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08Sep2016 Pre-Market Commentary: US Futures Flat Ahead Of US Data, Crude Prices Trading Sideways, US Dollar And Gold Very Volatile, Investors Alert For Sudden Market Movements

Written by Gary

US stock future indexes are once again flat (SPY +0.03) ahead of the opening bell. The European Central Bank left its key refi rate at zero, crude prices are higher higher after U.S. industry data yesterday's showed a large drawdown in crude stocks and the US dollar is declining sharply after the ECB's announcement.

Here is the current market situation from CNN Money

European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.44% while Germany's DAX is up 0.46% and France's CAC 40 is up 0.02%.

Today's Economic Calendar

8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
3:00 PM Consumer Credit
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

The first column is what was reported this morning. The second column is what analysts had forecast and the third column is the previous report. Full calendar HERE


What Is Moving the Markets

Here are the headlines moving the markets.

U.S. jobless claims fall as labor market remains strong

WASHINGTON, Sept 8 (Reuters - The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to sustained labor market strength even as the pace of

Stocks fall as ECB goes no further on QE

LONDON (Reuters) - Stocks dipped and the euro gained on Thursday after the European Central Bank kept interest rates on hold and made only its previous broad commitment to run bond-buying for as long as needed, stopping short of a formal extension of quantitative easing.

Apple unveils iPhone 7 but some still waiting for iPhone 8

SAN FRANCISCO (Reuters) - Apple Inc unveiled an iPhone 7 with high-resolution cameras and no headphone jack at its annual launch event Wednesday, though the biggest surprise was the debut of a three-decade-old Nintendo game franchise, Super Mario Bros, on the smartphone.

HP Enterprise in $8.8 billion deal with Micro Focus for software assets

(Reuters) - Hewlett Packard Enterprise Co (HPE) will spin off and merge its non-core software assets with Britain's Micro Focus International Plc in a deal worth $8.8 billion, the companies said on Wednesday.

Apple hones marketing for Watch with focus on fitness

SAN FRANCISCO (Reuters) - Two years after unveiling the Apple Watch with apps and styles that tried to appeal to every need and every customer, Apple Inc has honed its marketing strategy, debuting a second generation product aimed squarely at the health and athletic audience.

Japan's Takata to take bids from seven potential rescuers on September 19 - sources

TOKYO (Reuters) - Takata Corp will take initial bids from seven potential rescuers on Sept. 19, as the Japanese air bag maker at the heart of the auto industry's biggest-ever global recall fights for survival, two people with direct knowledge of the process said.

Navistar quarterly revenue falls, unit gets DoD subpoena

(Reuters) - Truck and engine maker Navistar International Corp reported a fall in revenue for the sixth straight quarter due to lower truck sales and said one of its units had received a subpoena from the United States defense department.

In North Korea, China's Xiaomi gets the people's pulses racing

BEIJING/SEOUL (Reuters) - China's smartphone and accessory maker Xiaomi Inc [XTC.UL] is winning hearts and minds in North Korea with its wearable fitness band, Chinese state media said on Thursday, a symbol of the isolated state's increasingly sophisticated consumer classes.

Dear Department Of Labor, Please Explain This

The last week has seen both PMI and ISM surveys for both manufacturing and services economies in America collapse. The hope-strewn bounce in Q2 is officially dead and leading this demise is a crash in employment components. So that leaves us, after today's near 40-year lows initial jobless claims print at 259k, asking The Department of Labor... please explain this...

And then there's this...

"probably nothing"

Wall Street's Latest Retail Fleecing Product Exposed - Structured CDs

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

Ms. Bailey, the Citizens Bank customer in Massachusetts, had sold a condo in Maine in 2013, a year after the death of her husband, who she says had handled their finances. She went to a Citizens branch in Arlington, a suburb of Boston, to deposit the money. She says bank employees pressured her not to just park the money in a savings account.

She says she was directed to Citizens broker Andrew Jurkunas, who steered her to a CD called the GS Momentum Builder Multi-Asset 5 ER Index-Linked Certificate of Deposit Due 2021. It is one of a series of CDs based on a Goldman Sachs-designed index that tracks the performance of up to 14 exchange-traded funds and a cash-like holding. The index aggregates the performance of different combinations of some or all of the underlying funds, relying on a complex formula designed to smooth volatility.

When Ms. Bailey received her first statement showing that the value of her CD had dropped by more than $4,000, she complained to Massachusetts state securities regulators. This January, the office filed civil charges against the bank alleging that Mr. Jurkunas, who wasn't named or accused of wrongdoing, didn't adequately disclose the risks of the market-linked CD.

- From yesterday's excellent Wall Street Journal article: Wall Street Re-Engineers the CD—and Returns Suffer

Wall Street is an industry ...

ECB Keeps Rates Unchanged, Reaffirms Will Keep QE "Until March 2017 Or Beyond"

As largely expected, the actual ECB press announcement did not contain major surprises, which saw the ECB keep all three key rates unchanged, adding that "the monthly asset purchases of 80 billion are intended to run until the end of March 2017, or beyond, if necessary" and that it expects "interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases."

There was some modest kneejerk market disappointment, expressed in German 10Y Bunds whose yields rose 3 bps to -0.09%, after the ECB did not lower the -0.40% deposit facility rate, as some had whispered may happen.

Perhaps more importantly, there was no formal extension to the QE program, which kept its old deadline, and which means that the ECB will extend the duration at its December meeting as much of the sellside community had expected.

From the press release:

At today's meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.

Regarding non-standard monetary policy measures, the Governing Council confirms that the monthly asset purchases of 80 billion are intended to run until the end of March 2017, or beyond, if necessary, and in any case until it sees a sustained adjustment in the path of inflation consistent with its inflation aim.

The President of the ECB will comm ...

Nintendo's Super Mario Rides iPhone to the Rescue

Nintendo's Super Mario launch at the Apple iPhone event is a bigger deal for the Japanese game maker than wildly successful 'Pokemon Go'

Why China Won't Make Coal King Again

China's coal demand seems to be gathering steam. But investors shouldn't let the soot cloud their judgment.

Sony's PlayStation Refresh Should Keep Gamers Coming Back for More

Sony's mid-cycle PlayStation upgrade is unprecedented in the videogame business.

03 September 2016 Initial Unemployment Claims: Rolling Averages Continues To Improve

Weekly Initial Unemployment Claims

The market expectations for weekly initial unemployment claims (from Bloomberg / Econoday) were 261,000 to 270,000 (consensus 264,000), and the Department of Labor reported 259,000 new claims. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 263,000 (reported last week as 263,000) to 261,250. The rolling averages generally have been equal to or under 300,000 since August 2014.

Whistleblower: Collapse of ITT offers 'a final sense of justice'

Former dean Rodney Lipscomb accused ITT of luring students under false pretenses to get more federal financial aid funding.

Jobless claims dip to 2-month low of 259,000

The number of Americans who applied for unemployment benefits last week fell by 4,000 to a two-month low of 259,000, reflecting the unwillingness of businesses to part with workers in a tight labor market despite slower economic growth.

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