FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

05May2016 Market Update: Afternoon Markets Trading Sideways As Investors Weigh The Probabilities Of An Impending Market Decline, Crude Prices Lower For Now, US Dollar Melting Back Up

Written by Gary

US markets opened up fractionally as expected and the Spooz has traded above and below the 2055 support/resistance for the entire morning session. WTI crude has slipped off its $46 high this morning and is trading quietly in the high 44's for now, but is expected to rise again and place immediate bearish pressure on Wall Street. Global financial data continues to be on the weak side worrying investors.

Here is the current market situation from CNN Money

North and South American markets are mixed. The S&P 500 is higher by 0.15%, while the Bovespa is leading the IPC lower. They are down 1.78% and 0.28% respectively.

What Is Moving the Markets

Here are the headlines moving the markets.

U.S. stocks gain as oil rebounds

(Reuters) - The S&P 500 and the Dow were higher in late morning trading on Thursday as a rise in oil boosted energy shares, but gains on Nasdaq were limited as Tesla dragged.

U.S. jobless claims rise; planned layoffs surge

WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits rose more than expected last week, posting the biggest gain in more than a year, but the underlying trend continued to point to a strengthening labor market.

Alibaba's revenue soars, but new ventures hit profit

(Reuters) - Alibaba Group Holding Ltd, China's biggest e-commerce company, said fourth-quarter sales rose 39 percent after its core online shopping business grew, but profit fell for the first time as it spent on ventures like food delivery.

Oil up 3 percent as Canada fire, Libya violence unleash supply fears

NEW YORK (Reuters) - Oil prices jumped 3 percent on Thursday, resuming their rally from last week, as a raging wildfire near Canada's oil sands region and escalating Libyan violence raised more worries about immediate oil supplies than a longer-term glut.

FCC majority backs Charter purchase of Time Warner Cable

WASHINGTON (Reuters) - A majority of the five-member U.S. Federal Communications Commission has voted to approve Charter Communications Inc acquisition of Time Warner Cable Inc and Bright House networks, which would create the second-largest U.S. broadband provider and third-largest video provider, two sources briefed on the matter said Thursday.

Fed's Bullard says global headwinds appear to have waned

(Reuters) - Global headwinds that have partly prevented the U.S. central bank from raising rates again may have dissipated, St. Louis Federal Reserve President James Bullard said on Thursday.

Oil rivals cooperate to slash equipment costs: Shell

LONDON (Reuters) - Ten oil companies including Royal Dutch Shell , Chevron and BP are working together to develop standard production equipment, a rare cooperation among rivals to save money as low oil prices put pressure on budgets.

Merck sales disappoint as Januvia, Remicade fall short

(Reuters) - Merck & Co Inc on Thursday reported lower-than-expected quarterly revenue, hurt by disappointing sales of its Januvia diabetes treatment and Remicade arthritis drug.

Striking union workers protest at Verizon shareholder meeting

NEW YORK (Reuters) - Dozens of Verizon Communications Inc landline workers, on strike since mid-April after contract talks hit an impasse, marched on the company's annual shareholder meeting in Albuquerque, New Mexico, on Thursday and several people were arrested for blocking traffic, unions said.

Party's Over - High Yield Bond ETF Crushed By Largest Outflows Ever

It appears the credit market's dead-cat-bounce party is over. Following the almost unprecedented bounce off the February lows, the last few days have seen HYG (the largest high yield bond ETF) tumble back below its 200-day moving average as credit spreads (in IG and HY) start to widen significantly. The driver of this sudden weakness is now clear - a $2.3bn 4-day outflow which is the most sudden and largest redemption ever.

HYG tumbles below its 20-day moving average after the panic buying off the lows...

Driven by the largest 4-day cumulative fund outflows ever...

Which has smashed HYG back to a 'zero' premium to NAV as HY spreads push back to 2-month highs. We had argued previously that HYG (and the bond ETFs) had become cash storage facilities for credit funds unable to find enough cash bonds and new issuance to dump their flows into and so the massive outflows this last 4 days could be a sign of a preparation for a heavier HY calendar going forward (silver lining) or perhaps it is just time to get back to cash and reduce exposure after the biggest v-shaped recovery on record (amid tumbling earnings and macro).

Why Gazprom's 'Monopoly' In Europe Is Far From Over

Submitted by Irina Slav via,

The first U.S. shipment of liquefied natural gas (LNG) arrived in Portugal last week and Gazprom did not immediately cut its own gas prices for Europe. While European media has hailed the entry of U.S. gas into the market as a game-changer and a monopoly-breaker, in the short term, nothing has changed at all.

