Fear returns as market’s typically worst month starts


Business News - Opportunities - Reviews



Fear is back as market’s typically worst month starts – Sep. 5, 2017

Why raising the debt ceiling is not a license to spend

Summer is unofficially over now that investors have returned from the long Labor Day weekend. But is the year-long market rally about to end as well?

Stocks fell on Tuesday, with the Dow slipping more than 170 points in early trading. A nearly 4% drop in defense giant United Technologies (UTX) was the main culprit, as investors expressed concerns about UTX’s $23 billion deal to buy Rockwell Collins (COL).

‘; var storytext = document.getElementById(‘storytext’); var heightToSkip = 0; function resetValues() { totalHeight = 0; targetChildElement = null; }
// Check if story is in the blacklist of articles to remove smartassets // [2017.07.27] Results of a one-off request from r.barbieri if(BLACKLIST[location.pathname] === true) { return } if(storytext == null) { console.log(“Error finding storytext element for SA embed”); return; } for ( i = 0; i 0) { heightToSkip -= storytext.childNodes[i].clientHeight; resetValues(); } else if(heightToSkip minHeight && targetChildElement != null) { //console.log(“total height = ” + totalHeight); //console.log(“childNode = ” + targetChildElement); storytext.childNodes[targetChildElement].insertAdjacentHTML(‘afterend’, smartAssetDiv); smartasset = document.getElementById(‘smartasset-article’); smartasset.style.float = ‘left’; // allows module to have text float to right smartasset.style.marginRight =’20px’; smartasset.style.marginBottom =’25px’; //console.log(storytext.childNodes[targetChildElement]); //SMARTASSET.setDivIndex(targetChildElement); SMARTASSET.setSmartAssetScript(); /* bail out since we’re done */ break; } } /* div with id=”smartassetcontainer”. Sanity check to only embed once */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].id !== “undefined” && storytext.childNodes[i].id === “smartassetcontainer”) { break; } /* div with id=”ie_column” */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].id !== “undefined” && storytext.childNodes[i].id === “ie_column”) { resetValues(); } /* embeds from twitter, facebook, youtube */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].classList.contains(’embed’)) { resetValues(); } /* cnn video player */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].classList.contains(‘cnnplayer’)) { resetValues(); } /* images */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘img’) { resetValues(); } /* images stored in figure tags */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘figure’) { if(storytext.childNodes[i].clientWidth

But Wall Street giants Goldman Sachs (GS) and JPMorgan Chase (JPM) each fell more than 2% as well. Big banks would be hit hard by any slowdown in the global economy.

And CNNMoney’s Fear & Greed Index, which measures seven indicators of market sentiment, slid back into “fear” levels.

That’s an ominous sign as the month of September kicks off. September is historically the worst month of the year for the stock market. And this particular September could wind up being a particularly tough one for investors.

President Trump and Congress have a lot on their plate: The North Korea nuclear threat. Trump’s tough talk with China on trade. A looming debt ceiling drama. A possible government shutdown if no federal budget is passed. Potential disruption by Hurricane Irma on top of damage done by Hurricane Harvey.

Related: Trump’s empty threats may weaken U.S. hand over North Korea

Increased tension with North Korea could be the catalyst for the market to take a hit. So could any inaction by Washington that leads to a default on U.S. debt payments and/or a government shutdown.

Will these and other concerns finally cause the market to dip in a meaningful way? After all, the Dow and S&P 500 are still up more than 10% this year while the Nasdaq — home to many high-profile tech stocks — has surged 20%.

Many investors believe that stocks are long overdue for a correction — a 10% pullback from recent highs.

“It’s probably a safe bet that volatility will pick up in September,” wrote William Lynch, director of investments with Hinsdale Associates, in a report Tuesday.

And after less than one day of trading in September, that volatility has already arrived.

CNNMoney (New York) First published September 5, 2017: 11:32 AM ET


Business News - Opportunities - Reviews



Leave a Reply