This article will be short. Why? There isn’t much too say other than the stock market is looking rough ahead of the Monday opening.
Here’s what is happening:
· Talks to limit oil production between OPEC members and Russia have failed due to Iran’s unwillingness to play ball. The Iranian’s have stated that now that sanctions are lifted on them; they should be able to produce as much as they want. The Saudis have retorted with the statement that they can “flood the market”. Look for oil to reduce its recent increase in price (it is already crashing) and take the energy sector down with it.
· As of 7pm Sunday night, Dow Jones Futures are down 107 points.
· NASDAQ futures are down 32 points.
· Over the weekend a rash of warnings as to the effects of a Brexit (Great Britain’s exit from the European Union) have been issued, after the IMF stated on Friday that the country would face a long period of uncertainty if it left the EU.
· Friday’s GDP growth numbers from China came in with in .1 point of expectations, as they magically always do. GDP growth of 6.8 percent still shows slowing and the workforce moving from manufacturing to services.
· Big Earnings for the coming week include; IBM on Monday with an expectation of 2.09 per share versus 2.91 a year ago, Goldman Sachs on Tuesday with 2.94 per share expected versus 5.94 the prior year, Alphabet Inc (Google) on Thursday with 7.96 expected versus 6.47 the prior year and GE on Friday with 0.19 expected versus 0.20 the prior year.
· Bonds are in demand with the yield on 10-year Treasuries falling three basis points (0.03 percent) to a one-week low of 1.72 percent. A reduction in the yield means that investors are moving more towards bonds as bond move counter to markets.
That markets would continue to rally this week would be representative of the insanity that precedes a crash, if it isn’t already here. While we wish we were wrong, we still remain super bearish.
It is better to be early than late. Either way, we will continue to make bold predictions that others might fear.
zenrupt
Lina Martinez is a contributor to zenruption’s money and life sections. We like her even though she brings out the financial negativity in us lately. Ok, we admit to feeling the same way as we toss market predictions back and forth. Bad situations are often a good excuse for drinking.
