ECON FUNG ADVISORY: STOCK MARKET is really weak this Morning: Major Tankage Ahead

I will be back in a bit to fill in the details. Dow down 133(futures)...That's big.

Didn't sleep last night at all.

http://www.zerohedge.com


Daily US Opening News And Market Re-Cap: July 23
Submitted by Tyler Durden on 07/23/2012 - 08:06 Bond British Pound China Consumer Confidence CPI Creditors Crude default European Central Bank Eurozone Federal Reserve Greece Gross Domestic Product International Monetary Fund Investor Sentiment Iran Italy Middle East Monetary Policy Price Action recovery Sovereign Debt Unemployment United Kingdom Uranium

Risk-off trade is firmly dominating price action this morning in Europe, as weekend reports regarding Spanish regions garner focus, shaking investor sentiment towards the Mediterranean. The attitudes towards Spain are reflected in their 10yr government bond yield, printing Euro-era record highs of 7.565% earlier this morning and, interestingly, Spanish 2yr bill yields are approaching the levels seen in the bailed-out Portuguese equivalent. As such, the peripheral Spanish and Italian bourses are being heavily weighed upon, both lower by around 5% at the North American crossover.

As for the core indices, all are trading firmly lower, led downwards by financials. Investor focus this morning remains on reports from Spanish press that more regions could be queuing up to request aid from PM Rajoy’s central government. This effect has been compounded by similar reports from Italian press, raising the alarm that a number of Italian cities, notably Naples and Palermo, could be facing difficulties mounting their finances. The latest news from the periphery has seen a pick-up in volume in comparison to previous sessions, however with fewer than 250k contracts going through in the Bund, volumes do remain lighter on a year-average basis.

Elsewhere, news that the IMF are to consider ending its support for Greece, withholding the allocation of further money to the country, has brought the prospect of default to the forefront of many investors minds. Since the open, no commentary from the IMF has hit the wires, however the German finance ministry highlighted that they have received no signal from the IMF that it will not take part in any further Greek aid. As such, the results of the Troika report, due to be conducted this week, will catch focus as the week progresses.

currently, all the major European indicies are down 1 to 2%......

The pump monkeys keep on trying to trot out that unicorn pooping skittles but it's not working anymore. People know that something is desperately wrong not only in the nation but with the world economy and the writing is on the wall. Just a question of what will trigger the final meltdown is about all.

European markets DOWN
There was more bad news for Spain on Monday when the Bank of Spain said the country's economy contracted by 0.4% in the three months to the end of June, having shrunk by 0.3% in the previous quarter.

European stock markets fell on Monday morning, with Spain's main Ibex share index down more than 5%.

Italy, which is also struggling with high debts, saw its main share index fall 4.4% with banks the worst hit. UniCredit and Intesa Sanpaolo were among six Italian banks suspended from trading after their share prices fell sharply.
http://www.bbc.co.uk/news/business-18950896

This is one of the main images of the CONfidence game being played.

The Great Depression had these features: stock market crash, unemployment, hungry people- bread/soup lines.

We fake our status with: plunge protection team, fake unemployment numbers, food stamps & welfare.

yup, going too be a rough day.

momof23goats said:

yup, going too be a rough day.

Click to expand...

nah, i bet we're even or close to it by end-of-day...

/sarcasm off/

Hey Doc you ever thought of joining Hallmark, your always bringing us the good news

as of 2pm
German Dax is down 2.70%
UK FTSE is down 2.23%
French CAC is down 2.68%
Irish ISEQ is down 2.55%

