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11May2017 Market Update: Wall Street Pared Morning Losses, Crude And The US Dollar Steady, Markets Expected To Close Fractionally In The Red

Written by Gary

Shares of America's favorite retailers dropped today as investors worry traditional retailers are having a harder time adjusting to the shift to ecommerce. Applications for U.S. jobless benefits unexpectedly fell last week while producer prices rebounded strongly.


Here is the current market situation from CNN Money

North and South American markets are mixed. The Bovespa is higher by 0.27%, while the IPC is leading the S&P 500 lower. They are down 0.79% and 0.29% respectively.

What Is Moving the Markets

Here are the headlines moving the markets.

U.S. labor market tightening; inflation pressures building

WASHINGTON (Reuters) - New applications for U.S. jobless benefits unexpectedly fell last week while producer prices rebounded strongly in April, pointing to a tightening labor market and rising inflation that could spur the Federal Reserve to raise interest rates in June.

Wall St. on track to record worst day in one month

(Reuters) - U.S. stocks trimmed losses on Thursday, but were still on track for their biggest one-day fall in nearly a month due to declines in retail and bank shares.

Macy's weak quarterly results hit department store shares

(Reuters) - U.S. department store operator Macy's Inc reported a much bigger-than-expected drop in quarterly profit and sales, continuing its uphill struggle to attract customers amid a slump in demand for apparel and the shift toward shopping online.

Whole Foods board overhaul fails to satisfy activist Jana: source

NEW YORK (Reuters) - The board overhaul at Whole Foods Markets Inc has failed to satisfy Jana Partners, according to a person familiar with the matter, signaling that the month-long battle between the organic grocer and activist hedge fund is no nearer to a conclusion.

In Trump's shadow, Fed official says trade barriers a 'dead end'

MUMBAI/NEW YORK (Reuters) - Trade protectionism is a "dead end" that may score political points but will ultimately hurt the U.S. economy, one of the most influential Federal Reserve officials said on Thursday in the central bank's strongest defense yet of open borders in the face of a skeptical Trump administration.

Less than picture perfect: Snap slumps on slowing user growth

(Reuters) - Snap Inc shares plunged as much as 23.5 percent on Thursday after the owner of the wildly popular Snapchat app's user growth and revenue numbers failed to show that it was adequately dealing with rising competition from Facebook.

It's not what you say, it's how quickly you trademark it

(Reuters) - Ideas were flying at a brainstorming session to create a slogan for North Carolina county Democrats when Catherine Cloud blurted out a phrase that made a colleague's eyes light up: "Because this is America."

Wells Fargo doubles cost-cut goal in response to Wall Street pressure

(Reuters) - Wells Fargo & Co doubled its cost-cutting target after seeing expenses soar in the aftermath of a sales scandal that the third-largest U.S. bank is still trying to recover from.

Exclusive: Barclays rejigs global investment banking team, seeks new hires

LONDON (Reuters) - Barclays reshuffled its senior global investment bank management on Thursday and is seeking to hire between 50 to 100 people to boost the division under new chief Tim Throsby, according to sources with direct knowledge of the plans.

FBI Agents Raid A GOP Fundraising Firm In Annapolis

While details are scarce, moments ago WBALTV reported that the FBI has confirmed its agents are executing a search warrant at an office of a GOP fundraiser/consulting firm in Annapolis. The TV station adds that the investigation is being run out of Washington, not locally.

Developing: FBI confirms agents are executing a search warrant at the office of GOP Fundraiser/Consulting firm in Annapolis

— Jayne Miller (@jemillerwbal) May 11, 2017

FBI investigation of GOP fundraising firm in Annapolis is run out of Washington, not a local case

— Jayne Miller (@jemillerwbal) May 11, 2017

For now it is unclear if the timing of the raid is a coincidence in light of the recent events that have taken place between President Trump and the GOP.

Developing.

Student Loans Just Got A Lot More Expensive For Our Snowflakes

Snowflakes looking to take out massive student loans for next year to fund the $50,000 price tag of their liberal bastion of choice, and maybe the occasional binge-drinking trip to Cancun for Spring Break, are about to get a little price hike. But, don't worry, you won't have to start paying on those loans for at least 4 years.

Beginning in July, interest rates on new federal student loans are set to rise by 0.69%, per data published by the Treasury, which would drive the interest cost of new undergraduate loans up to 4.45% from 3.76% for the academic year ending in June, a nearly 20% increase off an historically low base. Meanwhile, rates on some graduate loans are set to rise from 5.31% to 6% and rates on loans to parents and guardians are due to jump from 6.31% to 7%. As an example, the cost of a $10,000 loan would increase by about $400, according to an online calculator maintained by Bankrate.com.

