US markets closed mixed. The DOW up 10 points, the Spooze closed down -0.09% and the Nasdaq up 0.7%. WTI crude remained steady at $46 and the rally that pushed the SP 500 to record highs every day this week ran out of steam shortly after the opening bell. Next week an onslaught of company earnings could help investors assess the impact of Britain's vote to exit the European Union.
Todays S&P 500 Chart
The S&P 500 (SPX) has returned 7.1% so far this year, which is remarkable considering all the panic when the index declined 10% early this year and all the worry over Brexit. Valuations are the highest they've been for this time of the year since 2003. But Mark Hulbert says the market's technical strength points to more good times ahead .
WASHINGTON (Reuters) - U.S. retail sales rose more than expected in June as Americans bought motor vehicles and a variety of other goods, bolstering views that economic growth picked up in the second quarter.
WASHINGTON/NEW YORK (Reuters) - Herbalife Ltd agreed to pay $200 million and change the way it does business to avoid being labeled a pyramid scheme by regulators, a blow to hedge fund manager Bill Ackman who for years has been betting against the dietary supplements maker.
NEW YORK (Reuters) - After finally eclipsing year-old record highs, the U.S. stock market will be tested again next week, when the onslaught of company earnings could help investors assess the impact of Britain's vote to exit the European Union.
WASHINGTON (Reuters) - Lawyers for a Florida woman who was left a quadriplegic after a Takata air bag inflator deployed in a 2014 crash said Friday they had settled a lawsuit against the Japanese company.
(Reuters) - Sumner Redstone's privately held movie theater company said on Friday it opposes the sale of a minority stake in Viacom Inc's Paramount Pictures, because such a transaction could hurt the chances of a deal involving all of Viacom.
(Reuters) - Citigroup is betting on U.S. consumers and multi-national corporate clients to navigate lower interest rates after a rebound in trading helped it beat Wall Street's subdued expectations for the second quarter.
Earlier today Germany's 10Y Bund crossed back into positive yield territory for the first time since Brexit, after touching as low as -0.20% earlier in the week...
... but that, oddly, does not mean that corporate bunds have to follow. In fact, as Goldman finds, negative corporate bond yields may turn out to be even stickier than their respective government treasuries. According to Goldman's Lotfi Karoui finds there is "more negative yielding EUR corporate bonds despite the rates selloff. The amount of corporate bonds with negative yields continues to grow in the EUR market despite the rate sell-off this week."
In fact, as of last night, using the bond constituents of the EUR iBoxx IG index, there is now a record high 216 billion in negative yielding corporate debt, representing 14% of the index. Within the broader EUR fixed income complex, a total of 4.1 trillion now trades in negative-yield territory representing 49% of the combined size of the sovereign, quasi-sovereign, covered and corporate iBoxx bond indices.
Zooming in on the corporate bond market, the chart below provides the top 10 capital structures with negative yielding bonds in the EUR iBoxx IG index. These capital structures have a total negative yielding bond outstanding of 61 billion, equivalent to 28% of the corporate sub-zero universe in the iBoxx index. Somewhat surprisingly, the mix of ratings and sectors is quite diverse. As the CSPP carries on, and barring a remake of the Bund tantrum experienced last year, this list will likely grow and thus fuel more rotation into the ...
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