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  • Ebola is spooking Wall Street

    Ebola is spooking Wall Street

    The Ebola epidemic is starting to contaminate sentiment on Wall Street, which is already losing sleep over countless crises.

    The arrival of Ebola in the U.S. has coincided with a period of extreme turbulence in the stock market, which has tumbled about 8% from record highs.

    The deadly virus is clearly not the only factor behind the market slide, but it's a major unknown that is increasingly weighing on market psychology. That was the case again on Wednesday as the Dow plummeted as much as 370 points and health officials revealed a second health-care worker in Dallas tested positive for Ebola.

    Ebola fears are most obvious in the airline sector. Shares of American Airlines Group (AAL) and Delta Air Lines (DAL) fell sharply on Wednesday, hurt by the news that the new Ebola patient flew the day before being diagnosed. Both airlines are down nearly 20% over the past month alone.

    "The fear is that people will be afraid to fly," said Jason Weisberg, managing director at Seaport Securities.

    Other sectors being caught in the Ebola downdraft include the cruise industry, where Royal Caribbean Cruises (RCL) and Carnival (CCL) have tumbled nearly 20% from their 52-week highs.

    Hotel stocks like Hilton Worldwide (HLT) and Starwood Hotels & Resorts Worldwide (HOT) have also been punished by the Ebola concerns.

    Extreme fear: The Ebola scare is not having an impact on many businesses at this point. For that to happen, the deadly virus would have to spread much more rapidly in the West. That means earnings -- the fundamental component of stock prices -- aren't being hit.

    However, market psychology, which has become increasingly fragile, is clearly being hurt by the Ebola epidemic.

    "The stock market is now driven by emotion rather than fundamentals. The former rapidly switches from greed to fear on Ebola news," Ed Yardeni, president of investment advisory Yardeni Research, wrote in a note on Wednesday.

    Just check out CNNMoney's Fear & Greed Index. It tumbled to zero for the second time ever earlier this week, indicating "extreme fear." Just a few months ago it was flashing "extreme greed" as stocks cruised to record highs.

    .
    "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

  • #2
    Re: Ebola is spooking Wall Street

    Anything will spook Wall Street when the market is overvalued - especially in October.

    "October has a special place in finance, known as the October effect, and is one of the most feared months in the financial calendar..."

    Superstitious bunch.
    _____________________________________________

    Ask Congress to Investigate COVID Origins and Government Response to Pandemic.

    i love myself. the quietest. simplest. most powerful. revolution ever. ---- nayyirah waheed

    "...there’s an obvious contest that’s happening between different sectors of the colonial ruling class in this country. And they would, if they could, lump us into their beef, their struggle." ---- Omali Yeshitela, African People’s Socialist Party

    (My posts are not intended as advice or professional assessments of any kind.)
    Never forget Excalibur.

    Comment


    • #3
      Re: Ebola is spooking Wall Street

      You're saying they're celebrating Halloween early?

      .
      "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

      Comment


      • #4
        Re: Ebola is spooking Wall Street

        All stock exchanges fell on average by 2 to 4% in Europe today. I too wondered, but the reasons given in the media are the bad figures issued today by the US and general worries about the world economy, China and the Euro... nothing about ebola.

        Comment


        • #5
          Re: Ebola is spooking Wall Street

          When it's ready to adjust, nothing can stop it and everything will be blamed for causing it. Ebola is an exotic bogeyman just as it's an exotic pathogen.
          _____________________________________________

          Ask Congress to Investigate COVID Origins and Government Response to Pandemic.

          i love myself. the quietest. simplest. most powerful. revolution ever. ---- nayyirah waheed

          "...there’s an obvious contest that’s happening between different sectors of the colonial ruling class in this country. And they would, if they could, lump us into their beef, their struggle." ---- Omali Yeshitela, African People’s Socialist Party

          (My posts are not intended as advice or professional assessments of any kind.)
          Never forget Excalibur.

          Comment


          • #6
            Re: Ebola is spooking Wall Street

            This video is worth watching. From CNN's Closing Bell a few days ago.

            Gottlieb, former deputy director FDA makes comments about Gen. Kelly's "There is no way you can keep Ebola in W. Africa."

            Gottlieb and uses the words "engulf Africa" "tipping point" and "global pandemic" at which point the financial people trip over themselves to walk him back, saying:

            "reminds me of SARS which we were able to contain pretty well"
            "this is more difficult to pass this (Ebola) along than SARS"

            Gottlieb goes on to say he doesn't think there will be epidemic in US, but global spread big concern for markets.

            Comment


            • #7
              Re: Ebola is spooking Wall Street

              Originally posted by Ray View Post
              This video is worth watching. From CNN's Closing Bell a few days ago.

              Gottlieb, former deputy director FDA makes comments about Gen. Kelly's "There is no way you can keep Ebola in W. Africa."

