Markets closed down with some negative aftermarket action concerning GOOGLE missing revenue. DOW down 114 points, Spooze down a half percentage point and WTI crude off fractionally. Investors are expecting another down day tomorrow.
SAN FRANCISCO/WASHINGTON (Reuters) - Volkswagen AG, driving to move beyond a scandal that has disrupted its global business and sullied its reputation, announced a sweeping deal on Thursday to buy back or potentially fix about a half million polluting diesel cars and set up environmental and consumer compensation funds.
(Reuters) - SunEdison Inc, once the fastest-growing U.S. renewable energy company, filed for Chapter 11 bankruptcy protection on Thursday after a short-lived but aggressive binge of debt-fueled acquisitions proved unsustainable.
WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits unexpectedly fell last week, hitting its lowest level since 1973, suggesting an apparent sharp slowdown in economic growth in the first quarter could be temporary.
(Reuters) - Wall Street retreated on Thursday, heading for its first loss in four sessions after a mixed bag of quarterly reports and a warning by Verizon Communications that a strike by workers would likely impact its bottom line.
NEW YORK (Reuters) - Oil prices slipped on Thursday on further evidence of oversupply and a stronger dollar, while the euro eased against the U.S. dollar after European Central Bank President Mario Draghi pledged to keep monetary policy loose.
DETROIT (Reuters) - Demand for big trucks in North America and an improved performance in Europe propelled General Motors Co's quarterly results well past investors' expectations, and company executives on Thursday affirmed their bullish outlook for the year.
DETROIT (Reuters) - J.D. Power and LMC Automotive on Thursday said April U.S. total light vehicle sales will rise 4.9 percent to 1.523 million vehicles, for an annualized rate of 17.6 million vehicles.
TOKYO (Reuters) - Japanese officials raided a facility belonging to Mitsubishi Motors Corp on Thursday after the carmaker admitted to overstating the fuel efficiency of 625,000 cars, a revelation that has sent its shares into a tailspin.
Three recurring laments heard in the corridors of the Marriner Eccles building are why, with stocks at record highs after levitating in more or less a straight line for the past 7 years, i) has the economic recovery not been stronger, ii) has inflation not been higher, and iii) have consumer spending and sentiment never really recovered. A just released Gallup survey may have the answer.
According to a poll of over 1,000 American adults, even with the Dow Jones industrial average near its record high, only slightly more than half of Americans (52%) say they currently have money in the stock market, matching the lowest ownership rate in Gallup's 19-year trend.
The current figure is down slightly from 2014 and 2015, and continues a secular decline that started in 2007.
But most troubling is that the generation which is expected to take over the stock ownership reins when the Baby Boomers start selling their equity holders, middle-class adults, especially those younger than 35, are the least likely to invest. As Gallup notes, "although Americans in all income groups are less likely to have stock investments now than before the Great Recession, middle-class Americans have been the most likely to flee the market"
Gallup's conclusion: "Fewer Americans -- particularly those in middle-income families -- are benefiting from the recent gains in stock values than would have been the case a decade ago."
Which is the worst possible news for Janet Yellen, because no matter how hard the Fed works to prop and boost the market, nearly half of Americans no longer have any faith left in what has become clear to most is just a tool to push some crooked, crony-capitalist policy, but mostly to make the richest even richer.
One commodity trader writes in with some very unique observations. From trader "Peter"
* * *
The insanity has now fully spilled into the commodity markets - a market which I professionally made a transition to after the 2008 crisis from the financial markets, simply because I believed it was a market that would still function according to true fundamentals...
I guess that only lasted so long...
The commodity markets have been prone to excessive speculation for years, but at the end, the thought of specializing in something "tangible" that EVENTUALLY would have to revert back to true supply and demand fundamentals made all the sense in the world. Specially with the true circus that the financial markets have become since 2008...
* * *
Sent: Wednesday, April 20, 2016 1:35 PM
Subject: volume totals today
774K of soybeans traded today and that would be a record by nearly 160K contracts as yesterday set the record at 615K.
Over 88K Jly/Nov traded today and 97K May/Jly traded. Unheard of non-roll numbers.
Meal volume was 270K and we have to think that was a record as well but not 100% on that one.
Lots of ideas around to try and explain the move: from commercial short hedgers blowing out, Chinese pricing, product switching from Argentina to the US.
Not really sure if all or any of this is true but it was quite a wild session
* * *
Sent: Wednesday, April 20, 2016 2:41 PM
Subject: RE: Some staggering volume totals today
Man... I would be VERY surprised if this was due to any of the reasons people are mentioning...
Chinese pricing - I am very positive it does have something to do with it, but for the overnight session - not the daytime.
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