Updated throughout the day
January 8, 2016 6:00 p.m. ET / January 9, 2016 7:00 a.m. HKT
It was risk-off Monday as the rally in oil ended, and investors fled stocks. The fear index — the VIX — briefly surged more than 12%, before ending 4.8% higher. The major U.S. indices managed to pare some losses at the end of the day, but they all still ended in the red. The Dow lost 1.1% Monday, while the S&P 500 was down 1.4%. The Nasdaq fell 1.8%, as tech stocks continued to get pummeled. Investors went for bonds and gold instead, sending the yield on 10-year Treasurys to their lowest level in a year, and gold prices up 3.5% for the day. Oil fell 2.5% to $30.12.
Here’s what else you need to know:
Gundlach voices more market warnings. DoubleLine Capital founder Jeffrey Gundlach says the high-yield “junk” bond market hasn’t hit bottom yet. “Credit fund bankruptcies are coming,” he warns. “It’s not a market to be flopping around in. The trends are relentless and powerful.” Reuters
Michael Bloomberg confirms he may run for President. The former New York City mayor and founder of the financial data company bearing his name, told the Financial Times: “I find the level of discourse and discussion distressingly banal.” Financial Times (paywall)
LinkedIn got a boost from Citron Research. The stock got creamed last week on a weak earnings outlook, tumbling more than 45%. Monday, as stocks swam in a sea of red, LinkedIn added 1.5%. Go figure.
Chesapeake Energy says it is not filing for bankruptcy. And the stock fell 33% — it didn’t have far to go and is now trading at $2.04. Other pipeline companies got hit by the news. A previous report had said that the troubled energy company was working with lawyers to make a filing, which the company denied. Wall Street Journal
Deutsche’s shares lost almost 10% Monday following a rough day for European banks. The cost of insuring Deutsche Bank’s debt in the CDS market surged higher than the debt on Commerzbank during the financial process — and it needed a bailout.
Yelp says earnings in first quarter to be half of analyst expectations. San Francisco-based Yelp accidentally released its earnings hours early Monday, and reported that revenue grew 40% thanks to a local advertising boost. But shares fell more than 10% when the company revealed that EBITDA would fall between $10-$12 million vs expectations of $20.8 million. Also: CFO Rob Krolik will leave the company at the end of 2016, about five years after he joined Yelp. Wall Street Journal (paywall)/CNBC
Syria is “exterminating” detainees, says U.N. The United Nations Human Rights Council says that President Bashar al-Assad’s regime is committing crimes against humanity, and both loyalist and anti-government forces have committed possible war crimes. The Syrian civil war has claimed at least 250,000 lives. BBC
Markets in Asia closed for Chinese New Year. The Shanghai Exchange is closed all week. The Hong Kong Stock Exchange is closed Monday through Wednesday.
Denver Broncos upset “sure thing” Panthers in Super Bowl 50. It was a crazy, crazy game with some dubious calls by the referees. The Broncos and its QB legend Peyton Manning led the 24-10 game the entire time but didn’t score any points on the offense until the fourth quarter. This game belonged to the Broncos’ defense which sacked the up-and-coming Panther legend Cam Newton a stunning seven times. Manning declined to say if he was retiring this year while plugging Budweiser and fast food restaurant Papa Johns. His post-game comments about wanting a Bud Light was worth $14 million in free advertisements, one analytic company says. Bloomberg
It was celebration weekend all around the world, and not just because of football. Global communities began Mardi Gras celebrations before “Fat Tuesday” this week. The tradition of parties and indulging in rich food and drink mark the final days before Ash Wednesday starts the repentance season of Lent for Catholics.
Credit Suisse CEO asks for a bonus cut. Tidjane Thiam, who took over the company in July, says he requested the Swiss bank’s board “substantially” reduce his bonus after Credit Suisse reported a loss of $5.8 billion in the fourth quarter. Wall Street Journal (paywall)
Trump, Sanders maintain leads in New Hampshire primary. Trump is putting significant weight on a win in the state after he lost Iowa to Ted Cruz. Hillary Clinton meanwhile is hoping she can remind New Hampshire voters of their 2008 love for her when she beat now-President Barack Obama. CNN
ICYMI:
Republicans gang up on Marco Rubio. Republican presidential candidates appeared in a debate Saturday night, and this time Rubio was the focus of their ire. Rubio tried to focus his attentions on President Barack Obama. The New Hampshire primary will take place this week. BBC
North Korea launches object into space. The reclusive government claims it launched a long-range rocket carrying a satellite, but the U.S. says the launch was a missile test. North Korea says their launch was a success, and the satellite will make an orbit of Earth every 94 minutes. Reuters
You won’t believe this:
Forget red envelopes, give fresh air for the New Year. A young British entrepreneur is selling bottles of British country air for $115 per 20-ounce jar, and the Chinese are snapping it up. Pollution-heavy cities including Beijing and Shanghai are among the biggest buyers. CNN
U.K. police considering eagles for drone take-downs. The Netherlands conducted trials to show how effective trained birds would be in capturing the pilot-less aircrafts after concerns about criminals using the technology. Eagles would consider the drones to be prey, making them easy targets. BBC
Photo: Elizabeth Haslam