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29Jun2017 Market Update: Wall Street Slides As The Bears Cheer Gleefully, DOW Down 200 Points, Crude Futures Edged Up Less Than 1 Percent, US Crude Production Declines, US Dollar Falls Further

Written by Gary

US stock markets opened (briefly) higher and then began its moderate selloff (SPY -1.0%) and may go deeper into the investors portfolios before the session is done. The market decline is being blamed on a selloff in technology stocks that outweighed gains in the financial sector.


Here is the current market situation from CNN Money

Traders Corner - Health of the Market

Dow drops 150 points as tech stocks slide nearly 2%

What Is Moving the Markets

Here are the headlines moving the markets.

Wall St. lower as tech selloff outweighs bank gains

(Reuters) - Wall Street dipped in late morning trading on Thursday as a selloff in technology stocks outweighed gains in the financial sector.

Blue Apron shares make bland debut

(Reuters) - Blue Apron Holdings Inc's shares rose as much as 4.6 percent in their debut on Thursday following the meal-kit delivery company's watered down IPO under the shadow of Amazon.com's deal to buy Whole Foods Market .

Walgreens scraps Rite Aid merger, will instead buy half its stores

(Reuters) - Drugstore chain Walgreens Boots Alliance Inc scrapped its deal to buy Rite Aid Corp after failing to win antitrust approval, but said it would instead buy nearly half of the smaller rival's U.S. stores for $5.18 billion.

U.S. first quarter economic growth revised up on jump in consumer spending

WASHINGTON (Reuters) - The U.S. economy slowed less sharply in the first quarter than initially estimated due to higher consumer spending and a jump in exports, beating expectations and providing a slightly more encouraging outlook for growth this year.

Britain says Fox bid for Sky risks giving Murdoch too much power

LONDON (Reuters) - Britain intends to subject Rupert Murdoch's takeover of European pay-TV group Sky to a lengthy in-depth investigation after finding the $15 billion deal risks giving the media mogul too much power over the news agenda.

'Hammer, hammer, hammer': Canada lobbies U.S. before NAFTA talks

CINCINNATI, Ohio (Reuters) - In the baking Ohio heat Canada's trade minister is trying to save NAFTA, one encounter at a time.

Oil prices edge up to two-week high on dip in U.S. output

NEW YORK (Reuters) - Oil futures edged up less than 1 percent after hitting a two-week high on Thursday, extending a rally into a sixth straight session after a decline in weekly U.S. crude production temporarily alleviated concerns about deepening oversupply.

BHP chairman says $20 billion investment in shale was a mistake

SYDNEY (Reuters) - BHP Billiton's Chairman Jac Nasser said on Thursday BHP's $20 billion investment in U.S. shale oil and gas six years ago was, in hindsight, a mistake.

BP takes $750 million hit for Angola exploration write-off

LONDON (Reuters) - BP will book a $750 million charge for unsuccessful exploration campaigns in Angola, the company said on Thursday, a write-off that will weigh on its second-quarter results.

White House Press Secretary Defends Trump's Attack on Morning Joe: 'The President Will Not Be Bullied'

Content originally published at iBankCoin.com

I know, the Nasdaq is down 100 and tech stocks are engulfed in flames. But how do you expect me to sit here and ignore this story? As a person who lives to 'stir the pot', this is the best timeline for me. All I have to do it sit back and watch the President of the United States talk shit all day, providing me with endless ways to trigger those opposed to him.

Just to recap today's impeachable offense.

Trump tweeted to Joe Scarborough ( a never Trumper), and his soon to be wife Mika Brzezinski, these insane comments.

I heard poorly rated @Morning_Joe speaks badly of me (don't watch anymore). Then how come low I.Q. Crazy Mika, along with Psycho Joe, came..

— Donald J. Trump (@realDonaldTrump) June 29, 2017

...to Mar-a-Lago 3 nights in a row around New Year's Eve, and insisted on joining me. She was bleeding badly from a face-lift. I said no!

— Donald J. Trump (@realDonaldTrump) June 29, 2017

The response by Never Trumpers and the Hillbot brigade has been sheer unhinged outrage.

Dear @realDonaldTrump,

You are a pig.

Sincerely,

Bill Kristol https://t.co/2IG7yXmCs4

— Bill Kristol (@BillKristo ...

Financials Give Up Stress-Test Gains As FANGs Falter

Well that escalated quickly...

As Bloomberg notes, today's selling is nearly as broad as yesterday's buying.

