(as of 7:00 AM PST)
While markets stabilized as the day wore on yesterday, overnight news and activity was enough to send indexes deep into the red to start the morning. International markets are all down big with the exception of Shanghai, which is seeing a bounce from lows, likely due to Chinese government intervention. One of the catalysts for the early decline is oil, which is plummeting again, despite a big drawdown in US reserves reported this morning. The world just seems awash with oil, producing much more than is currently being used. A major geopolitical event added fuel to the fire with North Korea announcing the successful testing of a Hydrogen bomb. That sent shock waves throughout the world, and protests, including from steadfast ally China. In corporate news, tech juggernaut Apple is suffering from reports that iPhone 6S production has been reduced by 30%. The iPhone is the great majority of Apple's revenue and profits and the report is sending ripples of concern throughout the tech community. On the plus side, private hiring looks like it is surging, in a report from employment services leader ADP. Minutes from the Federal Reserve meeting are to be released this afternoon and this could have a market moving effect, since it will provide a hint of potential future rate hikes that would follow last month's first boost in years. The only beneficiaries of today's turmoil are gold and the US currency, both favorites for investors in times of uncertainty and turmoil, of which there is a lot right now.
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