Financial Markets and Economy
The case for buying amid the market selloff (Yahoo Finance)
It’s easy to say and awfully hard to do: Buy when others are selling.
Trying to time the market is a fool’s game, of course, and virtually nobody calls bottoms and tops with any consistency. There’s a broader point, however: Relatively strong fundamentals in the U.S. economy tend to counterbalance weakness elsewhere, even if the volatility can be nauseating. “I would remind you not to get overly pessimistic, no matter how badly the price action may look during any given day, week or month,” financial advisor Josh Brown wrote recently on his blog. “Remember that the woes of today lead to the gains of tomorrow.”
Why the heck are the markets tanking? (Yahoo Finance)
The Dow Jones Industrial Average fell 500 points at one point on Friday, marking a loss of almost 1,400 points in the first 10 trading days of 2016, on track for its worst monthly performance since February 2009. Meanwhile, the broader S&P 500 index is off almost 8% so far this year and the Nasdaq has dropped 10%. Europe’s Stoxx 600 Index and China’s Shanghai composite both entered bear market territory, down 20% of their highs. Thursday’s rebound on Wall Street is proving to be short-lived, it seems, with significant downswings dominating trading to start the year, leaving investors scratching their heads and asking, “What the heck is going on?”
Apple May Be on Hook for $8 Billion in Taxes After Europe Probe (Bloomberg)
Apple Inc. may be facing a hefty tax bill in Europe.
Chinese stocks are now in a 'Bear Market' (Business Insider)
Chinese stocks have fallen 20% from their peak, entering a so-called bear market.
Global Stock Slump Resumes (Wall Street Journal)
The global stock-market slide resumed Friday, as steep declines in oil prices and Chinese equities heightened anxieties that have pushed markets lower this year.
Stock futures pointed to a 1.7% opening loss for the S&P 500, reversing Thursday’s rally. Changes in futures don’t necessarily reflect market moves after the opening bell.
Dow set for triple-digit drop as oil breaks under $30 (Market Watch)
Wall Street was setting up for a struggle on Friday, with stock futures falling sharply as China entered a bear market and oil prices traded below $30 a barrel.
Some distraction could come from the banking sector, which begins to report results in earnest on Friday. Economic data, which includes updates on retail sales and the state of New York manufacturing, could also give cues.
BlackRock quarterly profit rises 6 percent (Yahoo! Finance)
BlackRock Inc, the world's largest asset manager, said on Friday its profit rose about 6 percent in a turbulent fourth quarter for investors.
The New York-based company's net income rose to $861 million, or $5.11 per share, in the three months ended Dec. 31, from $813 million, or $4.77 per share, a year earlier.
Oil Set for 3rd Weekly Drop as Brent Discount Increases on Iran (Bloomberg)
Oil in New York headed for its third weekly decline as Brent crudes discount to U.S. prices increased on signs Iran is moving closer to boosting exports.
Investor optimism is evaporating in the Asian trading session (Business Insider)
It looks like it’s going to be a lacklustre, and disappointing, end to the trading week in Asia.
What do low oil prices mean for you? (Market Watch)
Last year, wary consumers regarded falling gas prices as a passing trend. With prices even lower at the start of 2016, will consumers treat them like they’re here to stay?
The price of oil briefly fell below $30 a barrel this week—the lowest it has been since December 2003—and the average national gas price on Thursday was under $2 a gallon, according to the AAA Daily Fuel Gauge Report, down from about $3.40 two years ago.
Treasuries Extend Winning Streak to Four Days on China, Oil (Bloomberg)
Treasuries advanced for a fourth day as Chinese stocks fell back into a bear market and wiped out gains from a state rescue campaign, fueling demand for haven assets.
Analog Is Back From the Future (Bloomberg View)
There's an analog renaissance in cameras and music.
China pumps $15 billion into market to bolster banking-system liquidity (Market Watch)
China’s central bank said it injected 100 billion yuan ($15.18 billion) of funds into the market via a medium-term lending facility Friday in a bid to keep ample liquidity in the nation’s banking system.
The People’s Bank of China said it offered the funds to nine financial institutions at an interest rate of 3.25%. The lending will have a six-month maturity and it aims to guide banks to step up lending to the nation’s small businesses and agricultural sector.
