Markets News Stocks 

A 1-day spike in Wall Street’s ‘fear index’ made Goldman $200 million

“The volatility gauge tends to move inversely to equity indexes” writes Mark Decambre for marketwatch.com. Earlier this year, Goldman Sachs booked a roughly $200 million gain in one day, partly on bets that a long-dormant gauge of volatility would surge, ending a protracted period of placidity on Wall Street. Goldman has been less trading focused of late, pouring money into consumer banking and hiring senior executives in its investment-banking and technology divisions. Source: marketwatch.com Share This:

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Markets News 

Goldman Sachs says computerized trading may make next ‘flash crash’ worse

“Goldman Sachs is cautioning its clients that computerized trading may exacerbate the volatility of the next big market sell-off” writes unknown author for cnbc.com. “One theory that has been proposed for why market fragility could be higher today is that because HFTs [high-frequency trading] supply liquidity without taking into account fundamental information, they are forced to withdraw liquidity during periods of market stress to avoid being adversely selected,” Charles Himmelberg, co-head of global markets research at Goldman, said in a report Tuesday.”In our view, this at least raises the risk…

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Markets News Stocks 

Here’s the hidden stock-market risk investors need to watch out for

“The higher sector correlation is occurring at a time when overall market volatility has been low, having also receded from a spike in February” writes Markets Reporter for marketwatch.com. Thus, beating markets through simple stock selection is getting harder,” wrote Gaurav Sinha, a strategist at WisdomTree. “We are now entering a regime where higher correlations are feeding higher volatility.The last time this happened, in February, it contributed to a stock-market correction that the Dow Jones Industrial Average  DJIA, -0.63%  and the S&P 500 SPX, -0.25% still haven’t fully recovered from.According…

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Futures News Oil 

U.S. oil benchmark futures prices end with modest loss

“Prices for U.S. oil benchmark futures ended with a modest loss on Tuesday with traders focused on developments tied Iran and Venezuela and the potential that U.S. actions against those countries will contribute to tighter global crude supplies” writes Markets Commodities Reporter for marketwatch.com. Robbie Fraser, commodity analyst at Schneider Electric attributed the move lower to “the usual intraday volatility.”. June West Texas Intermediate crude CLM8, -0.21% which expired at the session’s conclusion, fell 11 cents, or nearly 0.2%, to settle at $72.13 a barrel on the New York Mercantile…

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News 

Buy AIG since earnings estimates have finally ‘bottomed out,’ says UBS

“A year in, we believe expectations have now been fully reset and earnings estimates have bottomed out,” he added” writes unknown author for cnbc.com. “As AIG begins to consistently meet or exceed earnings expectations, with less volatility and a return to growth, we see its shares re-rating closer to peers, driving meaningful upside.”. “While we expect some volatility in quarterly results to persist in the near term as the re-underwriting continues, we believe that consensus expectations have been reset, which should allow AIG to meet or exceed expectations.”.  Source: cnbc.com…

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Markets News 

A striking stat about Wall Street’s ‘fear gauge’ sums up new era of volatility

“The Cboe Volatility Index, considered Wall Street’s “fear gauge” as a measure of swings expected in the market, has roared back this year after many months of muted moves” writes Gabriel Bouys for cnbc.com. The VIX’s average since 1995 is 21, said Dennis Davitt, portfolio manager and partner at Harvest Volatility Management.According to a CNBC analysis, the VIX’s average level this year is 17.11; that’s higher than the average for all of 2015 (16.68), 2016 (15.84) and 2017 (11.10).While that range is just about in line with the index’s long-term…

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Markets News 

An inside look at how one Wall Street strategist balances motherhood, client meetings, and financial markets

“Volatility is back in financial markets, and that means busy days for RBC Capital Market’s head of derivatives strategy, Amy Wu Silverman” writes Graham Rapier for businessinsider.com. As part of her daily regimen, Silverman closely follows equity volatility related topics in order to relay them to the bank’s clients as well as the media.She regularly appears on networks including CNBC and Bloomberg TV, as well as print and online publications discussing markets stories.

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Markets News Stocks 

Coming off a Q1 loss, Third Point’s Dan Loeb raises his bet against the stock market

“Hedge fund magnate Daniel Loeb is increasing his bets against a suddenly volatile stock market” writes Amanda Gordon for cnbc.com. Following a quarter in which his two flagship funds posted losses, the head of Third Point said he is increasing short positions that proved to be profitable during an otherwise rough first quarter.”An important shift in markets happened in the first quarter,” Loeb said Thursday on an earnings conference call for Third Point Reinsurance, which posted a 26 cent per share loss for the first three months of the year. Source:…

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News Oil 

Oil gives up earlier losses to finish with a modest gain

“Oil futures gave up earlier weakness Thursday to finish with a modest gain, notching another three-and-and-a-half-year settlement high” writes Markets Commodities Reporter for marketwatch.com. “Oil volatility is very elevated right now as traders digest what the U.S. withdrawing from the Iran nuclear deal means for market fundamentals,” said Tyler Richey, co-editor of the Sevens Report.June West Texas Intermediate crude CLM8, +0.45% rose 22 cents, or 0.3%, to settle at $71.36 a barrel on the New York Mercantile Exchange after trading as low as $70.56. It climbed 3% on Wednesday, a…

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