroup and PNC Financial will all report before the bell, with U.S. futures getting a big bump overnight pending the results. Dow +0.6%; S&P 500 +0.7%; Nasdaq +1.2%.
    • Corporate tax cuts, strength in the U.S. economy, rising oil prices and share buybacks are expected to fuel double-digit earnings growth, but analysts will also be watching how often companies mention tariffs hurting their profits.
    • Oil is up 0.8% at $71.50/bbl, gold is 0.4% lower at $1222/ounce and the 10-year Treasury yield is up 4 bps to 3.17%.
      ETFs: SPY, QQQ, DIA, SH, SSO, VOO, SDS, IVV, SPXU, TQQQ, UPRO, PSQ, SPXL, RSP, SPXS, SQQQ, QID, DOG, QLD, DXD, UDOW, SDOW, VFINX, EPS, DDM, QQEW, QQQE, SPLX, SFLA, QQXT, SPUU, SPXE, UDPIX, OTPIX, RYARX, SPXN, SPDN, SPXT, SPXV
    • "Our position is that expensive energy is back... And it poses a threat to economic growth," the IEA wrote in its closely-watched monthly report.
    • As a result of soaring energy prices, the agency revised down its demand outlook over the next two years to 1.3M bpd in 2018 and 1.4 bpd in 2019.
    • Oil prices have surged more than 25% this year, with President Trump repeatedly blaming OPEC for rising gasoline costs.
    • Crude futures +1% to $71.69/bbl.
    • ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM, WTIU, OILK, OILX, WTID, USOI, USOU, USOD, OILD, OILU, USAI
  • Thursday, October 11, 2018
    • Verizon (NYSE:VZ) has changed up the exit package for about 1,000 U.S. workers it planned to outsource to Infosys (NASDAQ:INFY).
    • Those workers had been told they weren't eligible for severance, but now they have the choice of taking the exit package or moving to Infosys with a two-year guarantee of comparable pay and benefits.
    • That's in response to some disappointment from employees that they were being transferred to a new company rather than receiving severance packages comparable to those colleagues received.
    • Verizon recently signed a $700M IT outsourcing deal with Infosys, and decided to rebadge the workers hours before several thousand colleagues got a different buyout offer of three weeks of pay for each year served (up to 60 weeks).
    • After hours: VZ +1.2%.
    • Previously: Bloomberg: Verizon CEO looks to shake up top ranks in 5G push (Oct. 09 2018)
    • Previously: WSJ: Verizon severance offer goes to quarter of workforce (Oct. 03 2018)
    • Previously: WSJ: Verizon launches buyouts to trim workforce (Sep. 25 2018)
    • The Broadcom-CA memo kerfuffle has spurred investigations into stock manipulation, Bloomberg reports.
    • After Sen. Rand Paul argued for a national-security review of Broadcom's (NASDAQ:AVGO) $19B acquisition of CA Technologies (NASDAQ:CA), Broadcom announced that a forged memo was circulating among members of Congress over the need for such a review.
    • Shares of both companies fell yesterday and now the Justice Dept. and SEC are probing whether the memo was made to manipulate the prices.
    • Those probes may not ultimately conclude that fraud was committed, but the Defense Dept. says "Our initial assessment is that this is likely a fraudulent document."
    • AVGO fell 1.3% during the regular session and is flat after hours; CA rose 1.5% today and is flat postmarket.
    • Stocks extended yesterday's rout in a volatile session that saw the Dow industrials swing more than 750 points from its high to its low before closing 545 points lower to bring its two-day losses to more than 1,300 points.
    • The S&P 500 sank 2.1% in its sixth straight decline and closed below its 200-day moving average for the first time since April; the benchmark average is now down 5.5% for the week and 6.9% below its Sept. 20 record close.
    • “U.S. growth is still very good,” says Jason Draho of UBS Global Wealth Management. “But we’re waking up to the reality that this late in the economic cycle, you get higher rates, you get more volatility and more bumps in the road.”
    • A drop in bond yields today offered some relief for stock traders, who have been cautious since yields shot to multi-year highs last week; the 10-year yield fell 9 bps to 3.13% and the two-year Treasury note slipped a basis point to 2.85%.
