The markets were a roller coaster this past week

Market selloff. Market rout. Recovery. Capitulation.

Investors heard all these words this week as U.S. markets took a roller coaster ride from the depths on Monday to a historic reversal just two days later. (Tweet this)

Here are some of the milestones hit throughout this historic week:

• All major averages closed up for the week, reversing steep declines.
• At this week's lows: the Dow was down 6.62 percent, the S&P 500was down 5.27 percent and the Nasdaq was down 8.79 percent (all lows came on Monday morning).
• This is just the third time in the Dow's long history that the index has completely wiped out weekly losses of at least 6.6 percent and the first time since the last week of October 1987 (the only other time was in October 1931).
• The Dow traversed more than 10,000 points this week, suffering seven straight days of triple digit moves, including its third biggest point gain ever on Wednesday of 619.07 and eighth biggest loss ever of 588.40 on Monday.
• This week was also the biggest intraday reversal for the S&P 500 since September 2008 (the week of Lehman's bankruptcy).
• Now for the Nasdaq: this week is the biggest intraweek reversal in the index's history (it has never recovered from a weekly loss of at least 8.79 percent to finish the same week with a gain).

The outlook was bleak on Monday as the Dow Jones industrial averagesunk more than 1,000 points at the open. But by Wednesday, the Dow had closed up more than 600 points for one of the biggest reversals in U.S. market history (by points).

On Tuesday, the Dow collapsed in the last hour of trading to end more than 200 points in the red.

But the next day, the Dow rallied, ending more than 600 points higher.

The Dow over the five-day trading period.

—CNBC's Robert Hum, Christopher Hayes and Gina Francollacontributed to this report.

Via: CNBC

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Dow briefly up 300 points, out of correction; Nasdaq, S&P 500 up 2%

U.S. stocks attempted a bounce for a second consecutive day on Thursday, amid continued signs of strength in the U.S. economy, following the recent plunge in global markets that sent the major averages into correction territory.

The major averages traded nearly 2 percent higher or more. The Nasdaq Composite swung out of correction and into positive territory for 2015. The Dow Jones industrial average traded about 300 points higher in an attempt to rise out of correction mode.

The S&P 500 rose out of correction with Wednesday's stellar gains of about 4 percent. As of late-morning trade, no components of the index had set new 52-week highs or lows. 

Apple jumped more than 2 percent but remains in correction territory. The stock closed out of a bear market on Wednesday.

"Obviously the rally is continuing this morning. It's basically strength here after the good economic news we got," said Peter Cardillo, chief market economist at Rockwell Global Capital. He said stocks have likely hit a bottom. "The China concerns are about to subside as the market concentrates on the (U.S.) economic data."

The second estimate of second-quarter GDP came in at 3.7 percent, topping the first read of an annualized 2.3 percent.

"I thought it was a very pretty number, particularly the revisions," said Marie Schofield, chief economist and senior portfolio manager at Columbia Threadneedle Investments. "The principle areas where we saw those revisions (such as final sales) were important, gives the underlying trend in demand and growth."

However, she said with the increased trade deficit and buildup in inventories she is "not as encouraged by the second half as the second quarter."

Weekly jobless claims came in slightly lower than expected at 271,000, marking the first decline in five weeks and indicating continued improvement in the labor market.

July pending home sales rose 0.5 percent, holding steady from an upwardly revised June reading of a 0.5 percent increase.

Bond yields trimmed gains, with the 10-year at 2.18 percent and the 2-year at 0.70 percent. Earlier, the 10-year yield hit 2.2 percent, its highest level since Aug. 19.

The U.S. dollar traded mixed, weaker against emerging market currencies and stronger against the euro and yen. The euro traded near $1.12 and the yen held around 120.5 yen against the greenback.

Crude oil is in focus after topping $40 a barrel in early trade. Crude oil futures for October delivery jumped $1.63 to $40.24 a barrel on the New York Mercantile Exchange as of 10:05 a.m.

Gold futures for December delivery fell $6.10 to $1,118.50 an ounce in morning trade.

"The combination of stronger economic data from both the U.S. and Europe and more stable China and EM, combined with a somewhat more dovish Fed postponing rate hikes is definitely good news for both the U.S. and Europe," said Ilya Feygin, senior strategist at WallachBeth Capital.

"The U.S. market has already partially reacted yesterday and will open about 0.8 percent higher this morning," he said. It faces overhead resistance less than 1 percent above here and buying on the elevated opening gap has not been a good tactical buy point in this more volatile market with lower liquidity."

The major averages had their best day in four years on Wednesday. After five consecutive days of triple-digit declines, the Dow surged 619 points into Wednesday's close, finishing the day at 16,285. The S&P 500 was up nearly 73 at 1,940.5. The Nasdaq surged more than 4 percent to 4,697.