U.K. Stocks Slip With Global Drop on China; Anglo American Sinks (Bloomberg)
U.K. stocks fell for a second day, with the FTSE 100 Index heading for a weekly decline, on mounting concern over prospects for global growth amid a slump in China shares.
Market Volatility Makes Us Nervous (Bloomberg View)
Stock market swings do not matter to most investors, precipitous drops in prices are acceptable if they are followed by sharp rises, and this remains true no matter how long the phase of heightened volatility.
If the above is your investing credo, you can ignore another roller-coaster week in markets, in which the major indices fluctuated wildly, including intraday. On Thursday, for example, the Dow closed 227 points higher after falling more than 360 points on Wednesday. And the sessions were wild on both days.
Global economy and financial markets are saddle sore (Market Watch)
In late 2015, Mr. Market regained his irrational exuberance. He bounced back from the depressive episode of August 2015, though more on short-covering than on fundamentals. His condition has now suffered a setback, with violent mood swings again in evidence.
Mr. Market’s continued health requires improvement in Mr. Global Economy’s condition, as these twins share vital organs. But Mr. Market insists that he doesn’t need growth or inflation to prosper.
Global Earnings Downgrades Haven't Been This Bad in Seven Years (Bloomberg)
Stocks are losing their last line of defense.
European Stocks Fall Second Day Amid Growth Concern, Oil Slide (Bloomberg)
European stocks fell to their lowest level in almost five months as investor concerns about global growth intensified and oil retreated.
A bear market in stocks will be over before you know it (Market Watch)
Bear markets don’t have to be as scary as you think.
Volkswagen's Europe Market Share Falls for First Time Since 2007 (Bloomberg)
Volkswagen AGs market share in Europe fell for the first time since 2007 as the German carmakers emissions-rigging scandal deterred buyers in the final months of last year.
Politics
Good Night for Trump, Bad One for Substance (Bloomberg View)
Yes, it was a little weird that two Republicans Thursday night referred to the current president of the United States as a child. And, yes, when it comes to policy, Republicans remain very long on applause lines and very, very short on substance.
Marco Rubio Pushes Conspiracy Theory On Obama And Guns (Think Progress)
In a debate held in Charleston, South Carolina, a city that has witnessed a recent mass shooting, the GOP candidates were asked about how reduce gun violence if elected to the White House. Many responded instead by criticizing President Obama for announcing a set of executive actions last week that increases funding for background checks, investigations of criminal gun vendors, and mental health care.
Sen. Marco Rubio (R-FL) went further than his rivals, floating the popular conspiracy theory that President Obama harbors plans to take away Americans’ firearms.
Technology
Ocean is an amazing battery-powered wireless server that fits in your pocket (The Next Web)
Today the wraps came off Ocean, a full server that’s the size of a mobile phone, with a built-in battery, so it can fit in your pocket and go where you do.
Health and Life Sciences
What Genetically Engineered Animal Will Land On Your Dinner Plate Next? (Fast Company)
It took two decades for the first genetically engineered animal to get approved for your dinner. Now that AquAdvantage salmon—with DNA engineered from three species—is moving forward, more genetically modified meat is likely to follow. But it's not clear how long that will take.
Outside the United States, bacon might be next. Researchers at Seoul National University tweaked a gene in pigs that makes them super-muscly, yielding more pork per giant pig butt.
High Uric-Acid Levels, Lower Risk of Parkinson's? (Medicine Net Daily)
Men with high levels of uric acid in their blood may be less likely to developParkinson's disease, a new study suggests.
Researchers compared about 400 people in ongoing studies who developedParkinson's disease and more than 1,200 people in the same studies who did not develop the movement disorder.
Life on the Home Planet
Mammoth kill linked to Arctic settlers (BBC)
A well preserved mammoth carcass pulled from frozen sediments in the far north of Russia proves humans were present in the Arctic some 45,000 years ago.
This is 10,000 years earlier than previous evidence had indicated.
Indonesian police arrest 3 men on suspicion of links to Jakarta attack (Mashable)
Indonesian police on Friday arrested three men on suspicion of links to the brazen attacks in the heart of the country's capital, and said they recovered a flag of the Islamic State group from the home of one of the attackers.
