Wall Street stocks are lower today (SPY -0.4%), dragged down by technology and industrial shares, amid disappointing earnings and weak consumer confidence data. The U.S. Federal Reserve is expected to keep interest rates unchanged in its first policy decision since President Trump took office, as the central bank awaits greater clarity on his economic policies.
Here is the current market situation from CNN Money
North and South American markets are mixed. The Bovespa is higher by 0.58%, while the S&P 500 is leading the IPC lower. They are down 0.47% and 0.20% respectively.
$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)
WASHINGTON/LOS ANGELES (Reuters) - U.S. President Donald Trump on Tuesday met with top executives from some of the biggest drugmakers, calling on them to boost U.S. production and lower prices, while he also promised to speed up approval times for new medicines.
WASHINGTON (Reuters) - The U.S. Federal Reserve is expected to keep interest rates unchanged on Wednesday in its first policy decision since President Donald Trump took office, as the central bank awaits greater clarity on his economic policies.
NEW YORK/SAN FRANCISCO (Reuters) - Eight days after Elliott Management disclosed a 7.6 percent stake in LifeLock Inc , managers of the more than $30 billion hedge fund met with executives at the consumer protection company.
NEW YORK/FRANKFURT (Reuters) - Deutsche Bank has agreed to pay $630 million in fines for organizing $10 billion in sham trades that could have been used to launder money out of Russia, the latest in a string of penalties that have hammered the German lender's finances.
NEW YORK (Reuters) - Valero Energy Corp on Tuesday signaled that record high costs to comply with the U.S. renewable fuels program will continue this year, after the oil refiner was hit with a ballooning tab for the program in 2016.
AMSTERDAM (Reuters) - The European Union will have to establish new trading partnerships if its traditional economic and political ally the United States heads down a path of protectionism, Eurogroup President Jeroen Dijsselbloem said on Tuesday.
SAN FRANCISCO (Reuters) - Uber Technologies Inc [UBER.UL] has signed another deal with a major automaker as the popular ride service accelerates efforts to build out one of the world's first fleets of autonomous vehicles.
Submitted by Charles Hugh-Smith via OfTwoMinds blog,
Solutions gut the rackets by breaking down the status quo's regulatory walls protecting the privileged elites who are strip-mining the bottom 95%.
Much of what passes for politics these days is symbolic. Anyone who studies the issue of illegal immigration concludes that the solution lies not in building $10 billion walls but in changing the incentive structure of citizenship, legal and illegal immigration. As long as successfully crossing the border enables access to free healthcare, education and sanctuary and the potential for cash work--the equivalent of winning the lottery for those with none of these benefits--walls will be tunneled under, overflown or bypassed by sea.
The Trump Administration's proposed policies on tariffs, walls to stop illegal immigration, etc. are defended as symbolic gestures--in other words, their value is in communicating "things have changed", not actually solving the problems facing the nation.
On the other side of the spectrum, protests in defense of a corrupt, failed status quo are also symbolic. No thinking person can claim that the status-quo policies on illegal immigration are fair, just or functional; how is letting illegal immigrants "jump the queue" ahead of the hundreds of thousands of legal immigrants who have labored patiently for years, paying all the outrageous costs of navigating the Kafkaesque complexities of legal immigration fair or just?
Protesting in defense of a racket-based status quo fixes nothing and solves nothing. Protests are also purely symbolic: the indignant express their indignation, gather to support a corrupt, venal system of rackets and then go home to stroke their egos on social media: I struck a ...
With the S&P500 ending January on the back foot, more pain may be in store for markets in February.
This is the observation of BofA's chief technician Stephen Suttmeyer, who provides several danger signals why bulls may want to be particularly cautious ahead of the coming months.
As he notes, the post-Presidential Election S&P 500 rally has done better than the post-Brexit rally, but there are warning signs moving into February just as there were coming off the mid-August post-Brexit S&P 500 peak.
These include complacent VXV/VIX and put/call ratios, a bearish divergence for the US most active advance-decline line, and a Net Tab sell signal. In addition, there is the risk of a weaker
February based on seasonals and the US Presidential Cycle Year 1 pattern going back to 1928. A close below 1.17 on the VXV/VIX as well as a cross for VIM Distribution above VIM Accumulation would increase the risk for following weaker February seasonals.
Of the items listed, we find the seasonal argument most persuasive. While February tends to be a weaker month for the S&P 500 in general and is up only 52.8% of the time with an average return of -0.05% going back to 1928, February is particularly weak in the first year of a presidential cycle: in that case February is up only 41% of the time with an average S&P 500 decline of 2.10%. Even more troubling, when the President is in his first term, February of Year 1 is up only 23% of the time with an average decline of 3.84%.
The latest Conference Board Consumer Confidence Index was released this morning based on data collected through January 19. The headline number of 111.8 was a decrease from the final reading of 113.3 for December, a downward revision from 113.7. Today's number was below the Investing.com consensus of 113.0.
Apple Inc. and its iconic smartphone may return to growth when the tech giant reports holiday-quarter earnings after the market closes Tuesday, which would reverse the first declines since the iPhone was born.
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