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20Jul2017 Pre-Market Commentary: Wall Street's Trump Train Slips Off Track After Nasdaq And SP500 Set New Records At The Opening, US Dollar Waterfalls And Crude Prices Falter

Written by Gary

US stock markets opened by gaping up setting new historical highs for the Nasdaq and SP 500 in the face of very disappointing Philly Fed Mfg Index that . . .


Here is the current market situation from CNN Money

European markets are mixed today. The FTSE 100 is up 0.59% while the CAC 40 gains 0.05%. The DAX is off 0.29%.

. . . came in at 19.5, while expecting 24.0. A fall of 3.6 from the last report of 27.6 was predicted, but not the 8.1 that printed this morning. By 10 am the Trump Train ran out of steam and began a steep plummet into the red significantly worrying investors.

This session is going to be news driven and investors had better watch out for sudden reversals.

What Is Moving the Markets

Here are the headlines moving the markets.

Wall St. flat as earnings from some big names disappoint

(Reuters) - U.S. stocks were little changed in early trading on Thursday after the S&P and the Nasdaq touched all-time highs as earnings from some big names disappointed.

U.S. weekly jobless claims fall to near five-month low

WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits fell more than expected last week, touching its lowest level in nearly five months, suggesting strong job gains that should continue to underpin economic growth.

U.S. fines Exxon Mobil over Ukraine-related sanctions violations

WASHINGTON (Reuters) - The U.S. Treasury Department on Thursday announced a civil penalty against Exxon Mobil Corp and its U.S. subsidiaries for violating sanctions regulations related to Ukraine in May 2014, fining the global oil company $2 million.

Bill Gross warns of recession risk if highly levered economies hike rates

NEW YORK (Reuters) - Highly levered domestic and global economies including the United States, which have "feasted" on easy monetary policies in recent years, cannot withstand a normalizing of short-term interest rates without running the risk of a recession, influential bond investor Bill Gross of Janus Henderson Investors warned on Thursday.

Murdoch made to wait few more weeks for Britain's Fox-Sky decision

LONDON (Reuters) - Rupert Murdoch will have to wait a few more weeks to know whether Twenty-First Century Fox's bid for Sky will be referred for a lengthy British investigation.

Exclusive: U.S. Cardinal Health puts $1.5 billion China business on block - sources

HONG KONG (Reuters) - U.S. drug distributor Cardinal Health has put its China business up for sale, drawing keen interest from state-backed Chinese pharmaceutical firms in a deal that may be worth up to $1.5 billion, sources familiar with the matter said.

Sears to sell Kenmore appliances on Amazon; shares jump

(Reuters) - Sears Holdings Corp's shares soared 20 percent after the struggling retailer said it would sell its Kenmore home appliances on Amazon.com and integrate the brand's smart gadgets with the online giant's Alexa digital assistant.

Brent oil climbs above $50 for first time since early June

LONDON (Reuters) - Brent crude oil rose above $50 per barrel for the first time since early June on Thursday, adding to gains made the previous session when falling U.S. crude and oil product inventories lifted the market.

Abbott lifts profit forecast as it integrates St. Jude deal

(Reuters) - Abbott Laboratories on Thursday raised its full-year adjusted profit forecast as the diversified healthcare company gains from its $25 billion acquisition of medical devices maker St. Jude Medical earlier this year

Americans' Hope For The Economy Just Plunged - 'Trump Bump' Erased

Another 'soft' data survey rolls over...

Following this morning's tumble in the Philly Fed report, Bloomberg's Consumer Comfort survey shows economic expectations plunged back to their lowest since before the election...

The monthly measure of economic expectations fell to 47 in July from 52 in June.

The share of respondents who say economy getting better dropped to 28%; 32% said it was getting worse.

As Bloomberg notes, the pickup in optimism about the economy in the months after the presidential election has faded.

For the first time since November, more Americans said they thought the economy was getting worse rather than improving. However, expectations were influenced by partisanship, as 13 percent of respondents who are Democrats said the economy was strengthening compared with 48 percent of Republicans who said so.

US Congress On Pace To Be The Least Productive Legislature In 164 Years

Authored by Everett Numbers via TheAntiMedia.org,

Without even enough Senate Republican support for a "clean repeal" of Obamacare, this Congress is on its way to historical levels of getting nothing done. So is the 'Resistance' winning? And will the divided GOP endanger President Donald Trump's 2020 chances?

