Dow futures tumbling more than 700 points

[GennGreymane]

DOW MINI FUTURES, S&P FUTURES LIMIT DOWN
(title altered for context)

http://www.cnbc.com/2015/08/24/wall-...es-plunge.html

U.S. stock index futures screamed lower on Monday, with Dow futures tumbling more than 700 points, as fears surrounding the health of China's economy multiplied.

The New York Stock Exchange is invoking Rule 48 for the Monday stock market open, Dow Jones reported.

The rule allows NYSE to open stocks without indications. "It was set up for situations like this," said Art Hogan, chief market strategist at Wunderich Securities. It was last used in the financial crisis.

The Dow futures held about 700 points lower, with the S&P futures off about 80 points, and the Nasdaq 100 futures off about 5 percent, which marks the lower end of the price limit.

The major averages are on track for one of their worst opens since the financial crisis of 2008.

These concerns saw the benchmark Shanghai Composite index notch up its biggest one-day percentage loss since 2007 on Monday, closing down 8.5 percent.

Traders work on the floor of the New York Stock Exchange.
Panic spread to European markets, with the STOXX Europe 600 off more than 4.5 percent. All major bourses were off a similar amount. The FTSEurofirst 300 index traded down over 4.6 percent and was on course for its worst month since 2008, having shed more than $1 trillion in market value in August so far.

Japan's Nikkei 225 index also finished at its lowest closing level since February 23, as a double whammy of China-related fears and a rejuvenated yen brought the bourse down by its biggest one-day drop in more than 2 years.
Read MoreWeek ahead: Markets seek clarity from China, Fed

The major falls come after U.S. stocks closed deep in the red on Friday, pushing the Dow and Nasdaq into correction territory.The major averages had their biggest trade volume day of the year and posted their worst week in four years.

Oil prices crashed to fresh six and half year lows on Monday, after Chinese stock markets suffered, intensifying worries over the outlook for global oil demand.

Brent oil was trading down 4.6 percent, at $43.36 a barrel. U.S. October crude was down 4.1 percent at $38.80 a barrel

Investors monitor screens showing stock market movements at a brokerage house in Shanghai
As Shanghai stocks crumble, what will China do next?
"Markets are afraid of further economic weakness in China, further pain in global commodity markets and uncertain about Fed and People's Bank of China policy—what they will do and what the impact will be," said global strategist at Societe Generale, Kit Juckes.

"The divergence between global commodity prices and equities is not a new theme but the danger now is that they begin to re-correlate—as they did when the dotcom bubble burst in 2000 and what had previously been an emerging market crisis became a U.S. recession."

No major earnings or economic data are expected from the U.S. on Monday.

While traders will be pre-occupied with the extreme moves in global markets, elsewhere the coming week's annual Economic Policy Symposium at Jackson Hole, which brings together academics, financial market participants and many of the world's leading central bankers, could provide important signals as to near-term monetary policy action in the U.S.

In addition, Federal Reserve Vice-Chairman Stanley Fischer will speak later this week.

Thursday will brings this week's data highlight, with the second reading of second quarter gross domestic product (GDP).

Some important housing data is also due for release throughout the week, including the release on Tuesday of the FHFA and Case-Shiller home price indices and new home sales figures, followed on Thursday by pending home sales data.

Meanwhile, safe haven assets have rallied around the world, with gold and U.S. Treasurys both seeing strong gains in the last two weeks.

In currency markets, the yen and Swiss Franc have rallied against the U.S. dollar while the euro has proved the surprise outperformer, appreciating 4.5 percent against the greenback in the last two weeks.

[Gamdwelf]

Lol late all the losses are gone almost, only down by like 100 points now. America sez eff China.

[Gheld]

It'll go back up just like oil prices.

[GennGreymane]

Lol late all the losses are gone almost, only down by like 100 points now. America sez eff China.

Its good to buy at the moment, I sold very early on and bought back a ton, the problem lies on why the crash happened and what it will lead to

[Gheld]

what it will lead to

An eventual realization that value and order are purely abstract and arbitrary measures that hold no grasp on reality and the end of the religion of the all mighty dollar?

[Zan15]

DOW MINI FUTURES, S&P FUTURES LIMIT DOWN
(title altered for context)

http://www.cnbc.com/2015/08/24/wall-...es-plunge.html

good old market panic


if this does not tell the story of good old panic by nubs

http://www.marketwatch.com/story/net...cks-2015-08-24


my god it was so easy to make money today.

[GennGreymane]

An eventual realization that value and order are purely abstract and arbitrary measures that hold no grasp on reality and the end of the religion of the all mighty dollar?

It started in China

[Independent voter]

Every financial hiccup the America haters pile on proclaiming that this is the end. This has been ongoing for over 200 years now.

[Gheld]

Every financial hiccup the America haters pile on proclaiming that this is the end. This has been ongoing for over 200 years now.

Actually I find American Haters (i.e. evangalist preppers) are the ones who are usually claiming that the end is near every time there's a "financial hiccup."

[Eliandal]

It's just a small case of gas It's already easing.

China, I think though, has appendicitis !!!

[Reeve]

This seems like a great opportunity to make a lot of money. Too bad I don't have a lot of money to invest.

[Yvaelle]

It'll go back up just like oil prices.

