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16Jun2016 Market Close: USA Markets Close Up

Written by Gary

Surprise - the USA markets gained for the first time this week. Gold and oil marginally declined. Data releases today were not good and not bad - there was little news out there to affect the mood of the markets. Interestingly, Smith & Wesson revenues hit an all time high - up 200% since Obama was elected,

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

Sumner Redstone ousts Viacom CEO and four directors from board

NEW YORK/SAN FRANCISCO (Reuters) - Sumner Redstone removed five of Viacom Inc's directors, including Chief Executive Philippe Dauman, from the board of the media company he controls, ramping up the stakes in the battle over the future of his $40 billion media empire.

Wall Street rebounds, snaps five-day losing streak

(Reuters) - Wall Street closed higher on Thursday as investors digested the implications of a British lawmaker's death on the country's impending referendum on whether to leave the European Union.

Rising rents, healthcare costs support U.S. underlying inflation

WASHINGTON (Reuters) - U.S. consumer prices moderated in May, but sustained increases in housing and healthcare costs kept underlying inflation supported, which could still allow a cautious Federal Reserve to raise interest rates this year.

Wal-Mart targets new sales of up to $60 billion by 2019: CEO

CAPE TOWN (Reuters) - Wal-Mart Stores , the world's biggest retailer, expects to add $45 billion to $60 billion of new sales over the next three years, the chief executive said on Thursday.

Gun shares, volatile after Orlando killing, rise ahead of Smith & Wesson report

SAN FRANCISCO (Reuters) - Shares of firearm makers rose on Thursday ahead of Smith & Wesson Holding's quarterly report, following volatility this week after a shooting attack that killed 49 people at a gay nightclub in Orlando.

Siemens to pay $1 billion to Gamesa in wind units' merger: Bloomberg

(Reuters) - Siemens AG will pay about $1 billion to Spain's Gamesa in a deal to merge of the companies' wind energy businesses, Bloomberg reported, citing sources.

Zuckerberg's philanthropy project makes first major investment

(Reuters) - Facebook Inc founder Mark Zuckerberg's philanthropy venture has made its first major investment, leading a funding round in a startup that trains and recruits software developers in Africa.

VW bets on electric cars, services to recover from crisis

WOLFSBURG, Germany (Reuters) - Volkswagen will invest billions of euros in electric cars, ride-hailing and automated driving to become a world leader in green transport by 2025, it said on Thursday, as it reshapes its business following its diesel emissions scandal.

21st Century Fox names Stacey Snider as CEO of film studio unit

(Reuters) - Twenty-First Century Fox Inc said Jim Gianopulos would step down as chief executive of its film studio business in June next year and co-Chairman Stacey Snider would succeed him.

Smith & Wesson Revenues Hit All Time High, Up 200% Since Obama Election

Moments ago, America's legendary gun company reported Q4 earnings which, not surprisingly, beat estimate on the top and bottom line, reporting EPS of $0.66, far above the $0.54 expected, on revenue of $221.1 million, $7 million higher than consensus had expected. The stock, while not at its all time high which it hit earlier this year, is surging on the results, however, it was the tremendous topline growth in revenue that has to be seen to be believed.

See if you can spot the catalyst that unleashed SWHC's unprecedented growth burst.

Yes, you are reading that chart correctly: Smith and Wessons sales are up 200% since Obama was elected.

Once again, we wonder if secretly Obama isn't merely a very deeply planted agent for the NRA and gun lobby - if it wasn't for him gun sales in the US would be order of magnitude lower.

As for the future, SWHC forecast 2017 sales of $740-$760 million, which smashed expectations of $732 million, and which we are confident will be very easily beat, especially thanks to the latest attempt by the president to implement yet another set of gun control executive orders.

And this of course: the number of FBI background checks, a direct proxy for gun sale in any given monthm which just hit an all time high for the month of May.

From Entropy To Ecstasy - A Market In Chaos

So to recap - Fed dismal and no change - warns of Brexit, BoJ disappoints with no change - warns of Brexit, BoE does nothing - warns of Brexit, Brexit polls show "Leave" leading... but an England win in Euro2016 and the death of a British MP was enough to turn the entire day around...

The sad truth about today's massive roller-coaster roundtrip is that it was driven by the death of a British MP which sparked speculation about delays to the Brexit vote...

