(as of 7:00 AM PST)
Stocks are falling heavily at the open. It's not just stocks, but most other investment categories are taking a hit in what seems to be a day when investors are wary of anything except the safety of the US dollar. Interest rate yields are falling as money is flowing heavily into US Treasuries. The biggest visible catalyst is Europe's Volkswagen scandal. The stock of VW has lost a third of its value in the last few days after a report broke about the company cheating on emission standard testing. After setting aside over 6 billion dollars to cover anticipated legal costs, some auto analysts are questioning the very survival of VW. European markets are down over 3% with auto company losses extending into the rest of the industry and dragging down the whole marketplace. There is still a feeling in the air that US stocks are suffering the effect of the Fed decision to leave rates unchanged last week. Concerns of weak global growth have been exacerbated by Fed comments. Oil is down by 3% while gold is off by 1%. There is very little economic data today to rescue markets from this big sell-off.
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