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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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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RAHM TO RAISE CHICAGO CITY TAX ON CABLE TV TO PAY FOR MOVIES IN THE PARK

Chicago Mayor Rahm Emanuel wants to raise the city amusement tax for cable television customers. The tax hike will go toward enhanced cultural programming and to make a minuscule dent in the city’s whopping $369 million operating deficit, according to CBS Chicago.

CBS also reports, “At least some of the money will be used to bolster ‘Night Out in the Park,’ which brings concerts, circuses, movies, and dance programs to Chicago’s neighborhood parks.”

The city has a two-tiered amusement tax. Mid-sized venues are charged five percent and large sporting events are charged nine percent. Cable customers currently receive a five percent exemption, which will now be cut to three percent, increasing the amusement tax they pay from four percent to six percent, for an estimated $9 million in revenue.

City Hall insists the increase on taxpayers’ cable bills will only be a few dollars a month, according to the Sun-Times.

Chicago faces a $1 billion dollar deficit by the year 2015, and the city’s bond rating received an unprecedented triple downgrade from Moody’s S&P over the summer.

Over 2,400 city employees are paid more than $100,000 annually, totaling $276,097,550 of the city’s overall $2.4 billion payroll (not including teachers). The city is currently installing over 650 miles of protected bike lanes for $91 million and unveiled a new “Divvy” bike-share program this summer at a cost of $22 million to taxpayers.

The city of Chicago closed 50 public schools in mostly black neighborhoods earlier this year which it “could not afford” to keep open.

Via: Breitbart

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Ben Stein's Diary - Attention Must Be Paid

The truth about the shutdown.

Wednesday NightI am in Houston. It’s raining clichés and nonsense on the TV news channels. Since I am old and have no plans to run for office ever, I think I will tell you the truth as I humbly see it about the budget/debt default crisis that just was very temporarily averted tonight…

1. It was not a waste of time for the GOP in the House to fight very hard to get the President to change Obamacare in a comprehensive way. The law is already a gigantic miscarriage of the legislative process. For the GOP to fight to straighten out a badly miscreated law was good, not bad.

2. No one, and I mean, NO ONE, can say with any certainty that the government shutdown cost $28 billion or any other sum. It might well not have cost anything. The fact that S&P says the shutdown cost $28 billion is like saying they know there are men on Mars. It is just meaningless. It cannot be calculated.

3. The debate was not valueless in another way. It showed how angry many middle class voters are about what I would call “the entitlement society.” They feel they do all of the work, pay the taxes, and others get the benefits. The debate showed that there are real seams in the fabric of the society and they are being pulled dangerously close to the breaking point. Attention must be paid.

4. There is endless talk on the talk shows about how this affects the voters and upcoming elections but the debate was about more than that: this has become a high entitlement, low tax nation. That cannot last. Either taxes must go up a lot or entitlements must go down. That will be true no matter who is President in 2017.

5. The racial polarization in this country is becoming extreme. The black voting block is solidly liberal Democrat. The Republican conservatives are all white except for one or two stragglers. The anger on both sides is profound and getting worse. This is dangerous.

Via: The American Spectator

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Budget deal opens door to tax, entitlement changes

The deal struck Wednesday in Washington could make it easier for lawmakers to make big changes to tax policy, spending and entitlement programs.

Here's a look at what is in the accord, what didn't make the cut and what's coming down the pipeline.

This deal is an important way forward for big policy changes.

Tom Williams | CQ Roll Call| Getty Images

The U.S. Capitol building in Washington D.C.

While a lot of the news focused on the aspects of the deal that ended the shutdown and prevented default, the plan also calls for an agreement by mid-December on a long-term budget plan.

(Related video: S&P on why US won't get AAA rating back yet)

Senate Majority Leader Harry Reid said on the Senate floor Wednesday that under his agreement with Senate GOP Leader Mitch McConnell, the two leaders would name members to a bicameral budget conference committee "that will set our country on a long-term path to fiscal sustainability."

Reid announces a bipartisan deal has been reached in the Senate to raise the debt limit and reopen the government.

The House and Senate each have already passed their own conflicting versions of a budget plan for 2014. The aim of this committee would be to come up with a compromise budget blueprint which would then be put to a vote in each House.

Via: CNBC

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Democrats won't win a 'blame the GOP' game on the shutdown and debt ceiling

Even after the 2011 debt ceiling crisis was resolved, President Obama's approval rating tanked. Photograph: AP Photo/Jim Watson

So, people currently blame the Republicans more than anyone else for the government shutdown, but predicting the long-term political fallout is not as easy as that suggests. For one thing, the latest CBS News pollshows that while slightly more people believe the Republicans are at fault, a majority of them are upset with both sides for the inability to avert this crisis.

The real story is not revealed by people's view of the politicians; it's contained in the indices of economic sentiment. Gallup finds thatAmericans' confidence in the economy has dropped like a rock, from -20pt just before the shutdown, to -35pt now. And it would not be surprising to see that measure continue to fall over coming days, with the deadline for raising the debt ceiling looming in ten days' time.

What we're seeing is a time-lag in consequences for the politicians. Gallup has President Obama's approval rating still within its normal range of 45%, plus or minus a few points.

But remember the debt ceiling battle of April to July 2011: the politicians solved that crisis without the US actually defaulting, yet the mere idea of a default hurt tremendously. S&P downgraded the United States' credit rating, while Gallup's economic confidence rating fellby 30pt, to -55.

Via: The Guardian

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Wall Street falls as no progress seen to resolve shutdown

(Reuters) - U.S. stocks fell on Monday, extending two weeks of losses, as a lack of progress in ending the partial U.S. government shutdown or the debt-ceiling standoff kept investors nervous.

The S&P 500 ended near its lows of the session in a volatile day and dropped for its 10th time in the past 13 sessions. The CBOE Volatility index .VIX, a measure of investor anxiety, jumped 16 percent to its highest level since June. The VIX has gained for three weeks, up 48 percent over that period.

 

Much of the government has been closed since the start of the month, resulting in up to a million workers being furloughed. Investors are also looking ahead to the upcoming debate over the debt ceiling, which could result in a default on U.S. debt if not resolved.

In weekend comments, neither Republicans nor Democrats offered any sign of progress and both blamed the other side for the impasse. The deadline to increase the ceiling is October 17.

"The market is vulnerable to further declines for as long as the situation remains unclear. With each passing day, the market becomes more restless," said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management in New York.

Grohowski, who helps oversee $175 billion in client assets, estimated that each week the shutdown continues could shave 10 to 15 basis points off gross domestic product.

"While that isn't a lot, the recovery is still too fragile to withstand any long-term impact. It will start to have an impact on earnings estimates, which will impact valuations," he said.

Nine of the S&P's 10 sectors were lower on the day, with groups tied to the pace of economic growth, including financials .SPSY and materials .SPSMCM, among the weakest of the day. The only sector that rose was telecom .SPLRCL, which is considered a defensive play.

Via: Reuters

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