Stocks Fall on Heightened Trade Worry; Dollar Dips: Markets Wrap

Treasury yields extended last week’s retreat and the dollar fell. Shares fell from Sydney to Hong Kong and futures indicated lower starts for sessions in Europe and the U.S. on Monday. Dampening the mood at the start of the week was news China’s vice foreign minister has summoned the U.S. ambassador Terry Branstad in protest over the arrest of Huawei Technologies Co.’s chief financial officer and weak data on China’s slowing economy.

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  China summons Canada envoy over detained Huawei exec: state media

  AFP
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  Huawei CFO seeks bail on health concerns; Canada wants her in jail

  Reuters

Here’s what smart rich people really do with their nest egg

Most people think they’re above average in intelligence, relationship status and professional achievement. Social scientists call this “illusory superiority.” My business partner Scott Puritz, has found the one area where even above-average people, objectively smart, rich, successful professionals, seem to wave the white flag and admit to not understanding — money and investing. “One of the most shocking things is the low-level financial literacy throughout our culture,” Puritz told the Washington Post.

Hedge Funds Have Stocks to Dump, in Bad Sign for Sell-off

Hedge funds that had stocked up on American equities are still sitting on substantial inventory, according to Sundial Capital Research Inc. While exposure to the S&P 500 Index among long-short equity funds has come down significantly from the record high of early October, it’s still well above levels that marked other market lows over the past decade, Sundial President Jason Goepfert wrote in a note to clients Friday. “Hedge funds are fleeing stocks, but not fast enough,” he said.

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  Hedge Funds Are Dumping Intuitive Surgical, Inc. (ISRG)

  Insider Monkey
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  Hedge Funds Are Dumping Goldman Sachs Group, Inc. (GS)

  Insider Monkey

These Lowe’s stores are closing in the next three months

Lowe’s Companies said Monday that it will close 51 underperforming stores and other locations, including 20 stores in the U.S., as part of its plan to focus on its most profitable stores. The stores being closed in the U.S. are located across 13 states

Huawei became a force by stealing Cisco’s technology: Gordon Chang

“The Coming Collapse of China” author Gordon Chang says China's government supported the business practices of Huawei Technologies.

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  Trump Team Faces Awkward Balancing Act as China Raises Huawei Tensions

  Bloomberg
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  China summons US ambassador over Huawei arrest

  AFP

Kevin O’Leary is right about cars, and his logic can save your retirement

I’m a big fan of “Shark Tank,” the CNBC show where successful entrepreneurs listen to young hopefuls pitch the next big thing — and maybe buy a piece of the action. Of course I would be. As an entrepreneur myself I totally get where they’re coming from

Here’s why you shouldn’t retire super early — even if you can

Despite the many perks of early retirement — waking up whenever you want, for example — it wasn’t the easiest decision. Earnings tend to peak around 48 for men and about 39 for women, according to an analysis by PayScale.

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  5 Questions That Can Help You Decide When to Claim Social Security

  Motley Fool
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  The Big Reason Why People Are Taking Social Security at 70

  Motley Fool

We just got a look into the future for investors

The Dow lost 4.5%, the S&P 500 dropped 4.6%, and the Nasdaq dropped 4.9%. “We think that this week’s turbulence provides a reasonable guide to the trends to watch for in markets next year,” said Oliver Jones, markets economist at Capital Economics. As of Friday’s close, the S&P 500 was off 1.5% for the year, while Treasury yields are still up sharply from where they began the year, with the 10-year finishing the week at 2.845% after starting 2018 at around 2.45%.

This chart is scarier than the Dow plunging 1,150 points last week

Close that Yahoo Finance Dow Jones Industrial Average chart (^DJI) for a second and pull up one of the financials if you want a good scare on the economy. The Dow plunged 1,150 points last week amid concerns over an inverted yield curve (it usually predicts a recession), mixed messages on President Donald Trump’s trade deal at the G20, an expected Fed rate increase, and ongoing fears on Apple’s outlook. Financials (XLF) were the worst-performing sector in the S&P 500 (^GSPC) last week, and some major bank stocks got crushed.

White House's Peter Navarro on John Kelly, stock market drop

White House National Trade Council director speaks out on 'Sunday Morning Futures' on the chief of staff shakeup and trade fears rattling U.S. stock market.

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  John Kelly Will Depart As Chief Of Staff, Trump Tells Reporters

  Refinery29
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  John Kelly is just the latest victim of Trump's dumpster fire of calamities

  The Guardian

How the rich get richer in every type of stock market

Nine years in, the bloom is decidedly off the rose for U.S. stock investors While experts disagree whether we’re in a bear market, volatility is definitely back in a big way. Stock indexes have fallen by hundreds of points, recovered, then fallen

3 charts suggest housing ‘bubble trouble’ with a tech meltdown ‘yet to come’

In fact, according to data provided by the National Association of Realtors, he points out inventory has more than doubled from a year ago. Richter says the red bars signal “bubble trouble” in the housing market. “They see the prices and they do the math with higher mortgage rates, and they walk,” Richter said.

Mark Cuban says the best investing advice he got when young was to be as poor as possible first

Mark Cuban once drove around a real hunk of junk — seriously. The billionaire Dallas Mavericks owner says the best pieces of investing advice he got when young was to be as poor as possible first. The “Shark Tank” star these days doles out a lot of advice to young entrepreneurs on CNBC but he says it doesn’t take a million-dollar idea to become rich.

The Real Implications Of The New Permian Estimates

This week the United States Geological Survey (USGS) announced a groundbreaking oil and gas discovery in West Texas’ Permian Basin. According to the organization’s recent press release, a whopping 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids are now believed to lie untapped in the Wolfcamp Shale and overlying Bone Spring Formation area of Texas and New Mexico’s Permian Basin. Major players in the energy industry already have a significant presence in Wolfcamp and Bone Spring, including Occidental Petroleum Corp. and Pioneer Natural Resources Co. It was already well known and well documented that these fields were remarkably fertile grounds for oil extraction, but the jaw-dropping extent of the new figures released this week by the USGS has made the massive crude and shale reserves of the Permian Basin freshly headline-worthy.

Rising U.S.-China Tensions Roil U.S. Stock-Index Futures

Futures on the Nasdaq 100 Index and Dow Jones Industrial Average declined a maximum of 1 percent and 0.9 percent. “The lack of detail and the heightened rhetoric between China and the U.S. is moving back to a more ‘war-like footing’ regarding trade and relationships,” said James Soutter,  the head of global equities at K2 Asset Management Ltd. in Melbourne.

• Dow futures drop nearly 200 points as sell-off looks set to continue in new week

  CNBC
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  Dow Jones Futures Signal Test Of Correction Lows; Apple, Boeing, Visa, Tesla Stock Analysis

  Investor's Business Daily

Why the next 10% move in the stock market might be down

1) Very few people are talking about the number of large hedge funds that are currently closing. In late September, I read that 6 or 7 hedge funds were shutting down on October 1, and we saw indiscriminate selling during the first few weeks of October. Since most hedge funds allow for redemptions on a quarterly basis, we are likely to see another large exodus at the beginning of 2019.

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  Hedge Funds Are Crazy About Advance Auto Parts, Inc. (AAP)

  Insider Monkey
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  Hedge Funds Are Betting On Laboratory Corp. of America Holdings (LH)

  Insider Monkey