The S&P 500 hit an all-time high soon after today's open by breaking above the prior May 20, 2015 record of 2,134.72 points, while oil staged a turnaround in early North American trading by trading above 45.70. Even after last Friday's employment report gave indications of a strong labor environment, markets remained skeptical about the odds of a Fed rate hike this year.
Here is the current market situation from CNN Money
North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 1.37% while Mexico's IPC is up 0.85% and U.S.'s S&P 500 is up 0.53%.
$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) - Despite the worst start to the year in history for U.S. stocks, the benchmark S&P 500 index rallied to a record intraday high on Monday, surpassing the previous intraday peak set on May 20, 2015.
FARNBOROUGH, England (Reuters) - The U.S. Defense Department on Monday extended by two years a project that has cut the cost of Lockheed Martin Corp's F-35 fighter plane by more than $1 million per jet, and kicked off a similar project to cut operating and maintenance costs.
(Reuters) - Thomson Reuters Corp on Monday said it agreed to sell its intellectual property and science business to private equity firms Onex Corp and Baring Private Equity Asia for $3.55 billion in cash.
NEW YORK (Reuters) - An ex-girlfriend of media mogul Sumner Redstone will not be granted a new trial over her lawsuit that challenged the 93-year-old's mental competence, a California judge said in a tentative ruling on Monday.
FARNBOROUGH, England (Reuters) - Airbus and Boeing raised their long-term forecasts for new aircraft demand on Monday, betting that rising wealth in Asia would continue to boost air travel and offset any short-term hits to the global economy.
LONDON (Reuters) - British luxury brand Burberry has recruited Marco Gobbetti, the Italian boss of French brand Celine, to succeed Christopher Bailey as chief executive next year, freeing Bailey to focus again on the design role that made his name.
As One River's Chief Investment Officer, Eric Peters, put it over the weekend, "today's most important question is whether the inexorable trend toward zero is good or bad for stocks."
He then lays out his answer in the form of one of his inimmitable whimsical, "fictional" responses - which not accidentally hints at Tesla - as presented below.
"Today's most important question is whether the inexorable trend toward zero is good or bad for stocks," explained Lithium, hands free on Highway One.
"The more we have considered this simple question, the better we've become at articulating a simple answer." Low rates are quite obviously supportive for stocks, at least in America. Where the S&P 500 now trades at all-time highs, with bond yields at historic lows.
"While declining interest rates are good, really low rates are bad," he said. "When long-term rates decline you can assume growth is declining."
The lower cost of capital supports higher equity multiples, which is good initially. But high multiples reward entrepreneurs for building new businesses, and in a low-growth economy they cannot grow quickly by profiting from a rapidly expanding pie.
"New businesses are built to target fat margins earned by incumbents. They come in and disrupt everything." Any time there are big profits, you find fat around them, inefficiencies, empires.
New capital doesn't need those things. And it doesn't require fat margins, it simply needs high revenues. So when rates get low enough, all the corporate moats that had protected profits get breached. Whi ...
Submitted by Anthony Sanders via Confounded Interest blog,
No, a Coco bond is not a new Chanel perfume or a Hersheys product. Rather, CoCo stands for contingent convertible capital instrument (CoCo) are is a hybrid capital security that absorbs losses when the capital of the issuing bank (such as Deutsche Bank) falls below a certain level.
Italy's Unicredit and Spain's Banco Santander have higher CoCo bond yields.
Deutsche Bank raised nearly 20 billion in 2010 and 2014, by selling shares, which diluted existing shareholders, and by issuing CoCo bonds, spread over four issues in dollars, euros, and pounds. CoCo bonds have no maturity and are perpertual. The coupons range from 6% (EUR demoninated) to 7.50% (US Dollar denominated).
The purpose? To prop up Tier 1 capital, And yes, the capital trigger is mechanical, not arbitrary.
And now that 'protective' capital is collapsing...
In an extremely frank and honest press conference Dallas Police Chief David Brown has unleashed an avalanche of uncomfortable truths and mainstream narrative-breakers. When asked what advice he would have for young black men protesting, he recollected his own experience: "I wouldn't protest, I'd get involved and do something about it... become part of the solution, serve your communities... we're hiring."
#Dallas Police Chief Brown shares his story: "I probably wouldn't protest...I'd get involved & do something about it." pic.twitter.com/kXLfKG1T0g
— Fox News (@FoxNews) July 11, 2016
#Dallas Police Chief's advice to young black men: "Become a part of the solution, serve your communities." pic.twitter.com/zAqLNdWwDe
The Conference Board's Employment Trends Index - which forecasts employment for the next 6 months increased but its authors state "the Employment Trends Index has been moving sideways in the first half of 2016, suggesting only moderate job growth in the coming months."
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