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15Jun2017 Market Commentary: Wall Street Sells Off At The Opening, Tech Sector Selling Returns With A Vengeance, Crude Prices Remain Low As The US Dollar Climbs Higher

Written by Gary

US stock markets gaped down on the opening (SPY -0.6%) with the DOW off over 100 points, as investors continued to digest the Federal Reserve's hawkish message. Tech selling returns and Alphabet falls in early trading.


Here is the current market situation from CNN Money

European markets are sharply lower today with shares in Germany off the most. The DAX is down 1.24% while London's FTSE 100 is off 1.15% and France's CAC 40 is lower by 1.14%.

Today's Economic Calendar

8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
8:30 Empire State Mfg Survey
8:30 Import/Export Prices
9:15 Industrial Production
9:45 Bloomberg Consumer Comfort Index
10:00 NAHB Housing Market Index
10:30 EIA Natural Gas Inventory
4:00 PM Treasury International Capital
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

Companies reporting earnings today »

Looking at the last three columns (below), 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.

Wall St. to open lower as tech, bank stocks drop

(Reuters) - U.S. stocks were on track to open lower on Thursday as a drop in technology and bank stocks weighed, while investors fretted about the Federal Reserve's outlook on monetary policy amid weak economic data.

U.S. jobs market firming; inflation pressures easing

WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits fell more than expected last week, pointing to shrinking labor market slack that could allow the Federal Reserve to raise interest rates again this year despite moderate inflation growth.

Fed raises rates, unveils balance sheet cuts in sign of confidence

WASHINGTON (Reuters) - The Federal Reserve raised interest rates on Wednesday for the second time in three months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing U.S. economy and strengthening job market.

Uber's trucking ambitions in lower gear after Otto deal

SAN FRANCISCO (Reuters) - Uber Technologies Inc's drive to become a major player in the trucking business is off to a bumpy start, with analysts and industry executives questioning what exactly the company can bring to the sprawling $700-billion industry.

Bank of America to lay off more workers

(Reuters) - Bank of America Corp has begun laying off employees in its operations and technology division, part of the second-largest U.S. bank's plan to cut costs.

Oil hits six-week low as OPEC fails to curb oversupply

LONDON (Reuters) - Oil prices dropped to six-week lows on Thursday, under pressure from high global inventories and doubts about OPEC's ability to implement agreed production cuts.

Messaging startup Slack said to draw interest from Amazon: Bloomberg

(Reuters) - Slack Technologies Inc, a corporate messaging and collaboration software startup, has received inquiries about a potential takeover from technology companies including Amazon.com Inc , Bloomberg reported on Thursday.

BP's Dudley seen reigning for years to restore major's might

LONDON (Reuters) - When BP boss Bob Dudley clinched a final deal to settle litigation over the deadly Deepwater Horizon disaster, many oil industry executives and investors thought his mission was accomplished.

Fiat Chrysler recalling 297,000 vehicles for inadvertent air bag deployments

(Reuters) - Fiat Chrysler Automobiles NV is recalling 297,000 older minivans in North America because of a wiring problem that can lead to inadvertent air bag deployments, the company said in a statement on Thursday.

New York Fed Soars To Highest Since Sept 2014, Philly Fed Also Beats

In a much needed confirmation that Janet Yellen did not make a policy mistake by hiking rates yesterday, moments ago both the Empire State and Philly Feds smashed expectations, with the first printing at the highest level since September 2014 of 19.8, above the expected 4, and well above May's -1 contraction print, while the Philly Fed posted at 27.6, also beating consensus estimates of 24, if a drop from last month's 38.8.

The New York Fed breakdown:



Prices paid fell to 20 vs 20.9

New orders rose to 18.1 vs -4.4

Number of employees fell to 7.7 vs 11.9

Work hours rose to 8.5 vs 7.5

Inventory rose to 7.7 vs -0.7

Meanwhile over in Philadelphia:



June prices paid fell to 23.6 vs 24.2

New orders rose to 25.9 vs 25.4

Employment fell to 16.1 vs 17.3

Shipments fell to 28.5 vs 39.1

Delivery time rose to 13.9 vs 6.4

Inventories rose to 5.8 vs 1.4

Prices received rose to 20.6 vs 15.3

Unfilled orders rose to 14.0 vs 9.0

Average workweek fell to 20.5 vs 21.7

Six-month outlook fell to 31.3 vs 34.8

Six-month outlook for capex fell to 28.6 vs 32.6

The sentiment at both regional Feds was quite optimistic. First the NY Fed:

Business act ...

