Black Monday, Part Deux: Dow Falls 1,000 Points, Several Blue Chips Halted
It's officially the second Black Monday. After worrying pre-market trading, the Dow Jones Industrial Average fell more than 1,000 points to an intra-day low of 15,403.00 shortly after Monday's opening bell.
Shares of several companies were halted within the first 10 minutes of trading:
- CVS Health Corp (NYSE: CVS)
- Ford Motor Company (NYSE: F)
- KKR & Co. L.P. (NYSE: KKR)
- UnitedHealth Group Inc (NYSE: UNH)
- Compass Diversified Holdings (NYSE: CODI)
- 500.com Ltd (NYSE: WBAI)
- Godaddy Inc (NYSE: GDDY)
- Service Corporation International (NYSE: SCI)
As Zero Hedge pointed out, Deutsche Bank explained the current conundrum perfectly:
"The fragility of this artificially manipulated financial system was exposed over the last couple of days of last week...We've long felt that the only thing preventing another financial crisis has been extraordinary central bank liquidity and general interventions from the global authorities which we still expect to continue for a long while yet."
The real zinger: "[I]f it wasn't for expected intervention and extraordinary central bank policy we would be very bearish as the global financial system remains an artificial construct reliant on the largesse of the authorities."
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