Capital Markets

Europe Slides For Third Day As Oil Attempts A Rebound; US Futures Flat

US equity futures were marginally in the red, while Asian markets rose and European stocks dropped. WTI oil rose 0.61% to $42.79 as some suggest the time to go long has arrived; oil tumbled 2.3% in the previous session. The Bloomberg Dollar Spot Index fell 0.1 percent.

Illinois Comptroller: "The State Can No Longer Function"

"The state can no longer function without a responsible and complete budget... We are effectively hemorrhaging money... I have been very vocal regarding these issues and the budgetary impasse since assuming office six months ago; however we are now reaching a new phase of crisis."

Is Trump Setting Himself Up To Take All The Blame When The Stock Market Tanks?

"You can blame whoever you want for the coming calamity; Obama, The Fed, Wall Street, a massive public debt, excessive entitlement spending, or any of the number of other “bubbles” currently plaguing our country’s capital markets... But, when it all explodes, Trump and all the 'MAGA' voters who got him elected are going to be the ones eating all the blame that gets served up."

Grocery Stocks Crash After Amazon Buys Whole Foods

(WMT -4%, TGT -5.5%, SFM -7.6%, KR -12%) Whole Foods stock was halted for 'news pending'... and now we have the answer - Amazon to acquire Whole Foods Market for $42/share in an all-cash transaction valued at ~$13.7b, including Whole Foods Market’s net debt.

The Blow-Off Top Is Here: Second Largest Weekly Inflows To Wall Street In History

For confirmation that the market is now in its "blow off top" phase, look no further than the latest BofA "flow show" in which Michael Hartnett reports that capital markets just saw their biggest week of equity inflows since the US election ($24.6bn), another chunky inflow to bonds ($9.0bn), which combines to "the second largest week of inflows to Wall Street ever (largest was $35.5bn in Dec'2014)."

Doug Kass: Not Even The Algo Creators Know What Is Going On

"The machines have no fear of flash crashes or any other kind of crash. Such crashes might even serve their purpose of 'making a profit'... Be forewarned as last Friday's Nasdaq schmeissing may be a walk in the park compared to what may happen in the future...This is not my Grandma Koufax's stock market."

Is This The Scariest Chart For Central Banks?

"Monetary policy has left the allocation into risky assets stretched at very high prices in a modest recovery with major structural issues still unresolved. The efficacy of existing policy tools in the future seems greatly diminished."