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02May2016 Market Close: Markets Closed Higher, Nasdaq Breaks Seven Session Losing Streak, Treasury Prices Fell After Economic Reports Show Mixed Picture Of Domestic Economy

Written by Gary

Markets closed higher with the DOW up 118 Points partially by gains in Berkshire Hathaway boosting the financial sector. The small caps up almost one percentage point, as the Nasdaq Composite snapped a seven-session losing streak because of sharp gains in tech bellwethers Amazon and Netflix helping lift the tech-laden Nasdaq and highlighted the rally.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

Wall St. rebounds after recent losses; financials help

(Reuters) - U.S. stocks rose on Monday, rebounding from losses last week, with gains in Berkshire Hathaway boosting the financial sector.

Oil down 3 percent on OPEC output hike, speculative ramp-up in Brent

NEW YORK (Reuters) - Oil prices fell about 3 percent on Monday as production from the Organization of the Petroleum Exporting Countries neared all-time peaks and record speculative buying in global benchmark Brent sparked profit-taking on last month's outsized rally.

U.S. manufacturing shows signs of stability as export orders rise

WASHINGTON (Reuters) - U.S. factory activity expanded at a more moderate pace in April due in part to a slowdown in new orders, but a rise in export orders to a near 1-1/2-year high and signs an inventory overhang drag was fading offered hope for the manufacturing sector.

Baker Hughes tries to reassure investors as Halliburton deal fails

(Reuters) - Baker Hughes Inc sought to reassure investors on Monday by announcing a $2.5 billion plan to buy back stock and pay down debt, using the breakup fee it will receive following the collapse of its long-stalled takeover by fellow oilfield services provider Halliburton Inc .

Twitter lawsuit partly dismissed over U.S. information requests

SAN FRANCISCO (Reuters) - A U.S. judge on Monday partly dismissed a lawsuit filed by Twitter Inc in which the social media company argued it should be allowed to publicly disclose more details about requests for information it receives from the U.S. government.

Ackman: Valeant has no plans to sell 'crown jewel' assets - CNBC

BOSTON (Reuters) - Billionaire hedge fund manager William Ackman told television station CNBC on Monday that embattled drug company Valeant Pharmaceuticals has no plans to sell any "crown jewel" assets and that he stuck with his bet on the company because he thought he could "fix it".

Puerto Rico gov't bank misses payment, talking with creditors

SAN JUAN/NEW YORK (Reuters) - Puerto Rico's Government Development Bank said it reached a tentative debt restructuring framework with some of its major creditors, just hours after declaring it will skip making a $422 million bond payment due on Monday.

Exclusive: Tribune Publishing No. 2 shareholder supports sale

(Reuters) - Oaktree Capital Group LLC , the second largest shareholder in Tribune Publishing Co , wants the U.S. newspaper company to explore a sale, people familiar with the matter said on Monday.

U.S. economy still seen growing 1.8 percent in second quarter: Atlanta Fed

NEW YORK (Reuters) - The U.S. economy is on track to grow at a 1.8 percent annualized rate in the second quarter, the Atlanta Federal Reserve said on Monday, unchanged from its estimate on Friday.

"Debt Is The Cause, Not The Cure"- Why $19 Trillion In Debt 'Is' A Problem

Submitted by Lance Roberts via RealInvestmentAdvice.com,

According to the World Economic Forum, the United States has achieved a new TOP 10 ranking. Tell us what we've won Bob:

"Coming in at #10 - the United States, at 104%, gets nothing but the privilege of being on the list of countries with the highest debt/GDP ratios."

So...it's just $19 Trillion? A mere doubling of the national debt in eight years isn't really a problem, right? According to Bob Bryan at Business Insider, that answer is - no.

"Debt is an issue only if you can't repay it or if other people believe you can't repay it. And, as Business Insider's Myles Udland has noted, the US can literally print the money it needs to repay its debt, and it still maintains a high credit rating."

Bob is correct. The "fear mongering" over debt levels, and President Obama's threats of default if we "shut down the government," are just that - fear mongering. Entitlements and interest payments are mandatory expenditures of the government which get paid regardless of whether the Government is shut down or not.

However, wha ...

The Last Time This Happened, Stocks Tumbled 20%

For the last 11 weeks - off The Dimon Bottom - the S&P 500 has made higher lows week after week without break. Last week, however, saw the streak end (with a lower low set). This length of incessant "uptrend" streak has not been since February 2011, at which time it was broken leading to an immediate decline followed by a considerably plunge soon after...

Couldn't happen again?

In 2011, the S&P 500 fell 4.8% in the month after the trend was broken... and then a 20% decline into the fall of 2011.

While we are sure it's different this time, between "Brexit" and the Election there are plenty of catalysts for 'uncertainty' however.

Here Is Mario Draghi's Advice To Europe's Crushed Savers

Yesterday, the ECB sent Benoit Coeure out to explain to the uneducated masses that the concern over negative interest rates is overdone because not everyone is saving money.

In Germany, the ECB has recently been repeatedly criticised for hurting savers through the currently very low interest rates. But people are not just savers - they are also employees, taxpayers and borrowers, as such benefiting from the low level of interest rates. Thanks to improved economic conditions, stimulated not least by monetary policy, real income and employment in Germany have increased in recent years. In other words, we need low interest rates now to ensure a normalisation of economic conditions, including higher returns on savings in the future.

Not to be outdone, the wizard behind the ECB curtain himself decided to comment on the matter. During a speech today at the annual meeting of the Asian Development Bank, Super Mario picked up where his colleague left off, and educated the people a bit further. Mario told everyone that if they would just take some of their savings and invest in stocks, those pesky negative interest rates wouldn't be a problem. Alas, if European savers could just be like their U.S. counterparts and have less than 15% of their assets sitting in cash instead of the unthinkable nearly 40% that those crazy Germans keep, all would be well with the world.

For a start, savers can still earn satisfactory rates of return from diversifying their assets, even when interest r ...

Halliburton-Baker Hughes Deal: What Has Been Gained and Lost

The failure of a merger between oil-field-service rivals Halliburton and Baker Hughes is less disastrous for both companies than it seems.

Valeant and Buffett: Looking Past the War of Words

Harsh words won't further damage Valeant shareholders. Changes to earnings expectations might be a different story.

Banks Dodge One Oil-Patch Risk

In an encouraging sign for banks, oil companies took limited drawdowns of open lines of credit in the first quarter.

Gender diversity pays off for investors and companies, study finds

Morgan Stanley analyzed 1,600 companies and found that more diverse companies have better stock returns.

Hispanics will outspend millennials by 2020: Morgan Stanley

Morgan Stanley says Hispanic growth in income and population will drive increases across a number of industries.

The Margin: This is what happens on the Internet in 60 seconds

150 million emails are sent every minute on average across the Internet

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To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

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