econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



14Jul2015 Market Close: Averages Close In The Green For Third Day, WTI Oil Recovers Morning Losses, Greece Still Not Out Of The Woods

Written by Gary

U.S. averages continued to melt up during today's session on sometime anemic volume marking the highest level since June 25th this year. Interim short-term indicators remain moderately bullish and closed solidly in the green, making this the 3rd. day bull rally. Volume was particularly light as many investors and traders alike were sitting on their hands unsure what Mr. Market has on his mind.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

IMF calls for Greece debt relief as Germany talks tough

ATHENS/BRUSSELS (Reuters) - A secret International Monetary Fund study showed Greece needs far more debt relief than European governments have been willing to contemplate so far, as Germany heaped pressure on Athens on Tuesday to reform and win back its partners' trust.

Short sellers curb Intel bets ahead of second quarter results; tone cautious

SAN FRANCISCO (Reuters) - Wall Street expects bad news when Intel Corp reports its second-quarter results on Wednesday although a few short sellers appear to believe the worst is over for the chipmaker's recently sinking stock.

How The Fed Almost Admitted HFTs Are Illegal

Yesterday, in "How High Frequency Traders Broke, And Manipulated, The Treasury Market On October 15, 2014" we showed, with empirical evidence thanks to none other than the joint-staff (the Fed, Treasury, SEC and CFTC), precisely how algos broke the Treasury bond market in the morning of October 15, 2014, and specifically how at 9.34 am a blast of quote stuffing and HFT-generated volume...

... sent Treasury prices soaring:

... while crashing market depth and killing liquidity.

We had, of course, know the why and the whot, and had previously already shown most of the above last year, when we explained the events of October 15 almost verbatim to what the joint-staff report noted yesterday. However while we knew the "strategy" we did n ...

J.P. Morgan: Curb Your Enthusiasm

J.P. Morgan's second-quarter results were solid but uninspiring, with profits rising 5.2% but net revenue falling by 3%.

Honda's U.S. auto finance arm to pay $24 million over loan pricing problems

WASHINGTON (Reuters) - A U.S. auto finance arm of Honda Motor Co will pay $24 million in restitution over allegations that its loan pricing practices caused minority customers to pay higher interest rates than white borrowers did, U.S. regulators said on Tuesday.

GM to spend $1.4 billion to modernize Arlington SUV factory

ARLINGTON, Texas (Reuters) - General Motors Co is raising the stakes on its bet that sales of fuel-thirsty sport utility vehicles will keep driving its global profits as Chinese and other markets sag.

Tsipras Interviewed, Sticks Foot In Mouth: "I Signed A Deal I Do Not Believe In But Am Willing To Implement"

Here is the punchline and the only thing the German, Finns, Dutch, Slovenians, Slovaks, and the Baltic states will hear:

GREEK PM TSIPRAS SAYS I SIGNED I DEAL I DO NOT BELIEVE IN BUT I'M WILLING TO IMPLEMENT AND WILL ASSUME RESPONSIBILITIES

And now over to Schauble.

* * *

Greek Prime Minister Alexis Tsipras is being interviewed on Greek TV:

TSIPRAS SAID MERKEL HAD DENIED THERE WAS GERMAN GREXIT PLAN

TSIPRAS: SCHAEUBLE HAD TOLD VAROUFAKIS OPTION WAS DEAL OR EXIT

TSIPRAS SAID MERKEL HAD DENIED THERE WAS GERMAN GREXIT PLAN

TSIPRAS SAYS WILL TRY TO KEEP PARTY, LAWMAKERS UNITED

TSIPRAS SAYS DEFAULT, RETURN TO DRACHMA WAS NOT A VIABLE OPTION

TSIPRAS SAYS NIGHT OF GREEK DEAL WAS BAD NIGHT FOR EUROPE

TSIPRAS SAYS EU SUMMIT RESULT WAS RESULT OF PRESSURE TO GREECE

TSIPRAS SAYS DEAL INCLUDES HARSH STRUCTURAL REFORMS

TSIPRAS SAYS HAD TWO OPTIONS: DEAL OR EXITING THE EURO

TSIPRAS SAYS DEAL COVERS ALL OF GREECE'S MID-TERM FISCAL NEEDS

TSIPRAS SAYS DEAL INCLUDES DEBT RESTRUCTURING AFTER 2022

TSIPRAS SAYS AGREEMENT GIVES GREECE OPPORTUNITY TO EXIT CRISIS

TSIPRAS SAYS GREECE WILL NOT HAVE TO CUT WAGES, PENSIONS

TSIPRAS SAYS SALES TAX INCREASE IS IRRATIONAL BUT HAD TO ACCEPT

Greek Bad Loans Soar To 100 Billion

Just when you thought it was safe to buy Greek Banks (which it is not!) based on the mainstream media narrative that Greece is now fixed, ekathimerini reports that not only are deposits flying out the door at unprecedented pace (albeit stalled by capital controls) but non-performing loans have increased dramatically in the last few weeks as hundreds of households and enterprises have stopped making their repayments either due to a genuine inability to pay or because of the general uncertainty in the economy that has seen transactions freeze.

Data from banks show that repayments declined to between 20 and 50 percent of performing loans, creating the conditions for a major increase in bad loans. This trend is in line with the estimates of the Bank of Greece, according to which NPLs amounted to 40 percent of the total at the end of 2014, with the likelihood they will grow further in the first half of the year.

As a reference point, there is a little over 210 billion in total Greek loans, both performing and non-performing, currently and about 120 billion in deposits. There is also about 90 billion in Emergency Liquidity Assistance from the ECB.

The total amount of bad loans (those which have remained unserviced for at least 90 days) has reached 100 billion euros, and the BoG data show that 70 percent of the loans that have entered payment programs remain nonperforming.

This is a major problem for the Greek Banks but even more so for The ECB as there is not much it can do to 'control' NPLs and given provisions for bad loans are a mere EUR40bn - there is a big hole here that no one is accounting for.

JPMorgan profit beats estimates as tax bill and expenses fall

(Reuters) - JPMorgan Chase & Co , kicking off the second-quarter earnings season for U.S. banks, reported a stronger-than-expected rise in profit on Tuesday, helped by a drop in legal and restructuring expenses and a smaller tax bill.

Why A Hedge Fund That Has Been Short For Three Years, And Wildly Profitable, Remains Short

One of the most flawed misconceptions about the New Paranormal in which central bank intervention to levitate markets and protect from plunges is not only heretical but demanded (to paraphrase Rick Santelli) is that one has no choice but to be long stocks (and judging by all the equity "experts" opining on fixed income for the past 5 years, short bonds) in order to generate profits.

That is utterly false as the simple case study of $2.2 billion in AUM Horseman Capital Management clearly shows.

As can been seen in the following chart showing the fund's gross and net exposure, the hedge fund flipped net short at about the ttime the recession started (and long before Bear and Lehman) then went long in early 2010 and flipped back short in 2012, where it has remained for the past 3 years.

Suicide? Not at all. In fact ever since going net short, the fund has returned on average 16% per year, outperforming about 98% of its peers.

But how can one maintain such a stunning track record with a preponderance of shorts in a market in which central banks have injected $22 trillion in liquidity to prop it up (an ...

Wells Fargo profit drops for second straight quarter as costs rise

(Reuters) - Wells Fargo & Co, the largest U.S. mortgage lender, reported a drop in profit for the second straight quarter as employee costs and other expenses rose at a time when it is struggling with slow revenue growth.

Small Business Optimism Crashes To 15 Month Lows

With all hopes and dreams of economic renaissance in America pinned on small businesses (see ADP's recent gains), today's data from the NFIB will strike fear in the heart of the wealth-effect-creating Fed. The NFIB small business optimism index disappointed expectations in June (94.1 vs. consensus 98.5), falling to its lowest level since March 2014 - the biggest drop since 2012. All components were weaker but most notably hiring and plans to raise worker compensation tumbled.

As Goldman details,

All components were weaker, with the largest declines seen in earnings trends (-10pt to -17) and plans to increase inventories (-8pt to -4).

The net percent of firms raising worker compensation (-4pt to +21) and planning to raise worker compensation (-3pt to +11) reached their lowest levels so far this year.

Forward-looking capex plans also declined (-2pt to +23) to its lowest level this year. The index has trended lower since reaching its post-recession high last December.