The gains supported global markets on Thursday, with the DAX and STOXX Europe 600 both surging more than 3 percent in intraday trade and China's Shanghai Composite index closing up 5.4 percent to reclaim the critical 3,000 mark. The Nikkei and Hang Seng closed up 1.08 and 3.60 percent, respectively.

The positive close in China was the first in five trading sessions, after improved sentiment in the U.S. managed to outweigh the fears surrounding China's slowing economy, which has been partly responsible for the recent selloff seen in global stocks.

As of the U.S. close on Wednesday, losses on the S&P Global BMI totaled $3.45 trillion, according to Howard Silverblatt of S&P Dow Jones Indices.

Via: CNBC

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A Brutal Week in Markets, But What Comes Next?

Investors around the world will be looking to next week with some anxiety as they lick their wounds. A brutal week of losses was accentuated by an unpleasant close for the U.S. stock markets that saw the Dow Jones Industrial Average plunge more than 500 points (3 percent) for the day and taking it into correction territory, or down more than 10 percent from its last high. The losses for the week were accompanied by even larger ones elsewhere, including emerging-market currencies and oil. 

In assessing what lies ahead, investors would be well advised to consider six major factors that have brought markets to this uncomfortable point. 

​1. Unlike some previous episodes -- including the 2008 global financial crisis and the 2013 "taper tantrum," as well as those associated with euro-zone concerns -- the catalyst for this market retreat came from outside the developed world. It largely reflected concerns about slowing growth in emerging economies (China in particular, but also Brazil, Russia and Turkey), compounding the entrenched economic sluggishness in Europe and Japan. 

​2. Global growth concerns were intensified by the struggles policy makers in emerging markets are having in stabilizing their domestic finances and limiting further damage to their economies. Again, China is under the spotlight given questions about whether government interventions have stabilized its domestic stock market.

​3. The impact of lower global growth was particularly painful for other markets that already were under pressure from developments on the supply side. As such, the plunge in oil prices highlighted the extent to which the market's new de facto swing producer -- the U.S. -- doesn't play the same role that the Organization of Petroleum Exporting Countries did at the height of its power. 

​4. Exports from emerging economies, particularly raw materials producers, are most at risk from the combination of slowing growth and lower worldwide commodity prices. Accordingly, the market carnage was greatest in emerging-market currencies, pushing losses to levels beyond what was experienced during the global financial crisis in 2008. And these markets are technically the most prone to overshoot, with significant and adverse spillover effects on other markets. 

​5. Because some portfolios are designed to unwind during turmoil and heightened volatility, financial markets slipped into the destabilizing grip of contagion -- with the risk of overshooting. The VIX, commonly referred to as the fear index, soared. Richly valued stocks, particularly in the tech industry, were battered. This inevitably undermines the buy-on-dips mentality, leading investors with dry investing powder to wait on the sidelines for now. 

​6. There is less confidence that central banks -- repeatedly the markets’ best friends -- can act as immediate and effective stabilizers. Moreover, the Federal Reserve’s minutes released on Wednesday -- in which the central bank had no choice but to seem wishy-washy --highlights the policy challenges in a world that has come to over-rely on central banks. Indeed, the cult of central banks has driven a wedge between asset prices and  economic fundamentals. 

Yes, the People’s Bank of China could loosen monetary policy; and, yes, the Fed could hold off hiking rates in September. But the impact on global growth would likely be limited unless these steps are accompanied by a more comprehensive policy response. Otherwise, prices need to fall a lot more before wary investors get off the sidelines.

Via: Bloomberg View

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Relax, we're about to hit the bottom in stocks: Jeffrey Saut

U.S. stock investors take a breather, the market is nearing its bottom, Jeffrey Saut, chief investment strategist at Raymond James, said Friday.

"Our timing models call for a low between Aug. 13 and Aug. 18, with a plus-or–minus three-day margin of error, so today it feels like capitulation," Saut said in an interview on CNBC's " Squawk Box."

Saut made his remarks after U.S. equities recorded their worst trading day in about a year and a half. The Dow Jones industrial average fell nearly 360 points, while the S&P 500 turned negative for the year, as a massive fall in oil and global growth concerns weighed on investor sentiment.

Read MoreS&P, Dow just had worst day of the year

"We're nearing the bottom. We knifed through the July support yesterday. It was pretty ugly. You would look for some kind of bottom either sometime today or the middle of next week," Saut added. 

"I've been in this business for over 45 years and I've seen this act before," he said. "It's kind of like pornography. You know it when you see it."

