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T3's Take T3: US on Top After Global Drop


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

Today on T3 Live

T3 Live cordially invites you to our first annual Finance Festival, scheduled for November 6-8 in sunny Miami, Florida.

And we are proud to announce that derivatives trading guru and former hedge fund manager John Succo will join our panel on the Fed.

John, currently a professor at Indiana University, was one of the most popular contributors in Minyanville history, and is considered a legend for his sharp market analysis during the financial crisis.

John will be joined by a truly impressive team of Wall Street experts, including Barry Ritholz, Nicole Sherrod, Evan Lazarus, Doug Robertson, Josh Brown, JC Parets, and many more.

Read about our expanded lineup here.
Economic Data Hits Asia

After the strong rally in Asia yesterday, stocks fell back on weak economic data. In China, the consumer price index (CPI) rose 2%, beating the expected 1.8%. However, China's producer price index (PPI) declined 5.9% vs. an expected 5.5%, marking the 42nd decline in a row. The drop once again ignited concerns about China's slowing economy.

The Shanghai Composite closed down 1.4%.

Over in Japan, the Nikkei gave up some of yesterdays gains after a surprise decline in core machinery orders, which fell 3.6% in July. Economists expected a rise of 3.7%. The Nikkei closed down 2.5%.

The Hong Kong Hang Seng dropped 2.6%, while the Taiwanese TAIEX closed down 0.2%. The Korean Kopsi managed to rally 1.4% on a jump in shipbuilding stocks.

Investors in Asia were also concerned about the possibility of the Fed raising rates next week.

World Equity Markets

Over in Europe, equities followed China and closed down, despite the Bank of England leaving interest rates unchanged.

The German DAX lost 0.9%, and the French CAC dropped 1.46%.

US markets went the other way following a sharp drop in futures pre-market.

All major indices opened strong, and spent the majority of the day up. The S&P 500 rallied 0.5%, while the NASDAQ rose 0.8%.

Economic data was mixed. Import price index and wholesale inventory data came in lower than expected.

However, jobless claims numbers were better than expected, which has some traders worried that the Fed will lean towards raising interest rates next week.

Nearly all sectors finished up today, with biotech performing best by a long shot.

Citron Burns Mobileye

Mobileye (MBLY) shares tumbled 7.8% today after a sharp drop yesterday on the release of a report from Citron Research questioning the fundamentals of the company. Citron claims that Mobileye, which manufacturers driver-assistance systems, doesn't have the "financials, business performance, or realistic future prospects" that justify its $12 billion valuation.

The note stated that Mobileye does not own the patents on their products and does not have long-term supply commitments. Citron attributes most of the stock's rally to the hype surrounding autonomous cars.

Citron issued a short-term $25 price-target, and a $10 long-term one.

Friday's Financial Outlook

US economic data for tomorrow will include PPI, University of Michigan, monthly budget statement, and the Baker Hughes rig count.

Overseas economic data will include German CPI, and the Bank of England's inflation expectation.

Kroger (KR) will be announcing earnings before the open tomorrow. There are no earnings announcements held after the close.
No positions in stocks mentioned.
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