Spain bonds sink as fears resurface



This is on fears the government will lose access to debt markets and need a full bailout as its regions began lining up for financial help.
Worry over Greece resurfaced with international lenders scheduled to gather in Athens to discuss the terms of further rescue payments, after its prime minister said the country was mired in a "Great Depression".
As risk aversion dominated financial markets, five- and 10-year German government bond yields hit new lows and US T-note yields hit their lowest since the early 1800s.
The Spanish region of Murcia moved closer to following Valencia in seeking financial aid from the government, which set up an €18 billion fund earlier this year to help the regions refinance their debt. Media reported half a dozen others were ready to do likewise.
"Given the market reaction on the back of the news that more and more regions are looking to tap into the liquidity fund..., it will be very difficult for Spain to circumvent further support for itself," said Norbert Aul, a rate strategist at RBC Capital Markets.
Euro zone finance ministers approved on Friday a bailout for Spain's banking sector, which along with fresh austerity measures and looser fiscal targets was aimed at avoiding a full rescue that the euro zone can barely afford.
But Spanish bond prices were in free-fall in illiquid markets, reflecting worries that the banking bailout alone was unlikely to be enough.
Ten-year yields, which rise as prices fall, were up 25 basis points at 7.53% and two-year yields were up 95 bps at 6.71%.
Short-dated yields have risen more than longer-dated ones, flattening the curve, because of a perceived rise in credit risk, while a spread of around 110 cents between prices at which investors were willing to buy and sell 10-year paper reflects the lack of liquidity in the markets.
Italian bonds were pulled down with Spain's, with 10-year yields up 15 bps at 6.36%, rising above the Irish equivalent for the first time since January 2009.
While the euro zone's bailout funds could scrape together enough cash to rescue Spain, analysts say there are insufficient funds to support Italy as well.
"The bid/offer spreads are so wide it's nearly impossible to get anything done," a trader said. "We saw some real money accounts selling Italy in volume first thing but that dried up once the market fell."
Spain must make coupon and redemption payments to bondholders of €20 billion next Monday, followed by nearly €25 billion in October, according to Reuters data.
Looking further out, €60 billion worth of paper is due for repayment next year, with a similar amount due in 2014.
RBC's Aul said Spanish auctions would become very difficult at current yields and that as soon as primary market access was at stake the likelihood the country would have to ask for support in some form would increase significantly.
"The first focus should be on any measures by the (euro zone rescue funds) that offer primary market support, as it is not feasible to take a sovereign of the likes of Spain completely off the primary market, as was the case for Ireland, Portugal and Greece."
The euro sank to a near 12-year low against the yen and also lost ground against the dollar, reflecting continued doubts about the durability of the european common currency.

http://www.rte.ie/news/2012/0723/greece-pm-says-country-is-in-great-depression-business.html

I don't understand why the market is down....I thought that pick-up truck sales are way up, because new housing starts
are way up, meaning people are buying houses again, because the gov't. was creating so many more new jobs, and that
with the new free health care, everyone is dancing around all of the rainbows,.......... ok....coming down off the meds,
and the tongue is not in the cheek anymore..............

and to balance it out, some good news

Former Anglo finance director Willie McAteer faces charges under Company Act.

The former finance director of Anglo Irish Bank Willie McAteer has appeared in court charged in connection with alleged financial irregularities at the bank

The former finance director of Anglo Irish Bank Willie McAteer has been charged in connection with alleged financial irregularities at the bank.
The 56-year-old, of Auburn Villas, Rathmines, was detained this morning.
He was the second most senior executive at the bank before his resignation in January 2009.
Anglo's former managing director for Ireland, Patrick Whelan, aged in his 50's, was also arrested this morning.
Both Mr. McAteer and Mr. Whelan are facing sixteen charges under Section 60 of the Companies Act.
This provision under the act prohibits a company from giving direct or indirect financial assistance for the purpose of purchasing its own shares.
This is the latest development in the ongoing investigation by the Garda Bureau of Fraud Investigation into alleged financial irregularities.
This is the third time Gardaí have detained Mr. McAteer. He was questioned twice in 2010 and 2011 by detectives from the Fraud Bureau.

http://www.rte.ie/news/2012/0723/former-anglo-finance-director-arrested-business.html

Marthanoir said:

Hey Doc you ever thought of joining Hallmark, your always bringing us the good news

as of 2pm
German Dax is down 2.70%
UK FTSE is down 2.23%
French CAC is down 2.68%
Irish ISEQ is down 2.55%

Click to expand...

I do write on the side, Marthanoir......

Yep, there was a lot of disregard going on the last three or four days about such economic matters.


But they festered into an even greater infection nonetheless.


.

doctor_fungcool said:

I do write on the side, Marthanoir......

Click to expand...

Maybe you can write a nice sympathies card to Angela Merkel , the Dax is now down 3.14%

I wonder at what point the computer glitches will kick in

the Greek Athex is down 8.09% ouch!

Marthanoir said:

and to balance it out, some good news

Former Anglo finance director Willie McAteer faces charges under Company Act.

The former finance director of Anglo Irish Bank Willie McAteer has appeared in court charged in connection with alleged financial irregularities at the bank

The former finance director of Anglo Irish Bank Willie McAteer has been charged in connection with alleged financial irregularities at the bank.
The 56-year-old, of Auburn Villas, Rathmines, was detained this morning.
He was the second most senior executive at the bank before his resignation in January 2009.
Anglo's former managing director for Ireland, Patrick Whelan, aged in his 50's, was also arrested this morning.
Both Mr. McAteer and Mr. Whelan are facing sixteen charges under Section 60 of the Companies Act.
This provision under the act prohibits a company from giving direct or indirect financial assistance for the purpose of purchasing its own shares.
This is the latest development in the ongoing investigation by the Garda Bureau of Fraud Investigation into alleged financial irregularities.
This is the third time Gardaí have detained Mr. McAteer. He was questioned twice in 2010 and 2011 by detectives from the Fraud Bureau.

http://www.rte.ie/news/2012/0723/former-anglo-finance-director-arrested-business.html

Click to expand...

