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04Nov2016 Pre-Market Commentary: US Stock Markets Opened In The Green, But Analysts Are Warning It Probably Won't Last, Indicators Mixed, Investors Are Ready To Jump Ship

Written by Gary

Wall Street opened fractionally higher (SPY +0.1%) after a report from the U.S. Labor Department showed U.S. employers maintained a strong pace of hiring in October and boosted wages for workers. The September Trade Deficit narrowed to $36.44 billion, crude prices are falling and the US dollar is steady.

Here is the current market situation from CNN Money

Thursday's Key Earnings

Activision Blizzard (NASDAQ:ATVI) -5.5% with weak holiday guidance.
CBS (NYSE:CBS) on early explorations of a Viacom merger.
Chesapeake Energy (NYSE:CHK) +1.7% after a surprise Q3 profit.
EOG Resources (NYSE:EOG) +1.8% AH posting a smaller quarterly loss.
FireEye (NASDAQ:FEYE) +13.1% AH after Q3 soared over predictions.
GoPro (NASDAQ:GPRO) -18.8% AH as production issues hurt results.
Las Vegas Sands (NYSE:LVS) +3.1% AH improving Macau figures.
Kraft Heinz (NASDAQ:KHC) -1.2% AH following a dip in sales.
Starbucks (NASDAQ:SBUX) +1.4% AH on Q3 beat and dividend boost.
Twilio (NYSE:TWLO) +3.4% AH after topping expectations.

Looking at the last three columns, the first one (Actual), is what was reported this morning. The second column (Forecast) 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.

Futures pare losses after solid jobs report

(Reuters) - U.S. stocks index futures pared losses on Friday after a report from the U.S. Labor Department showed U.S. employers maintained a strong pace of hiring in October and boosted wages for workers.

U.S. employment growth solid, wages jump in October

WASHINGTON, (Reuters) - - U.S. employers maintained a strong pace of hiring in October and boosted wages for workers, which could effectively seal the case for a December interest

Samsung to recall 2.8 million washing machines in the United States

(Reuters) - Samsung Electronics , which is already reeling from a global recall of its Note 7 smartphones, said it would recall about 2.8 million of its top-load washing machines in the United States to address safety concerns.

Atlanta Fed's Lockhart says rate increases to be 'very' gradual

ORLANDO, Fla. (Reuters) - Federal Reserve rate increases over the next two years will be "very" gradual amid expected steady growth and stable job gains, Atlanta Federal Reserve President Dennis Lockhart said on Friday.

Tronc chairman agrees 'different' deal with Gannett possible

(Reuters) - Tronc Inc Non-Executive Chairman Michael Ferro agreed on Friday there was a possibility of striking "a different type of deal" with fellow newspaper publisher Gannett Co , days after merger talks between the companies fell apart.

Yum unit Taco Bell to open 9,000 restaurants in U.S. by 2022-end

(Reuters) - Taco Bell Corp, a unit of Yum Brands Inc , said on Friday it would open 9,000 restaurants in the United States by the end of 2022, creating 100,000 new jobs, just four days after its parent completed the spin-off of its China unit.

Exclusive: Saudis threaten to raise oil output again as sparring with Iran returns

DUBAI/LONDON (Reuters) - Old disputes between Saudi Arabia and rival Iran resurfaced at a meeting of OPEC experts last week, with Riyadh threatening to raise oil output steeply to bring prices down if Tehran refuses to limit its supply, OPEC sources say.

U.S. trade deficit hits one-and-a-half year low on rising exports

WASHINGTON, (Reuters) - - The U.S. trade deficit fell to a more than 1-1/2 year low in September amid rising exports, but a slump in imports pointed to slowing domestic demand.

Oil set for sixth straight day of declines

LONDON (Reuters) - Oil futures were on course for their sixth straight day of falls on Friday as signs of tensions resurfaced between Saudi Arabia and Iran that could scupper a key supply cut pact while a surge in U.S. crude inventories and muted demand continued to weigh.

Forget, Trump and Clinton, gold could be the real winner


Gold will win US election

  • Gold could rise to at least 8% following election

    Trump victory will push gold up 10%

    Uncertainty pre and post election likely to support the gold price

    Election jitters are one of several drivers for the gold price

    Trump win will release a 'wave of risk aversion'

    Safe-haven demand maybe set to rise in coming weeks

    To the relief of some but the worry of many others the US election is now just days away. Unlike past elections this one appears to grown more uncertain and fraught the closer it gets.

