Social Media: Your money and the internet: Don't rely on social media stock tips, EU watchdog warns retail investors - by Huw Jones

< Retail investors following the Reddit forum WallStreetBets in the United States piled into GameStop Corp last month, sending shares in the retailer rocketing at the expense of prominent investors who had bet against the stock, ringing alarm bells in Europe.

Although market rules and structures are different in the EU, it cannot be ruled out that similar circumstances may occur in the bloc as well, the European Securities and Markets Authority said in a statement.

Read more at: https://www.reuters.com/article/us-eu-markets-regulator/dont-rely-on-social-media-stock-tips-eu-watchdog-warns-retail-investors-idUSKBN2AH16A

Poll: 66% of US Voters Believe Insiders Manipulate Stock Market

A new Rasmussen Reports national telephone and online survey finds that 66% of Likely U.S. Voters believe Wall Street insiders manipulate the stock market to their own advantage. Only 13% of voters disagree, while 22% say they’re not sure.

Read more at 66% of Voters Believe Insiders Manipulate Stock Market - Rasmussen Reports®

US Economy Poll: Americans Wary That Stock Market Bubble Will Burst

A new Rasmussen Reports national telephone and online survey finds that 61% of American Adults are at least somewhat concerned that the stock market bubble will burst and push the economy back into recession with 23% who are Very Concerned. Twenty-five percent (25%) don't share that fear, but that includes only seven percent (7%) who are Not at All Concerned.

Read more at Americans Wary That Stock Market Bubble Will Burst - Rasmussen Reports®

The ‘Great Repression’ is here and it will make past downturns look tame, economist says

 Read more at:
The ‘Great Repression’ is here and it will make past downturns look tame, economist says - MarketWatch

Oil Output Agreement? - Oil agreement could support stocks,providing a floor

An agreement by oil producing nations to cut output by a record amount may sustain a recent bounce in stocks, though stay-at-home restrictions and closures tied to the coronavirus pandemic continue to weigh on the global economy.

Read more at:
https://uk.reuters.com/article/uk-health-coronavirus-stocks/oil-agreement-could-support-stocks-providing-a-floor-idUKKCN21U0U2

USA: Stock market today: Dow falls 900 points as Wall Street fears coronavirus will shut down economy longer than expected

 The Dow Jones Industrial Average and S&P 500 were coming off of their worst first quarter in history.

Read more at:
https://www.cnbc.com/2020/03/31/stock-market-futures-open-to-close-news.html

Stock market : Data: Rings a Warning – The Stock Market Crash Isn't Over

Google Trends data shows huge interest from retail investors looking to learn how to buy stocks, and that's bad news for the Dow Jones

Read more at:
https://www.ccn.com/google-trends-data-rings-a-warning-the-stock-market-crash-isnt-over/

US Economy - Voodoo Economics: Even though Stocks jump on hopes for a coronavirus stimulus package - "reality of positive effect is still very nebulous - by Jessica Menton

U.S. stocks advanced Tuesday on hopes that Congress would pass a stimulus bill to shield the economy from the coronavirus pandemic.

The Dow Jones Industrial Average rallied more than 1,600 points after slumping to a three-year low a day earlier. The Standard & Poor’s 500 jumped 7.5%. Stock futures had briefly surged 5%, triggering an automatic shock absorber.

Stocks stabilized overnight after a turbulent start to the week as Congress was nearing a rescue plan that could inject $2 trillion into the economy. The measure is designed to provide direct payments of $1,200 to most Americans, help small businesses shuttered across the country and aid the hard-hit travel industry.

House Speaker Nancy Pelosi said Tuesday morning a deal on an economic stimulus package may be reached in the "next few hours."

Read more at: Dow: Stocks jump on hopes for a coronavirus stimulus package

USA economy: Trump wants to restart the US economy whatever it takes ASAP because he's afraid the tanking stock market will hurt his reelection chances, report says

 Trump is growing anxious that the plummeting stock market could cost him his re-election bid, according to the Washington Post. The president ha...