    • The flattening of the yield curve weighed on lenders, which depend on the interest rate differential between what they pay for deposits and what they make on loans, sending the S&P's financial sector tumbling 2.9%.
    • The energy sector (-3.1%) was another major underperformer, as WTI November crude oil fell 3% to a three-week low $70.97/bbl.
    • The tech and communication services sectors, which contain many of the high-growth names that had been leading the market higher, tried to stage a rebound and were up modestly intraday before finishing lower by 1.3% and 0.8%, respectively.
    • Investors hope strong Q3 earnings will provide a pillar of support for the stock market; big banks JPMorgan Chase, Citigroup and Wells Fargo unofficially kick off Q3 earnings season tomorrow morning.
    • Tencent Music Entertainment (TME) -- the Tencent unit that had planned one of the biggest public debuts of the year -- is pausing its initial public offering amid market turmoil, The Wall Street Journal reports.
    • It will wait at least until November to come out in hopes that pricing will stabilize in the meantime.
    • Tencent Music had planned to start a roadshow next week and start trading the week after that.
    • Amid a number of downdrafts in the stock market, parent Tencent (OTCPK:TCEHY) has been hit particularly hard, with shares down 34% so far this year. OTCPK:TCEHY dropped 1% in U.S. trading today.
    • Previously: Tencent Music files for U.S. IPO (Oct. 02 2018)
    • Often a recipient of buying when the major averages head south, the REIT sector fell even further than the broader markets today.
    • The S&P 500 fell 2.1%. The iShares U.S. Real Estate ETF (IYR -2.7%) and the Vanguard Real Estate ETF (VNQ -2.8%).
    • Selected equity REITs: Realty Income (O -2.4%), Healthcare Trust of America (HTA -4.3%), Senior Housing Properties (SNH -2.9%), CBL (CBL -3.9%), Macerich (MAC -2.6%), Stag Industrial (STAG -3.6%), Vornado (VNO -3.8%), Hospitality Properties (HPT -3.2%), Public Storage (PSA -1.5%), Preferred Apartment (APTS -3.1%)
    • Mortgage REITs (REM -1.6%) weren't spared either: Annaly (NLY -2.2%), AGNC Investment (AGNC -1.4%), Two Harbors (TWO -1.7%), Armour (ARR -1.7%)
    • ETFs: VNQ, MORL, IYR, REM, RQI, MORT, SCHH, RNP, RFI, KBWY, DRN, NRO, URE, ICF, XLRE, JRS, RWR, SRS, FREL, DRA, DRV, RIF, LRET, REK, RIT, FRI, FTY, PSR, USRT, WREI, IARAX, RORE, BBRE, PPTY
    • Facebook (FB +0.6%) today removes 559 pages and 251 accounts in its latest steps against "coordinated inauthentic behavior."
    • That includes bad actors on Facebook's anti-spam rules. Some were "ad farms using Facebook to mislead people into thinking that they were forums for legitimate political debate."
    • That's different from older spam that would hawk fraudulent products, Facebook notes.
    • Meanwhile, a New York Times report notes that the well-known Facebook disinformation campaigns linked to Russia for the 2016 election are now increasingly created by Americans.
    • "Politics has always involved shadings of the truth via whisper campaigns, direct-mail operations and negative ads bordering on untrue," Sheera Frenkel writes. "What is different this time is how domestic sites are directly emulating the Russian playbook of 2016 by aggressively creating networks of Facebook pages and accounts — many of them fake — that make it appear as if the ideas they are promoting enjoy widespread popularity."
    • That's also happening on Twitter (TWTR -0.3%), researchers said.
    • A failed bounce this morning is turning into another potential rout this afternoon. Just less than 90 minutes before the close, the S&P 500 and DJIA are down more than 1.5% and the Nasdaq 0.9%.
    • The 10-year Treasury yield is buckling a bit, now down three basis points to 3.14%.
    • Gold is finally catching a risk-off bid, up nearly 3% to $1,227 per ounce.
    • Sears Holdings (SHLD -18.8%) chief Eddie Lampert is considering a bid for some of the company's assets and real estate as a possible alternative to court-ordered restructuring as Sears preps its bankruptcy filing, Reuters reports.
    • That could stave off outright liquidation but would take some key assets off the table as Sears navigated the reorganization.