Another U.S. civil war may not be just around the corner, but then again, just imagine the status quo for another 10 years. Congress is on pace to pass the least number of bills in 164 years, David Faris, associate professor of political science at Roosevelt University, wrote Tuesday in The Week. As Washington, D.C. revels in permanent division and another "lesser of two evils" 2020 election cycle creeps into view, something's got to give.

Immediately following the late Monday evening announcement that the Obamacare "repeal and replace" strategy would be split into two separate bills, many Republican voters expressed optimism that Congress may actually get something done. Or, rather, undone. But...

Nope! Despite Trump, Senate Majority Leader Mitch McConnell (R-KY) and Senator Rand Paul (R-KY) all being on the same page for a "clean repeal" and ready to hear bipartisan "replacement" proposals, there were at least three other GOP voices already shutting down the entire plot.

Sens. Lisa Murkowski of Alaska, Susan Collins of Maine, and She ...

Bunds Violently Whipsawed On Draghi Confusion

Is it a yoyo? Is it a penny stock? Is it the most "liquid" European government bond?

To those who answered correctly - yes, this was the response of the German 10Y Bund yield to Draghi's prepared remarks and subsequent Q&A - congratulations.

While it was not certain what specific catalyst(s) prompted the two inflection points, bund futures dipped to day's low of 161.55 (-37 ticks) as Draghi said that the Governing Council will take decision "in autumn," in line with source comments earlier this week, adding to market conviction of a taper announcement at the ECB's Sept. or Oct. meeting. However, futures then quickly bounce after Draghi clarified the infamous Sintra speech, addressing the market focus on "reflation" specifying the technical definition is for a return to trend inflation.

Draghi's subsequent admission that there has been no discussion of tapering scenarios by the ECB did not help the hawkish case, nor the addition that not one data point will trigger tapering:

"We aren't looking for a specific data point which triggers one behavior or another" Draghi said, noting that "There is more information we can look at between now and then."

"It's basically the sense of the Governing Council that we have more confidence in taking a decision with more information than we have today" Draghi added.

In other words the ECB itself remains confused, and so one hour after Draghi's monetary press conference, and one month after the "Sintra spectacle", nobody still has any idea what is going on.

Bitcoin Surges Above $2500 Following Goldman's Bullish Note As 'Civil War' Ends

Bitcoin is up 40% from its weekend lows as the combination of a bullish Goldman Sachs note on the virtual currency and a major sigh of relief that the potential 'civil war' over cryptocurrency's scaling solutions appears to be over (with over 80% of the hashrate currently voting for the protocol upgrade).

The entire cryptcurrency space is surging today...

As it seems the civil war may be ovver (as Cryptocoinsnews.com reports), Bitcoin miners have seemingly made a decision to activate segwit with some 80% of the hashrate currently voting for the protocol upgrade with other miners expected to follow soon.

But Bitcoin is outperforming among the larger peers...

Goldman is also out wth a new bullish note on Bitcoin...

Bitcoin has reached/so far held notable support at 1,857-1,789. The area includes an ABC equality target off the June high as well as the 100-dma. The 100-dma has been particularly reliable in holding pullbacks since the late-'15 lows. Moreover, due the corrective nature of the pullback, this ABC target seems like a reasonable place to watch for signs of a turn. Additionally, daily momentum is nearing ...

How Quants Calm the Stock Market

One factor helping to keep the VIX and realized volatility extremely low is quant funds that are discovering surprises before they can create big stock-market moves.

The Saga Isn't Over for Dalian Wanda

Dalian Wanda Group may hope a last-minute tweak to a deal to sell nearly $10 billion of hotel and amusement park assets can solve some its near-term problems. Yet Beijing may still not be applauding.

Qualcomm: All in the Chips

Surprisingly strong chip sales at Qualcomm has been overshadowed by growing dispute with Apple and uncertainty about the ultimate fate of its NXP acquisition.

Deep Dive: Why you might want to avoid these 30 dividend stocks

Management CV gauges financial and management performance to anticipate which companies might cut their dividends.

Next Avenue: Think you're too old to jog? You'd better think again

If you're not ready to lace up your running shoes yet, keep reading. Here are 6 benefits of jogging after 50.

The Wall Street Journal: Here's how variable pricing would work to cure traffic congestion

"Congestion pricing" charges drivers more to use roads and bridges during the busiest times, clearing clogged roadways.

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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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