Time to dig out those people that call recessions for on-air appearances, TV bookers.
Crude oil has now plunged into bear market territory. At about $43 a barrel, oil is at levels not seen since last August. Less than a month ago, oil was at $50 a barrel or so and blowhards were pounding the table on $60 to $70 a barrel this year. So much for that one.
Bottom line is that there is too much oil on the market, which could be a function of slowing business conditions in emerging markets and, to a lesser extent, the U.S. What's more, shares of airlines such as American Airlines (AAL) have fallen in response to lower oil prices, contrary to what one would expect. And, despite the increased purchasing power among consumers with gas prices trending lower, consumer stocks continue to trade with a downward bias.
Add all these things together and it suggests something negative could be forming in the U.S. economy. Blame the rate-rising Federal Reserve, blame a dysfunctional Trump administration. Whatever the case, crude oil's crash should be taken seriously by the equity market perma bulls.
What's Hot On TheStreet
Alibaba's Jack Ma woos Detroit: TheStreet has spent the past two days in Detroit covering Alibaba's (BABA) big hiring event there. We have had the opportunity to talk with Alibaba and take in how the Chinese tech company plans to grow jobs in America. But the real showstoppers have been the presentations with Alibaba's executive chairman Jack Ma, who as always hasn't been short on bold proclamations.
Said Ma in a keynote address Tuesday evening, "If you don't sell products in China, you will miss the future." Ma and other Alibaba executives have also sought to downplay the comparison to Amazon (AMZN) . After spending a few days in Alibaba land, you understand where they are coming from. But, you are also reminded of how dominant Amazon is in the United States in so many categories (one soon to be organic food via Whole Foods (WFM) ).
Tesla mania continues: Tesla's (TSLA) market cap is $60 billion and growing. At this point, Wall Street's obsession with all things Tesla has gotten out of control. Thestreet's Annie Palmer drills down into news Tesla could be opening a car-making plant in China. The last thing President Trump needs is a fight with Elon Musk on this one, Palmer reports.
Uber's embattled founder resigns: Uber Technologies Inc. founder and CEO Travis Kalanick has resigned from the ride-sharing company, TheStreet reports. The move comes just days after he was asked to take a leave of absence in the wake of a report into allegations of discrimination and bullying at the world's startup.
"I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight," Kalanick said in a statement given to the New York Times, which originally reported his departure.
Here is what Uber co-founder Garret Camp had to say this week about Uber's culture.
Check out TheStreet's new series: The Street has officially launched a new video series called Alpha Rising, where we will showcase all of the amazing women in business. TheStreet's Tracy Byrnes sits down with some of the top women kicking butt in business, such as Birchbox' CEO Katia Beauchamp, who revolutionized the beauty business.
Here is a sneak peek below.
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