U.S. stock future indexes are up fractionally along with Europe and Asia. The US dollar is trading sideways for now in the low 98's. WTI crude has been trading sideways in the low 46's since yesterday and resting on its support. Initial Jobless Claims and Continuing Claims both were higher than expected along with the biggest quarterly drop in earnings since Q3 of 2009 will probably move the averages lower after the opening.
Here is the current market situation from CNN Money
European markets are mixed today. The CAC 40 is up 1.11% while the DAX gains 0.90%. The FTSE 100 is off 0.21%.
How bad is this earnings season? According to Bloomberg, about three-quarters of the S&P 500 have already reported results, with profits down 3.1% on a share-weighted basis due to plunging profits from oil & gas and commodity-related companies. The figures reveal the biggest quarterly drop in earnings since Q3 of 2009, and the second straight period of profit declines. Earnings growth turned negative for the first time in six years last quarter.
DETROIT (Reuters) - United Auto Workers members at the General Motors Co truck plant in Fort Wayne, Indiana, approved a new four-year contract by a wide margin, said the president of the local union hall on Thursday morning.
WASHINGTON, Nov 5 (Reuters) - - New U.S. applications for unemployment benefits last week recorded their largest increase in eight months, but remained at levels consistent with a fairly healthy labor market.
WASHINGTON (Reuters) - U.S. nonfarm productivity unexpectedly rose in the third quarter as a decline in self-employed workers contributed to overall hours worked falling for the first time in six years, restraining labor-related production costs.
(Reuters) - Molson Coors Brewing Co reported a better-than-expected quarterly profit, helped by strong demand for its higher-margin brands, which include Blue Moon Belgian White and Leinenkugel's Summer Shandy, in the United States and Europe.
NEW YORK/SAN FRANCISCO/WASHINGTON (Reuters) - When the U.S. Federal Reserve tweaked its policy statement last week and put a December rate rise squarely back in play, it took a calculated gamble that reaching for an old and controversial policy tool would get financial markets' attention.
(Reuters) - Duke Energy Corp , the largest U.S. power company by generation capacity, reported a 5.5 percent rise in quarterly profit from continuing operations, driven by warmer-than-expected weather and lower fuel costs.
BERLIN (Reuters) - German sportswear company Adidas , trying to muscle into Nike's home territory, plans to increase spending on marketing again after high-profile sponsorship deals and celebrity partnerships helped rekindle U.S. sales.
Submitted by Bryce Coward via Gavekal Capital blog,
We've had some run in stocks over the last several weeks. With today's rally US stocks are now nearly 13% above their late-August low and are in spitting distance of another all-time high.
This would be great news if only other asset classes and the internal leadership of the stock market confirmed the seemingly outright bullish behavior in the headline level of the stock indexes. Instead, what we have seen since that important August low in stocks is:
Global bond yields at a similar level of lower than in August
The most cyclically inclined commodity prices (copper and lumber) basically at the same level as in August
Zero Hedge first revealed Overstock's contingency plans "in preparation for the next collapse" ten days ago. Today, the strategy outlined by Overstock Chairman Jonathan Johnson has resonated across the Atlantic and this morning as the Financial Times catches up to the story of an "online retailer hoarding gold as crisis defense" in which it calls the retailer a "redoubt of doomsday conservatism" adding its policy to prepare for the loss of central-planning control is "redolent of the small band of US survivalists preparing for the end of civilisation."
The FT reports that Jonathan Johnson, Overstockâ€™s "anti-establishment leader", told the Financial Times it has "stashed away $10m in gold and silver coins as an insurance policy against financial apocalypse" and that it keeps "precious metals outside the banking system so the company could pay employees even if lenders slammed shut in a crisis."
Mr Johnson, who is running to be Utah governor, said Overstock also kept extra freeze-dried food so it had enough to feed each employee and one family member for three months.
â€œWe thought thereâ€™s a decent chance that there could be a banking holiday at some point caused by a crisis and it could last for two days or two weeks or who knows how long, and we wanted to be in a position where we cou ...
Income, or wealth, inequality is not something that central bankers generally worry about when setting monetary policy, the goals of which are to maintain price stability and promote full employment. Nevertheless, it is important to understand whether and how monetary policy affects inequality, and this topic has recently generated quite a bit of discussion and academic research, with some arguing that the Federal Reserve's expansionary policy of recent years has exacerbated inequality (see, for instance, here or here), while others reach the opposite conclusion (see here or here).
-- this post authored by Donghoon Lee, Matt Mazewski, Joelle Scally, and Basit Zafar
Household debt in the United States expanded before the Great Recession, contracted afterward, and has been recovering since 2013. But how has the distribution of debt across different income groups evolved over time? Who has been driving the recovery of household debt over the past two years? To date, there has been little work on how borrowing patterns for high- and low-income individuals have changed over time, although one notable exception is Amromin and McGranahan. Here, using the New York Fed Consumer Credit Panel (CCP), a quarterly panel data set based on Equifax credit reports, we shed further light on these questions.
The number of Americans who applied for unemployment benefits at the end of October rose sharply to match the highest level in two months, perhaps a sign of some softening in the labor market. Initial jobless claims in the period running from Oct. 25 to Oct. 31 shot up by 16,000 to 276,000.
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