Dow futures drop 400 points after hot inflation report

CNBC ^ | 09/14/2022 | Jesse Pound

[GOPJ]

No, we didn’t need to see Biden and his goons destroy the economy.

If we had elected Trump for a second term this would NOT be happening - That’s what should have happened. Trump as President and the country doing well.

[C210N]

If we had elected Trump for a second term this would NOT be happening...

We did elect Trump for a second term, and this IS happening.

[From The Deer Stand]

Thanks Joe Manchin.

[tanstaafl.72555]

never take advice over the internet re: money. I get it. You have to realize I have been screaming like a banshee for 14 years that we were going to financially implode in the West due to our monetary policies and the chicanery of the fed.

I really expected the fecal matter to hit the oscillating device back in 2008, and underestimated both the residual strength in the economy and the lengths to which the PTB were willing to go to keep the ball spinning.

Is this finally "it?" I don't know. I believe strongly (there's that word again :) )that we are going to have a giant financial reset and debt collapse. Could I be wrong? Sure. Here is the question. Does the "normalcy bias" which exists in markets have sufficient power to carry us through this crisis we have now entered? My bet on the odds on that are a resounding "no!" Do I hope I am wrong? Absolutely.

I sincerely believe we are on the edge of a financial precipice which will see millions of people lose everything, and I mean EVERYTHING.

Yah, I know the internet is full of chicken little howlers (usally trying to sell some seminar, or book, or service) all hawking what I call "panic porn." All of them are screeching "this time it is different."

Guess what? This time it is different [smile]

make your own decisions, but for Pete's sake, do a risk evaluation.... and get out of equities [smile]

[TexasGator]

“Phoenix. It dropped to $3.89, then went to $3.99, now $4.29.”

Gas Buddy showing $3.99

https://www.gasbuddy.com/home?search=phoenix&fuel=1&maxAge=0&method=all

[Carriage Hill]

Damn, it’s down over 800 points, at 12:30pm.

[Capt. Tom]

I wondered for a year how the price of breakfast at local restaurants could stay the same.

After all, food is a commodity and should cost more.

Today, I had breakfast at a local restaurant and found out they increased the cost of a $14 meal to $18.

They had a note on each table telling of the increase in food costs. -Tom

[Deo volente]

LOL, where’s the guy that said about a week ago the S&P would hit 5,500 by next year? I swear I read that somewhere.

[dragnet2]

You better look again.

[Red Badger]

2.5% is still not a lot to worry with.................

[dragnet2]

Regarding the stock market, I have zero worries...I don’t invest in it.

[Red Badger]

I’ve been ‘out’ for about 5 years.......................

[Mr. K]

Yep- that’s the reason new cars are so expensive.

No one can fix their old cars because they made them actually destroy car engines by pouring acid down the carburetor.

[nascarnation]

Interesting that they could easily and cheaply immobilize the engines in cash for clunkers but not the stuff we left behind in Afghanistan.

[tanstaafl.72555]

If you follow such things, the futures market for spooz (S&P 500) just went out of contango. This is VERY BIG news, as contango reflects the discount you can get by buying a basket of stocks and agreeing to sell them in the futures market. The contango premium reflects the interest rate and holding price for holding the basket of stocks until the delivery time for the futures contract arrives. In stock and bond markets, this almost NEVER goes out. The reason is that it is a guaranteed profit of maybe a point to a point and a half. Big guys are always playing contango to generate money.

Now, the futures are selling at a DISCOUNT to cash (quite a large one, in fact), indicating a coming bloodbath. No one wants to buy the “future delivery” of the market indices. This is generally a very gloomy sign, but it may just be a one day oddity that will correct itself.

If it continues, it not only argues for a down market but a crash, frankly.

[tanstaafl.72555]

I guess that was just a bad print for a few mins. Contango back in.

My bad.

[Robert DeLong]

Closed:

DOW
31,104.97 -1276.37 -3.94%
S&P 500
3,932.69 -177.72 -4.32%
NASDAQ
11,633.57 -632.84 -5.16%