    Since the FBI announced further investigations into emails associated with Hillary Clinton, her lead has narrowed and voters appear to be even more undecided.

    For some the decision is a fate worse than death, as Reuters reported, 'Yo ...

Oil Slammed Lower After Saudi Threatens To Ramp Up Supply

Follow OPEC's blame-mongering statement earlier today -"observers should not be quick to judge or criticize" the organization - it appears mutiny is occurring within the cartel as OPEC sources report Saudi Arabia threatening to "steeply raise" output following Iran's refusal to cap output. WTI is tumbling on the news, testing towards a $43 handle.

OPEC blames analysts for exposing the cartel's impotence:

At OPEC, we remain deeply optimistic about the possibility that the Algiers Agreement will be complemented by precise, decisive action among all producers — the kind of action that we need in order to see prices supported and short-term volatility avoided.

In the meantime, industry observers should remember that they should not be too quick to judge or criticize the Organization or its Member Countries. Over the years, we have seen how wildly inaccurate their predictions have been.

What many of them have failed to recognize is that OPEC's great strength is its global reach and its diversity. Its great value is found in the continuing willingness of its Member Countries to confer, consult and coordinate actions if and when necessary.

As the years have passed and the market has evolved, the importance of OPEC's role has, in fact, only increased — proving all those unfortunate nay-sayers wrong once more.

But what really hit oil this morning was Reuters reporting:



US Warns Of Possible Al-Qaeda Terrorist Attack On Monday Targeting NY, Texas And Virginia

In an presidential election campaign that has had virtually every possible surprise, only one thing was missing: a terrorist attack.

Alas, even that may be on the horizon because as CBS News reported moments ago, the news station has learned about a potential terror threat for the day before the election: "Sources say U.S. intelligence has alerted joint terrorism task forces that al-Qeada could be planning attacks in three states for Monday.

CBS adds that it is believed New York, Texas and Virginia are all possible targets, though no specific locations are mentioned.

A senior FBI official told CBS News, ""The counterterrorism and homeland security communities remain vigilant and well-postured to defend against attacks here in the United States. The FBI, working with our federal, state and local counterparts, shares and assesses intelligence on a daily basis and will continue to work closely with law enforcement and intelligence community partners to identify and disrupt any potential threat to public safety." During holiday seasons and when big events are approaching, intelligence about potential threats always increases.

While CBS tried to moderate the warning by noting that the "sources stress the intelligence is still being assessed and its credibility hasn't been confirmed, but counterterrorism officials were alerted to the threat out of abundance of caution", such a threat may lead to a depressed turnout in these three states and potentially impact the outcome of the presidential election.


New Poll Shows Americans See Media As Much Greater Threat To Election Than Russian Hackers

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

These are some pretty damning results for the mainstream media. Not only does the American public see the media as a bigger threat to election results than Russian hackers, it's not even close.

The Washington Examiner reports:

Voters fear the media far more than Russian hackers when it comes to tampering with election results.

According to a Suffolk University/USA Today poll, 46 percent of likely voters believe the news media is "the primary threat that might try to change the election results."

The national political establishment was the second most-suspected group at 21 percent, and another 13 percent were undecided.

Foreign interests, including "Russian hackers," ranked fourth with 10 percent and "local political bosses" came in last with 9 percent of likely voters as the main threat to truthful election results.

Here's the underlying data:

Politics Still Stars in Brexit Drama

There were two surprises for the pound Thursday. The first was the High Court decision that the government can't invoke Article 50. The second, arguably more substantive element was a change in tack from the Bank of England.

China Faces Looming Bulge in Currency Pressure

The yuan's next milestone may usher in a more challenging period.

Jobs Report: No News Is Good News

The Federal Reserve appears likely to raise interest rates next month unless the labor market or some unforeseen event throws it a curveball. The odds of either seem pretty slim.

Rail Week Ending 29 October 2016 - USA Coal Production Up From Last Year

Week 43 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. The weekly data continues to improve.

London Markets: FTSE 100 slides, under pressure from stronger pound and political angst

U.K. stocks are falling Friday, still feeling the pinch from sterling strength after the U.K. government lost a Brexit-related court ruling, keeping the FTSE 100 on course for its worst week in ten months.

Economic Report: U.S. creates 161,000 jobs in October as wages climb

The U.S. added 161,000 new jobs in October and the unemployment rate fell below 5% again, reflecting a tight labor market that's forced firms scrambling to fill open positions to increase pay at the fastest pace since 2009.

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