US markets started out with like a Fourth of July fireworks, shooting high into the sky, bang and flaming debris falling to the ground. The major indexes did recover slightly to close in the flat range, but disinterested investors are not lining up for tomorrow it seems. Short-term indicators appear to moderately bullish, but watch out.
WASHINGTON, (Reuters) - The U.S. economy continued to expand from mid-May through the end of June but there was little indication that inflation would surge any time soon, the Federal Reserve said on Wednesday.
DETROIT (Reuters) - Tesla Motors Inc said on Wednesday it had discontinued its resale value guarantee program that assured buyers that cars would retain value over time, and lowered the starting price of its Model X crossover, the second time it has lowered prices this year.
CHICAGO (Reuters) - A U.S. judge sentenced futures trader Michael Coscia to three years in prison on Wednesday, a lighter punishment than prosecutors had sought for the first person criminally convicted of the manipulative trading practice of spoofing.
WASHINGTON (Reuters) - The U.S. federal government posted a budget surplus of $6 billion in June, compared with a surplus of $50 billion in the same month a year earlier, the Treasury Department said on Wednesday.
WASHINGTON (Reuters) - The top U.S. securities regulator on Wednesday tried to respond to complaints that the deck is stacked against defendants at in-house trials by approving the first major revisions to its administrative proceedings in two decades.
BOSTON (Reuters) - Participants in SunEdison Inc's $155 million retirement plan suffered heavy losses on their investments in company stock last year in the months before the renewable power plant developer landed in bankruptcy.
(Reuters) - Chinese real estate and entertainment conglomerate Dalian Wanda Group has held talks with Viacom Inc about acquiring a minority stake in its Paramount Pictures unit, according to two people familiar with the situation.
LONDON (Reuters) - Hailed by investors as a weapon to fight off recession but slammed by critics for fuelling inequality, quantitative easing looks set for a comeback in Britain as the Bank of England tries to shield the economy from the fallout of Brexit.
One week ago, we looked at an epic build up of gasoline inventories on the East Coast, also known as PADD1, which had slammed the crack spread to record lows for this time of the year, and asked if "This What Finally Drags Crude Oil Lower." We were referring to the collapsing Crack Spreads, which show that something disturbing is taking place for US refingers who are no longer able to "internalize" the massive crude glut.
U.S. gasoline crack spread a proxy for refiner margins, has dropped 34 percent in two weeks. On Wednesday, it hit a five-year low for this time of year below $13 a barrel. That is less than half the crack spread of $28 a barrel at this time last year.
As of today, the WTI crack spread was $13.1, largely unchanged from a week ago.
We then quoted Andrew Lebow, senior partner at Commodity Research Group in Darien, who summarized it best by saying that "PADD 1 is a holy mess. It is very unusual. If a market becomes extremely oversupplied, like PADD 1, they are going to have to cut runs." That is another way of saying refiners will have to stay shut, which in turn will force crude to build up in various on and offshore storage locations.
Our summary of the strange events taking place in the US refining industry:
In a shockingly non-politically-correct outburst, Patrick Calvar, chief of the Directorate General of Internal Security, told members of the French parliamentary commission that thanks to the increasing frequency of sexual assaults by islamic migrants, "Extremism is growing everywhere... We are on the brink of civil war."
As The Express reports, Calver said he feared an inevitable confrontation between the far right and Muslims poses more of a threat than terrorism.
He said that the situation in France is on such a knife edge that it could just take one more major Islamist terror attack to lead to a huge right-wing backlash.
Speaking to the leading French newspaper, Le Figaro, Mr Calvar said: "This confrontation I think it will take place.
"Even another one or two attacks and it will happen. It therefore behooves us to anticipate and block all these groups."
"There will be a confrontation between the far right and the Muslim world."
At one point, Mr Calvar said: "Europe is in great danger, extremism is growing everywhere."
The consolidated economic report from the 12 Federal Reserve Districts (Beige Book) stated that the economy "continued to expand at a modest pace across most regions from mid-May through the end of June". The previous report showed "modest economic growth since the last Beige Book report". My interpretation is that the Fed is saying the rate of economic expansion is the same as the previous period.
China's economy is expected to have slowed further after notching its weakest growth in seven years in the first quarter amid mounting concerns that the country is relying heavily on debt to maintain a façade of stability.
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