MONDAY 9/22/14; Autumn Begins in Northern Hemisphere and Srpring in Southern Hemisphere; AZO; Existing Home Sales; RUT Death Cross

Monday morning arrives in Asia. The week begins with the BABA IPO and its +38% first day gain receiving lots of attention by global traders. New Zealand’s incumbent Key claims a third term in a record win so the current economic policies will continue without interruption. The NZX-50 Index b





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 (luxury goods) are sold off but consumer staples are favored in the down tape. Energy is punished with XLE losing -1.5% and now at lows not seen since May. IBB -1%. Tech is sold off as evidenced by the Nasdaq collapse with NFLX, AMZN and YHOO leading the way lower.

After the bell, HLF bounces +4% trading erratically off rumors about activist investor’s Carl Icahn stake in the company. BABA loses -2% in AH trading adding to the losses during the session down to 88.45. YHOO continues puking losing another -2% adding to the -6% loss during the session under 38. Silver Lake investors are pursuing a takeover of SFLY that jumps +5.5% higher. Shutterfly is a very popular photo-sharing service. AAPL drops -0.6% on news it will drop the Beats music service but Apple refutes the news.

Fed’s Kocherlakota speaks in the evening and says a rate hike should not occur with inflation running below 2%. Kocherlakota is concerned over loss of Fed credibility if a rate hike is made against the back drop of low inflation (disinflation and deflation).

Treasury Secretary Lew announces a crack down on tax inversions rules that will diminish or eliminate the popular strategy where a US company will buy a foreign company in a lower tax nation and redomicile the combined company in that nation. The company experiences great tax savings and higher profits but US jobs are lost as well as the US tax base. The new tax rules are temporary until permanent rules can be placed. The rules are not retroactive. At least eight companies, mainly in the healthcare and pharma sectors, will be affected including AZN, Shire, MDT and ABBV. The BKW tax inversion may not be impacted by the new rules since Warren Buffett is involved and he is friends with President Obama.