Top U.S.Market News:
- U.S. stocks tanked, taking the Dow back into negative territory for 2015, and crude oil slumped below $40 per barrel again.
- Worst day for stocks in 3 weeks with high-flyer Transports the biggest loser (as crude collapsed)
- The selloff began after Janet Yellen reaffirmed the case for a rate hike at the Fed’s Dec. 16 meeting while reiterating that the decision will be data dependent; the market also may have been on edge from a mass shooting this afternoon in San Bernardino, Calif.
- Janet Yellen and Dennis Lockhart did everything except explicitly promise a rate hike this month
- Yellen left little doubt as to which way she’s leaning. She does, however, say that data coming out between now and the FOMC meeting could sway the decision – November’s jobs report is due on Friday
- Fed’s Lockhart : The case for tightening monetary policy is compelling, unless data shifts drastically- US economy is growing at a solid pace despite headwinds from the global economy, strong USD
- China: 10 major copper smelters agree to cut output by 350Kt next year (8.8% of 2015 level) v 200Kt prior speculated – Calls for govt to support copper market by buying and storing metal
- Gartner: Q3 global server shipments: +9.2%, Revenues +7.5%
- Iran reportedly says majority of OPEC members agree on output cut but Saudi’s do not
- Goldman Sachs analysts forecast 2016 world GDP at +3.5% (timing uncertain)- WTI seen at $52/bbl by 2016 end- Fed will tighten as the ECB and BOJ are still dovish
- DXY Index rises after strong ADP, hawkish Fed talk. Dollar’s surge to 12-year highs after pro-rate hike comments by Janet Yellen also weighed on oil and other dollar-denominated commodities. DXY nearing highest level since March
- Crude oil falls under $40 (-4.5%) after EIA reports 1.2 million-barrel rise in crude supplies. Both WTI and Brent oil prices saw a very brief spike this morning. The spike followed a report suggesting the OPEC had agreed to reduce output. However, the report, said the agreement does not include Saudi Arabia and Persian Gulf Arab countries. Oil reversed sharply lower. Brent oil plunged to nearly seven-year low, -4% to $42.60, lowest since 2009.
- Gold futures end near 6-year low as Yellen comments point to rate hike. Gold fell $9.70, or 0.9%, to settle at $1,053.80 an ounce. The settlement was the lowest since Feb. 5, 2010.