US Import & Export Prices Tumble In May As China Credit Impulse Collapses

For the first time since Augist 2016, both import prices (-0.3% MoM) and export prices (-0.7% MoM) dropped in May.

As China's credit impulse disappears (and turns negative) so YoY gains in import and export prices are also rolling over notably.

And judging by historical relationships, it's going to get worse before it gets better... no matter what China does now (it's already baked into the cake for the next 9 months).

Bitcoin Plunges To 2-Week Lows On Triple-Whammy Of Concerns

After ralying over 80% in the last month, Bitcoin prices are tumbling (down 25% from record highs to 2-week lows) as cryptocurrencies face uncertainty on three fronts.

As iBankCoin reports, investors are spooked over recent cyberattacks, uncertainty surrounding a Bitcoin platform upgrade, and proposed legislation which adds cryptocurencies a list of reportable assets under existing anti-money laundering laws.

Cyber attack

As CNBC reports, major bitcoin exchanges were hit with multiple cyberattacks this week. Bitfinex, the largest U.S. dollar based bitcoin exchange, announced it was under 'distributed denial-of-service' attacks (DDOS) which slowed the service down. The attacks come at a time when consumer interest in bitcoins have also led to heavier than normal traffic on the exchanges, compounding the attacks.

We are currently running slow due to a DDoS attack, hang tight while we make some adjustments to speed it up. #bitcoin #localbitcoins

— LocalBitcoins.com (@LocalBitcoins) August 16, 2016

Platform upgrade

On August 1st, the bitcoin platform will be undergoing a protocol upgrade ...

Port Of Charleston Reopens After "Dirty Bomb" Threat

In addition to the three shooting incidents that unfolded in the US on Wednesday, the Port of Charleston's Wando terminal was temporarily closed last night after authorities received word that there was a dirty bomb aboard a container ship.

Officials with the Coast Guard say federal and state authorities are continuing to investigate a potential threat which was reported at the Wando Terminal Wednesday night.

Coast Guard officials say the FBI is investigating a report of a "dirty bomb" aboard a vessel.

A dirty bomb is composed of conventional explosives and radioactive material.

According to emergency officials, no radiation has been found at this time.

A report by the Coast Guard states that at 8 p.m. authorities were made aware of a potential threat in a container aboard the vessel Maersk Memphis.

Live 5

As SHTFplan.com's Mac Slavo noted, though no additional information about the dirty bomb had been made available by officials last night, such a device detonated in a high population density area like Charleston could spew a deadly radioactive substance into the air, potentially leading to thousands of deaths and significant environmental damage to the fall out area.

In 2015 the Federal government in conjunction with the U.S. ...

Why the Fed Is an Overrated Risk for Emerging Markets

Emerging markets are having a good year even as the Fed lifts rates and politics swirls. There is still reward for taking risk

Textbook Lesson on How to Exit an Airline Stock

Bill Franke has sold out of Wizz Air three weeks after the company issued surprisingly bullish guidance.

Glencore Can Snatch Rio's Coal, but Might Regret It

Glencore looks well placed to outbid Chinese rival Yancoal for Rio Tinto's coal assets. That doesn't mean it should pull the trigger.

June 2017 Philly Fed Manufacturing Survey Declined But Remains Firmly In Expansion

Written by Steven Hansen

The Philly Fed Business Outlook Survey marginally declined but remains firmly in expansion. Key elements are in expansion.

June 2017 Empire State Manufacturing Index Returns To Positive Territory

Written by Steven Hansen

The Empire State Manufacturing Survey jumped well into positive territory. Important internals likewise improved.

Economic Report: Philly, Empire manufacturing gauges show strength in June

Two gauges of manufacturing sentiment showed strength in June.

Economic Report: U.S. jobless claims fall 8,000 to 237,000

The number of Americans applying for and receiving benefits after losing their jobs keeps going lower and lower.

Capitol Report: Trump bashes obstruction of justice reports | Qatar buys $12 billion in jets after terror accusation

President Trump rips stories about the special counsel investigating him for possible obstruction of justice; Qatar buys jets shortly after Trump's terrorism accusation; donor meeting held at White House on the day of Comey testimony; and more.

Earnings Summary for Today

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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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