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T3's Take 3: Markets Choke on Growth Concerns


Today's financial recap and tomorrow's financial outlook.

Today on T3 Live

Most sectors were under the 8/21/50/100/200 day moving averages, which was clear technical weakness. Now we have to ask: is this a normal correction? 

We haven't seen one in a while and we're 6 years into a bull run. We had a 12.5% decline from the 2134 high on May 20 to the 1867 low on August 24. Some out there think that this is 2007-2008 all over again, but I disagree...

Click Here to Read More From Scott Redler

World Equity Markets

Overnight, the Asia Development Bank cut is growth forecast for China, sending ripples of worries across global markets.

However, Asian shares were largely up, following through from US market gains yesterday. The Shanghai Composite finished up 0.9%, gaining on news of a possible market link-up between Shanghai and London. The Hang Seng rallied 0.2%, and the Korean Kopsi gained 0.9%. Japanese markets remained closed for holidays.  

European stocks traded lower amid falling commodity prices, which have been hurt by weak global demand. The German DAX closed down 3.8%, while the French CA tumbled 3.4%. Bond yields plunged as investors aimed towards less riskier assets. Volkswagen (VW) was the biggest loser in Europe today, falling some 20% after its emissions scandal yesterday. Shares of other auto-makers fell as well, with Daimler Mercedes and BMW losing about 6%.

US Markets

US stocks erased yesterday's gains on ongoing concerns over global economic growth trends.

Commodities took a hit, with copper falling more than 3.5% amid demand concerns from China and other regions.

The S&P 500 closed down 1.2% at 1942.63 following a late surge into the close. 

Biotech shares were hurt again after Hillary Clinton stepped up her attacks on drug prices, with NASDAQ Biotechnology Index ETF (IBB) falling 1.5% following yesterday's 4.5% decline.

Social media and Internet security stocks were also weak.

The dollar traded up against most world currencies, hitting a record high against the Brazilian Real. The 10-year US Treasury yield fell 6.8 bps to 2.1354% as traders shed risk.

Tesla vs. The Industry

Tesla (TSLA) shares shares closed down 1.2% on a report from the Wall Street Journal stating that Apple (AAPL) may launch an electric vehicle in 2019. Previous media reports indicate that AAPL's automotive team is comprised of several hundred engineers and designers poached from various auto companies, including Tesla.

TSLA already has stiff competition lined up for 2019 in the electric vehicle market. German auto-makers, Audi and Porsche, have already announced their concept products. Meanwhile, General Motors (GM) plans to enter the electric vehicle market in 2017 with its Chevrolet Bolt EV. Toyota (TM) is also entering the alternative energy vehicle market, with its hydrogen-powered Mirai Fuel Cell Vehicle.

Wednesday's Financial Outlook

US economic news for tomorrow will include MBA mortgage applications, markit manufacturing, DOE oil reports.

Overseas economic data will feature Markit euro-zone PMI, New Zealand trade balance, and Nikkei Japan PMI. 

Steelcase (SCS), and Worthington (WOR) will release earnings tomorrow. 
No positions in stocks mentioned.
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