However, it gets worse. As Yahoo reports, American CFO's are worried,

Varoufakis: Greek Deal Is "Coup", Turns Greece Into "Vassal" State, And Deals "Decisive Blow" To European Project

Yanis Varoufakis, fresh off a few relaxing days at his island getaway, will be back in the Greek parliament this week to weigh in on the "compromise" deal his successor Euclid Tsakalotos and PM Alexis Tsipras struck in Brussels over the weekend.

Considering the eyewitness accounts of the highly contentious Eurogroup meeting - out of which came the exceedingly punitive term sheet which would serve as the basis for Greece's agreement with creditors - one can only imagine what might have unfolded if Varoufakis had been present for the "crazy kindergarten" finance minister free-for-all which reportedly took place on Saturday night.

For those curious to know what Yanis thinks about the deal, below are some "impressionistic thoughts" from the man himself. Highlights include the characterization of the Greek deal as a "decisive blow against the Euorpean project", a "statement confirming that Greece acquiesces to becoming a vassal of the Eurogroup", and the "culmination of a coup".

* * *

On the Euro Summit's Statement on Greece: First thoughts via Yanis Varoufakis

In the next hours and days, I shall be sitting in Parliament to assess the legislation that is part of the recent Euro Summit agreement on Greece. I am also looking forward to hearing in person from my comrades, Alexis Tsipras and Euclid Tsakalotos, who have been through so much over the past few days. Till then, I shall reserve judgment regarding the legislation before us. Meanwhile, here are some first, impressionistic thoughts stirred up by the Euro Summit's Statement.

Wall St. higher as healthcare, energy stocks rally

(Reuters) - Wall Street was higher in early afternoon trading on Tuesday, led by a rally in healthcare stocks and as energy stocks rose after oil prices recovered on easing fears of higher crude supplies due to the Iran nuclear deal.

Twitter confirms purported Bloomberg story is false

(Reuters) - A report claiming that Twitter Inc received an offer to be acquired for $31 billion attributed to Bloomberg LP is fake, Twitter and a spokesman for the news and financial data provider said on Tuesday.

Summary of Economic Releases this Week

Real Time Economic Calendar provided by Investing.com.

Earnings Summary for Today

Earnings Calendar provided by Investing.com.

leading Stock Positions

Leading Stock Quotes powered by Investing.com

Current Commodity Prices


Commodities are powered by Investing.com

Current Currency Crosses

The Forex Quotes are powered by Investing.com.



To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

Click here for Historical Releases Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Live Market

search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


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
Main Home
Analysis Blog
Joan Robinson’s Critique of Marginal Utility Theory
The Truth About Trade Agreements - and Why We Need Them
News Blog
How To Stop Using Filler Words Like Um And Uh
02 December 2016: ECRI's WLI Growth Index Improvement Continues
Preliminary December 2016 Michigan Consumer Sentiment Highest Since Early 2015
October 2016 Wholesale Sales Improved
Rail Week Ending 03 December 2016: Finally A Positive Month
November 2016 CBO Monthly Budget Review: Total Receipts Up by 1 Percent in the First Two Months of Fiscal Year 2017
Infographic Of The Day: Copyright - Illegal Download
Early Headlines: Asia Stocks Mixed, Oil Steady, Bank Mafia, Trump To Remain TV Producer, US Life Expectancy Down, India Stocks Suffering, Park Impeached, China Struggles To Support Yuan And More
Heavy Metal And Hard Rock Albums That Went Certified Diamond Status
Down The Drain: Wastewater With The Most Cocaine
Apple's App Store Set For 5 Million Apps By 2020
How Can The UK Government Meet Its Legal Air Pollution Targets?
Most Gun Deaths In The United States Have A Tragic Motive
Investing Blog
Are Your Trade Entries Patient Enough?
Investing.com Technical Summary 08 December 2016
Opinion Blog
Looking At Everything: Trump's $1 Trillion Infrastructure Plan
The Global Financial Mess Is Due To Political Failure
Precious Metals Blog
Silver Prices Rebounded Today: Where They Are Headed
Live Markets
09Dec2016 Pre-Market Commentary: Wall Street Set To Open Flat, But On The Green Side, WTI Crude Attacking Resistance, Investors Ready For A Breather
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government



Crowdfunding ....






























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved