"As market sinks, investors brace for turbulence" by KEN SWEET, AP Business Writer | 09 October 2014
NEW YORK — The stock market had its worst day of the year Thursday, just 24 hours after recording its best.
The Dow Jones industrial average plunged 334 points as falling energy stocks and worries about the global economy sent investors fleeing out of the market. The blue-chip index rose 275 points the day before.
Related: Fed officials link interest rate increases to stronger economic data
For three years, U.S. investors have enjoyed a stock market that has, for the most part, quietly and steadily moved higher. The pleasure cruise appears to be over.
Only the 1% were on board.
Market volatility is back and in a big way, market observers say. The stock market hasn’t seen day-to-day movements like this since August 2011, when Standard & Poor’s downgraded the United States’ credit rating. The S&P downgrade subsequently pushed the U.S. stock market into its last “correction,” a technical term for when stocks fall 10 percent or more from a recent peak.
“Investors are not conditioned for this type of market after three good years,” said Dean Junkans, chief investment officer for Wells Fargo Private Bank. “We’ve been long overdue for a correction.”
Words like “correction,” “fear” and “volatility” might scare the average investor just trying to save for retirement. But investors who might be worried should remain calm, said Jurrien Timmer, director of global macro at Fidelity Investments. “Just stick to your long-term (retirement) plan,” Timmer said.
And keeping showering money on Wall Street, sure.
Thursday’s drop was the third straight day investors have been taken on a wild roller coaster ride. On Tuesday the Dow fell 272 points, only to jump by nearly the same amount Wednesday. While 100-plus moves in the Dow have become more common as stocks have risen to record highs, 200-plus point moves had been rare until this week. More than half of this year’s 200-point moves have happened in the last two weeks.
Looking like a crash, not a correction, and October has a history.
The VIX, a measure of volatility that is sometimes called Wall Street’s “fear index,” jumped 26 percent to its highest level since February. Investors moved into gold, a refuge in times of uncertainty.
“The violent gyrations are causing havoc for fund managers and active investors (who were) hoping for a smooth fourth quarter,” said Todd Schoenberger of J. Streicher Asset Management....
A large part of Thursday’s selling happened in energy stocks, particularly oil and coal companies. The price of oil fell sharply again Thursday, continuing its multi-week decline. Investors are concerned that global oil production remains high despite signs that global demand is slowing....
Were it a real recovery demand would be rising, and that's really going to slow those US oil exports that are propping up this economy -- or so I was told.
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"Finance officials face global economy under threat" by Martin Crutsinger | Associated Press October 10, 2014
WASHINGTON — Though braced by a resurgent United States, the global economy is under threat from other regions — from Europe and Latin America to China and Japan — where growth is stalling and prospects remain dim.
That is the bleak picture facing global finance officials who are meeting this week in Washington to consider policies to address the world’s uneven growth. Their meetings follow downbeat assessments of the global economy issued this week by the International Monetary Fund, the Brookings Institution, and the Federal Reserve.
"The International Monetary Fund cut its forecast for world growth on Tuesday, warning that stagnation in Europe, a slowdown in large emerging markets, and heightened political tensions in Russia and the Middle East threatened an increasingly fragile global economy. At a news conference starting its semiannual meeting, an event that attracts financiers, policy makers, and central bankers from around the globe, the fund’s top economists highlighted a tepid economic recovery in which the major nations of the world have failed to keep up with the United States. In an interview on Friday, Christine Lagarde, IMF managing director, said global growth risked being stuck in a rut for a long time. “If nothing gets done in a bold way, there is a risk of new mediocre” level of growth, she said."
If we are the economy leading the pack then this world is in terrible trouble. I'm sure the 1% will make out fine like they always do, so no problem.
"The head of the International Monetary Fund, Christine Lagarde, said the world is mired in a weak economic recovery six years after the financial crisis, and will regain momentum only through improved government policies.
It's those same policies that got us here.
Lagarde said the world has experienced a sub-par recovery that is ‘‘brittle, uneven, and beset by risks,’’ including potential escalation of strife in the Middle East and Ukraine and the Ebola outbreak. Policy makers must pursue reforms to break out of a prolonged period of mediocre growth, Lagarde said in a speech at Georgetown University to preview next week’s meetings of the 188-nation IMF and its sister lending agency, the World Bank. She called for labor reforms and spending on infrastructure. ‘‘There is a recovery, but as we all know . . . the level of growth and jobs is simply not good enough,’’ Lagarde said."