    • A traditional reorg is still a possibility, though.
    • Lampert is said to be looking at bidding for the Kenmore brand and home services business along with some real estate. He had already offered $480M for Kenmore and home services in a previous rescue plan and is now looking at that same approach through the bankruptcy process.
    • He could forgive some Sears debt in order to finance the purchases, Reuters notes.
    • Previously: Big banks pressure Sears for asset liquidation (Oct. 11 2018)
    • Previously: Sears skips payments to vendors (Oct. 11 2018)
    • "It’s a correction that I think is caused by the Federal Reserve,” says the president, responding to a question about the stock market. "I think the Fed is far too stringent and they’re making a mistake."
    • Chairman Powell? "I'm not going to fire him," says Trump.
    • Stocks are near session lows, the S&P 500 down 0.7%.
    • The dollar (UUP, UDN) continues to hold modest losses.
    • Stocks poke into the green after opening with slimmer losses than feared, following the release of weaker than expected U.S. inflation data;S &P and Dow both +0.2%, Nasdaq +0.8%.
    • Futures fell as much as 1.5% overnight following yesterday's broad-based selloff but staged a rebound after the September Consumer Price Index and Core CPI both showed less than expected increases of 0.1%; on a Y/Y basis, total CPI is up 2.3% (vs. 2.7% in August) and core CPI is up 2.2% (vs. 2.2% in August).
    • In response, Treasury yields have pulled back from multi-year highs, with the benchmark 10-year yield down 4 bps to 3.18%, 10 bps below its recent seven-year high on Tuesday.
    • "The economy may be running hot, but it isn't fast enough to kick up inflation pressures and calls into question the need for Fed policymakers to move interest rates to higher levels," says Chris Rupkey, chief financial economist at MUFG Union Bank.
    • European bourses post broad losses, with U.K.'s FTSE -1.5%, France's CAC -1.2% and Germany's DAX -0.8%; in Asia, Japan's Nikkei -4% and China's Shanghai Composite -5.2% to its lowest level in more than four years.
    • In the U.S., the energy (-1.3%) and utilities (-1.1%) sectors lag, while financials (-0.2%) pare losses after a shaky start.
    • U.S. WTI crude oil -1.7% at $71.92/bbl after the API reported a sharp rise in U.S. crude stockpiles.
    • Still ahead: EIA petroleum inventories, EIA natural gas inventory
    • The "Fed has gone crazy crowd" will get a bit more ammo out of this morning's CPI report, with the core rate in September coming in at an unexpectedly soft 0.1%. On a year-over-year basis, core CPI was up 2.2% - flat from August, but shy of estimates for 2.3%.
    • The 10-year Treasury yield has ticked modestly lower on the number, now at 3.176%. TLT +0.45%, TBT -0.9% premarket.
    • U.S. stock index futures continue to gain ground, the S&P 500 now off just 0.3%.
    • Previously: September Core CPI growth below consensus (Oct. 11)
    • September Consumer Price Index: +0.1% M/M to 252.44 vs. +0.2% consensus, +0.2% prior.
    • Core CPI +0.1% M/M vs. +0.2% consensus, +0.1% prior.
    • Core CPI +2.2% Y/Y vs. +2.3% expected, +2.2% prior.
    • Initial Jobless Claims +7K at 214K vs. 207K consensus, 207K prior (unrevised).
    • Continuous Claims: +4K to 1.660M in-line with consensus, 1.656M prior (revised).
    • The selloff in Europe is rather contained given the carnage in the U.S. yesterday - the Stoxx 600 is down 1.8%, led by the FTSE (NYSEARCA:EWU) and CAC 40 (NYSEARCA:EWQ) with 1.7% declines.
    • Checking Italian bonds, the 10-year yield is up 9 basis points to 3.595%. German 10-year Bund yields are down 3 basis points to 0.528%.
    • The bigger picture on European shares isn't nearly as pretty - the Vanguard FTSE Europe ETF (NYSEARCA:VGK) is off nearly 11% YTD vs. the S&P 500's 3% gain.
