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02Mar2016 Pre-Market Commentary: US Future Indexes Up Fractionally, WTI Crude Steady, US Dollar Trending Up Bullish Resistance Now Support

Written by Gary

US futures slipped fractionally after ADP says 214,000 people were added to private sector payrolls in February. WTI crude remains stable at the high 33's and the US dollar is volatile at the mid 98 level while tracking higher. Market indicators show the indexes trading above the 'solid' resistance and now onto the next SP500 resistance of 2000.

Here is the current market situation from CNN Money

European markets are mixed today. The DAX is up 0.19% while the CAC 40 gains 0.15%. The FTSE 100 is off 0.43%.

What Is Moving the Markets

Here are the headlines moving the markets.

Abercrombie & Fitch posts unexpected rise in comparable sales

(Reuters) - Teen apparel retailer Abercrombie & Fitch Co reported a surprise increase in quarterly sales at established stores due to demand for its Hollister branded clothing and strong online sales in the holiday shopping season.

VW's Bentley considers higher 2017 output of Bentayga SUV

GENEVA (Reuters) - Volkswagen luxury division Bentley is considering an increase in production of its Bentayga sport-utility vehicle (SUV), the world's most expensive SUV, Chief Executive Wolfgang Duerheimer said.

Futures lower as U.S. crude prices retreat

(Reuters) - U.S. stock index futures were lower on Wednesday, as oil prices fell after data showed crude stockpiles in the United States touched record highs.

Stocks swing higher as global slowdown fears fade

LONDON (Reuters) - World shares and bond yields rose on Wednesday as positive economic data from Australia to the United States calmed fears of a global economic slowdown, although the rally lost momentum in European trade as oil prices reversed direction.

Toyota shakes up corporate structure to focus on product lines

TOKYO (Reuters) - Toyota Motor Corp announced an overhaul of its corporate structure on Wednesday as the world's biggest-selling carmaker seeks to streamline decision-making and improve the way it manages its production as output hits record highs.

Former Chesapeake CEO McClendon charged with bid-rigging of land leases

ATLANTA/WASHINGTON (Reuters) - Aubrey McClendon, former chief executive officer of Chesapeake Energy Corp and a legend in the U.S. energy industry, was charged on Tuesday with conspiring to rig bids to buy oil and natural gas leases in Oklahoma, the Justice Department said.

Debts rise at China's big steel mills, consumption falls

BEIJING (Reuters) - China's major steel mills added to their debt pile in 2015 while consumption of steel products fell for the first time in two decades, a senior official said on Wednesday, adding to the industry's difficulties as it tries to tackle a crippling glut.

Apple lawyer, FBI director face off in Congress on iPhone encryption

WASHINGTON (Reuters) - FBI Director James Comey told a congressional panel on Tuesday that a final court ruling forcing Apple Inc to give the FBI data from an iPhone used by one of the San Bernardino shooters would be œpotentially precedential in other cases where the agency might request similar cooperation from technology companies.

Moody's cuts China outlook on eve of NPC, cites reform, fiscal risks

SHANGHAI (Reuters) - Moody's downgraded its outlook on Chinese government debt to "negative" from "stable" on Wednesday, citing uncertainty over authorities' capacity to implement economic reforms, rising government debt and falling reserves.

"We Were Stunningly, Shockingly, Stupidly Wrong" Gartman Admits As He Covers Shorts, Puts Rally In Jeopardy Again

Yesterday, there was some confusion as algos and humans tried to explain to themselves why they are buying at such a furious pace that yesterday's torrid surge resulted in the biggest March 1 S&P500 surge in history. The truth is that there should be no confusion: as we previews, and explained, first thing yesterday, "Gartman Is Again "Selling The Markets Short" Just Two Days After Turning Bullish."

This, as we also said, followed a note just two days prior which we correctly forecast, put the "rally in jeopardy", when Gartman decided to turn long on Friday in the process halting the market's momentum, and leading to two days of declines.

And then, around 3pm yesterday, we reported the scariest rumor any bull could hear: Gartman was about to flop bullish again:

Rumor Gartman turning bullish again

" zerohedge (@zerohedge) March 1, 2016

Sure enough, it was true, and in such spectacular fashion that the following excerpt from his overnight commentary is nothing short of sheer poetry.

SHARE PRICES HAVE RISEN BY THEIR HISTORICAL MOST and we were stunningly, shockingly, stupidly, and utterly wrong in having sold the market short yesterday. We cannot ever have recalled making a singularly worse trade in our four decades of being involved in markets, but we stepped in the front of a reserve cutting freight train and the only thing to do when that happens is to run to the sidel ...

Sports Authority Files For Bankruptcy, Will Close One Third Of Its Stores

Following weeks of fertile speculation whether it will or won't file for bankruptcy, this morning Colorado-based Sports Authority, whose name graces the home stadium to the Super Bowl champion Denver Broncos, put all doubts to rest when it filed Chapter 11 in Delaware bankruptcy court (Case 16-10527) listing $0-$50,000 in assets and between $1 and 10 billion in liabilities in its bankruptcy filing, adding that it will close as many as 140 of its 463 locations. As part of its bankruptcy process, the bankrupt retailer reported that it has access to a $595 million in debtor in possession financing loan.