Yes, the world must do more!
The talks began Thursday with discussions among finance ministers and central bank presidents of the Group of 20 nations, which includes traditional powers such as the United States, Japan, and Germany and emerging economies such as Russia, China, and India. Next will come meetings of the 188-nation International Monetary Fund and its sister lending organization, the World Bank.
They just met in Australia.
In a global forecast prepared for the meetings, the IMF downgraded its outlook this year because Europe is at risk of slipping back into recession and persistent weakness is slowing Japan, China, and Brazil.
China is still growing twice as fast as the U.S., and Russia is not even mentioned.
*****************
Brookings’ report spoke of the United States as ‘‘the sole major economy still showing signs of strength.’’
Let me go get my waders because the bull$hit is getting deep.
‘‘The world still seems to be counting on riding the coattails of the US economy,’’ said Eswar Prasad, a Cornell University economist who was among the authors of the report. ‘‘That is not going to produce a sustainable recovery.’’
OMG! They must be the long coattails of the 1%!
Fed officials took note of the weakness in overseas economies and the strengthening dollar at their September meeting, according to minutes released Wednesday. The minutes indicated that officials worried that sluggish economies in Europe, Japan, and China could depress US exports.
????
Concerns about Germany’s economy — Europe’s largest — have been mounting. The most recent figures show that industrial production, exports, factory orders, and business confidence have all endured sharp declines.
Want to see something deflating?
Collectively, the figures raised the risk that Germany could slide into recession. The country is suffering from weak demand for its goods from the rest of Europe and China and from fears about the effect of sanctions imposed on Russia over the crisis in Ukraine.
Must be why they are pulling off the sanctions now.
****************
The global economy is also facing a threat from the spreading health crisis of Ebola.
They will blame everything and anything but the private Ponzi scheme they are running, and honestly, I'm offended by them worrying about money when people are dying horrible deaths.
The presidents of three West African nations made urgent pleas Thursday to the finance ministers for money, hospital beds and doctors. World Bank president Jim Kim said the epidemic could have a ‘‘catastrophic’’ impact on the region if it isn’t quickly contained and it spreads to other countries.
Treasury Secretary Jacob Lew and Fed chairwoman Janet Yellen are representing the United States at the discussions. US officials said they planned to urge other economies to step up efforts to boost growth and strengthen bank regulations to prevent a recurrence of the 2008 financial crisis.
‘‘I don’t think the United States alone can pull the global economy to where it needs to be,’’ Lew told a forum sponsored by the Peterson Institute for International Economics.
The lopsided shape of the global economy has begun to have consequences. The US dollar has strengthened against major currencies, including the euro and the Japanese yen. That trend should help keep US inflation low. But it will help give European and Japanese manufacturers an edge over their US competitors: European and Japanese goods will become more affordable in the United States, while US products will become costlier in Europe and Japan.
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As for that US economy underwriting the world:
"US employers advertised the most job openings in nearly 14 years during August, yet the pace of hiring fell compared to July. This suggests a potential mismatch between the wages employers are willing to pay and the skills of the workers available to be hired. Still, the report suggests employers expect economic growth to continue."
It's a mismatch, all right! Between reality and the corporate lies shoveled at us constantly in the Bo$ton Globe bu$ine$$ section.
"Americans are expected to spend at the highest rate in three years during what’s traditionally the busiest shopping season of the year, according to the nation’s largest retail trade group. Spending trends that have become prevalent in the years since the Great Recession, however, are expected to continue into the holiday shopping season: Shoppers will spend only if there are big discounts, industry watchers say. And there will be a huge divide in spending between the haves and have-nots."
That ‘‘goes without saying.’’
Btw, last year was a complete washout for a holiday season (and they blamed mild weather?).
Related:
"Sears said Thursday that it expected to raise up to $380 million by early November by offering existing shareholders the right to buy additional shares in Sears Canada, giving the struggling retailer a much-needed cash infusion ahead of the critical holiday season. The company said it expects to receive $168 million by late October from its billionaire chief executive and largest shareholder, Edward S. Lampert, and his hedge fund, ESL Partners, which intend to exercise their rights to the shares — although neither has entered into any agreement. Starved of cash, Sears stores remain underfunded. Pictures of barren shelves and badly stained carpets posted last year on the blog of Brian Sozzi, chief executive of Belus Capital Advisors, underscored the retailer’s plight. Sears Canada had generally performed better than its parent. Still, the retailer is losing ground to local competitors as well as Wal-Mart and Target."
You know, you can't get any more middle-class American than Sears.
"Slightly fewer Americans sought unemployment benefits last week, pushing the average number of applications in the past month to an eight-year low, the Labor Department said, a clear sign of a job market on the mend.
Or that most people have exhausted "benefits" and are no longer counted.
Applications are a proxy for layoffs. They have fallen 9 percent in the past month. That suggests employers are keeping their workers, likely because they expect continued economic growth and may be contemplating more hires.
We have been hearing and seeing that for six years now!
The number of available jobs soared to a 13-year high in August, according to a separate government report Tuesday. That suggests employers will keep adding jobs at a healthy clip in the coming months."
And if they say it enough maybe we will believe them.
Of course, if the pleasure cruise for the rich is over....
"U.S. wholesale companies restocked their warehouses in August at the fastest pace since April, led by big increases in computers, lumber and furniture. But wholesale sales fell by the most since January. The Commerce Department said the figures indicate that inventories rose partly because sales slowed more than wholesalers anticipated. That suggests they may cut back their orders in the coming months. Slower restocking can slow factory production, which could weigh on the economy. Computer sales fell 1.7 percent and lumber sales dropped 0.9 percent, the report showed. Wholesale auto sales also fell. Stockpiles rose in many of the same categories. When companies add goods to their stockpiles, it typically reflects optimism about future demand. But it can also reflect an unexpected slowdown in sales. Inventory change can have a big impact on the economy."
Preemptive excuses being put in place.
At least around here the economy is great:
"New England poised for banner fall tourism season" by Dan Adams | Globe Correspondent October 09, 2014
New Englanders may feel duty-bound to roll their eyes at the annual invasion of leaf-peepers.
Even touri$m is couched in war terminology by my fucking agenda-pushing piece of shit!
After all, the leaves whose glorious medley of yellows, reds, and oranges is so alluring to tourists are the same leaves we later pull from gutters and rake from lawns, long after visitors climb back onto their tour buses.
I fail to appreciate such a thing living here as long as I have, and have come to hate the season because of the back-breaking raking. Sorry.
But for thousands of businesses, the fall foliage season is a major event, a pillar of New England’s tourism economy. And with nature cooperating, 2014 is shaping up to be a banner year.
See? WAR is GOOD for the ECONOMY! Bring on the invasion!
“We’re flat out,” said Linda Edleman, whose Montpelier-based vacation wholesaler Custom Tours Inc. does about 80 percent of its annual business during foliage season. “The weather’s been great, and we’ve got some of the most brilliant colors we’ve seen in years.”
A brief cold spell in September prompted leaves to begin changing hues earlier than usual, but mild weather since has kept them colorful — and attached to their branches.
SIGH! Global warming, global warming, global warming, SIGH!
You know what, readers?
LEAVES do NOT LIE, but NEWSPAPERS sure as hell do!
Foliage-seekers said that those conditions, combined with just the right amount of summer rain, have produced a vivid autumn palette....
I no longer have a taste for this $hit, sorry.
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Related: Two Bad Apples For Governor
Yeah, don't let one bad truth spoil the whole bunch (apple growers association must have called).
Also see: The new way forward
Turns out is the $ame as the old way backward.
Stocks are down again today.
NEXT DAY UPDATES:
"US stocks close out worst week since May 2012" by Alex Veiga | Associated Press October 11, 2014
Instead of another roller coaster day on Wall Street Friday, investors got a steady, moderate decline that left the market with its worst weekly performance since May 2012.
Except is was down again. They can't even.... never mind.
Technology shares were especially hard hit. Semiconductor makers slumped after Microchip Technology cut its sales forecast for the quarter and warned investors to expect bad news from others in the sector.
Keep in mind for below, please.
That sent shares lower for Avago Technologies, Intel, and Texas Instruments, among others. The decline capped a week of turbulence in the market brought on by renewed fear.
Related: There is Nothing to Fear But the Lack of Fear
WTF?!!!!! Printing pre$$es broken? Get 'em fixed!!
Or has the $hit $y$tem finally run aground on its own greed?
Fear in any case, 'eh?
*************
All told, the Dow Jones industrial average lost 115.15 points....
Which is what the fear-mongering media has done with me.
Negative economic news and a slide in oil prices contributed to the uneasiness on Wall Street this week, market watchers said....
Oh, no! Put the world on hold while we figure out what has made Wall Street uneasy. Gotta fix that fir$t.