Bonds were once again panic-bid with Swiss 30Y yields going negative for the first time in history...

As rate-hike odds continue to tumble (with Dec just 20% now)...

Across asset-classes, Bonds remain in the green as gold caught down to stocks...

When Was The Last Time German 10-Year Bond Yields Went Negative?

Submitted by Michael Shedlock via MishTalk.com,

Think back. Many readers have been trading for 10 or 20 years. A few have been trading for 30 or more years. What was it like the last time German 10-year bond yields went negative?

That is sort of a trick question. Most likely you were not alive, no matter how old you are.

As translated from Spanish, my friend Guru Huky posted the answer on his blog today: And the last time the German bond stood negative was .... surprise surprise.

German 10-Year Yield Since 1807

Huky Comments

Yesterday the yield of German bonds entered negative territory. Some will think that all is well and that falls within what could be considered normal, but that there is nothing like taking a look back.

The last time the German bond slipped into negative return was between 1922 and 1923. At that time in Germany succumbed to hyperinflation which left without any value to German bonds yields marked not simply because nobody bought them for those two years.

Mish Comments

Unless you are at least 94 years old you were not born yet. If you are 100 years old and have a memory of German bond yields at age six, I salute you.

McCain Says Obama "Directly Responsible" For Orlando Mass Shooting, Then Promptly Retracts

Update: That didn't take long



MCCAIN ISSUES STATEMENT SAYING `I MISSPOKE' ON OBAMA REMARK

* * *

With the fingerpointing over the culpability of the Orlando shooting a raging issue in this week's political news cycle, earlier today neocon senator John McCain said President Obama wasdirectly responsible for the terror attack in Orlando due to his failure to combat the rise of the Islamic State terror group. As AP reported, McCain, who lost to Obama in the 2008 presidential election, made the comment to reporters Thursday while Obama was in Orlando visiting with the families of those killed in Sunday's attack and some of the survivors.

Of course, McCain's agenda was simple: send more troops to Iraq. McCain's statement echoes remarks made this week by Donald Trump, who according to Politico, seemed to connect Obama to the attack in a Monday interview and on Wednesday tweeted an article claiming that Obamaactively supported the terrorist group that became the Islamic State.

After the shooting early Sunday morning, presumptive GOP presidential nominee Donald Trump said the president either didn't understand the radical Islamic terrorist threat or he "gets it better than anybody understands." "We're led by a man that either is not tough, not smart, or he's got something else in mind," Trump said earlier this week.

"And the something else in mind, you know, people can't believe it, people cannot believe that President Obama is acting the way he acts and can't even mention the words 'radical Islamic terrorism.' There's something going on " it's inconceivable. There's something going on."

Why Some Banks Are Hurt More Than Others by Falling Rates

The relentless decline in long-term interest rates is bad for all banks, but some are more exposed than others.

Apartment Boom Needs Cooling-Off Period

The apartment-building boom is running into a supply problem.

Health-Care Mergers: The Debt PartyMay Not Last

Envision and Amsurg chose an all-stock deal for a reason.

What We Read Today 16 June 2016

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.

This feature is published every day late afternoon New York time. For early morning review of headlines see "The Early Bird" published every day in the early am at GEI News (membership not required for access to "The Early Bird".).

BECOME A GEI MEMBER - IT's FREE!

Every day most of this column ("What We Read Today") is available only to GEI members.

To become a GEI Member simply subscribe to our FREE daily newsletter.

June 2016 Philly Fed Manufacturing Survey Slightly In Expansion

Written by Steven Hansen

The Philly Fed Business Outlook Survey is now slightly in expansion. Key elements marginally declined and remain in contraction. The only other manufacturing survey released so far for this month is also in expansion.

U.S. bank earnings will feel bite of U.K. exit from EU

Earnings of large U.S. banks would be trimmed by as much as 5.6% this year and as much as 9% in 2017 if the U.K. opts to leave the European Union in a referendum to be held next week, analysts at brokerage Keefe, Bruyette & Woods said.

Market Extra: The dollar at 100 yen would be bad news for stocks

After crashing through its September 2014 lows on Thursday, the dollar is on track to touch 100 yen for the first time since late 2013.

Microsoft gets into the weed business

Microsoft's new deal with KIND Financial makes it one of the first major brands to play ball with marijuana.

Summary of Economic Releases this Week

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Earnings Summary for Today

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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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