Via: CNBC

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Wall Street set to sell off as oil holds near lows

U.S. stock index futures indicated a sharply lower open on Thursday, with Dow futures down as much as 160 points, as oil prices extended losses and investors digested Wednesday's Fed minutes and more volatility in Chinese markets.

Wednesday's Fed minutes left the markets wanting, with enough nuance to keep Wall Street divided over whether the first rate hike comes in September or later.

That means the scrutiny of each piece of data, and particularly job-related or inflation data, will be intense.

Initial claims data came in at 277,000, but remained consistent with an improving labor market trend that could support a rate hike this year.

The U.S. 2-year Treasury note yield near 0.66 percent, while the 10-year yield trimmed losses to trade near 2.11 percent.

The U.S. dollar traded slightly lower against major world currencies, with the euro above $1.11.

Existing home sales, the Philadelphia Fed survey and leading indicators are all released at 10 a.m. ET.

Read MoreFed watch: The great debate rages on

The Philly Fed survey will be key, after the Empire State survey earlier in the week plunged to a 2009 low.

In oil markets, Brent crude traded at just under $47, down more than 1 percent, while U.S. crude hovered near $41 a barrel, recovering from a fresh six-and-a-half-year low near $40. 

Traders were also keeping an eye on a range of U.S. jobs data and China's continuing rollercoaster ride, with the benchmark Shanghai Composite closing 3.4 percent lower, down 128.53 points. 

On the earnings front, Madison Square Garden, Sears Holdings and The Buckle were scheduled to report before the bell. 

Sears lost an adjusted 67 cents per share for its latest quarter, smaller than the loss of $2.50 estimated by the lone analyst providing an estimate. Profit margins improved at both the Sears and Kmart chains, but same-store sales declined.

Walt Disney—Bernstein downgraded Disney to "market perform" from "outperform," saying valuations for media stocks need to be adjusted because of an increased risk premium regarding affiliate fees.

Read MoreEarly movers: SHLD, DIS, VRX, LL, FOSL, LMT, LB & more

Hewlett Packard, Gap, Intuit, Marvell Tech, Ross Stores,Salesforce.com and Fresh Market are all due after the bell.

In Europe, the pan-European Stoxx 600 index was 1.3 percent lower, with investors taking in the latest Fed minutes and concerns over Chinese growth continuing.

Via: CNBC

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Dow loses gains for the year; transports off 2%

U.S. stocks closed near session lows on Monday as investors weighed multi-month highs in bond yields amid greater expectations of tightening following Friday's strong jobs report. (Tweet This)

The Dow Jones industrial average closed down about 80 points, posting losses of 0.32 percent year-to-date. 

"I think everybody's a little unsettled about the way U.S. and European bond markets sold off in the last week," said David Kelly, chief global strategist at J.P. Morgan Funds.

Analysts noted relatively less volatility in bond and currency markets in Monday trade. The benchmark 10-year U.S. Treasury yield held slightly lower at 2.39 percent. The U.S. dollar pared recent gains, down about one percent against major world currencies with the euro rising to $1.1287. The stronger greenback has weighed on corporate earnings.

On Friday, a surge in bond yields to multi-month highs on a strong jobs report pressured equities, with U.S. stocks closing narrowly mixed. 

Nonfarm payrolls for May beat expectations with the addition of 280,000 jobs. Analysts also cheered a greater-than-forecast 8 cent increase in hourly wages and a 5.5 percent unemployment rate. Signs of continued strength in the labor market strengthened the case for the Federal Reserve to begin raising short-term interest rates in September.

"I think the market's trying to figure out if (Friday's employment report) is going to move the Federal Reserve to act in September," said Robert Pavlik, chief market strategist at Boston Private Wealth. He also cited weakness in the Dow transports as weighing on stocks.

The Dow transports, led by a decline in airlines, closed down 2.06 percent for its worst day since January 6. The index posted its first positive week in four last Friday. 

JetBlue closed down 7.2 percent for its worst day since Sept. 15, 2014.United Continental, American, Southwest and Delta held below their 50 and 200-day moving averages.

Via: CNBC

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U.S. Stocks Rally as Senate Nears Deal on Debt Ceiling

U.S. stocks rallied, sending the Standard & Poor’s 500 Index (SPX) toward a record, as the Senate crafted a deal to end the government shutdown and raise the debt ceiling before tomorrow’s deadline.

The S&P 500 rose 1.4 percent to 1,721.47 at 4 p.m. in New York. The benchmark gauge slid 0.7 percent yesterday after climbing 3.3 percent over the previous four days.

“Investors are relieved that it looks like we’re not going to go over the cliff,” Ben Hart, a research analyst at Radnor, Pennsylvania-based Haverford Trust Co., which oversees about $6 billion, said by phone. “It takes the worst case scenario off the table.”