              Gottlieb and uses the words "engulf Africa" "tipping point" and "global pandemic" at which point the financial people trip over themselves to walk him back, saying:

              "reminds me of SARS which we were able to contain pretty well"
              "this is more difficult to pass this (Ebola) along than SARS"

              Gottlieb goes on to say he doesn't think there will be epidemic in US, but global spread big concern for markets.

              http://www.aei.org/media/health/glob...-closing-bell/
              You nailed it. You can almost hear the financial people mumbling "Oh crap!" as they were trying (mostly unsuccessfully) to reel Gottlieb in.
              "I know God will not give me anything I can't handle. I just wish that He didn't trust me so much." - Mother Teresa of Calcutta

              Comment


              • #8
                Re: Ebola is spooking Wall Street

                did the stocks fall especially at the moments when US-cases are announced
                or worrying moments at WHO-briefings ?

                Did vaccine or antiviral stocks go up ?

                What about stocks from the region ? Or companies that produce there


                2014/10/16,11:30UTC
                DAX=8413
                DOW=15956
                Euro/$=1.2734
                I'm interested in expert panflu damage estimates
                my current links: http://bit.ly/hFI7H ILI-charts: http://bit.ly/CcRgT

                Comment


                • #9
                  Re: Ebola is spooking Wall Street

                  The ebola drug stocks are pumping and dumping with every announcement of a treatment or death.

                  The big picture seems something else.

                  http://americasmarkets.usatoday.com/...y-wall-street/
                  'Correction' watch continues anew on wobbly Wall Street

                  By: Adam Shell October 16, 2014 5:46 am

                  ...

                  The market is due for a correction. The last 10%-plus drop for the S&P 500 occurred three years ago in November 2011. Corrections aren?t fun, but they aren?t bear markets, either. A bear market is a drop of 20% or more. For now, an old-fashioned correction is a better alternative than another bear. A bounce, like Wednesday?s big price reversal, would be welcomed. The trouble is nobody knows when the big bounce will come.
                  http://www.telegraph.co.uk/finance/e...manent-QE.html
                  World economy so damaged it may need permanent QE
                  By Ambrose Evans-Pritchard
                  9:36PM BST 15 Oct 2014

                  Combined tightening by the United States and China has done its worst. Global liquidity is evaporating.

                  What looked liked a gentle tap on the brakes by the two monetary superpowers has proved too much for a fragile world economy, still locked in "secular stagnation". The latest investor survey by Bank of America shows that fund managers no longer believe the European Central Bank will step into the breach with quantitative easing of its own, at least on a worthwhile scale.

                  Markets are suddenly prey to the disturbing thought that the five-and-a-half year expansion since the Lehman crisis may already be over, before Europe has regained its prior level of output. That is the chief reason why the price of Brent crude has crashed by 25pc since June. It is why yields on 10-year US Treasuries have fallen to 1.96pc, and why German Bunds are pricing in perma-slump at historic lows of 0.81pc this week.

                  We will find out soon whether or not this a replay of 1937 when the authorities drained stimulus too early, and set off the second leg of the Great Depression...
                  _____________________________________________

                  Ask Congress to Investigate COVID Origins and Government Response to Pandemic.

                  i love myself. the quietest. simplest. most powerful. revolution ever. ---- nayyirah waheed

                  "...there’s an obvious contest that’s happening between different sectors of the colonial ruling class in this country. And they would, if they could, lump us into their beef, their struggle." ---- Omali Yeshitela, African People’s Socialist Party

                  (My posts are not intended as advice or professional assessments of any kind.)
                  Never forget Excalibur.

                  Comment


                  • #10
                    Re: Ebola is spooking Wall Street

                    http://www.pressherald.com/2014/10/1...t-mood-swings/
                    Posted October 18
                    Stock traders brace for more market mood swings

                    Slowing growth in Europe stirs up investors? doubts just as the Fed plans to wind down a bond-buying program.
                    By MATTHEW CRAFT The Associated Press
                    NEW YORK ? Europe?s economy sputters, oil prices plunge and stocks start swinging wildly. Wall Street?s long dormant ?fear index? now predicts more turbulence ahead.

                    The Chicago Board Options Exchange?s volatility index, known as the VIX, more than doubled over the past month: from 12 to 26. Although that?s nowhere near the 80 reached in the financial crisis, the recent spike means traders are bracing for more big jumps and steep drops.

                    Slowing growth in Europe and the developing world has stirred up lingering doubts among investors just as the Federal Reserve plans to wind down a bond-buying program that many considered a driving force behind the stock market?s five-year run...
                    _____________________________________________

                    Ask Congress to Investigate COVID Origins and Government Response to Pandemic.

                    i love myself. the quietest. simplest. most powerful. revolution ever. ---- nayyirah waheed

                    "...there’s an obvious contest that’s happening between different sectors of the colonial ruling class in this country. And they would, if they could, lump us into their beef, their struggle." ---- Omali Yeshitela, African People’s Socialist Party

                    (My posts are not intended as advice or professional assessments of any kind.)
                    Never forget Excalibur.

                    Comment

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