Tuesday, September 23, 2014

The Bears Are Running!

Stocks Fall For Third Straight Day — Dow Down 116

(Reuters) - U.S. stocks fell on Tuesday, with consumer staples leading the S&P 500 down to its third straight daily loss, as investors grew concerned about the pace of global economic growth. The day's losses were broad, with all ten primary S&P sectors down. Consumer staples .SPLRCS were the weakest on the day, off 0.9 percent, while industrials .SPLRCI lost 0.8 percent. Wall Street's losses tracked Europe's .FTEU3 1.3 percent slump after data showed a contraction in French business activity and slower growth in German manufacturing this month. The Russell 2000 .TOY fell 0.9 percent during the normal session, and the small cap index's 50-day moving average fell slightly under its 200-day moving average, a condition known as a "death cross," which many investors view as indicating a coming bear market.
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(CBS World News) BANGKOK - World stocks were muted Tuesday as a string of record highs on Wall Street instilled caution about a possible bubble in stock markets fueled by easy monetary policy.
The Dow Jones industrial average has surged 900 points since early October and crossed the 16,000-point threshold Monday. Wall Street has not suffered a significant pullback in the past two years even though the U.S. economic recovery has been painfully slow.
Comments from influential investor Carl Icahn during the Reuters Global Investment Outlook Summit also reinforced jitters that stock prices are out of step with reality. "Icahn feels many companies' earnings are a mirage and earnings may be fuelled more by low interest rates than strong management," said Stan Shamu, market strategist at IG in Melbourne, Australia. "At such elevated levels investors are always looking for excuses to take some profits off the table," Shamu said.
In Europe, Britain's FTSE 100 fell 0.6 percent to 6,680.19 and France's CAC-40 shed 0.8 percent to 4,288.25. Germany's DAX was off 0.4 percent at 9,185.23.
Futures pointed to a retreat on Wall Street, with Dow and S&P 500 futures both down 0.1 percent.
Japan's Nikkei 225 stock average closed down 0.3 percent at 15,126.56 and China's Shanghai Composite Index dropped 0.2 percent to 2,193.13. Australia's S&P/ASX 200 lost 0.6 percent to 5,352.90. Hong Kong's Hang Seng was little changed at 23,657.81. Markets in Southeast Asia mostly fell.
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(CNBC) The U.S. stock market remains in positive terrain for the year after a recent drubbing that pushed the S&P 500 and Nasdaq Composite to five-week lows.
The same can't be said for the Russell 2000 index of smaller companies, now down 3.9 percent on the year, and leading some to question whether its decline is a harbinger of things to come for the broad market.
"The Russell 2000 getting weaker is a point of concern. What the market is dealing with is whether this is a reallocating of assets as we head into the end of the quarter or a fundamental breakdown," said JJ Kinahan, chief strategist at TD Ameritrade.
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(CERR Investments) Small Cap stocks are taking a beating lately. Global markets are showing signs of the turmoil from  Russia and in Syria. I expect the Feds to come out this week with another speech soon to ease the markets. Has the market correction begun?  When all of the hype is gone from Chinese stocks we will see it is as exactly that, hype. Interest rates are going to go up soon and then we will see the real players in the game. Hope my mutual fund managers and stock company CEOs are smart players.