Let's first get things straight: Gazprom is not a monopolistic supplier for Europe, though it's often called that. The Russian state giant actually supplies about one-third of the gas that Europe consumes. Norway supplies another quarter; so together, the two countries satisfy less than 60 percent of European gas needs. That's not a monopoly, although the current supply mix means that Gazprom is the single biggest player on the European market.

The U.S., on the other hand, has quickly turned into the world's biggest natural gas producer thanks to the shale boom. With prices pressed down hard by oversupply, U.S. gas producers are looking for international markets—and Europe is one obvious choice, but not the most lucrative.

According to calculations from one energy industry expert, the price for U.S. LNG landed in Europe could come in at $3.59 per MMBtu. Gazprom's average price this quarter was $180 per 1,000 cm3, or about $5.14 per MMBtu.

Numbers can be misleading, however, as different calculations make different price assumptions as evidenced by an Oxford Institute for Energy Studies estimate for U.S. and Gazprom prices laid out in

Surprise! Baltic Dry Index Plunges Most Since November As Commodity Bubble Bursts

Who could have seen this coming? Remember a week ago when TV entertainers crowed about the surge in The Baltic Dry Freight Index was a "clear signal" that 'China is back' baby and that escape velocity growth was just around the corner as global growth was destined to pick up...

Well, just as we warned very explicitly, the ramp in the index merely reflected the frenzied speculation in industrial metals by the Chinese and as authorities have cracked down on that idiocy, so the Baltic Dry has plunged by the most since November... as real demand punches back.

This was never going to end well.

Alibaba Earnings: Strong at the Core, But Side Bets Hurt

Alibaba's main e-commerce businesses continued to excel last quarter. But myriad investments in new areas dragged down results.

Tesla Earnings: It's All About the Dream

Enthusiasm for the Model 3 mass-market car has powered Tesla Motors to lofty heights. But first-quarter results should remind investors that the future isn't too far away.

Fitbit: The Cost of Competing With Apple

Fitness band maker expects earnings to recover by year's end, but the heavily shorted stock is unforgiving.

Capitol Report: Trump turns to Goldman Sachs veteran as finance chairman

Donald Trump has turned to a veteran of the investment bank he frequently criticized on the campaign trail to head up his finances for the presidential campaign.

Fitbit CEO says increased spending is necessary for growth

Fitbit CEO James Park said the company is spending on research and marketing as it rolls out new products and expands overseas.

Europe Markets: European stocks break four-day losing run as oil prices rally

European stock markets rise for the first time in five sessions, with optimism over a rally in oil prices outweighing concerns over a slowdown in growth in China's services sector.

Earnings Summary for Today

Earnings Calendar provided by

leading Stock Positions

Leading Stock Quotes powered by

Current Commodity Prices

Commodities are powered by

Current Currency Crosses

The Forex Quotes are powered by

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

Click here for Historical Releases Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Live Market


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Comments on Feyerabend’s ‘Against Method’, Part III
Taking a Wrench to Healthcare
News Blog
October 2016 Conference Board Consumer Confidence Declines
Richmond Fed Manufacturing Survey Remains In Contraction In October 2016.
October 2016 Chemical Activity Barometer Continues to Signal Improving Economic Growth
Case-Shiller Home Price Index August 2016 Year-over-Year Rate of Growth Marginally Improves
Russia Falls Into Old Habits
Infographic Of The Day: Commodity Update, Is The Summer Slump Over
Early Headlines: Asia Stocks Mixed, Oil Mixed, Voting Fraud, Pres. Forecast Little Changed, CETA Not Dead, Generous Iraqis, Terrorists In Pakistan, Duterte Wants Divorce From US And More
October 24, 2016 Weather and Climate Report - La Nina / El Nino?
Most Read Articles Last Week Ending 22 October
Londoners Most Uneasy About Chatting To Strangers
Average Gasoline Prices for Week Ending 24 October 2016 Now Higher Than One Year Ago
Earnings And Economic Reports: Week Starting 24 October 2016
New Findings: Anxiety Is Linked To Death From Cancer In Men
Investing Blog
Slow Motion Torture
The Week Ahead: How Long For This Trading Range?
Opinion Blog
What Triggers Collapse?
The Beer Goggles Stock Market
Precious Metals Blog
Preparing For Post-Election Social Unrest
Live Markets
25Oct2016 Pre-Market Commentary: Wall Street Pensive Awaiting Corporate Earnings And Economic News
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved