Lots of negative issues facing the market today - mixed signals from lower oil prices, stronger-than-expected retail sales and Brexit. In fact, depending on your choice of glasses - even retail sales could be viewed as up or down.
(Reuters) - Wall Street dropped for a fourth straight session on Tuesday as central bank policymakers weighed the health of the U.S. economy and investors worried about an upcoming vote in Britain on whether to leave the European Union.
WASHINGTON (Reuters) - Evidence that the U.S. neutral rate of interest remains stalled near zero may slow Federal Reserve rate hikes even more than expected, tying the hands of policymakers until a rebound in global demand or other forces raise that key measure of the economy's underlying strength.
NEW YORK (Reuters) - Jeffrey Gundlach, the chief executive officer at DoubleLine Capital, said Tuesday that investors are dropping risky assets and turning to safer securities including Treasuries and gold because they are losing faith in central banks.
NEW YORK (Reuters) - Shares of a number of U.S. companies eyed in high-profile deals are trading significantly below their intended acquisition prices on worries that the deals will die, presenting an opportunity for some big-name investors.
NEW YORK (Reuters) - Wall Street executive Andrew Caspersen will likely plead guilty next month to criminal charges over an alleged $150 million fraud scheme, after compulsive gambling drove him to make huge, failed bets against the U.S. stock market, his lawyer said on Tuesday.
WASHINGTON (Reuters) - U.S. retail sales rose strongly in May as Americans bought automobiles and a range of other goods, even as they paid more for gasoline, suggesting that economic growth was gaining steam despite a sharp slowdown in job creation.
WASHINGTON, June 14 (Reuters) - U.S. business inventories barely rose in April as sales recorded their biggest increase in more than two years, pointing to a slow pace of inventory accumulation that could weigh on economic growth in the second quarter.
Oil fell today despite a bullish IEA report cutting its estimate for oil surplus (despite 2 weeks running of increasing rig counts and production and builds in gasoline and distillates last week). With crude inventories down 3 weeks in a row, API's print was expected to come in at -2.33mm barrels but instead built by 1.16mm barrels, sending oil prices lower. Cushing stockpiles were expected to drop 600k barrels (despite Genscape's 234k build estimate) but soared 664k barrels. Gasoline and Distillates both saw the biggest builds since January.
Crude +1.16mm (-2.33mm exp)
Cushing +664k (-600k exp, +234k Genscape)
These are across the board builds with Gasoline and Distilklates really ugly...
Gold in euros has risen another 1.3% today due to deepening BREXIT jitters with just 9 days left until the referendum on June 23. The flight to gold and sell off in euros and sterling came as Irish, UK, European and global stock markets fell sharply.
Gold in Euros " 5 Years
Gold in euros has risen from ‚¬1,135/oz to ‚¬1,149.60/oz today and is up 7% in the first 9 trading days of June, from ‚¬1,080/oz to ‚¬1,149.60/oz, as investors diversify into safe haven gold due to concerns Britain will vote to leave the European Union. Should the UK leave, there are real concerns that it will lead to other European nations following suit and see contagion in the Eurozone.
Gold is 17.5% higher in euros year to date " from ‚¬978/oz to ‚¬1,149.70/oz " today due to concerns about the Eurozone and increasing concerns about the global financial system and the global economy.
Gold in sterling has risen even more given BREXIT concerns and is up 10% in the first 10 trading days of June, from Â£827 to Â£908/oz, as UK investors diversify into safe haven gold due to concerns Britain will vote to leave the European Union.
A series of BREXIT opinion polls over the weekend strongly suggested Britain could vote to leave the EU, which many fear will likely lead to a fresh wave of turmoil across markets internationally and heightens the real risk of the break up of the European Union.
The Irish stock market and stocks internationally have come under pressure. Ireland's stock market, the ISEQ fell 2.3% yesterday and has fallen 0.6% today to 6,402 as concerns about the impact of BREXIT on Irish c ...
Submitted by Lance Roebrts via RealInvestmentAdvice.com,
In this past weekend's commentary, I discussed the failure of the market to hold its breakout above 2100 last week.
"The short-term outlook suggests more vulnerability to selling. Importantly, the markets must hold support at 2080, the short-term moving average, or 2040 which is the recent bottoms of what currently appears to be a potential topping process.
The failure of the markets this week to break, and hold, above 2100 keeps portfolio allocations at current levels. As shown below, the downtrend resistance, on a weekly basis, also coincides with 2040 reinforcing the importance of that support level. Stop loss levels are current set at 2020, and portfolio hedges will be added with a subsequent break of 2000."
The sell-off that started on Friday and continued through Monday also coincided with a sharp rise in market volatility. While the pop in volatility has been more of the "nor ...
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Econintersect's analysis of final business sales data (retail plus wholesale plus manufacturing) shows unadjusted sales degraded compared to the previous month. There was a marginal improvement in the rolling averages. Inventory growth was mixed (depending on whether one looked at the unadjusted or adjusted data). The inventory-to-sales ratios remain at recessionary levels.
U.S. stocks fell for a fourth session on Tuesday with the S&P 500 and the Dow Jones Industrial Average notching their longest losing streak since February as investors grappled with mixed signals from lower oil prices, stronger-than-expected retail sales and geopolitical uncertainty in Europe.
Prosecutors brought new charges Tuesday against Andrew W.W. Caspersen, a former Wall Street executive accused of gambling away investors' money on stock market bets, alleging he bilked investors, including his own family, out of tens of millions of dollars more than originally thought.
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