No mention of continued Saudi production to lower the price, thus hurting Russia. That's why oil prices are falling. Saudi won't agree to cut production like other OPEC members.
‘‘It has investors nervous at the health of the world economy,’’ said Jeff Kravetz, regional investment director at US Bank Wealth Management.
Good. Let them $hit their pants for while.
The volatility in the market this week also came at a time of relatively light corporate news in the United States.
Pfffffft!
That changes next week, when a slew of major companies begin to report their latest quarterly results.
Will it still be record corporate profits, or.... ??
‘‘Third-quarter earnings season should be pretty reassuring, and I wouldn’t be surprised to see money go back into various stocks as companies surprise to the upside, which is what I expect them to do,’’ said David Kelly, chief global strategist for JPMorgan Funds. ‘‘A lot of investors are trying to come to grips with the pickup in volatility we've suddenly seen during this week.’’
Investors did not appear to be overly optimistic on Friday....
Despite the overall slide, some stocks posted strong gains....
Look, a couple of corn kernels in the turd log of the economy.
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We all know for whom the paper is written.
"Jobless rate now sits at 6-year low" by Christopher S. Rugaber | Associated Press October 04, 2014
WASHINGTON — A surge in hiring last month helped drive the nation’s unemployment rate down to a six-year low of 5.9 percent — within striking distance of what economists consider a healthy level.
The encouraging numbers — contained in the last government report on unemployment before the midterm elections — pushed the Dow Jones average up 209 points to 17,010 and could give an important boost at the polls to Democrats and to incumbents in general.
At this point I note how tired I am at the $elf-$erving political $hit. Sorry.
The fix job is in, 'eh?
***************
In a speech in Princeton, Ind., President Obama exulted over the numbers, noting that businesses have added jobs for 55 months in a row, the longest such stretch on record.
He credited ‘‘the drive and determination of the American people,’’ and added: ‘‘It’s also got a little bit to do with some decisions we made pretty early on in my administration.’’
This guy is absolutely gross.
Related: Obama Unwanted by Democrats
Or anyone else, for that matter.
Nevertheless, other gauges of the job market still bear scars from the recession.
But the 1% have been doing tremendously, so why bother?
Wages aren’t rising. And the number of people out of a job for more than six months or stuck in part-time jobs when they want full-time ones remains elevated.
An Associated Press-GfK poll found that the economy is the top issue in voters’ minds as the Nov. 4 elections near, and while most signs point toward improvement, 62 percent of likely voters still consider the economy ‘‘poor,’’ little changed from two years earlier.
Goodbye, Senate (unless it's a rigging).
Given the latest conditions, the Fed may not move up its timetable for raising interest rates to control inflation, economists say. Most expect the Fed won’t act until the middle of next year.
Friday’s data ‘‘are generally consistent with the Fed’s economic forecasts and therefore should not change their thinking,’’ Doug Handler, an economist at IHS Global Insight, said in a note to clients.
That's where the print copy ended.
Chair Janet Yellen has said the unemployment rate may exaggerate the strength of the job market.
Some truth from the bankers?
For example, there were 7.1 million people working part-time jobs last month even though they want full-time work. That figure is up from just 4.6 million before the recession.
And among the 9.3 million unemployed, 3 million have been out of work for more than six months. That figure has declined in the past three years but is still more than twice its precession level.
Another example: The share of adults working or looking for work fell to just under 63 percent last month, the lowest level in 36 years. That’s down from 66 percent before the recession.
That is NOT a RECOVERY!
About half that decline has occurred because of increasing retirements by baby boomers and other demographic changes, economists say. But much of the rest has occurred because many of the unemployed have gotten discouraged and have given up looking for work.
I'm one of them as I burn down my pitiful savings and cash out my meager retirement.
Average hourly pay fell a penny last month to $24.53. In the past year, it has increased just 2 percent. That’s barely ahead of the 1.7 percent inflation rate. In a healthy economy, wages usually rise 3.5 percent to 4 percent a year.
Pay fell, huh?
Last month’s job gains occurred in many higher-paying industries. Construction companies added 16,000 jobs, while government jobs, which usually pay solid wages, rose 12,000.
Yes, parasite, attach yourself to a healthy, hard-working taxpaying host and go into government!
Many economists boosted their economic forecasts after the report....
A week later, the $mooth-talking liars are singing a different tune, and man I ever $ick of the mu$ic of the BG bu$ine$$ section.
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You know what the answer is? Education (and the student loan $lavery brought about by the scam).