The S&P 500 dropped 4.1 percent from its all-time high of 1,725.52 reached Sept. 18 as Congress struggled to reach agreement on a federal budget, forcing the first partial government shutdown in 17 years. The gauge has recovered 4 percent of the decline as optimism grew that a deal would be reached, and is within about four points of its record. The S&P 500 is up 21 percent for the year.

The bipartisan leaders of the Senate reached an agreement to end the fiscal impasse and to increase U.S. borrowing authority. The Senate and House plan to vote on it later today, and the White House press secretary said President Barack Obama supports the deal.

The framework negotiated by Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell would fund the government through Jan. 15, 2014, and suspend the debt limit until Feb. 7, setting up another round of confrontations.

Via: Bloomfield

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Consumer confidence plunges while other indicators hold up

Almost alone among economic indicators, consumer confidence has plunged during the government shutdown and as the possibility of a default nears.

The economic confidence index updated daily by Gallup has fallen steadily since the summer and dramatically since the shutdown began two weeks ago. This week, it registered its lowest reading -- negative 41 -- since the debt ceiling standoff of 2011, suggesting that Americans expect conditions to rapidly worsen.

No other major economic indicators have fallen so dramatically.

Yields on 10-year U.S. Treasuries remain at 2.7 percent, below where they were in August, despite the threat of a default. The Dow Jones industrial average had risen for three straight days before falling 133 points Tuesday. The U.S. dollar has risen against a basket of currencies following the shutdown.

Yet the consumer confidence index is a different story, raising the possibility that it is out of sync with underlying sentiment — or, more ominously, that other economic indicators haven't caught up yet.

Eric Sims, a University of Notre Dame economics professor who has studied movements in consumer confidence, said that there are "pretty tight links" between survey responses and subsequent consumer spending patterns. "What they say is what they do," he said, adding that the drop in confidence has been "troubling."

In part, consumer confidence reflects Americans’ reactions to ongoing economic trends. But there’s another component that reflects consumers’ uncertainty over news, according to Marta Lachowska.

In a study of daily Gallup polling in 2008 released this year by the W.E. Upjohn Institute, Lachowska, found that movements in daily confidence indices, independent of other economic indicators, lead to "very short fluctuations in consumer spending." That's because consumers are risk averse, Lachowska told the Washington Examiner, and they tighten their budgets in reaction to bad news.

Via: Washington Examiner

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Fitch puts US AAA rating on rating watch negative

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Fitch puts US credit rating on negative watch

Tuesday, 15 Oct 2013 | 4:46 PM ET

Fitch has put the U.S. credit rating on negative watch, reports CNBC's Dominic Chu.

Fitch Ratings put the US government's "AAA" credit rating on 'rating watch negative' Tuesday, saying that the standstill on the U.S. debt ceiling negotiations risks undermining the effectiveness of the country's government and political institutions.

U.S. stock index futures fell.

"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default," the rating agency wrote in a statement.

S&P 500 futures fell 9.6 points while Dow Jones industrial average futures sank 60 points and Nasdaq 100 futures fell 7.5 points. 

A Treasury Department spokesperson said the Fitch move reflected an urgent need for Congress to act on the debt ceiling.

Earlier today Senate Majority Leader Harry Reid lashed out at House Republicans, shortly after the collapse of a rival GOP proposal.

He warned at the time that the U.S. credit ratings could be downgraded as soon as Tuesday night.

Via: CNBC

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Stocks spike 2%, log 2nd best gains of 2013 amid debt deal hopes; Dow skyrockets 300 points

Stocks closed out the session with a sharp bang Thursday, with major averages rallying more than 2 percent across the board, as lawmakers seemed to move closer to a deal to resolve the political stalemate in Washington.

Major averages logged their second-best gains this year.

(Read more: Government standoff shakes trust in US debt)

"No one's going to get in the way of this move—we've been up more than 200 points all day so you're going to be hard pressed to find someone on the other side of the trade," said Art Hogan, managing director of Lazard Capital Markets. "This is clearly the light at the end of the tunnel that everyone wants."

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Stocks have 2nd best day of the year

CNBC's Bob Pisani looks at the day's market action after the closing bell. Materials and financials are among the sectors up more than 2 percent today.

	Name	Price		Change	%Change
DJIA	Dow Jones Industrial Average	15126.07		323.09	2.18%
S&P 500	S&P 500 Index	1692.56		36.16	2.18%
NASDAQ	Nasdaq Composite Index	3760.75		82.97	2.26%

The Dow Jones Industrial Average catapulted 323.09 points, or 2.18 percent, to close at 15,126.07. All 30 components in positive territory, propelled by Boeing and UnitedHealth.

Via: CNBC

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