Down goes the Dow

Baba O'Riley wrote:

Did I hurt your feelings, little guy?

3rd Quarter S&P 500 Reporting

12 of 24 reported GAAP EPS above mean estimates, 14 of 24 reported sales above mean estimates

Igy

Just embarrassing.

Agreed, the belief that S&P 500 EPS is improving is fiction, and those that believe in the recovery narrative continue to be embarrassed.

Recovery from what?

Igy,

So I showed up on the starting line, finally. The running gods were not on my side tho - 15mph wind and steady cold rain. And some hills. So I felt pretty good on the windy downhills but had nothing for the uphills or headwinds.

I think I need to do some long reps in the hills - miles, 2ks, just running up and down hills. My top end is really lacking - anything faster than 10k pace wipes me out.

But not terrible for a rustbuster - I was top 10 out of over 1000.

agip,

Sounds like a good result to me. I am assuming with the size of the field you were on the road.

Later this month I am going to transistion to one day a week of hill repetitions and or intervals. I will continue with tempo runs, but I want to have something intense once a week, but off the track. We have a couple of courses where we can get 400 meters of gradual uphill then a gentle downhill for a 1,000 meter loop. At times I have done interval 800s, 1,000s, 1,200s, then finish up with some 100-200m hill sprints. I think it is a good time of the year for this type of training.

Igy

Hello? Was that supposed to be a joke?

The Euro system has a good chance as you say of disintegrating. I mean each country has their own special interests and they want to act like they are unified but they aren't even close. It was an ill conceived notion right from the get go.

"Put simply, current market conditions are associated with small potential returns and enormous latent risks across nearly every asset class. The combination of extreme valuations, weak prospective returns, and emerging risk-aversion suggests that market losses could unfold abruptly, creating an interconnected Rube Goldberg chain of consequences because of the steep leverage that investors and corporations have taken on in recent years. The image that comes to mind is that of speculators scrounging around on their hands and knees to pull a few pennies from the catch of a mousetrap whose hammer is tied to the lid of a box of angry bees and a switch that drops an anvil. Even if there are rewards in the short-run, the situation isn’t likely to end well."

--John Hussman, Weekly Commentary 10/10/2016

That mentions nothing about a recovery. What recovery were you talking about?

Earnings recovery, in the last two years S&P 500 EPS has fallen 18%. Some had predicted an EPS recovery starting Q1, now it has been pushed out to Q3. Will it happen?

Well earnings are negative but they're not deteriorating.

OK, I will give you that they have not deteriorated further from already being down 18% from the high of September 2014.

I'm talking about quarter to quarter. That's what you mentioned.

U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season and scratched their heads over the second U.S. presidential debate.

S&P 500 futures rose by 6.75 points, or 0.3%, to 2,153.25, while Dow Jones Industrial Average futures gained 50 points, or 0.3%, to 18,207. Nasdaq-100 futures tacked on 14 points, or 0.3%, to 4,873.

"Last night's U.S. presidential debate might not have provided the electorate with the substantive direction it was looking for, but in terms of financial markets it seems like another nod for Mrs. Clinton," said Paul Webb, CEO of ADS Securities London, in a note.

"The dollar sold off against the Mexican peso and as it stands right now, Wall Street is eyeing some modest gains at the open, too," Webb added.

Last week, the S&P 500 lost 0.7%, while the Dow shed 0.4%, as each index snapped a three-week winning streak.

Other markets: The Mexican peso advanced against the dollar on Monday, with analysts saying the move signaled a belief that Donald Trump's chances of becoming president had fallen after a tumultuous weekend in which a 2005 video surfaced. In the video, Trump boasted of groping women and his sexual conquests, including pursuing a married woman.

Oil futures lost ground, while gold futures advanced. European stocks were mixed, while Asian markets mostly gained, though both Japan and Hong Kong were closed for a holiday. A key dollar index was edging higher.

Corporate news: Third-quarter earnings season gets its unofficial start this week, with Alcoa Inc.(AA) due to report on Tuesday. The iconic aluminum maker is presenting its last quarterly earnings report as a single company, as it plan to split in two on Nov. 1.

Overall, a year-plus earnings recession could end, though a decline in buybacks and profit warnings pose a challenge to that outcome.

Trump's taking Hillary to the woodshed last night may help the market

You mean "would have helped." The consensus is that Hillary won the debate.

Lemons wrote:

You mean "would have helped." The consensus is that Hillary won the debate.

Its the "consensus" of the Oligarchs who own the media sure.

But anyone who watched the debate knows otherwise.

I mean, my God. He wiped the floor with her.