Investors can't ditch technology and consumer-oriented stocks fast enough. Yield-sensitive sectors --utilities, REITs -- are getting hit with sell tickets too as bonds sell off (10-year Treasury yield is up as much as 15.8 bps in just three days, breaking the key 2.25% level). Wall Street is mostly risk off, worried that central bankers worldwide are threatening to pull away the punch bowl just as inflation picks up in Germany ahead of key PCE data for the U.S. tomorrow.

Tech's weakness is extending a global retreat for the sector. TECHNOLOGY It's hard to pin the broad drop in the sector on any specific news. Rather than any change in corporate fortunes, the reason may just be rotation, out of social/computer companies and into banks. The losses are broad.

Financials opened exuberantly but it appears "sell the news" is the plan...

As the Big Banks all roll over...

We're gonna need moar buybacks.

...

Bill Ackman Joins Twitter

After years of purportedly cultivating relationships with journalists to burnish his image in the press, Pershing Square Capital Founder Bill Ackman has created a twitter account, presumably to cut out the middleman and speak directly to the people, after eating a series of embarrassing losses from bad bets on Valeant pharmaceuticals and Herbalife Inc.

Ackman confirmed to Bloomberg that the account, which bears the handle @BillAckman1, is, in fact, genuine. Unfortunately, his reluctance to join the service - which was launched 10 years ago - at an earlier date left him unable to secure a handle using just his own name: That handle, apparently, belongs to an imposter.

Ackman forced to use @billackman1

— zerohedge (@zerohedge) June 29, 2017

Ackman's fund ate a $3 billion loss in March when it announced it had liquidated its entire stake in Valeant Pharmaceuticals and has effectively resigned from the board, saying he won't stand for re-election. In a statement, Ackman said "it was time to get out of the position, investment required disproportionately large amount of time and resources."

Ackman hasn't yet tweeted, nor has he added profile picture.

Here's a breakdown of the accounts Ackman is following, via BBG:

"The Paint May Be Drying, But The Wall Is About To Crumble": BofA Explains What The Market Is Missing

One of the recurring laments about the Fed's hiking cycle, most recently from Goldman, is that despite 2 rate hikes so far this year, financial conditions remain the loosest they have been in over two years.Whether that is due to the market being so drunk on the Fed's "punch bowl" it is unable to grasp the liquidity is being dragged away, or for some other unknown reason despite repeated warnings by FOMC members that stocks here are overvalued, markets simply refuse to concede that financial conditions should be tighter, in fact, as Goldman observed yesterday "so far, the Fed's efforts to tighten financial conditions have achieved too little, not too much."

That, in the view of Bank of America's rates strategist Shyam Rajan is a big mistake because as he explains in his latest note titled "When paint dries, does the wall crumble?" despite the market's repeated unwillingness to acknowledge what the Fed is doing, "recent market moves mark the beginning of a prolonged tightening of financial conditions."

And, more notably, he underscore that despite the benign financial condition regime, the market is missing one key thing: in light of what the market perceives as a "benign flow effect" the risk currently is in the the Fed's balance sheet "stock" and adds that "we think the market is complacent on the stock effect of the Fed's balance sheet decline. Specifically, higher deposit betas, UST supply and/or real rates could all trigger significantly tighter financial conditions."

To underscore his point, Rajan shows the following chart which shows just how vast the upcoming normalization will be, in light of the moves for both ...

Chip Makers Cashing In on Digital Currencies, for Now

Graphics processors have long been the mainstay of personal computers tricked out for gaming. But the chips are also useful for a task called cryptocurrency mining.

Don't Fight China, the Federal Reserve of Coal

State media reports China is about to restrict coal imports again, throwing a wrench into global markets for the third time in just over a year.

H&M Gets With the Fashion for Cutting Costs

Finally, some good news from H&M: It is keeping a close eye on costs. But a return to meaningful sales growth would be much better news.

Third Estimate 1Q2017 GDP Revised Upward. Corporate Profits Down.

Written by Jill Mislinski and Steven Hansen

The third estimate of first quarter 2017 Real Gross Domestic Product (GDP) was revised upward to 1.4 %. This improvement was mainly due to lower inflation numbers relative to the second estimate.

Nevada set to start selling recreational marijuana on July 1

Starting at 12:01 a.m. July 1, adults age 21 and older will be able to buy up to an ounce of marijuana, or one-eighth of an ounce in marijuana-infused edibles and concentrates.

Here's how hard it is to hire a surrogate for childbirth (if you're not Kim Kardashian)

For the average American, surrogacy can be financially unattainable.

The Moneyologist: iPhone at 10: Will a flip phone give other people the wrong impression?

A reader writes, 'I'm smart, but my phone isn't!'

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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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