In its summary of the company's recent, troubled and overlevered history Bloomberg writes that Sports Authority has fallen far since a $1.3 billion buyout in 2006 piled it with debt. "In 2006, the chain was even with Dick's Sporting Goods Inc. in sales. Today, Dick's has hundreds more locations and takes in almost twice as much per store, making it the U.S. leader in selling athletic gear, while Englewood, Colorado-based Sports Authority's debt load has hampered its ability to expand or innovate."

"We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry, said Michael E. Foss, chief executive officer of Sports Authority. œWe intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations."

In many ways this outcome was inevitable: in 2015, sales at U.S. retailers were the weakest since 2009, according to the U.S. Commerce Department. But as big-box giants and online merchants encroached on clothing stores and consumer electronics chains, sports were one of the few healthy areas. And, as BLoomberg ...

Frontrunning: March 2

Trump, Clinton capture key wins on Super Tuesday (Reuters)

Hillary Clinton Triumphs in Delegate-Rich Super Tuesday States (WSJ)

S&P 500 Futures Follow Oil Lower, Erase Gain After Super Tuesday (BBG)

Oil below $37 as U.S. inventory rise counters output freeze plan (Reuters)

Wall Street's big short: President Donald J. Trump (Reuters)

Ex-Chesapeake CEO McClendon Indicted Over Lease Bid Rigging (BBG)

Port Sale Highlights Western Australia's Sinking Fortunes (WSJ)

Texas abortion case goes before shorthanded U.S. Supreme Court (Reuters)

Valeant CEO Races to Repair Drug Maker's Reputation (WSJ)

The Rise and Fall of Commodities Hedge Fund King Willem Kooyker (BBG)

U.S. Shoppers Heeding Loonie's Call Flock to Canada's Websites (BBG)

Chinese Hedg ...

Super Tuesday Recap: Trump "Schlongs" GOP Field, Hillary Extinguishes "The Bern"

It was a œsuper Tuesday indeed for Donald Trump and Hillary Clinton who both moved closer to securing the nomination for their respective parties yesterday evening.

Trump won 7 out of eleven states in what he called œan amazing evening. The billionaire and presumptive nominee took Georgia, Alabama, Tennessee, Massachusetts, Arkansas, Virginia, and Vermont in what amounted to a rout of the field.

œI feel awfully good, he told reporters in Florida.

And the rest of the field feels œawfully bad, because the previously unthinkable is now a foregone conclusion for all intents and purposes. Barring some kind of dramatic shift in sentiment, Donald Trump is going to be to Republican nominee.

Meanwhile, Hillary is on the verge of extinguishing œThe Bern, so to speak. The Vermont senator put up a good fight, but it now appears the œClinton brand is simply too much for the firebrand socialist to overcome. There's a palpable backlash against Clinton in America but frankly, the polls suggest it isn't palpable enough to keep her out of The White House. Here's how things stand after Tuesday night:

Marco Rubio and John Kasich tried to convey a false sense of confidence. "Two weeks from tonight, right here in Florida, we are going to send a message loud and clear," Rubio said. When this election moves north, fasten your seat belts ... When I win Ohio, it will be a whole new day I can promise you that," Kasich remarked.

But that's all just bluster. The deck is stacked, although Cruz still has a shot.

Investors Turn Finicky on Corporate Bonds

Bond-market turbulence in 2016 is widening the gap between corporate haves and have-nots, a dynamic that threatens to weaken the U.S. economic recovery by raising financing costs for lower-rated firms.

Global Stocks Pare Gains

A rally in U.S. and European stocks began to stall Wednesday as oil prices retreated. Futures pointed to a 0.2% opening loss for the S&P 500.

The Real Reason ICE Covets the London Stock Exchange

In the modern world of exchanges, profits are more likely to come from behind-the-scenes entities that take on the risks of trades, not from the trading itself. That helps explain why Atlanta-based Intercontinental Exchange is considering a bid for London Stock Exchange Group.

Would Monetary Tightening Increase Bank Wholesale Funding?

from Liberty Street Economics

-- this post authored by Dong Beom Choi and Hyun-Soo Choi

The recent financial crisis clearly revealed that the reliance of banks on short-term wholesale funding critically increased their funding liquidity risks; during market disruptions, it becomes more likely that banks will be unable to roll over those funds and will hence be forced to fire-sell illiquid assets and possibly contract lending.

Economic Report: Private-sector job gains accelerate in February, ADP says

Private employment increased by 214,000 in February, according to the ADP National Employment Report, above consensus expectations.

Need to Know: What to buy as the bulls get to partying again

The happy-clappy start to this month has left investors wondering if it's actually OK to celebrate. If March is going to keep looking like a party for stock bulls, here's how to join in.

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