Anglo Irish Bank hidden loans controversy

The Anglo Irish Bank hidden loans controversy (also known as the circular transactions controversy) began in Ireland in December 2008 when the chairman of Anglo Irish Bank, Ireland's third largest bank, admitted he had hidden a total of €87 million in loans from the bank, triggering a series of incidents which led to the eventual nationalisation of Anglo on 21 January 2009. Seán FitzPatrick subsequently resigned his position and was followed within twenty-four hours by the bank's non-executive director, Lar Bradshaw and chief executive, David Drumm. A new chairman of Anglo, Donal O'Connor, was quickly appointed from the board, a move welcomed by the Irish Minister for Finance, Brian Lenihan. A number of investigations have been launched into the reasons behind the three resignations. The Central Bank of Ireland is carrying out a review of the bank's dealings, although its head of the Financial Regulation, Patrick Neary, has also since resigned his position. So too have a number of other chairmen, directors and executives involved with Anglo, Irish Life and Permanent and Irish Nationwide.
Within days of the initial admission, an announcement was made that Anglo Irish Bank would be one of three (alongside Allied Irish Bank and Bank of Ireland) that would be recapitalised by the Irish government. The recapitalisation of Anglo Irish Bank was expected to be effected in mid-January 2009, following an Extraordinary General Meeting (EGM). Lenihan instead unexpectedly announced the nationalisation of Anglo Irish Bank the night before the EGM due to difficulties he encountered with the recapitalisation process. Recapitalisations of the other two banks mentioned were expected by the end of March 2009 but, according to Taoiseach Brian Cowen, were expected to be finalised in early February 2009 at a total of €7 billion. The nationalisation of Anglo Irish Bank on 21 January 2009 followed two more resignations earlier that month. On 7 January 2009, another director, Willie McAteer, resigned, becoming the fourth casualty of the controversy. Two days later the Financial Regulator Patrick Neary retired amidst much criticism over his handling of the affair. After Anglo nationalisation, the Chairman of Irish Nationwide, Dr Michael Walsh, resigned on 17 February, one week to the day that government-appointed directors announced they were investigating a deposit of billions of euro by Irish Life and Permanent, placed in Anglo Irish Bank before the end of its financial year.[5]
Taoiseach Brian Cowen has denied claims that he is protecting a "Golden Circle" of wealthy financiers from being identified. This mysterious group of ten businessmen is said[by whom?] to have received loans from Anglo Irish Bank in return for buying shares, in a move designed to keep the bank afloat.

http://en.wikipedia.org/wiki/Anglo_Irish_Bank_hidden_loans_controversy

I guess they can only fake it so long. At some point it all crashes.

Currently

DJIA12,613.69-208.88-1.63%

Nasdaq2,925.30-40.60-1.37%

S&P 5001,362.66-13.85-1.01%

today might be the day.

Local news just said it's because of the movie theater incident.

What the what???? LOL

DOW 12,585.31 -237.26
NASDAQ 2,854.05 -71.25
S&P 1,337.89 -24.77
Stocks plunge as market opens
Stocks to watch: MCD, HAL, Onyx
Oil slumps amid Europe jitters

legend

Get a quote (e.g., INDU)

http://www.bloomberg.com/news/2012-...futures-decline-on-greek-default-concern.html

U.S. Stocks Decline on Concern Europe Crisis Is Worsening
By Rita Nazareth - Jul 23, 2012 9:48 AM ET


U.S. stocks declined, following a two-week advance in the Standard & Poor’s 500 Index, amid concern Europe’s debt crisis is deepening and after a Chinese central-bank adviser said economic growth may slow further.

Morgan Stanley (MS) and Bank of America Corp. (BAC) dropped at least 1.5 percent, following a tumble in European lenders, as Spanish bond yields surged on expectations regional governments may ask for aid. Freeport-McMoRan (FCX) Copper & Gold Inc. slid 3.7 percent, pacing losses in commodity producers, amid concern about lower Chinese demand. McDonald’s Corp. (MCD), the world’s largest restaurant chain, fell 3.5 percent as profit trailed estimates.
Enlarge image U.S. Stocks Tumble on Concern Europe Debt Crisis


The S&P 500 lost 1.8 percent to 1,338.22 at 9:46 a.m. New York time. The Dow Jones Industrial Average fell 234.24 points, or 1.8 percent, to 12,588.33. Trading in S&P 500 companies was up 36 percent from the 30-day average at this time of day.

