$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.
A week ago, we noted Goldman Sachs' 'strawman' that Janet should "think about easing," despite the world's misplaced confidence that rates will rise "inevitably" since the US economy is doing so well. Today, we get to hear what 'god' thinks as the only thing that matters for The Fed's decision is - keep Lloyd happy - and Goldman CEO Blankfein just said "U.S. economic data doesn't support the case for higher interest rates."
As Bloomberg reports,
The Federal Reserve's end of quantitative easing and higher taxes have acted as a brake on the economy and a form of tightening, Blankfein said Wednesday at a breakfast in New York sponsored by the Wall Street Journal.
U.S. economic data doesn't support the case for higher interest rates, Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said.
Any decision to increase interest rates should be driven by economic data, he said.
And as we previously concluded, there you have it: the "above trend growth" is dead and buried - because 24 months after Goldman's prediction that the economy is now roaring, Goldman admits the Fed can't hike even 25 bps.
(Reuters) - CVS Health Corp reached a $48 million settlement of a lawsuit accusing the U.S. drugstore operator of fraudulently concealing a big loss of revenue in its pharmacy benefits manager business, culminating in a plunge in its stock price.
CHICAGO (Reuters) - Package delivery company FedEx Corp posted a higher quarterly profit on Wednesday, but missed Wall Street expectations due to weak global economic conditions and the strong U.S. dollar.
WASHINGTON (Reuters) - U.S. consumer prices unexpectedly fell in August as gasoline prices resumed their decline and a strong dollar curbed the cost of other goods, pointing to tame inflation that complicates the Federal Reserve's decision whether to hike interest rates.
That low oil prices are squeezing out oil sands producers is not breaking news. But in spite of a grim oil price outlook, production out of Calgary has continued to grow, defying both expectations and logic. The implications are serious, not just for the future of Canada's energy industry and economy, but also North American energy relations.
In June 2015, the Canadian Association of Petroleum Producers (CAPP) revised down its 2030 production forecast to 5.3 million barrels per day (mbd). A year earlier the group predicted Canada would be able to produce 6.4 mbd by 2030. This is compared to the 3.7 mbd produced in 2014. Most experts agree that capital intensive oil sands projects are marginal - if not loss-making - in the $45 - $60 range. Yet production continues apace.
Of course, the nature of capital intensive operations such as the oil sands is that they are also prohibitively expensive to shut down. Producers are left in limbo, praying that prices will rise.
The implications for Canada should not be understated. Of the nation's estimated 339 billion barrels of potential oil resources, oil sands account for around 90 percent. The Canadian dollar is at a decade low, which softens the blow for exporters in the short term but the long-term economic consequences are less rosy.
Projects are being delayed, and many experts wonder if the current oil sands model has a future. Peter Tertzakian of ARC Financial told Alberta Oil Magazine t ...
NEW YORK (Reuters) - A U.S. appeals court on Wednesday rebuked the federal judge overseeing litigation stemming from Argentina's sovereign debt default nearly 14 years ago, and threw out his expansion of one class action of bondholders suing the country.
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