Financial Markets and Economy
5 Things Investors Shouldn't Do Now (Wall Street Journal)
Stocks slumped worldwide this week, as traders feared that slowing growth in China, the devaluation of the Chinese currency and the overhang of too much debt could stifle global economic recovery. Here are five things you should know about how not to react.
Nostalgic for the Financial Crisis? Only in the Oil Business (Bloomberg)
Americas suffering shale patch is about the only place in the U.S. where theres nostalgia for the dark days of the financial crisis.
How 5 IPOs have fared in a tough market (Market Watch)
Twitter Inc.’s TWTR, -0.50% stock dipped below its IPO price for the first time Thursday, serving as a reminder that going public doesn’t ensure profitability for investors.
The Nasdaq Composite COMP, -3.52% is on track for its steepest four-day loss in about four years, and technology shares have been hit particularly hard.
Cheap oil is finally having an impact on expensive air travel (Business Insider)
A nearly year-long plunge in oil prices is finally making air travel cheaper, but you may not notice unless you fly a low-cost carrier.
Numbers released by the Bureau of Labor and Statistics this week showed that average airline ticket prices dropped by 5.6% last month, the largest single-month decline in almost two decades.
Apple stock is down 20% from its peak (CNN)
The U.S. stock market is in the midst of a minor panic attack, and it's taking America's favorite stocks with it.
Apple (AAPL, Tech30) and Disney (DIS)are two of the most beloved stocks among regular Joe and Wall Street investors. Both got hammered this week. Apple fell almost 9% and Disney slid nearly 8%.
Bullard Says Hell Look Through Oils Drop as Labor Market Heals (Bloomberg)
Federal Reserve Bank of St. Louis President James Bullard said he remains confident in the U.S. and world economic outlook even as oil prices dropped to the lowest level since 2009.
“I know there are a lot of worries about global growth, a lot of it coming from China,” Bullard, who votes on monetary policy next year, said Friday in a SiriusXM Business Radio interview. “I would probably be more sanguine than the market in that dimension.”
Netflix's stock is getting ripped apart and has vaporized roughly $8 billion in 2 days (Business Insider)
Netflix has lost around $8 billion in value in the last two days as shares crashed for the second time Friday — down 7.6% in addition to the 7.8% it fell during trading yesterday.
Money managers split over how to respond to stock-market plunge (Market Watch)
A brutal week on Wall Street left strategists and portfolio managers somewhat divided over how investors should respond, with some urging clients to stay the course or add positions, while others argue it is a good time to raise cash.
Friday’s plunge added to an already ugly week on Wall Street that saw the main benchmark S&P 500 wipe more than $1 trillion off its market cap. The index SPX, -3.19% is trading 7.5% below its all-time high reached three months ago and fell 4.5% year to date.
Ghana Central Bank Sees Cedi Gaining in 4th Quarter on Inflows (Bloomberg)
Ghanas central bank said inflows in the final quarter of 2015 and the governments plan to reduce spending will help boost its currency, the worst-performer in Africa this year.
Major economies' attachment to developing nations is growing, and that could be a problem (Business Insider)
Growth in developing markets seems to be on a backslide so far this year, and if their slip continues, one economist says it may drag bigger nations back into recession.
According to Jay Bryson at Wells Fargo, developing economies contributions on the world stage have exploded over the last 15 years. 40% of the world's GDP comes from developing economies, up from 20% in 2000.
Thank China for Rare Earth Minerals Not Being So Rare Anymore (Bloomberg)
Rare earth minerals aren’t so rare anymore, thanks to China.
Chinese exports of the minerals doubled in July from a year earlier, reaching the highest level in more than four years, according to government data. Shipments advanced after the country last year scrapped its 15-year-old export controls, and then in April removed a tax on ore shipments.
Three-in-Five S&P 500 Stocks Are Down at Least 10% (Wall Street Journal)
With the S&P 500 on pace for its first 5% selloff this year, just about 60% of the S&P 500 stocks, 298, have fallen into correction territory, according to data from FactSet compiled by the Dow Jones stats group. Moreover, 23% of the index’s components, 135 stocks, have fallen into bear-market territory.
The worst sector is, no surprise here, energy. All 40 of the sector’s components have fallen by at least 10%, putting them in correction territory. Valero Energy, which fell into correction territory with today’s trading, made it a clean sweep. The vast majority of the stocks, 85%, are in bear-market territory, also.
Did the Treasury market see the stock bloodbath coming? (Market Watch)
It looks like Treasury investors made their move long before the bloodbath hit the stock market.
Almost 50% of clients are cheating on their financial advisors (Business Insider)
A survey conducted by financial research firm Hearts & Wallets has found almost half of households with between $100,000 and $5 million in investable assets do some of their own investing in addition to using an advisor. Chris Brown, a partner and co-founder of Hearts & Wallets says, "Investors tend to bucket their money, and the more wealthy they are, the more they will bucket their money." According to Investment News, this represents an opportunity for advisors because as their clients age they are more likely to not take a do-it-yourself approach to investing, and those assets will be there for the taking.
Netflix shares are getting killed this week (CNN)
Netflix shares have more than doubled this year. But the past week has been absolutely brutal for the stock.
Shares tumbled nearly 16%. It was the biggest loser on the S&P on Thursday, dropping nearly 8% that day alone. The slide continued on Friday with a 7.8% loss.
Brazil Stocks on the Verge of Bear Market as Real Leads Losses (Bloomberg)
The rout in developing nations put Brazilian stocks on the brink of a bear market as Latin Americas largest economy heads toward the worst recession in 25 years. The real led world losses.
6 horrific stats about today's market bloodbath (Business Insider)
It's ugly out there in the markets today.
The Dow was off by as much as 379 points.
The S&P 500 is on track to close the week down by more than 4%.
Investors haven’t been this terrified since 2009 (Market Watch)
Stock-market investors haven’t been this scared since the financial crisis, and that’s good news for bulls looking for a market bottom, says longtime bull Jeffrey Saut.
“Quite frankly, I have not seen this much fear since the spring of 2009,” when markets bottomed in the wake of the financial crisis, said Saut, chief investment strategist at Raymond James, in a note to clients.
Sweden Becomes More Upbeat on Growth as Global Recovery Seen (Bloomberg)
Swedens government raised its growth forecasts for the next years amid a recovery in Europe even as it warned of a substantial risk to its outlook from emerging markets and China.
As the stock market gets rocked, let's remember this one thing about the crash of 1987 (Business Insider)
The Dow Jones Industrial Average plunged a shocking 508 points — or about 22.6% — back on October 19, 1987.
Six Facts to Know About Kazakhstan After the Tenge's Spectacular Crash (Bloomberg)
Most people will have heard of Kazakhstan by way of the spoof documentary, Borat. This time the central Asian nation is in the spotlight for something real, as a victim of global selloff in emerging-market assets. After the country abandoned control of the tenge, the currency lost a quarter of its value.
Oil rig count climbs for 5th straight week (Business Insider)
The oil rig count climbed again this week, according to driller Baker Hughes.
Ukraine Bonds Drop Before Sunday Payment Deadline Amid Deal Bets (Bloomberg)
Ukrainian bonds headed for a weekly decline before an interest payment comes due that will shed light on the governments progress in negotiating a $19 billion debt-restructuring with creditors led by Franklin Templeton.
Big, scary stock market sell-offs happen all the time in bull markets (Business Insider)
The markets have been getting rocked this week.
Stocks in the US were lower for a fourth day on Friday following Thursday's brutal sell-off. The Dow was down as much as 291 points Friday with all 30 Dow stocks lower. The S&P 500 briefly dropped below 2,000 for the first time since February (all of it sectors were in the red).
China to Punish Some Major Holders for Share Selling Violations (Bloomberg)
China’s securities regulator will penalize major shareholders at publicly traded companies including Southwest Securities Co. and Guoxing Rongda Real Estate Co. for violating rules that limit stake sales.
Ftse Tanks to an 8 month low (Business Insider)
The FTSE 100 suffered a huge fall on Friday, capping a crappy week for the index andglobal stocks in general.
Politics
Campaign Notebook: Harpers Critics Anger at Least One Canadian (Bloomberg)
Canada’s election campaign is wrapping up its third week, but much of it has played out just steps from Parliament Hill — in Courtroom 33, where a senator appointed by Prime Minister Stephen Harper is standing trial.
The Mike Duffy scandal has shaken Harper’s Conservatives by revealing a plan to cover up a payment of C$90,000 by the prime minister’s former chief of staff, Nigel Wright, to Duffy.
Trump Blasts O'Malley: "Disgusting, Little, Weak, Pathetic Baby" (Mother Jones)
Back in July, former Maryland Gov. Martin O'Malley apologized for saying "all lives matter"to a group of Black Lives Matter activists who had interrupted one of his speeches.
"That was a mistake on my part, and I meant no disrespect," the Democratic presidential hopeful said. "I did not mean to be insensitive in any way or communicate that I did not understand the tremendous passion, commitment, and feeling and depth of feeling that all of us should be attaching to this issue."
Technology
Kid Gets Awesome New Bionic Hand, Reminds Us Not Everything is Garbage (Gizmodo)
The stock market is tanking, North and South Korea are on the brink of war, and a cartoon character from a dystopian future is the most popular candidate for US President at the moment. But don’t despair. While most things are garbage, there are some things in the world that aren’t. Like this adorable kid who just got his own high-tech bionic hand.
Wrap Your Mind Around Smartwatches with Flexible Touch Screens (PSFK)
The Polyera Wove Band is a smartwatch with the first-ever bendable digital screen destined for consumer use. But before your inner skeptic starts freaking out, let’s look at the technology first.
Digital screens work through two layers. The frontplane displays the images while the backplane has all the electronics that control the frontplane. The frontplane OLED and E-ink screens can already be bent but it’s the backplane that’s condemned to stiffness.
Health and Life Sciences
Sleeping with contact lenses could lead to vision loss (CNN)
Chad Groeschen was working on an outdoor deck for a client a few weeks ago when his left eye started itching. He chalked it up to allergies at first, and then to a sinus infection after his eye got goopy and he could not see out of it. He had no idea his contact lenses were the problem.
Doctors at Cincinnati Eye Institute diagnosed Groeschen with a bacterial infection that was quickly destroying his cornea, the eye's protective outer layer.
Life on the Home Planet
Rare wolf pack spotted in California (BBC)
A pack of wolves has been spotted in Northern California for the first time in nearly 100 years.
The appearance of the five grey wolf pups and two adults could signal a return of the animals, which have not been found in the state since 1924.
California Department of Fish and Wildlife first discovered the pack this month in Siskiyou County near the Oregon border using a remote camera.
Humans Have Definitely Made the California Drought Worse (Gizmodo)
The California drought is by all measures “exceptional.” But humans have made it even more so. A new scientific study offers definitive evidence that anthropogenic climate change has amplified the drought out West, making it 15 to 20% worse than it would have been otherwise.
“This would be a drought no matter what,” climate scientist and lead study author A. Park Williams of Columbia University told The New York Times. “It would be a fairly bad drought no matter what. But it’s definitely made worse by global warming.”
