US markets have slipped off the morning opening highs to a mixed and nearly flat status (SPY -0.06%) reflecting yesterday's close. The S&P 500 slipped into the red and the Dow pared gains in late morning trade led by losses in energy and utilities sectors, ahead of the Federal Reserve's decision on interest rates.
Here is the current market situation from CNN Money
North and South American markets are mixed. The Bovespa is higher by 0.45%, while the IPC is leading the S&P 500 lower. They are down 0.09% and 0.08% 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)
Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors
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.
WASHINGTON (Reuters) - U.S. factory activity accelerated to more than a two-year high in January amid sustained increases in new orders and raw material costs, pointing to a recovery in manufacturing as domestic demand strengthens and the drag from low oil prices ebbs.
(Reuters) - The S&P 500 slipped into the red and the Dow pared gains in late morning trade on Wednesday, led by losses in energy and utilities sectors, ahead of the Federal Reserve's decision on interest rates.
WASHINGTON (Reuters) - Volkswagen AG has agreed to pay at least $1.22 billion to fix or buy back nearly 80,000 polluting U.S. 3.0 liter diesel-engine vehicles to settle claims it fitted illegal emissions-cheating software to the cars, court documents showed.
(Reuters) - Tesla Motors Inc changed its name to "Tesla Inc" as Chief Executive Elon Musk looks to transform the Silicon Valley firm from an electric car maker to a diversified energy products company.
DETROIT (Reuters) - The pace of U.S. car and light truck sales downshifted modestly in January as automakers pulled back on bulk sales to rental, government and business fleets and concentrated on more profitable retail sales to individual consumers.
(Reuters) - Health insurer Anthem Inc on Wednesday said it expected to break even or make a small profit in the Obamacare individual market in 2017 even as it considers pulling out of that business next year.
Submitted by Charles Hugh-Smith via OfTwoMinds blog,
We cannot advance until we dump the Technocrat Class and decentralize the power that the Liberal Establishment happily concentrated into the hands of corporate cartels and the central state.
Those who don't yet understand our centrally-planned cartel-state system will benefit from reading How Democrats Killed Their Populist Soul (The Atlantic). I've presented related analyses in three recent essays:
The Protected, Privileged Establishment vs. The Working Class
The Collapse of the Left
25 Years of Neocon-Neoliberalism: Great for the Top 5%, A Disaster for Everyone Else
What we're talking about here is the Triumph of the Technocrats. There are multiple levels to this triumph of the technocrat class:
1. The dumbing down of the Technocrat Class via a Higher Education system that optimizes technocrat specialization at the expense of real-world business experience and broad-based knowledge.
As a result, the technocrat class has a very high opinion of its intelligence and judgment because it has no idea how little it actually knows or understands. It believes Higher Education's hype that specialization has given it a superior understanding that entitles it to control and power.
This overweening belief in its own superiority sets the stage for hubris and catastrophically ungrounded decisions. ...
Despite today's unexpectedly strong ADP and ISM report, which however followed a disappointing Q4 GDP print, the FOMC meeting at 2pm should be largely uneventful. The Federal Reserve, which won't have seen Friday's payroll report yet, will only release its statement without a press conference or Summary of Economic Projections. This offers market participants less information to digest and react to, and therefore consensus expects no change from the Fed.
A quick reminder on what has happened in markets since the Fed's latest, and only second in the past decade, rate hike which has seen the yield curve has flatten:
While gold has been the best performing asset class:
Although the odds of a move at this meeting are small, March is still a possibility with futures pricing in around a 15% chance of a 25bps hike.
Odds are slim as there is still a great deal of uncertainty surrounding the new President and his policies and the USD has been volatile as a result. In light of Fed rhetoric on the subject however, the Fed is not expected to give commentary to how, if at all, the potential Trump stimulus will affect the course of monetary policy.
The median FOMC participant is expected to still call for three hikes this year, a ...
Donald Trump has made his first comments since nominating Judge Gorsuch for The Supreme Court, stating that "I don't know how anyone can opposed Gorsuch" warning that if Congress ends up in gridlock, he would tell Majority leader Mitch McConnell to "go nuclear" - referring to a rule change enabling a simple majority to confirm his picks.
President Trump to Mitch McConnell: "Go nuclear" if SCOTUS pick doesn't clear 60 votes https://t.co/uYLDrtBh3k https://t.co/IOlYQ4XMyW
— CNN (@CNN) February 1, 2017
"He's pefect in almost every way"...
"He's perfect in almost every way": Trump meets with SCOTUS groups day after Gorsuch pick https://t.co/3H8HckvhLB https://t.co/QVQ1aiHwIq
— CNN (@CNN) February 1, 2017
As a reminder, the "nuclear option" refers to a move by the majority party in Senate — in this case the Democrats — to change the Senate rules to allow most executive branch and judicial nominations to be approved with a simple majority - 51 votes — rather than the 60 votes now required. Under longstanding rules, the minority party has been able to block a nomination with just 41 votes, commonly called a filibuster.
"I want Gorsuch to go through an elegant process, as opposed to a demeaning process... of course the press can be very demeaning too, so..."
With the US State Department in a state of protracted hiatus for the time being, tensions are again rising between Russia and Ukraine, and especially in East Ukraine, where over the past few days the number of soldiers killed in an offensive by pro-Russian separatists has reportedly risen to seven, Ukraine's military said on Monday, in the deadliest outbreak of fighting in the east of the country since mid-December.
The clashes between Ukraine's military and the pro-Russian separatists coincide with U.S. President Donald Trump's call for better relations with Moscow that has alarmed Kiev while the conflict in its eastern region remains unresolved. According to Ukraine sources, the rebels began attacking government positions in the eastern frontline town of Avdiyivka on Sunday. Five soldiers were killed and nine wounded on Sunday and two more were killed on Monday, they said.
"The situation in the Avdiyivka industrial zone is challenging. The enemy continues to fire at our positions with heavy artillery and mortars," Ukrainian military spokesman Oleksandr Motuzyanyk told a regular daily briefing. Naturally, since the media on both sides is clearly biased in its coverage, it came as no surprise that both local separatists news agencies, and Russia, denied escalation had occurred.
In the meantime, it appears that whether real or fabricated, the push to escalate another conflict is building, and on Wednesday, the Ukrainian Defense Ministry said that a Ukrainian An-26 transport plane came under rifle fire from a Russian drilling rig while flying near the Odessa gas field in the Black Sea. The plane was allegedly involved in drill over Black Sea, and was flying in Ukrainian air space.
"A Ukrainian transport plane came under fire today while flying over the Ukrainian maritime economic zone during a training mission. The crew members were not injured," Ukrainian Defense Minister Stepan Poltorak reported to President Petro Poroshenko as cited ...
The ISM Manufacturing survey improved and remained in expansion. The key internals remain mixed but improved. The Markit PMI manufacturing Index, also released today, is in positive territory and improved.
Either it was an elaborate ruse perfectly crafted for the fake news age, or there's some furry Canadian out there licking his wounds after getting caught on the wrong side of an extremely ill-timed Apple trade.
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