Markets sold off around the globe after yesterday's Fed meeting
and the Chinese credit crunch. The Chinese yield curve is now
severely inverted, meaning longer-term maturities are yielding less
than shorter ones, which signifies a sharp liquidity crisis in
Chinese financial companies. The
(INDEXHANGSENG:HSI) plunged 2.88%.
US initial jobless claims came in slightly worse than expected
at 354,000 against the 340,000 consensus. The Philadelphia regional
manufacturing survey showed greater than expected growth, reporting
a reading of 12.5 against the -1.0 consensus. Existing home sales
also topped estimates, coming in at 5.18 million vs. the 5 million
that was expected. Despite the upbeat data, markets opened low and
continued lower throughout the day. The
(INDEXSP:.INX) plunged a whopping 2.5% on the day.
Precious metals as well as the
SPDR S&P Homebuilders ETF
(NYSEARCA:XHB) lead the market nosedive on decreasing inflation
expectations, with the homebuilders index tumbling more than 5%.
Gold fell 7% to $1,276 per ounce. The bond market is in free-fall
as yields continue to soar. The 10-year rose another 12 bps to
) announced the launch of a video version of Instagram. Shares
traded down 1.9% on the day.
Tomorrow's Financial Outlook
Tomorrow is Quadruple Witching options expiration, during which all
options of the indexes, futures and stocks expire on the same day.
The event occurs at the end of each quarter on the thirdFriday of
the month. This normally is accompanied by larger than average
volume out of the gate.
Canadian CPI and retail sales will be releasedtomorrow morning
at8:30 a.m. EDT .
Darden Restaurants, Inc.
) is reporting earningstomorrow . The restaurant group is expected
to report earnings per share of $1.03 for the second quarter.