Read more at:
https://markets.businessinsider.com/news/stocks/trump-us-economy-afraid-tanking-stock-market-coronavirus-report-reelection-2020-3-1029024616

Wall Street: Where does the stock market go from here after the worst drop since 1987? Here’s what the analyst who called the 2018 rout says

Michael Wilson, Morgan Stanley’s chief U.S. equity strategist, said that it may be time to jump back into stocks after the stock market plunged into a bear...

Read more at
https://www.marketwatch.com/story/where-does-the-stock-market-go-from-here-after-the-worsdrop-since-1987-heres-what-the-analyst-who-called-the-2018-rout-says-2020-03-13
-:

USA - Wall Street Selloff? ; Dow Futures Point to Friday Bloodbath as Coronavirus Shock Hits Home

The U.S. futures market traded sharply lower overnight, extending a brutal selloff that has engulfed Wall Street for the better part of three weeks. Dow Jones mini futures contracts were off by as much as 623 points to reach an intraday low of 20,321.00.

At the time of this writing, the Dow Jones futures contract was down 522 points, or 2.5%, to 20,563.00.

Read more at: Dow Futures Point to Friday Bloodbath as Coronavirus Shock Hits Home

Oil Prices tanking: Russia vs Saudi: How much pain can they take in oil price war? - by Davide Barbuscia, Darya Korsunskaya

In Saudi Arabia, Crown Prince Mohammed bin Salman gave the green light for the kingdom, the world’s top oil exporter, to pump at will after Russia rejected an OPEC proposal for deeper cuts to cope with the coronavirus outbreak, two sources familiar with the matter said.

The Saudi fiscal breakeven - the oil price at which it would balance its budget - is at around $80 a barrel, double that of Russia, said Malik at Tellimer.

Saudi Arabia enjoys foreign reserves of $500 billion and a low debt-to-GDP ratio of 25% that gives it ample room to borrow.

Read more: Russia vs Saudi: How much pain can they take in oil price war? - Reuters

Wall Street: ‘Head-fake’ stock market rally may become real with interest-rate cuts - by Nigam Arora

Before getting carried away with any rallies, remember when the stock market started going up on the news of coronavirus. The reasoning of Wall Street was that the virus would cause central banks to print more money. (The stock market is addicted to easy money.) Subsequently, Wall Street twisted the news of the coronavirus to claim that it was easing, and the stock market went higher than it was before the news of coronavirus. At that time, I wrote “How an external event could stunt U.S. stocks.”

All prudent stock market investors should consider reading “Prudent investors should look at these four stock charts as coronavirus spreads” and “Stock market investors’ motto — ‘in central banks we trust’ — is still working.”

Comment EU-Digest: Expect what the Federal Reserve and central banks have done in the past: Save stock market investors

Read more at: Head-fake’ stock market rally may become real with interest-rate cuts - MarketWatch

USA - Economy: Trump perfectly orchestrates the stock market’s rise whenever momentum wanes

Price action, internal momentum and volume aren’t great, but that doesn’t matter when the president wields his baton.

Read more at:

https://www.marketwatch.com/story/trump-perfectly-orchestrates-the-stock-markets-rise-whenever-momentum-wanes-2019-12-05

Wall Street USA: Optimism and negativism not realism or facts move stock markets, as did talks today for renewed talks between China and US did.

Dow set for best day in 3 months on rising trade optimism, rosier economic data -

Read more at:
https://on.mktw.net/2UusXGd

Support EU-Digest, which has reported the news without any political affiliation since 2004, and opposes those who seek to discredit news organizations who believe in the right of a free Press, by investing in an advertisement, or by giving a donation to keep our efforts going : to donate or advertise click on: https://www.paypal.com/webapps/hermes?token=8BP18304C1657151J&useraction=commit&mfid=1567106786154_8591ae1288ebf  

China-USA Tariffs: Trade war headlines could get much worse before they get better - by Patti Domm

With little apparent progress in U.S.-China trade talks, the Trump administration could be about to open up a new front in the trade wars by taking on the European auto industry — and that could spook markets.

U.S. negotiators head to China next week, and while there are few signs any kind of deal is near, many strategists expect to see some signs that talks will continue and an eventual agreement will be reached, even if a March 1 deadline on new tariffs is pushed back.

