Intel and CSX reported results that pleased the markets, and oil prices were on the rise as the equities volumes fall.
U.S. stocks opened higher this morning as expected, with Intel Corp leading the advance a day after the chipmaker gave a reassuring revenue outlook.
Industrial production recorded its biggest drop in more than 2-1/2 years in March, weighed down by a decline in mining and utilities output, fresh evidence that economic growth slowed sharply in the first quarter.
Here is the current market situation from CNN Money
North and South American markets are higher today with shares in Brazil leading the region. The Bovespa is up 0.87% while U.S.'s S&P 500 is up 0.55% and Mexico's IPC is up 0.51%.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
(Reuters) - Bank of America Corp, the No. 2 U.S. bank by assets, reported a better-than-expected first-quarter profit, reversing from a year-earlier loss, as legal costs fell steeply and the bank earned more from mortgage lending.
Submitted by Charles Hugh-Smith of OfTwoMinds blog, (Part 1 and Part 2 here)
More important than being a full-stack employee is owning a full stack of skills.
My longtime friend G.F.B. sent me an article on the emerging value of tech-savvy generalists: The full-stack employee by Chris Messina:
Nearly two years after I left Google, I'm starting to understand what's going on in the professional sphere. The conventional seams between disciplines are fraying, and the set of skills necessary to succeed are broader and more nebulous than they've been before. These days, you've gotta be a real polymath to get ahead; you've got to be a full-stack employee.
If you have a low tolerance (as I do) for breathless techno-buzzword dropping--worked at Google, UI, CSV file, Kickstarter, social apps, Vine, self-promotion, always-on connectedness, blah blah blah--you will have to shoulder through the techno-hip chatter.
(Is there no inoculation against peppering content with these cliches? If email is dead, please tell that to the 16,000 non-spam emails that pile up on my server every year.)
But the core point of the essay is worth ...
The headlines say seasonally adjusted Industrial Production (IP) declined. The manufacturing portion of this index did improve insignificantly - but the other portions of industrial production declined. This is another weak report, and again under expectations.
BRUSSELS (Reuters) - The European Union accused Google Inc on Wednesday of cheating competitors by distorting Internet search results to favor its shopping service, and launched another antitrust investigation into its Android mobile operating system.
WASHINGTON (Reuters) - Falling unemployment and an improving U.S. economy are evidence that the Federal Reserve should start raising interest rates, a top Fed official said on Wednesday, citing risks of asset bubbles if the central bank keeps rates too low for too long.
Mortgage Apps tumble, Empire Fed slumps, and now Industrial Production plunges... Against expectations of a 0.3% drop MoM, US Factory Output was twice as bad at -0.6% - the worst since August 2012 (and lamost worst since June 2009). This is the 4th miss in a row. What is even more stunning is that despite the coldest of cold winters that crashed the US economy, Utilities saw their output crash 5.9% - the most in 9 years (explained as follows - largely reversing a similarly-sized increase in February, which was related to unseasonably cold temperatures). Motor Vehicles saved the data from being a catastrophe with a 3.2% rise (following a 3.6% drop In Feb).
Not a pretty picture...
With Utilities output dropping by the most since 2006...
WASHINGTON (Reuters) - Industrial production recorded its biggest drop in more than 2-1/2 years in March, weighed down by a decline in mining and utilities output, fresh evidence that economic growth slowed sharply in the first quarter.
So the Chinese economy is weakest in 6 years, there is a record inventory, near-record production, and record drop in rig count... and now WTI Crude has surged to its highest since Dec 2014 (running stops above last week's highs).
TOKYO (Reuters) - Toyota Motor Corp announced plans for new factories in Mexico and China on Wednesday, ending a self-imposed expansion freeze to fend off rivals racing to overtake it as the world's top-selling automaker.
Martin Armstrong - Gold Bullion To "Max Out At $5,000 Per Ounce"
- Fall 2015 turning point - civil unrest and riots globally says forecaster Armstrong
- Fed have to raise rates - due to pressure from congress and media
- By 2020 the cost of servicing U.S. debt will outpace defence spending
- European banks will collapse and "blood in the streets"
- Higher rates will also devastate emerging markets who have issued dollar-based debt
- Gold to "max out at $5000 per ounce"
- Advocates diversification and holding bullion coins familiar to public such as $20 gold coins
- "Your portfolio has got to include everything â€¦ including bullion"
Renowned financial analysts and trends forecaster Martin Armstrong has said that gold will "probably max out at $5,000 per ounce" as "people lose confidence in government" and that we will see riots and unrest globally in the coming months - the fall of this year.
It a very interesting interview with Greg Hunter of the excellent USAWatchdog.com, Armstrong says:
"Gold rises when people lose confidence in government. It has nothing to do with inflation. So, when you start to worry about government is not going to survive or who's going to win, that's when gold rises. Short term, we still have the risk of it going under $1,000 per ounce. It's going to flip when everything is righ ...
It was bound to happen sooner or later: moments ago Mario Draghi was attacked by what appears to be a female (non-Greek) protester screaming "End ECB Dick-tatorship" while delivering his prepared remarks.
But it's April... the weather-bounce is supposed to be here. Empire Fed Manufacturing tumbled to -1.2 in April (missing expectations of a post-weather-bounce to 7.17) from 6.9 in March. Across the board the report was painful as Prices Paid surged, employment plunged, and work hours tumbled. Hope rermains as the business outlook improved (but even there capex and new orders were weak) New Orders stood out as it crashed to its lowest since Jan 2013. It appears there is more afoot than just weather...
LONDON (Reuters) - After watching billions of dollars of investor cash follow "star" managers exiting rivals, some Britain-based fund firms have taken a novel step to help cushion the blow: let the manager take their fund's assets with them.
When everyone begins to draw up the contingency plans you know the end may well be nigh.
Just two days ago FT reported that the Greek government â€" which has reportedly resorted to "acting like a taxi driver" when it comes to asking for money from creditors â€" has "come to the end of road" and is prepared to declare a default on its debt to the IMF (so no gas for Kiev?) if no agreement is struck between Syriza and the people who are not to be called "the troika" by the end of this month. Of course, Athens denied the "rumor," without explaining how it planned to find enough money to make good on its obligations coming due in May.
As FT noted, "a default would almost certainly lead to the suspension of emergency European Central Bank liquidity assistance for the Greek financial sector, the closure of Greek banks, capital controls and wider economic instability." Couple this with unpaid pensions and salaries and you have the recipe for what we'll call a "domestic issue" and by that we mean a popular uprising. In what may be an early attempt to head off (or at least ameliorate) such a scenario, Germany is reportedly prepping a plan to support Greek banks in the event Greece does in fact take the plunge.
From Die Zeit (via Google translate):
[Berlin] is working on a plan that would allow it to keep Greece in the case of a sove ...
ABU DHABI (Reuters) - The boss of Abu Dhabi's Etihad Airways has warned Europe that it will suffer if it restricts the access of foreign carriers to its market, in a fresh effort by fast-growing Gulf airlines to head off what they see as Western protectionism.
Econintersect wants your comments,
data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com