STOCK NEWS

Tesla Motors: CEO Elon Musk tried to end the talk that the company will use discounting to achieve sales targets. Elon Musk sent an email to employees reiterating the company’s policy. "There can never - and I mean never - be a discount on a new car coming out of the factory in pristine condition, where there is no underlying rationale."

Deutsche Bank: Bloomberg is reporting some hedge funds that clear derivatives trades with Deutsche Bank have withdrawn some excess cash and positions held with the lender. Most banks haven’t made changes. Deutsche Banks is in a perilous situation, so any negative signal like this causes the stock to crash. It fell 7% instantly on this report.

Wells Fargo: The CEO of Wells Fargo, John Stumpf, is getting destroyed by Congress as he is testifying over the fraudulent accounts employees created. Representative Carolyn Maloney asked if he sold the stock when he found out about the fraud. Representative Jeb Hensarling said “fraud is fraud and theft is theft.”

Apple: There was a post on Reddit where someone claims their iPhone 7 exploded. This comes on the heels of the Samsung Note 7 exploding, so investors are anxiously awaiting if more reports of iPhone 7s exploding come out or if this is the only one.

ECONOMIC NEWS

The big story is hedge funds taking money out of Deutsche Bank because it isn’t stable. The bulls claim that Deutsche Bank being in trouble isn’t new, so it shouldn’t cause the market to fall. This is faulty reasoning because the sentiment getting worse is a self-fulling situation which causes further loss of trust. If this continues the bank may need to have a bail in. The period leading up to this situation would be uncertain and cause volatility in the market.