You can get a full roundup of what’s happening in markets this morning here, but the basic gist is: Markets tumbling everywhere, lots of weak earnings.
First, the markets: Dow futures are off about
130 155, and the major indices are all down a little over 1%.
It’s ugly in Europe as well. Germany is down 1.4%. Spain is down 1.1%. Italy is down 1%.
As for the micro, there are lots of ugly earnings this morning.
Dow Component DuPont is down 6% after a big whiff. 3M also cut its outlook. The stock is also off a few percent. There were also ugly reports in the UK, as luxury goods maker Mulberry announced an earnings warnings.
Shares fell 3.5% to $48 in light premarket trading as results missed Wall Street expectations.
On Tuesday, Chief Executive Ellen Kullman said, “Weaker-than-expected demand in titanium-dioxide and photovoltaic markets contributed to the decline from last year’s record third-quarter earnings. We are addressing these challenges now to position ourselves for improved performance.”
DuPont’s results have suffered of late from lower volume and currency headwinds, although sales in its key agricultural segment have seen recent improvements.
United Parcel Service Inc.’s third-quarter earnings fell 56% on pension-restructuring charges as the package delivery company’s revenue missed consensus estimates and margins shrank.
“Our results were achieved in an environment of slowing global trade and changing market dynamics,” said Chairman and Chief Executive Scott Davis. “This not only highlights the flexibility of our business model; it illustrates the breadth of the UPS product portfolio in meeting the needs of customers.”
With the entire world engaged in global coordinated easing, slashing, burning, and overall lowering rates and printing money by the wheelbarrow, the Bank of Canada just fired a shot across the bow. Here is the kicker: “Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. Over time, some modest withdrawal of monetary policy stimulus will likely be required.” Surely they must be punished for this blasphemy in the holy church of Saint John Maynard and the apostles of collapsing fiat.
Oct 23 (Reuters) – U.S. Federal Reserve Chairman Ben Bernanke has told close friends he probably will not stand for a third term at the central bank even if President Barack Obama wins the Nov. 6 election, the New York Times reported.
Republican presidential nominee Mitt Romney has already said he would not re-nominate Bernanke if he wins the presidency. Bernanke’s term as chairman ends in January 2014.
Economic Collapse is happening!!
“We cannot track 2.3 TRILLION in transactions.”
… [W]hen it comes to system market fragility, at least according to Nanex, the frequency and magnitude of “wild price spike” events are now both rising at an exponential rate, and fast approaching Flash Crash levels.
Below is a chart showing the daily counts for all NMS stocks of prices that exceeding NxCore filter level 6. Filter levels range from 2 (lowest) to 7 (highest). Stock prices flagged at these levels are almost always canceled or corrected by the exchange later in the trading session.
The chart below indicates that wild price spikes are happening with greater frequency and magnitude. The highest peak on the right side of the chart is from….