“Nothing is really fixed in Europe,” said John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York. His firm oversees $201 billion. “The Spanish situation is chronic. And it’s not just Spain. This isn’t over.”

Stocks joined a global slump before the arrival in Athens tomorrow of Greece’s troika of international creditors -- the European Commission, the European Central Bank and the International Monetary Fund. In Spain, Catalonia joined a list of regions that may tap aid from the central government. Spain’s 10-year yields surged above 7.5 percent for the first time.

Song Guoqing, an academic member of the People’s Bank of China monetary policy committee, predicted the nation’s expansion may cool to 7.4 percent this quarter. He also warned that a decline in producer prices in tandem with consumer inflation may hurt investment returns of industrial companies.
Corporate Results

Investors also watched corporate results. Sales rose an average 3 percent in the second quarter among 123 members of the S&P 500 that have reported results so far, according to data compiled by Bloomberg. Only 41 percent of the reported companies have topped analysts’ estimates on sales, while 73 percent have beaten on profit, the data show.

Financial companies slumped today as a measure of European lenders retreated 3.6 percent. Morgan Stanley dropped 2.3 percent to $12.49. Bank of America sank 1.5 percent to $6.97.

Commodity producers fell and the S&P GSCI gauge of raw materials dropped 3.2 percent. Freeport-McMoRan, the biggest publicly traded copper producer, slipped 3.7 percent to $32.54.

McDonald’s slipped 3.5 percent to $88.37. Chief Executive Officer Don Thompson, who took the helm earlier this month, has struggled to lure budget-conscious Americans with a new extra- value menu. Sales at stores open at least 13 months in the U.S. rose 3.6 percent, the slowest growth in five quarters.
Apple, Facebook

Apple Inc. (AAPL), the world’s largest company by market value, lost 2.7 percent to $588.09. Tomorrow, it will probably report profit grew 35 percent to $9.86 billion, according to the average of analysts’ estimates compiled by Bloomberg. Sales are projected to rise 31 percent to $37.3 billion. While that kind of growth would outpace gains by most of Apple’s technology peers, it would be the company’s slowest since 2009.

Facebook Inc. (FB) dropped 1.3 percent to $28.40. The largest social-networking service is getting its first crack as a public company this week to allay the growth concerns that have made it the second-worst performing U.S. technology initial public offering of 2012. Executives will hold a conference call July 26 to discuss second-quarter results.

Sales probably rose 30 percent to $1.16 billion in the June period, according to analyst predictions compiled by Bloomberg. That would be the slowest growth rate yet disclosed by the company co-founded by Mark Zuckerberg in 2004 in a Harvard University dorm room.
Takeover Deals

RailAmerica Inc. (RA) jumped 9.4 percent to $27.13. Genesee & Wyoming Inc. agreed to purchase the short-line railroad controlled by Fortress Investment Group LLC for $1.39 billion to combine North America’s two largest short-line and regional rail operators.

U.S. shares of Nexen Inc. (NXY) surged 53 percent to $26.09. Cnooc Ltd. agreed to pay $15.1 billion in cash to acquire Calgary-based Nexen in the biggest overseas acquisition by a Chinese company.

Better-than-forecast earnings are masking weaker sales growth in the most recent quarter as U.S. companies including International Business Machines Corp. improve margins to top estimates.

The gap in results signals companies may hold off hiring and expanding until demand rebounds globally. Federal Reserve Chairman Ben S. Bernanke told lawmakers last week that progress in reducing unemployment may be “frustratingly slow” with joblessness stuck above 8 percent since February 2009.
Earnings Estimates

Analysts have lowered predictions for profit and revenue in recent months. For earnings, they estimate a 1.6 percent decline on average among all S&P 500 members after anticipating a 0.5 percent increase in May. Revenue may rise 1.8 percent on average, down from a 3.7 percent estimate in May.

“People are sitting on the sidelines right now waiting to see what happens,” Verizon Communications Inc. Chief Financial Officer Fran Shammo said in a telephone interview last week after the New York-based company reported in-line second-quarter profit and sales. “This isn’t helping with growth, so I think we will continue to mosey along here in the states.”

joyfulheart said:

Local news just said it's because of the movie theater incident.

What the what???? LOL

Click to expand...

They can make it go up as fast as it goes down.... it is kind of like vote counting.