(As of 7:20 am PST)
Stocks
are plummeting at the open as disappointing data added to the already negative
tone on Wall Street this morning.
Falling more than 2% at the open, the main benchmarks have crawled back
slightly but remain significantly lower on the day. In economic news, a report
on manufacturing showed the Empire State index falling sharply in October, well
below expectations. Retail sales also fell more than expected while wholesale
prices declined, missing expectations. Later this morning the Fed’s Beige book
will be released, with expectations that the Fed will indicate an improving US
economy. European markets are getting pummeled today, slipping into correction
territory from a ‘technical’ standpoint as fears of a global growth slowdown
continue to batter the fragile euro-zone. Asian markets closed higher on the
day, perhaps on the heels of yesterday’s market action in the US. All told, it’s
a risk off day that has money flowing to ‘safe haven’ assets at a remarkable
pace. The 10 yr. treasury yield fell below 2% for the first time in 16 months
as prices rose on demand for the safe government debt. Gold is higher and oil
continues its downward spiral adding to concerns over deflation. It’s a perfect
storm for markets with fears of global growth slowdown, unwinding of central
bank policy and geopolitical tensions causing panic in a market that has run up
to record levels.
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