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I'm Amy Anderson for OptionRally TV. Let's take a look at the global markets and
news that all traders and investors should be aware of.
Stocks wobble Herbalife under investigation as stocks tank
And the Japanese buying gold at record rates
Let's take a quick look at what is happening in the global markets now.
Equity markets tanked after US data printed lackluster results and disappointing corporate
earnings. The Dow dropped more than 180 points and declined for the third day in a row, while
the S&P 500 and NASDAQ also finished lower. Stocks have been off to a rocky start in 2014
while bonds have outperformed. Europe's data was more warmly received as business activity,
as measured by the purchasing managers index , hit a 31-month high, with Germany leading
the way. In earnings news, McDonald's reported a flat
profit number in the fourth quarter. That figure was expected by the market but not
viewed as cause for much optimism. Shares of Herbalife tumbled 13% and closed
down 10% Thursday after U.S. Senator Ed Markey said he has called on the Securities and Exchange
Commission and the Federal Trade Commission to investigate the nutritional supplements
company for running a pyramid scheme after receiving complaints. Hedge fund mogul Ackman
has been calling Herbalife a "pyramid scheme" for over a year. The hedge fund titan first
announced his short position -- a bet that the stock would fall -- in December 2012.
In fact, he said that he thinks the company's stock will eventually be worthless. Carl Icahn
bought a big position in Herbalife. Renown investor Icahn is now Herbalife's largest
shareholder with an almost 17% stake in the company.
In The foreign exchange market, the US dollar gained against the yen in Asia this morning
after plunging on weak Chinese data which sparked worries over emerging markets. In
Tokyo midday trade, the dollar drew to 103.49, but still nearly one yen lower than levels
in Tokyo on Thursday. The euro, which climbed Thursday on upbeat eurozone economic data,
bought $1.36-81 Traders moved into the safe-haven yen Thursday as US shares sank on the weak
China report and lackluster corporate earnings, while they look ahead to a Federal Reserve
policy meeting next week.
Moving to the commodities market gold sales by Japan's biggest bullion retailer surged
63 percent to a five-year high as prices slumped and investors sought refuge from Prime Minister
Shinzo Abe's campaign to stoke inflation and weaken the yen. Gold is trading at 12-59.70
near to the top this year. Oil prices edged higher this morning. West
Texas Intermediate crude oil was up 19 cents at $97.51 while Brent North Sea crude rose
11 cents at $107.69. The Department of Energy's weekly petroleum stockpiles report, delayed
by a day by a US holiday Monday, showed a significant drawdown in distillate fuel as
severe winter weather blanketed the US and Canada increasing heating demand.
This is Amy Anderson from OptionRally signing off. Follow me on Facebook and watch for our
new financial terms of the day and our weekly events news. Have a great weekend