    • ETFs: VGK, EWG, HEDJ, FEZ, EWP, EWI, DAX, EZU, IEV, EPV, IEUR, GF, EURL, DXGE, HEWG, FEU, DBEU, DBGR, HEZU, EEA, FEEU, FEP, UPV, ADRU
    • A mix of higher bond yields and growth worries are continuing to take their toll on the markets, with equities across Asia and Europe getting slammed overnight after a bloodbath in the U.S.
    • Led by tech carnage, the S&P 500 and the Dow posted their biggest daily declines since Feb. 8, while the Cboe Volatility index (VIX) surged 43.9% to 22.96.
    • Adding to the worries were several statements from President Trump that referenced a long-awaited "correction" and said that the "Fed is going loco" by raising rates.
    • Asia: Nikkei -4%; Hang Seng -3.5%; Shanghai -5.2%; Sensex -2.5%.
    • Europe: FTSE 100 -1.8%; CAC 40 -1.5%; DAX -1.3%.
    • U.S. futures: Dow -1.3%; S&P -1.1%; Nasdaq -1.1%.
    • Oil is down 2% at $71.72/bbl, gold is 0.7% higher at $1202/ounce and the 10-year Treasury yield is down 7 bps to 3.15%.
    • ETFs: SPY, QQQ, DIA, SH, SSO, VOO, SDS, IVV, SPXU, TQQQ, UPRO, PSQ, SPXL, RSP, SPXS, SQQQ, QID, DOG, QLD, DXD, UDOW, SDOW, VFINX, EPS, DDM, QQEW, QQQE, SPLX, SFLA, QQXT, SPUU, SPXE, UDPIX, OTPIX, RYARX, SPXN, SPDN, SPXT, SPXV, VXX, UVXY, XIV, TVIX, SVXY, VIXY, ZIV, VXZ, VIXM, VMAX, VMIN, VIIX, CVOL, XVZ, XXV, IVOP
    • via Bloomberg, traders reactions to Wednesday's selloff that saw the S&P 500 down more than 3% and Nasdaq drop over 4% were mixed. Some are buying the dip, others are still waiting for signs of strength. Overall, very little panic:
    • "It’s just people saying ‘Gosh, my neighbor is selling.’ There is no news today. That to me means you’re going to take this back. I don’t know if it takes a day or a week. I would absolutely be buying this.” - Josh Golub, chief equity strategist, Credit Suisse
    • "I don’t think anyone senses any panic at this point. Given the levels we are currently at, a lot of people think that something like this and even more downside are slightly overdue." - Larry Weiss, head of trading for Instinet LLC
    • “We’ve been used to one direction lately, and that’s up. Naturally there are ebbs and flows, and that’s what we’re seeing right now. While it may be tempting to make a move to mitigate portfolio risk based on today’s activity, timing the market rarely works to an investor’s benefit.” Mike Loewengart, VP of investment strategy, E*Trade
    • "Many are pointing to overall confusion, gross exposure reductions (selling longs/covering shorts), risk parity/factor related unwinds, etc., driving the overall selling. ETF options volumes have been relatively light since Friday’s initial breakdown and we would like to see that pick up and more activity in the puts before any true stabilization kicks in for a trade-able bottom." - Alon Rosin, head of institutional equity derivatives, Oppenheimer
    • “I do not think the cycle peak for stocks is in, if this is the start of a correction then so be it, but I think the bull market has gas left in its tank. Right now it’s dealing with a decline in certain sectors driven by late cycle factors and it’s coming to grips with it in an ugly way.” - Michael Antonelli, institutional equity sales trader, Baird
    • Previously: Futures point to more sharp losses (Oct. 10)
    • ETFs: SPY, VOO, SH, SDS, IVV, SSO, SPXU-OLD, UPRO, SPXL, RSP, SPXS, VFINX, EPS, BXUB, SPLX, SPUU, BXUC, SFLA, SPDN, SPXE, SPXT, PPLC, SPXV, RYARX, SPXN, DMRL, RVRS, USMC, PLW, GOVT, EGF, TAPR, FTT, FIBR, USTB
  • Wednesday, October 10, 2018
    • The action is pretty volatile this evening, but currently Nasdaq 100  futures are down 1.3%, DJIA futures are down 1.2%, and S&P 500 futures down 1%.
    • The 10-year Treasury yield has sunk to 3.15% after holding around 3.22% during the regular session's big selloff.