I'm actually not so sure about oil. There are a few factors at play here that could see a permanent drop (or at least a drop in the rise of) oil prices in the near future. I'm not sure if this will lead into what I'm seeing, but for the moment I'm not ready to endorse oil stocks because of it. Here's my thinking:

1) Electric cars are coming, Gigafactory 1 is almost online, it may significantly reduce the cost of the next generation of electric cars - at which point I anticipate a major consumer shift: to cheaper, safer, faster accelerating vehicles.

2) Green energy is shifting quickly, not so much in NA, but overseas the reliance on solar and wind power is shifting quickly: and the potential of the technology is beginning to surpass oil and coal.

3) Advances in natural gas extraction, oil sands, and deep water drilling tech are all reducing the cost of extraction: which should end up reducing the cost per barrel on their own, despite the dwindling capacity at the easier-access (traditional) reservoirs.

4) Increased global competitiveness in extraction - notably from Canada (oil sands), the US (fracking and deep water drilling), and Russia (all of the above) - has broken the OPEC cartel. This means that the exorbitant profit of OPEC will now be permanently reduced, as they need to compete closer to their operating margin - in a more competitive global market, where the new players don't play by the old rules.

So a variety of technological, political, and economic forces are all conspiring against the price of oil. I think the century-long trend may be at a close.

[Independent voter]

About 3 months ago the IMF said the US stock market was overpriced. Looks like they were partly right. I thought it was a little odd the IMF saying that, but nobody else did so maybe it's a political thing.

[Deleted]

Every financial hiccup the America haters pile on proclaiming that this is the end. This has been ongoing for over 200 years now.

God you people are neurotic and self-obsessed. This has absolutely nothing to do with America.

[Tierbook]

I'm actually not so sure about oil. There are a few factors at play here that could see a permanent drop (or at least a drop in the rise of) oil prices in the near future. I'm not sure if this will lead into what I'm seeing, but for the moment I'm not ready to endorse oil stocks because of it. Here's my thinking:

1) Electric cars are coming, Gigafactory 1 is almost online, it may significantly reduce the cost of the next generation of electric cars - at which point I anticipate a major consumer shift: to cheaper, safer, faster accelerating vehicles.

2) Green energy is shifting quickly, not so much in NA, but overseas the reliance on solar and wind power is shifting quickly: and the potential of the technology is beginning to surpass oil and coal.

3) Advances in natural gas extraction, oil sands, and deep water drilling tech are all reducing the cost of extraction: which should end up reducing the cost per barrel on their own, despite the dwindling capacity at the easier-access (traditional) reservoirs.

4) Increased global competitiveness in extraction - notably from Canada (oil sands), the US (fracking and deep water drilling), and Russia (all of the above) - has broken the OPEC cartel. This means that the exorbitant profit of OPEC will now be permanently reduced, as they need to compete closer to their operating margin - in a more competitive global market, where the new players don't play by the old rules.

So a variety of technological, political, and economic forces are all conspiring against the price of oil. I think the century-long trend may be at a close.

As far as energy goes I saw a Bloomberg article the other day talking about how due to an increase in shale production as well as higher MPG cars and what not that the US now produces 89% of the energy we use. That's up 2% from 2013

[Reeve]

Related:

Worried About The Stock Market? Whatever You Do, Don’t Sell.
http://fivethirtyeight.com/datalab/w...-do-dont-sell/

Yeah, people who panic and pull their money out I'll never understand. The long term trend of the stock market is up. If you have a well diversified portfolio, you're pretty safe in the long term, even if the value in the portfolio drops precipitously in a crisis. It always bounces back. If it doesn't bounce back, you've got much larger issues than whatever your specific investment is, because it's probably the collapse of society as we know it.

[Masark]

As far as energy goes I saw a Bloomberg article the other day talking about how due to an increase in shale production as well as higher MPG cars and what not that the US now produces 89% of the energy we use. That's up 2% from 2013

Yeah, given the amount of oil in the USA that goes into road gasoline and diesel (literally about 3/4s), changes to the CAFE standards can have a big effect on oil consumption.

[Reeve]

Yeah, given the amount of oil in the USA that goes into road gasoline and diesel (literally about 3/4s), changes to the CAFE standards can have a big effect on oil consumption.

Yeah, but it takes a few years to take effect.

I fully expect even without the CAFE standards changes that within 10 years, electric cars will be as common as Toyota Camrys, though, so it's probable that in 10 years I'll be out of a job.

[Elegiac]

Yeah, people who panic and pull their money out I'll never understand. The long term trend of the stock market is up. If you have a well diversified portfolio, you're pretty safe in the long term, even if the value in the portfolio drops precipitously in a crisis. It always bounces back. If it doesn't bounce back, you've got much larger issues than whatever your specific investment is, because it's probably the collapse of society as we know it.

Their loss is our gain, however. I generally clean up in terms of stocks during downturns.

[Tierbook]

Yeah, but it takes a few years to take effect.

I fully expect even without the CAFE standards changes that within 10 years, electric cars will be as common as Toyota Camrys, though, so it's probable that in 10 years I'll be out of a job.

What's your specific job in the oil industry? Finding speculative spots to plop down a well right? I imagine that could be retooled into find areas likely to get a lot of wind-power.