Of course, these higher borrowing costs shouldn't be that big of a deal as some 44 million Americans only owe $1.4 trillion on their student loans, or a modest average of only $32,000 per borrower.

Student Loan Debt

As Bloomberg points out, the Obama administration changed the methodology for calculating student loan rates in 2013 to link them to then sinking 10-year Treasury rates. And while that helped to lower rates for students for ...

Xi Should Coach Trump On How To Avoid A Trade War

The U.S. has recorded a trade deficit in every year since 1975. This is not surprising — America spends more than it saves. So, it must run a trade deficit, and this deficit is financed by means of a virtually unlimited U.S. line of credit with the rest of the world. Economies that save more than they spend and record corresponding trade surpluses ship funds to the U.S. to finance America's insatiable spending.

President Trump and his trade team clearly do not understand these economic basics. This promises no end of diplomatic and economic problems for the U.S. These probably reared their ugly heads in Mar-a-Lago, when President Trump and China's President Xi rendezvoused.

Japan and more recently China have been the primary creditors for the savings-deficient U.S. Indeed, Asia's exports to the U.S. have been paid for largely by Asia's credits to the U.S. The result is a huge trade surplus for Asia, largely in manufactured goods, and a build-up of dollar claims against the U.S.

As the chart below shows, China and Japan have been responsible for the lion's share of the U.S. trade deficit. Japan's contribution has fallen from a peak of just under 60% in the early 1990s to around 10% today, while China's contribution has steadily risen from around 20% in the early 1990s to 48% today.

The U.S. savings deficiency has contributed to the hollowing out of American manufacturing. This is one subject which President Donald Trump has never mentioned. Instead, he claims that American manufacturing has been eaten alive by foreigners who adopt unfair trade practices and manipulate their currencies to artificially weak levels. This ar ...

5 Stories Everyone Is Ignoring While The Mainstream Media Obsesses Over Trump Firing Comey

Authored by Carey Wedler via TheAntiMedia.org,

A 'power hungry president' has 'kicked a power player out of office', and the mainstream media is having a field day. Headlines have obsessively focused on Trump's termination of FBI Director James Comey and the implications that come with it, drawing comparisons to Richard Nixon's Watergate scandal and questioning Trump's decision to fire the man who was leading an investigation into the president's own alleged misconduct.

While the drama currently unfolding will certainly have profound implications for the present and future, the theatrics playing out on telescreens around the country are hardly representative of the bigger picture in the United States. As millions of Americans fix their eyes and minds on the ongoing developments, other stories are lurking behind the curtain — and reveal far more about the struggles we face.

Though they have received some coverage from corporate and establishment outlets, these stories are being forced out of the conversation by round-the-clock coverage of political figureheads warring in Washington.

Here are five to follow:

1. The Pentagon is seeking a troop increase in Afghanistan after 16 years of repeating that exact mistake — The last time Anti-Media put together a list of stories falling by the wayside amid a media feeding frenzy — that time, it was Trump's decision to bomb Syria — an increase of troops in Afghanistan made the cut. Unfortunately, it's a recurring development. As various mainstream outlets reported — with little tra ...

AIG Gets a CEO Who Can Stand Up to Icahn

American International Group is poised to choose a strong hand to restore confidence in the insurance giant. AIG plans to name industry veteran Brian Duperreault as chief executive, The Wall Street Journal has reported.

European Stocks Should Break on Through to the Other Side

European stocks have been trying for two decades to rise above current levels. This time, they may succeed.

Italy's Battered Banks Find Some Love

Investors moving from larger banks and reliable insurers to riskier plays.

April 2017 Producer Price Final Demand Year-over-Year Inflation Again Increases Marginally to 2.5%

Written by Steven Hansen

The Producer Price Index year-over-year inflation marginally gained from 2.3 % to 2.5 %.

Trump calls Comey a 'showboat' and a 'grandstander' in NBC interview

President Donald Trump said on Thursday he was planning to fire now-former Federal Bureau of Investigation Director James Comey regardless of a recommendation he got from Deputy Attorney General Rod Rosenstein.

The Wall Street Journal: Sony Pictures taps former Fox TV head to run film studio

Tony Vinciquerra, 62 years old, a former senior executive at Fox, is to become chief executive of Sony Pictures Entertainment effective June 1, the company said

Deep Dive: This fund manager beats stock indices by finding 'the next big thing' with staying power

'Sometimes good investments are not the exciting ones,' says Guinness Atkinson's Matthew Page. By Phil van Doorn.

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To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

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