STOCKS GET CRUSHED, DOW FALLS 390: Here's what you need to know

After more than 40 straight days of the S&P 500 closing inside of a 1% range, markets finally sold off on Friday.

All three major indices finished in the red.

Let's head to the scoreboard:

• Dow: 18,086.68, -393.23,(-2.13%)
• S&P 500: 2,127.85, -53.48, (-2.45%)
• Nasdaq: 5,125.91, -133.57, (-2.54%)
• WTI crude oil: $45.91, -1.71, (-3.59%)
• 10-year yield: 1.670, +0.054, (+3.33%)

1. US Treasurys were under pressure for a second consecutive day. Friday's selling has yields up 7 to 8 basis points at the long end of the curve with the 10-year yield now at 1.666%, its highest since late June. When bond prices fall, yields rise.
2. The US dollar strengthened by 0.4% to 95.42 in the early afternoon. Notably, the market's expectations for a September rate hike increased to 32% this afternoon, compared to 28% earlier this morning. And expectations for a year-end rate hike rose to 60.3%, up from 58.5%.
3. The US rig count climbed for a second-straight week. Oil drilling service company Baker Hughes reported that the oil rig count rose by seven to 414, while the gas rig count increased by four to 92.
4. Meanwhile, Morgan Stanley isn't so sure about its forecast for the oil recovery anymore. "We are not yet changing our forecast for a mid-2017 rebalancing, but our conviction level is falling," wrote Adam Longson, head of energy commodity research, in a note to clients.
5. Canada's housing bubble is now a "tale of 2 cities." The two cities in question are Vancouver and Toronto - the former saw home sales decline by 23% year-over-year in August, while the latter saw home sales surge by 23.5% year-over-year.
6. A $9 billion fund just hired a star trader. Cairn Capital, a London-based fund management firm that focuses on structured credit markets, has hired former HSBC trader Asif Godall as deputy chief investment officer.

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