The nine day run in US equity markets is over as the Dow fell 77 points to 18,517. Trading volume was higher indicating the big boys were taking some cabbage off the table. This counts as a distribution day according to IBD.
Natural gas pipeline giant Kinder Morgan reported Q2 results today that met profit expectations but missed on revenue. The company posted a 9% decline in revenue and a 6% decline in the bottom line. Management reiterated its intent to continue investing excess cash flow into growth projects while paying down debt and strengthening the balance sheet. Going forward the company continues to manage the current low price/high demand environment for natural gas.
Things in Turkey are starting to get dicey. Erdagon invoked emergency powers and has now rounded up 40,000+ people with more to come. Businesses are starting to close and all communications are being monitored and controlled, Russian’s are starting to leave for fear of violence and IS rhetoric is on the rise. The Istanbul stock market is now off 10% and Standard & Poor’s has cut Turkey’s debt ratings and lowered its outlook to negative. Turkey’s economy is now at risk and some feel that Turkey’s secular democracy is in the same boat. This bears watching as it could be another problem tearing at the fabric of European unity and economic viability.
Gold recovered some of yesterday’s lost grown gaining $12.60 an ounce to $1,331. Gold moved higher as the ECB left interest rates unchanged.