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Markets in Crisis (Cue the CNBC Armageddon Music)

JP Gravitt

Apple (AAPL) got a downgrade, and Cirrus Logic (one of Apple’s suppliers)(CRUS) pre-announced a miss for the December quarter.  But most eyes were focused on the two-pronged trade war and rate move.  Suddenly, the Dow (DIA) was down 800 points, and the Nasdaq (QQQ) dropped as much as 3%. The 10-yr treasury yield dropped as low as  2.88% today, down from a high of 3.24% a month ago.  And the prevailing wisdom is that when 10-yr yield drops like that, it is foreshadowing lower economic growth ahead.  Add that to the Fed still seemingly about to raise short term rates on Dec. 19th to 2.25%-2.5%, and we are very close to an inverted yield curve, which supposedly predicts recessions.