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Aug 11, 2015

China devaluation clobbers stocks, dollar gains on forex fear

NEW YORK, Aug 11 (Reuters) – China’s 2 percent devaluation
of the yuan on Tuesday pushed the U.S. dollar higher and hit
Wall Street and other global equity markets as it raised fears
of a new round of currency wars and fed worries about slowing
Chinese economic growth.

U.S. stock indexes slumped more than 1 percent and stocks
also fell in Asia and Europe as investors contemplated the
implications of a move designed to support China’s slowing
economy and exports. The MSCI All World Index of
global shares fell 1.14 percent.

Aug 11, 2015

China devaluation hits stocks, dollar gains on currency war fears

NEW YORK, Aug 11 (Reuters) – China’s 2 percent devaluation
of the yuan on Tuesday pushed the U.S. dollar higher and hit
Wall Street and other global equity markets as it raised fears
of a new round of currency wars and fed worries about slowing
Chinese economic growth.

U.S. stock indices dropped more than 1 percent and stocks
also fell in Asia and Europe as investors contemplated the
implications of a move designed to support China’s slowing
economy and exports. The MSCI All World Index of
global shares fell 1.16 percent.

Aug 11, 2015

China devaluation hits stocks, boosts US dollar on currency war fears

NEW YORK (Reuters) – China’s 2.0 percent devaluation of the yuan on Tuesday pushed the U.S. dollar higher and hit equity markets worldwide as it raised the prospect of a new round of currency wars and fed worries about slowing Chinese economic growth.

Stocks fell in Asia, Europe and the Americas, as investors worried about the implications of a move designed to support China’s slowing economy and exports. The MSCI All World Index .MIWD00000PUS of global shares fell 0.7 percent.

Aug 9, 2015

Short sellers miss out on big gains as Keurig Green Mountain shares sink

NEW YORK (Reuters) – Prominent short sellers, including top hedge fund manager David Einhorn, were left wondering what might have been last week as shares in Keurig Green Mountain Inc (GMCR.O: Quote, Profile, Research, Stock Buzz) sank.

The coffee company’s shares dropped 30 percent on Thursday after it reported very disappointing results for its third quarter ended June 27, and have now lost two thirds of their value since reaching an all-time high of $158.87 last November.

Jul 29, 2015
via Morning Bid with David Gaffen

Janet Kick a Hole In the Sky

The July meeting was never meant to be much of a thing with the Federal Reserve, and that’s exactly how it’s worked out. The Fed seems like it is still targeting a modest increase in rates in September, with – as many strategists have already noted – the real action to come later on down the road, as Janet Yellen and others have argued that the first move isn’t the one to really worry about.

With the Fed’s moves, what comes after that will be a long verification process of any effect it is having through the changes in the yield curve. As of Tuesday, the spread between the ten-year and 2-year yield was about 156 basis points, about as narrow as that spread has been since the beginning of June. That’s not considerably concerning, given the historic average has been about this point already, and a big spread like this – even though it has narrowed from about 255 basis points since the beginning of 2014 – is still suggestive of strong economic growth. The spread hit its trough in early February at about 120 basis points, so investors have seen a widening since then, but it has come in from about 175 basis points in early July.

Jul 29, 2015
via Morning Bid with David Gaffen

Janet Kick a Hole In the Sky

The July meeting was never meant to be much of a thing with the Federal Reserve, and that’s exactly how it’s worked out. The Fed seems like it is still targeting a modest increase in rates in September, with – as many strategists have already noted – the real action to come later on down the road, as Janet Yellen and others have argued that the first move isn’t the one to really worry about.

With the Fed’s moves, what comes after that will be a long verification process of any effect it is having through the changes in the yield curve. As of Tuesday, the spread between the ten-year and 2-year yield was about 156 basis points, about as narrow as that spread has been since the beginning of June. That’s not considerably concerning, given the historic average has been about this point already, and a big spread like this – even though it has narrowed from about 255 basis points since the beginning of 2014 – is still suggestive of strong economic growth. The spread hit its trough in early February at about 120 basis points, so investors have seen a widening since then, but it has come in from about 175 basis points in early July.

Jul 28, 2015
via Morning Bid with David Gaffen

Still about China

The broad effects of the selloff in Shanghai are beginning to spread. Notably, during the U.S. session on Monday was when China’s regulatory authority said the state would continue to support the equity market, the ultimate in treating a symptom rather than a problem. Whatever happens to the equity market, a steady diet of share-buying by the state isn’t likely to be able to stem the losses.

And we saw more of that overnight Tuesday, as Shanghai lost more than 1 percent. Government debt also was bid up, which may continue through the U.S. session if people are sufficiently worried about China, though the rebound in Europe suggests things may have stabilized – US futures are up as well.

Jul 28, 2015
via Morning Bid with David Gaffen

Still about China

The broad effects of the selloff in Shanghai are beginning to spread. Notably, during the U.S. session on Monday was when China’s regulatory authority said the state would continue to support the equity market, the ultimate in treating a symptom rather than a problem. Whatever happens to the equity market, a steady diet of share-buying by the state isn’t likely to be able to stem the losses.

And we saw more of that overnight Tuesday, as Shanghai lost more than 1 percent. Government debt also was bid up, which may continue through the U.S. session if people are sufficiently worried about China, though the rebound in Europe suggests things may have stabilized – US futures are up as well.

Jul 22, 2015
via Morning Bid with David Gaffen

Price-to-Blecch Ratio

This seems like a day best fit for Mad Magazine-style descriptions of what we’re about to see in the equity market. Suffice to say that in the past, the weak trend evinced in the quarterly stats for earnings growth were often restored to some sort of level people could live with once Apple figures were released.

Case in point – in January, fourth-quarter blended earnings growth was running at 3.4 percent; one day later, after Apple reported, it was plus 4.4 percent, and the tech sector jumped to 16.3 percent year-over-year growth from 11.5 percent in one day.

Jul 22, 2015
via Morning Bid with David Gaffen

Price-to-Blecch Ratio

This seems like a day best fit for Mad Magazine-style descriptions of what we’re about to see in the equity market. Suffice to say that in the past, the weak trend evinced in the quarterly stats for earnings growth were often restored to some sort of level people could live with once Apple figures were released.

Case in point – in January, fourth-quarter blended earnings growth was running at 3.4 percent; one day later, after Apple reported, it was plus 4.4 percent, and the tech sector jumped to 16.3 percent year-over-year growth from 11.5 percent in one day.

    • About David

      "David Gaffen oversees the U.S. markets team, having joined Reuters in May 2009. He spent four years at the Wall Street Journal, where he was the original writer of the web site's MarketBeat blog. He is a frequent guest on Reuters TV, and has appeared on CNN International, Fox Business, NPR, and assorted other media and is the author of the book "Never Buy Another Stock Again.""
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