Wall Street closed higher after setting new historic highs for the DOW and the Spooze. Both of the Indexes closed down from their respective session highs, but were trending back up towards the closing bell. The big question investors have now is the bull run going to continue and what is the Black Swan that will knock the bull over.
NEW YORK (Reuters) - A federal appeals court on Thursday said the U.S. government cannot force Microsoft Corp and other companies to turn over customer emails stored on servers outside the United States.
VICTOR, Idaho (Reuters) - The U.S. Federal Reserve should remain "cautious and patient" with any future interest rate increases as the fallout from the recent Brexit vote becomes clear, Atlanta Fed President Dennis Lockhart said on Thursday, adding weight to a core of U.S. central bankers who appear poised to remain on hold.
(Reuters) - Facebook Inc's employees are still mainly white or Asian males as the world's largest social network made little progress in hiring a more diverse talent pool over the past year, it said on Thursday.
LONDON (Reuters) - The Bank of England wrong-footed investors by keeping interest rates on hold on Thursday, but held out the prospect of a stimulus package soon to help the economy cope with Britain's decision to leave the European Union.
(Reuters) - Shares of Japanese messaging app operator Line Corp soared as much as 36 percent in their U.S. market debut on Thursday, valuing the high-profile tech startup at $9.34 billion in the biggest tech IPO this year.
WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits unexpectedly held steady near a 43-year low last week, pointing to further momentum in the labor market after job growth surged in June.
NEW YORK (Reuters) - Billionaire investor Bill Ackman said on Thursday that he was still betting against Herbalife Ltd shares and that the company needed to make "material changes to its incentive structure."
The IMF is getting nervous, and what it appears to be most concerned about, is a collapse of the status quo.
Moments ago, in a speech in Washington, IMF head Christine Lagarde said that "The greatest challenge we face today is the risk of the world turning its back on global cooperation—the cooperation which has served us all well. We know that globalization - and increased integration - over the past generation has yielded many economic benefits for many people."
The IMF is not alone: for years, consultancy giant McKinsey towed the party line as well saying in 2010 that "the core drivers of globalization are alive and well" and adding as recently as 2014 that "to be unconnected is to fall behind."
That appears have changing, and cracks are starting to form behind the cohesive push for globalization, at least among those who benefit the most from globalization.
In a stunning study released today, one which effectively refutes all its prior conclusions on the matter, McKinsey slams the establishment's status quo thinking and admits that the economic gains of changes in the global economy have not been widely shared lately, especially in the developed world. In the report titled "Poorer Than Their Parents? Flat or Falling Incomes in Advanced Economies" it finds that prospects for income growth have deteriorated significantly since the financial crisis, and that the benefits from globalization are now over:
It was a breath of fresh air when last Friday, in the aftermath of the spectacular June jobs report, a "bearish" David Rosenberg reemerged and, turning a critical eye to the BLS data, asked clients of Gluskin Sheff "what if I told you that employment actually declined 119,000 in June and has been faltering now for three months in a row? Yes, that is indeed the case." Judging by the market reaction, his analysis fell on deaf ears.
In any event, in a follow up analysis, this time looking at the disconnect between stocks and underlyhing fundamentals, David Rosenberg sat down with Chris Puplava of Financial Sense and said he is approaching the rally with a "high dose of skepticism" even while investors are hoping and praying for helicopter money to drop from the skies. The reason: the large disconnect between earnings and stocks at present which according to Rosenberg, "if you're buying this market right now you ipso facto have a view that earnings are going to rebound 25% from here in the next year." Since the former Merrill strategist ascribes only a 10% chance of that happening, he is pessimistic.
Here is an abbreviated version of what else Rosenberg told Puplava.
Financial Sense: What are your thoughts on the US stock market given that we've now broken out to new all-time record highs?
David Rosenberg: Well, this is the pain trade. What's remarkable is that here we had the Brexit—this is really the first real big shock since we were worrying about Greece in the past couple of years—and the most you ...
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