But while the market has focused on those talks, another battle is brewing. The Commerce Department by Feb. 17 is expected to release a broad report on auto imports and national security, and experts say a part of that report could recommend tariffs on European autos.

The White House would then have 90 days to respond.

Dan Clifton, head of policy research at Strategas, said Trump could be using the threat of auto tariffs as a way to get the EU to cooperate on other matters. The EU has been resisting efforts to include U.S. agriculture in a trade deal. "Just because there's a report does not mean tariffs will go into effect," he notes.

But some economists expect the administration to move on the auto tariffs, specifically on European cars. For instance, UBS economists said they expect 25 percent tariffs to be placed on finished vehicles, not parts. The administration then could grant exemptions to other countries that have cooperated, like Korea, Canada and Mexico, but the European Union would not be exempted.

"It just seems like if people had been worried about the tariff war with China, this would be another reason for people to worry. In our view, this is not a macro event for the U.S. because the auto industry seems to be pretty tariff savvy and can get around them," said Seth Carpenter, chief U.S. economist at UBS.

Some strategists fear investors are keenly focused on China, and expect a resolution, but could be surprised by ramped-up trade friction with Europe.

"The market would tank," said Peter Boockvar, chief investment officer at Bleakley Advisory Group. "The market has spoken loud and clear that it's had enough of these tariffs. ... The market is fed up with this. Global growth is slowing dramatically because of trade. You want to put another bullet in it's head?"

Read more: Trade war headlines could get much worse before they get better

US Economy: Dow plunges by more than 600 points in massive market sell-off - by Lucy Bayly

The Dow Jones Industrial Average sank by more than 600 points Monday, dragged down by a tumble in Apple and Amazon shares, mounting geopolitical concerns, and a strengthening dollar.

The S&P also stumbled, falling by 2 percent after shares in Goldman Sachs sank by more than 7 percent amid reports that Malaysia is seeking a multimillion-dollar refund from the investment firm for its role in the country’s 1MDB state fund money-laundering scandal.

The tech-heavy Nasdaq composite index was down 2.8 percent.

Apple had pulled down tech stocks early Monday after Lumentum, a key supplier to the Cupertino-based giant, said it was cutting its outlook for the second quarter of 2019 based on lower forecast production volume for one of its major clients.

Tobacco stocks also had a bad day, tumbling double digits on news that the Food and Drug Administration is mulling a ban on menthol cigarettes. 

Read More: Dow plunges by more than 600 points in massive market sell-off

US ECONOMY: COULD RECORD US DEFICIT TRIGGER THE NEXT RECESSION: ? "As U.S. trade gap widens to unimaginable hights."

The U.S. trade deficit rose to a seven-month high in September as imports surged to a record high amid strong domestic demand, offsetting a rebound in exports.

The Commerce Department said on Friday the trade gap increased 1.3 percent to $54.0 billion, widening for a fourth straight month. Data for August was revised to show the trade deficit rising to $53.3 billion instead of the previously reported $53.2 billion.

Could the US Economy collapse?

But here's the bigger question that retail investors and Wall Street are currently asking: Is the current stock market correction over? Given the many headwinds facing stocks and the U.S. and/or global economy, the answer may not be what investors want to hear.

Here are 25 reasons and/or scenarios that could cause the stock market to head substantially lower than where it's currently valued.

