Wall Street closes higher as global stocks and oil prices gain as Brexit nerves settle somewhat. Contracts to buy previously owned U.S. homes fell more than expected in May, crude erases Brexit losses, amid massive U.S. inventory draw closing in the mid 49's. SP 500 did not close above 2100 and needs too if this rally is to continue.
OTTAWA (Reuters) - Canada, the United States and Mexico on Wednesday vowed to deepen their economic ties, pushing back against anti-free-trade sentiment that has shifted political debate in the United States and Europe.
NEW YORK (Reuters) - Wall Street recorded big gains for a second day on Wednesday as investors continued to scour for bargains and digest the fallout from Britain's stunning vote to leave the European Union.
LONDON/BRUSSELS (Reuters) - European Union leaders met for the first time without Britain on Wednesday less than a week after it voted to leave, delivering a tough message that London can access the bloc's lucrative single market only if it agrees to allow free movement for EU workers.
(Reuters) - General Electric Co.'s slimmed down financing arm shed its "too big to fail" designation on Wednesday, no longer deemed by the U.S. government "systemically important" and so liable to wreck the economy in the event it runs into distress.
NEW YORK (Reuters) - A U.S. judge dismissed a long-simmering legal battle over the cost of market data that is used by brokerages and high-speed trading firms, in a victory for the New York Stock Exchange and Nasdaq.
BRUSSELS/BERLIN (Reuters) - Europe's Industry Commissioner Elzbieta Bienkowska has called on Volkswagen to also compensate European drivers after the company agreed to pay out up to $15.3 billion in the United States to settle claims over the diesel emissions scandal.
CHICAGO (Reuters) - Monsanto Co is in talks with Bayer AG and other companies regarding "alternative strategic options," a month after it rejected the German company's $62-billion takeover offer, the U.S. seed producer said on Wednesday.
(Reuters) - Wal-Mart Stores Inc on Wednesday launched a free 30-day trial of ShippingPass, its two-day shipping program for shoppers in the United States, as the world's largest retailer looks to take on Amazon.com Inc's Prime subscription service.
We realize that fundamental analysis, especially in light of recent events, is dead and buried, but for those few who still keep track, here is a troubling chart showing how fast the S&P's cash flow is sinking relative to its debt load. As Bank of America helpfully points out, the USA is now trading at 13x EV/EBITDA, a 90th percentile since 1995.
And for those equity analysts who have not encountered such arcane concepts as cash flow and EBITDA, here is a table from Goldman showing that the median stock is currently trading in the 99th percentile of historical valuations.
The good news, as we noted up top, is that when it comes to momentum ignition higher (thanks to HFTs) and multiple expansion (thanks to central banks) none of this actually matters.
Several years ago, Hollande tried - and failed - to make French socialism that much better by instituting a 75% tax on millionaires. It didn't last long.
Now in the aftermath of Brexit, the French leader is pushing to make Paris into the capital that will benefit the most as companies may (or may not) seek to depart from London as part of the UK's separation from the UK. To do this Les Echos is reporting that the French leader is proposing new tax cuts for the middle class worth up to 2 billion, as well as adapting rules "to make Paris a more attractive financial center."
FRANCE'S HOLLANDE SAYS WE MUST ADAPT OUR RULES, INCLUDING ON TAXES, TO MAKE PARIS A MORE ATTRACTIVE FINANCIAL CENTRE - LES ECHOS
FRANCE'S HOLLANDE SAYS CONSIDERING NEW TAX CUTS FOR MIDDLE CLASSES WORTH A MAXIMUM OF 2 BLN EUROS
FRANCE'S HOLLANDE WILL USE CONSTITUTIONAL AMENDMENT TO PUSH THROUGH CONTESTED LABOUR LAW IF NEEDED
It is unclear how the French proposal will pass EU regulations which have found the French fiscal situation to already be in dire straits.
Furthermore, as companies evaluate whether to depart the UK for France, they may want to consider scenes such as the following showing relentless local protests, now stretching for months, against the much maligned anti-labor reform.
Tear gas, multiple arrests at anti-labor reform rally in Paris https://t.co/vAtXuQj1EZ pic.twitter.com/ZBpPWLWvFT
— RT (@RT_com) June 29, 2016
Finally, the entire premise whther anyone will leave the UK may have to be reevaluated. Earlier, both Goldman Sachs and Morgan Stanley
The Federal Reserve gave the go-ahead to most banks to lift dividends and increase stock buybacks, a sign of the growing recognition the regulator has given for the capital raised by the financial sector.
U.S. stocks close higher Wednesday, rallying for a second day as a surge in crude-oil prices and a retrenchment in Brexit fears pared sharp losses stemming from the U.K.'s surprise vote to leave the European Union.
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