US averages having been in the red all morning finally melted up enough to fractionally be in the green, but on very low volume. Oil prices are rising but is not expected to rise through resistance around mid 47's. Short-term session indicators are 'moderately' bullish, but longer term indicators show weakness in fundamentals that could melt the markets back in the red before this session is closed.
Here is the current market situation from CNN Money
North and South American markets are mixed. The S&P 500 is higher by 0.14%, while the IPC is leading the Bovespa lower. They are down 0.72% and 0.04% respectively.
$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.
WASHINGTON (Reuters) - U.S. consumer spending in September recorded its smallest gain in eight months as personal income barely rose, suggesting some cooling in domestic demand after recent hefty increases.
(Reuters) - Exxon Mobil Corp said on Friday third-quarter profit fell 47 percent on low crude prices but results were better than expected, helped by higher profit in the oil company's refining business.
BOSTON (Reuters) - Hedge fund mogul William Ackman told his investors on Friday that he was confident in his bet on Valeant Pharmaceuticals but faulted the company for a weak response to fraud allegations that have sunk its stock.
(Reuters) - CVS Health Corp gave a disappointing profit forecast for 2016, hurt by costs related to the acquisition of Target Corp's pharmacies and as its own pharmacy benefits management (PBM) business expands in low-margin Medicare and Medicaid plans.
(Reuters) - Chevron Corp , the second-largest U.S.-based oil producer, slashed its 2016 capital budget by 25 percent and said it would lay off roughly 10 percent of its workforce, one of the most-drastic reactions to date to the plunge in crude prices .
LONDON (Reuters) - Brent crude held close to $49 a barrel on Friday, poised to post the first weekly gain in three weeks despite a supply glut that has tested storage capacity and hammered oil company results.
Submitted by Bill Bonner via Bonner & Partners (annotated by Acting-Man.com's Pater Tenebrarum),
A Financial Reckoning
You go for a nice picnic on the slopes of Vesuvius... You spread out your tablecloth. You open your picnic hamper. You prepare for a relaxing afternoon in the warm October sun.
And then someone comes running down the mountain, warning that the volcano is going to blow up. You pack up your sausages and put a cork in the wine bottle... and rush to the car and drive away. Better to be safe than sorry. And then? Nothing happens.
When these ominous columns of smoke become visible, it may be time to make tracks. Or not. This image shows Mt. Ontake in Japan, which tends to erupt occasionally ...
Most of the time, you can safely ignore the nervous nellies and prophetic Cassandras. (According to legend, Apollo gave Cassandra the gift of prophecy. When she refused him, he spat into her mouth so she would never be believed.) But sometimes the worrywarts are right...
For the last 16 years, we've been writing a daily e-letter - first the Daily Reckoning and now the Diary. We saw the collapse of the dot-com bubble coming and warned readers. Most didn't want to hear it; they were making good money in the stock market. It was a "new era." And they didn't want it to end.
But the Nasdaq collapsed in 2000... and didn't recov ...
10-year Puerto Rico general obligation bond yields spiked to 12.3% - the highest on record - as the island's Government Development Bank's $354 million of principal and interest due on December 1st looms. Puerto Rico is now 450bps 'riskier' than Greece, which means Treasury Secretary Jack Lew was wrong again in not taking the German FinMin's offer in July to swap Puerto Rico for Greece...
It appears Schauble's July trade would have been a loser...
SCHAEUBLE: OFFERED LEW TO TAKE PUERTO RICO IF US TAKES GREECE
As we joked at the time...
Retweet for Puerto Greeko Favorite for Puerto Grico ... (please don't)
— zerohedge (@zerohedge) July 9, 2015
And now PR is 450bps wider than Greece..
For context, PR's 12.3% yield is ~10.3 percentage points more than benchmark municipal bonds with the same maturity and equivalent to a 21.8% taxable interest rate for the highest earners.
Puerto Rico's bondholders face mounting risks as the commonwealth veers toward default. As Bloomberg notes, a spokesman for Governor Alejandro Garcia Padilla said Thursday that while the commonwealth intends ...
U.S. stocks traded near the flat line Friday, heading toward the end of a month that has seen large gains for equity markets. The Dow industrials are on track for their largest monthly rise in four years.
ECRI's WLI Growth Index which forecasts economic growth six months forward - marginallhy declined and remains in negative territory. This index had spent 28 weeks in negative territory, then 15 weeks in positive territory - and now is in its eleventh week in negative territory.
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