US stock future indexes are lower this morning (SPY - 0.3%) after the Labor Department reports prices at the consumer level increased 0.2% in August, coming in higher than expectations for a rise of 0.1%. Excluding the volatile food and energy components, prices were 0.3% higher, compared to expectations for a 0.2% gain
Here is the current market situation from CNN Money
European markets are mixed. The FTSE 100 is higher by 0.47%, while the CAC 40 is leading the DAX lower. They are down 0.85% and 0.79% respectively.
The blue-chip Dow futures are down - 0.4%, the S&P 500 futures have fallen - 0.4%, while the tech-heavy Nasdaq 100 futures retreated - 0.3%.
Meanwhile, oil prices have continued to move lower (- 1.7%) after the Organization of the Petroleum Exporting Countries said on Monday that crude output from rival producers is stronger than expected and will result in a bigger supply glut than previously believed this year and next.
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.
WASHINGTON, (Reuters) - U.S. consumer prices increased more than expected in August as rising rents and healthcare costs offset a drop in gasoline prices, pointing to a steady build-up of inflation that could allow the Federal
FRANKFURT (Reuters) - Deutsche Bank said it would fight a $14 billion demand from the U.S. Department of Justice to settle claims it missold mortgage-backed securities, a shock bill that raises questions about the future of Germany's largest lender.
LONDON (Reuters) - A monster fine for Deutsche Bank compounded a miserable week for European stocks on Friday, while bonds bounced as weak U.S. retail sales figures triggered a pullback in Federal Reserve rate hike expectations.
SHANGHAI/SYDNEY (Reuters) - Apple Inc fans from Sydney to Shanghai, the first customers worldwide to snap the new iPhone 7 off the shelves, cheered as they left stores on Friday brandishing their purchases, flanked by applauding sales staff.
NEW YORK (Reuters) - General Electric Co said it will receive $1.9 billion for a contract to supply steam turbines, generators and other equipment to the Hinkley Point C project, the United Kingdom's first new nuclear power plant in decades.
(Reuters) - Samsung Electronics Co Ltd formally recalled 1 million Galaxy Note 7 smartphones sold in the United States, replacing or refunding the flagship phones, whose susceptibility to catching fire has damaged the image of the Korean powerhouse.
BERLIN (Reuters) - Volkswagen's ability to agree a big cost-cutting plan with its powerful labor unions in the coming weeks could determine whether the German carmaker's shares make a full recovery from its emissions scandal.
After several spurious reports of substantial preorder spikes for the iPhone 7 by the likes of T-Mobile - if not so much Verizon - AAPL stock enjoyed the biggest weekly surge in years. However, judging by the "lines of people" waiting for the new gadget as it officially goes on sale in retail outlets, said surge in the stock may have been premature, and merely the latest marketing gimmick that has made a "scarcity" factory into a sublime art form.
Verizon in Grand Central $AAPL pic.twitter.com/XOepjHQGY9
EU Bail In Rules Ignored By Italy - Mother Of All Systemic Threats and World War?
by George Friedman for Mauldin Economics via Forbes
Italy has been in a crisis for at least eight months, though mainstream media did not recognize it until July. This crisis has nothing to do with Brexit, although opponents of Brexit will claim it does. Even if Britain had voted to stay in the EU, the Italian crisis would still have been gathering speed.
The high level of non-performing loans (NPLs) has been a problem since before Brexit. It is clear that there is nothing in the Italian economy that can reduce them. Only a dramatic improvement in the economy would make it possible to repay these loans. And Europe's economy cannot improve drastically enough to help. We have been in crisis for quite a while.
After tactfully warning clients for months that staying invested in US stocks and bonds is an unacceptable risk, overnight Goldman's Peter Oppenheimer finally changed Goldman's official "tactical" bias, and as of this moment recommends selling not only bonds, as well as the S&P500 and Europe's Stoxx 600 "due to elevated valuations across assets and the risk of shocks."
Here is the full list of Goldman's latest recos:
We are Underweight S&P 500 as we see strong positioning, headwinds from the resumption of the Fed rate hike cycle and a strong Dollar, and increasing political uncertainty into the US elections.
We are also Underweight Europe into year-end due to elevated political uncertainty (from Brexit and the Italian referendum) and uncertainty on ECB policies. A 'no' vote in the Italian referendum (a 40% probability, in our view) could put pressure on Italian risky assets, in particular banks, and increase political uncertainty in Italy and the Euro area.
Negative macro surprises and the global bond sell-off since last week have driven a reversal of the 'Goldilocks' summer rally. Risk parity and balanced funds suffered in particular, with a sharp increase in equity/bond correlations. We think bond yields will increase more until year-end, and downgrade bonds to Underweight on a 3-month horizon (in line with 12-month). However, while rate volatility could pick up in the near term, we expect the most pressure in the back end and continued anchoring of the front end by central banks next week.
We remain defensive in our asset allocation and Overweight cash (3m) due to elevated valuations across assets and the risk of shocks. However, we upgrade equities back to Neutral on a 3m basis due to support from ...
Week 36 of 2016 shows same week total rail traffic (from same week one year ago) contracted according to the Association of American Railroads (AAR) traffic data. This week, most rolling averages' were decelerating.
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