1. The ongoing trade war with China escalates, raising material costs, curbing consumer spending, and hurting corporate profits.
2. Corporate share buybacks fail to boost per-share profits as much as expected.
3. Democrats win one or both houses of Congress, hurting the chance of Republicans to pass further fiscal stimulus legislation.
4. The federal budget deficit continues to soar, placing added emphasis on our growing national debt, currently at more than $21 trillion.
5. The U.S. dollar keeps strengthening, placing pressure on exports and worsening the U.S. trade deficit with foreign countries.
6. FANG stocks – that's Facebook, Amazon.com, Netflix, and Google (now Alphabet) -- continue to draw the ire of short-sellers.
7. The Federal Reserve gets overly aggressive with interest rate hikes, sapping lending demand.
8. The yield curve flattens, reducing the desire of banks to lend money.
9. Interest rates rise, providing incentive for investors to ditch volatile equities for the safety of bonds and bank CDs.
10. Britain falls into a "hard Brexit." With few or no trade deals in place, the U.K. falls into recession, taking the U.S. and other developed countries with it.
11. China's economy experiences its slowest growth in decades, placing pressure on its ability to import from the U.S. and other key players.
12. The U.S. housing market shows signs of weakening, with important markets like California seeing a steep drop-off in new home sales.
13. Credit-card delinquencies begin to trickle higher, demonstrating the inability of consumers to meet their payment obligations.
14. The subprime auto loan market bubble bursts.
15. The U.S. goes to war, regardless of the reason or the country in question.
16. An errant tweet from President Trump stirs Wall Street and investors.
17. A flash crash caused by computer algorithms results in substantially reduced liquidity and perpetuates a rapid move lower in the stock market.
18. Investor emotions (especially those of day traders) get out of hand and send traders running for the exit.
19. The unemployment rate, which is at a 49-year low, begins to rise, signaling peak employment and the possibility of a weakening economy.
20. Disruption in important oil-producing countries causes crude prices to skyrocket or plunge. Either way, it could create sticker shock or job losses and adversely impact the U.S. economy.
21. U.S. GDP data shows slowing growth, which, in turn, cools investor expectations for stocks, sending them lower.
22. Inflation comes in far lower than expected, signaling that businesses have little pricing power. The prospect of deflation could wreak havoc on corporate earnings, causing the market to fall.
23. The U.S. debt ceiling is hit (yet again), but the political divide in Congress becomes too great for lawmakers to overcome, allowing the shutdown to perpetuate for months.
24. European debt crisis 2.0 hits, with countries like Italy unable to dig their way out of years of loose borrowing.
25. A widely followed pundit, such as Warren Buffett, sounds the cry of the stock market being overvalued.

In other words, there is no shortage of reasons the stock market could tumble from its recent all-time highs.

Bottom-line, however -it does not look good for the US Economy as the deficit is coming close to a trillion US dollars.Impossible to pay it back, unless by slashing government spending, and increasing taxes.

Unlike the trillion dollar budget deficits that occurred during the Obama administration that were temporary and largely the result of the Great Recession, the Trump deficits that will soon reach and exceed $1 trillion are permanent and will only get worse in the years ahead.

The Trump deficits are the result of changes in federal spending and revenue that will continue to be in place until some president and Congress decide to reverse them, that is, to increase taxes and make cuts to popular programs.

EU-Digest

USA: Dollar falls, emerging markets rally after Trump's Fed attack

The dollar weakened Tuesday after U.S. President Donald Trump slammed the Federal Reserve for raising interest rates, while global equity markets rose as strong economic and earnings growth favored stocks in a relatively benign environment.

Wall Street shares rose, following stock market gains worldwide, with the benchmark S&P 500 edging closer to an all-time high.

Trump said in an interview with Reuters on Monday that he was "not thrilled" with the Fed under his appointee, Chairman Jerome Powell, for raising rates and that the U.S. central bank should do more to boost the economy.

Read more: Dollar falls, emerging markets rally after Trump's Fed attack

USA Economy: Dow Slumps on Trump Trade War Escalation

Stocks on Wall Street closed sharply lower and global stocks tumbled on Wednesday, July 11, following the latest escalation in trade war rhetoric from the White House, which published a list of $200 billion worth of China-made goods it said will be hit with fresh tariffs.

The list, which includes products across sectors such as consumer technology, agriculture and automobile parts and equipment, came just days after Donald Trump unveiled $34 billion in tariffs on Chinese goods that were immediately reciprocated by Beijing.

"For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition," U.S. Trade Representative Robert Lighthizer said in a statement. "Rather than address our legitimate concerns, China has begun to retaliate against U.S. products ... There is no justification for such action."

China's Commerce Ministry said Wednesday that the latest tariff threat was "bad for China, the U.S. and the rest of the world" and promised to retaliate with both "quantitative and qualitative" measures.

Read more: Dow Slumps on Trump Trade War Escalation - TheStreet