Wall Street remains depressed (SPY -0.9%) and trading in a narrow sideways zone. The University of Michigan came in higher than expected at 94.3 but lower from May's reading of 94.7. USD Baker Hughes U.S. Rig Count came in at 414 up from 408. The price of WTI crude burped, but has continued to decline as the US dollar continues to melt up. Global growth continue to worry investors and short-term indicators are bearish.
Here is the current market situation from CNN Money
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Following a major market correction, the conditions for safe re-entry are when:
a) Daily $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
NEW YORK (Reuters) - Jeffrey Gundlach, chief executive officer at DoubleLine Capital, said Friday that investors are dropping risk assets from their portfolios because of falling global Gross Domestic Product expectations, fueled by China's slowing growth, and the U.S. presidential race.
NEW YORK (Reuters) - Viacom Inc warned on Friday that its shares could fall as a result of a bylaw change by controlling shareholder Sumner Redstone to restrict Viacom's planned sale of a stake in its Paramount film unit.
(Reuters) - Tesla Motors Inc said on Friday there was no safety defect in its Model S or Model X, and that the U.S. National Highway Traffic Safety Administration (NHTSA) had not opened any investigation or any "preliminary evaluation" on the matter.
BERLIN (Reuters) - Top U.S. weapons maker Lockheed Martin Corp is studying whether to shift work on its multibillion-dollar F-35 fighter jet away from Canadian firms amid uncertainty over Ottawa's plans to buy the jet.
WASHINGTON (Reuters) - Toyota Motor Corp said on Friday it had told its U.S. dealers to disclose, at the time of sale, the identity of vehicles with defective Takata air bag inflators that will be subject to recalls by 2018.
LONDON (Reuters) - It is a sign of the caution that permeates the global economic outlook when four of the world's top central banks, all due to meet within days of each other, are almost unanimously expected to make no change to their extraordinary stimulus programs.
LONDON (Reuters) - Briton Guy Hands has withdrawn his case against Citigroup over the 2007 buyout of music label EMI, his private equity firm Terra Firma said on Friday, ending almost seven years of on-off litigation over the disastrous deal.
NEW YORK (Reuters) - Citigroup Inc sued AT&T Inc on Friday, saying the phone company's use of "thanks" and "AT&T thanks" in a new customer loyalty program infringed its trademark rights to the phrase "thankyou."
Following last week'sunexpected rise in US oil rigs - and the biggest increase in US Crude production since the first week of January - the lagged price of oil suggested that rig counts would continue to rise this week, and it did - up 3 to 328. Oil prices had dropped from over $51.50 to almost $49 - erasing the post-payrolls gains- ahead of the rig count data and were relatively unimpressed by the print.
Production rose last week for the first time in 18 weeks and by the most since Jan 1st:
As rig counts increased by the most since December and for the 2nd week in a row... leaving oil unchanged since payrolls...
Moments ago the financially challenged tabloid nemesis of Peter Thiel, Nick Denton's Gawker Media, filed for bankrutpcy - an outcome predicted by many as inevitable - listing assets between $50 and $100 million, and liabilities between $100 and $500 million.
No matter on which side of the Thiel-Denton debate one sides, we doubt many tears will be shed as yet another chapter in "new media" comes to a close.
The WSJ adds that the company will be put for sale in bankruptcy auction, which will begin with an opening bid of $100 million from the digital media company and publisher Ziff Davis LLC, according to a person familiar with the matter. The sale was triggered after the judge overseeing the invasion-of-privacy case brought by Hulk Hogan "whose real name is Terry Bollea "declined to issue a stay pending Gawker's appeal. That required the company to put up a $50 million bond.
Why is the company filing now? Simple: to make Hulk Hogan's aka Terry Bollea's $130 million claim part of the prepetition, unsecured liabiltiies.
"Whatcha gonna do when Chapter 11 runs wild on you"
Proceeds from a sale will go into a fund to finance further litigation costs and cover whatever damages may ultimately be leveled following the appeals process, which could take years to resolve. Gawker has said that it expects to ultimately prevail.
ECRI's WLI Growth Index which forecasts economic growth six months forward expanded marginally and remains in positive territory for the eleventh week - after spending the previous 34 consecutive weeks in negative territory.
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