Wall Street climbed higher as the Dow touched a record intraday high as strong results from department store chains and a surge in oil prices buoyed investor sentiment. Oil prices jumped 5 percent on comments from the Saudi oil minister most traders remain skeptical of the outcome.
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 1.59% while Mexico's IPC is up 1.05% and U.S.'s S&P 500 is up 0.52%.
Saudi Energy Minister Khalid al-Falih said OPEC members and non-members would discuss the market situation, including any action that may be required to stabilize prices, during an informal meeting on Sept. 26-28 in Algeria.
However, most traders remain skeptical of the outcome, expecting a repeat of the Doha meeting in April when talks fell through after Saudi Arabia backed out, citing Iran's refusal to join in a so-called production freeze.
"As long as oil holds $40, we should be at the bottom," Phil Flynn, senior energy analyst at Price Futures Group said.
"The failure to follow through on bear market closes suggest we are near the low."
$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) - Oil prices rose about 5 percent on Thursday after comments from the Saudi oil minister about possible action to stabilize prices triggered a round of buying and the International Energy Agency forecast crude markets would tighten in the second half of 2016.
FRANKFURT (Reuters) - Tens of millions of vehicles sold by Volkswagen AG over the past 20 years, and some current models, are vulnerable to theft because keyless entry systems can be hacked using cheap technical devices, according to European researchers.
(Reuters) - A federal judge has ruled that General Mills Inc must face a lawsuit claiming it tricked consumers by marketing Cheerios Protein as a high-protein alternative to regular Cheerios, when the main difference was that it contained 17 times more sugar per serving.
NEW YORK (Reuters) - Valeant Pharmaceuticals International Inc shares fell about 10 percent on Thursday as new details about a criminal investigation into the drugmaker raised investor concerns about risks related to the company's past business practices.
WASHINGTON, Aug 11 (Reuters) - U.S. import prices unexpectedly rose in July as a drop in petroleum prices was offset by gains in the cost of other goods, but renewed dollar strength will likely dampen underlying inflation in the coming months.
According to the mainstream media, this should be a "no-brainer." Trump's economic plan would mean depression, fire, and brimstone with massive job losses and, in general, all the worst parts of the bible for America. However, Hillary Clinton's plan will 'fix' everything - more jobs, lower taxes (apart from for those nasty middle-class Americans), better economic growth, and ponies and unicorns for everyone (except the wealthy, they can buy their own unicorn). The farce of campaign promises is getting almost too much to bear as we wonder, if Hillary has all these brilliant ideas, then why did she not share them with President Obama - who just presided over the only term without a 3% growth year in the history of America.
As The Wall Street Journal reports, Hillary Clinton will dial up a line of attack on Donald Trump's economic proposals in a Thursday speech that casts his agenda as a crony giveaway that erodes his populist appeal, according to a campaign official familiar with the remarks.
The Democratic nominee's remarks will brand Mr. Trump's proposal to sharply reduce taxes on so-called pass-through entities, where business income is claimed ...
While yesterday's 10Y auction was a stellar response to the woeful July showing, today's 30Y left a little to be desired. While today's issue of $15 billion in 30Y paper did print at a high yield of 2.274%, or stopping through the 2.277% by 3 bps, the internals were less favorable.
The Bid to Cover of 2.236 dipped from last month's 2.485%, and was lower than the 6M trailing average of 2.32. Perhaps the most important metric, Indirect bidders, took down 61.5%, also down from last month's 68.5%, and below the 6MMA of 62.9%. With Indirects less excited to take down ultra-dated paper, the Direct take down was modestly higher than July, coming at 10.9%, compared to 8.4% last month, leaving some 27.7% for Dealers, in line with the 6 month average, and higher than last month's 23.1%.
As Stone McCarthy puts it, "we had some concerns bout demand for the 30-year bond auction this afternoon, but it actually wound up going well. The auction stopped a hair through the 1:00 PM bid side and the bid/cover was in line with the average of the four Refunding bond auctions over the prior year. The buyside takedown figures were also good. Indirect bidders took down 61.5% of the auction, and Direct bidders took down 10.9% of the auction."
In short, a less than notable auction, and certainly weaker than yesterday's benchmark issuance, suggesting the pressure in the coming days may be toward more steepening as foreign Central Banks seem to be less excited by the longest tenor on the curve.
Iraq and oil majors BP, Shell, and Lukoil have agreed to resume investments in oil fields the foreign groups are developing, which is expected to raise the country's crude output by 250,000-350,000 barrels per day in 2017, Reuters reported on Thursday, quoting Iraqi officials - a move that has the potential to aggravate the supply glut and muddy the waters of the additional OPEC meeting in September, which some were glass-half-fulling might end with a production cap of some sort.
[Of course, why worry... all you need in this market is a meaningless, vacuous headline to spark panic-buying...]
The recently reached accords actually push projects that the companies had originally planned for the first half of 2016 to the second half. The projects had been previously put on hold due to the low crude prices.
BP, Shell and Lukoil have agreed to spend in the second half this year around half the budgets they had planned for 2015, Reuters said, citing documents it has seen. BP will be spending US$1.8 billion at the Rumaila field, Shell will spend US$742 million, and Lukoil - US$1.08 billion.
"Many vital projects that foreign firms were forced to halt due to lower oil prices will be brought online after the recent budget cuts agreements," Basim Abdul Kareem, the deputy chairman of South O ...
Econintersect wants your comments,
data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com