Wall Street rolls over in early afternoon trading (SPY +0.2%) falling from morning session highs. WTI crude prices suddenly waterfall 0.63 cents and the US dollar matches crude's fall. Short-term indicators turning bearish.
Here is the current market situation from CNN Money
North and South American markets are higher today with shares in Brazil leading the region. The Bovespa is up 0.51% while Mexico's IPC is up 0.25% and U.S.'s S&P 500 is up 0.23%.
$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)
FRANKFURT (Reuters) - German industrial gases group Linde and U.S. suitor Praxair have agreed an outline for a $65 billion-plus merger, with the combined company to be run out of the United States by Praxair's chief executive.
LONDON (Reuters) - Prime Minister Theresa May did not discuss with Rupert Murdoch the proposed takeover of UK pay-TV group Sky by the tycoon's Twenty-First Century Fox at a September meeting, Britain's media minister said on Tuesday.
WASHINGTON (Reuters) - Morgan Stanley will pay $7.5 million to settle civil charges that it violated customer protection rules when it used trades involving customer cash to lower its borrowing costs, U.S. securities regulators said on Tuesday.
WASHINGTON (Reuters) - U.S. vehicle safety officials said on Tuesday they have launched an investigation into about a million Fiat Chrysler Ram pickup trucks and SUVs prompted by complaints by some owners that the vehicles rolled away and crashed after being parked.
SANTIAGO (Reuters) - Kimberly-Clark Corp and competitor CMPC allegedly fixed prices for diaper products in Chile between 2002 and 2009, according to a document sent to the nation's competition regulator, daily newspaper La Tercera reported on Tuesday.
Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke.
Donald Trump has tabbed Andy Puzder to lead the Department of Labor. Puzder is the CEO of CKE, the restaurant outfit (read: Hardee's and Carl's Jr.). CKE, thanks to Puzder saving it from the bankruptcy hammer, employs 75,000 workers (read: jobs). Puzder knows that "high" minimum wages, such as the $15 per hour one thrown around by progressives, is a job killer for those with poor job skills.
During his nomination hearings, Andy Puzder will no doubt be grilled about his views on "high" minimum wages. His inquisitors will trot out glowing claims about the wonders of a $15 per hour minimum wage, as did President Obama in his 2014 State of the Union address. As the President put it: "It's good for the economy; it's good for America." Not so fast.
The glowing claims about minimum wage laws don't pass the most basic economic smell tests. Just look at the data from Europe. The following two charts tell the tale and should be tucked into Andy Puzder's briefing portfolio.
There are six European Union (E.U.) countries in which no minimum wage is mandated (Austria, Cyprus, Denmark, Finland, Italy, and Sweden). If we compare the levels of unemployment in these countries with E.U. countries that impose a minimum wage, the results are clear. A minimum wage leads to higher levels of unemployment. In the 21 countries with a minimum wage, the average country has an unemployment rate of 11.8%. Whereas, the average unemployment rate in the seven countries without mandated minimum wages is about one third lower — at 7.9%.
We delve into 2017 Trading Ideas focusing on the currency markets, specifically the Euro against the US Dollar being a buy from a good risk/reward setup of 1/3 in what is a very crowded trade right now as we close out 2016, i.e., the US Dollar "Is the only game in Town" trade.
There will be some time in 2017 when the Euro moves back up to 1.15 to 1.18 against the US Dollar, and let it play out at this upper end of the 2016 range for a breakout to the next level of 1.22 against the US Dollar. Every dog eventually has its day in major trading partners currency pairs. Believe it or not the Euro should finally get a reprieve in 2017 as the strong US Dollar starts exporting considerable inflation to Europe, and we like this risk/reward setup for a longer term trade in the Euro.
On Tuesday, the SEC announced that Morgan Stanley will be fined $7.5 million to settle civil charges that it violated customer protection rules, when it used trades involving customer cash to lower its borrowing costs. The SEC said MS will settle the case without admitting or denying the charges, effectively letting slide a violation which, in an exaggerated format, was exposed as a quasi-criminal offense engaged in by Jon Corzine's now defunct MF Global.
Ok so, Morgan Stanley engaged in some creative "commingling" - what's the big deal, most banks do it. What makes this particular case curious is the basis of the commingling: it involves some of the more interesting, and abstract, concepts of modern finance, including Morgan Stanley's "Delta One" trading desk, as well as the rehypothecation of collateral, all of which participated in a complicated violation of customer protection.
While we present more details below, here is a quick primer on the Customer Protection Rule:
"it is intended to safeguard customers' cash and securities so that they can be promptly returned should the broker-dealer fail. The SEC order finds that from March 2013 to May 2015, Morgan Stanley's U.S. broker-dealer used transactions with an affiliate to reduce the amount it was required to deposit in its customer reserve account."
According to the SEC order, Morgan Stanley's transactions violated the Customer Protection Rule, which prohibits broker-dealers from using affiliates to reduce their customer reserve account deposit requirements.
In the SEC's order, the regulator says that Morgan Stanley had its affiliate, Morgan Stanley Equity Financing Ltd., serve as a customer of its U.S. broker-dealer, a relationship that allowed the affiliate to use mar ...
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