Posted on 02/06/2018 12:55:56 PM PST by Red Badger
As of 3:41 p.m. ET, the Dow is 600 points higher and trading at a new session high. At its session low it was down by 567 points. "I thought we were going to see the bottom within five minutes of when we opened. I think that's basically what we're seeing," says Ed Keon of QMA.
After two huge sell-offs in a row, U.S. stocks are all over the map on Tuesday. Investors blamed the wild moves on a combination of interest-rate fears, computer-driven trading and the obscure volatility funds that use leverage.
The Dow Jones industrial average opened with a big whoosh lower, then rallied all the way back. As of 3:41 p.m. ET, the Dow is 600 points higher and trading at a new session high. At its session low it was down by 567 points. It traded in a range of about 1,100 points.
Check here for the latest market index numbers.
The S&P 500 is 1.9 percent higher with tech as the best-performing sector. The Nasdaq composite gained 2.2 percent.
"I thought we were going to see the bottom within five minutes of when we opened. I think that's basically what we're seeing," said Ed Keon, portfolio manager at QMA, the quantitative and dynamic asset allocation business of PGIM. "At these levels, stocks represent pretty good value and we're adding to equity exposure." Keon said it's too early to call a bottom but he expects that the worse is over.
European markets also fell. The German Dax dropped 2.3 percent, while the French CAC 40 fell 2.4 percent. In Asia, the Japanese Nikkei 225 plunged 4.7 percent, while the Shanghai composite pulled back 3.4 percent.
On Monday, the Dow dropped 1,175.21 points, having briefly declined more than 1,500 points during the session. Other major indexes closed sharply lower. The sell-off kicked into action on Friday, after the latest nonfarm payrolls report saw interest rates in the U.S. jump.
"We think this is an interruption [of the bull market] rather than the start of a bear market," said Craig Callahan, founder of ICON Advisers. "We didn't see any of the typical conditions you get for a top."
This pullback came after a rip-roaring start to the year for stocks. The Dow and S&P 500 notched all-time highs as well as sharp gains for January.
"Widespread and excessive optimism left stocks vulnerable to increased volatility as bond yields have moved off their lows," said Bruce Bittles, chief investment strategist at Baird. "While there is some early evidence that selling pressures are becoming exhausted, and stocks could soon see relief, the broad market is seeing meaningful deterioration."
While there was no particular piece of news that pushed major U.S. indexes deep into the red on Monday, the recent moves in the bond market have added volatility and concern to the market. The benchmark 10-year yield traded around 2.75 percent on Tuesday; it began the year trading near 2.4 percent.
The Cboe Volatility index — widely considered the best fear gauge on Wall Street — broke above 50 in early trading Tuesday before sliding down to 28.51. It closed at 37.32 on Monday. The surge in volatility also triggered massive selling in other volatility instruments.
The VelocityShares Daily Inverse VIX Short-Term exchange-traded note (XIV), which allows traders to bet against the VIX, lost nearly all of its value on Tuesday. Credit Suisse, which sponsors the ETN, said it will end trading on the XIV on Feb. 20.
—CNBC's Patti Domm contributed to this report
At this level, those swings are not that crazy. In numbers, yes. In percentage, no.
But the media told us it was caused by President Trump's tax cut......
Dead cat bounce
The DOW closed up 500 points.
It’s safe to go back in the pool. Stay out of the deep end though.
This was written 20 minutes before the bell.............
And SpaceX soared into space today;) Everything’s looking UP!
SpaceX has had a very good first test of its Falcon Heavy rocket, the heavy-lift orbital vehicle that can carry twice the weight of its closest competition in active operation. The massive, three-booster rocket took off from Cape Canaveral in Florida as planned on Tuesday at 1:30 PM EST, lifting off from Kennedy Space Center’s LC-39A.
Remember how Obama told us not to pay attention to the daily gyrations of the stock market????
So then, why would the liberals be so apprehensive about this downturn, especially after it comes after a year plus of major gains?
Isn’t the stock market still up over 30% since Trump’s election, even factoring in this decline?
Maybe that was something Obama was right about, not to stress out over day to day changes in the markets.
Did it have a payload or was it just a test?...................
https://techcrunch.com/2018/02/06/spacexs-historic-falcon-heavy-successfully-launches/
I believe it was a test. On Fox News live - so much crowd noise it was hard to hear commentary.
Totally manipulated Freepers.
It’s no way most investors change their minds that quick. Total B.S. by the Central Banks.
It was a test of the three-rocket combination. 27 total engines.
But they put a red Tesla on top under the shroud - headed towards a Mars-Earth looping orbit
We’re all gonna die!!!
We’re all gonna die!!!
“At this level, those swings are not that crazy. In numbers, yes. In percentage, no.”
I have an old New Yorker magazine cartoon that I cut out in the 70’s.
It’s set at a bar - two bartenders are obviously very busy with shakers in their hands and a bar full of suited men with dowdy faces...all needing drinks.
One bartender states to the other: ‘Crazy days! The dow up 17 yesterday, down 22 today!’
Shame that it took a dip in the market for CNN and company to give Trump full credit for the stock market performance.
I bailed a month ago. Way to close to retirement to chase returns I really don’t need.
Weird stat of the day:
The Dow closed up 567 points, after being down exactly 567 points earlier in the day.
AND IT DIDN’T CATCH ON FIRE?...........................
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