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24Jul2017 Market Update: Wall Street Opened Lower And Is Trading Mostly Sideways, Nasdaq Hit New Highs, Crude Prices Climbing Ahead Of OPEC Meeting, Gold Off Session Highs

Written by Gary

US index Nasdaq hit a new historical high while the SP 500 and the DOW were pulled lower by losses in Johnson and Johnson in early afternoon trading (SPY -0.1%).


Here is the current market situation from CNN Money

North and South American markets are mixed. The Bovespa is higher by 0.30%, while the IPC is leading the S&P 500 lower. They are down 0.18% and 0.11% respectively.

What Is Moving the Markets

Here are the headlines moving the markets.

S&P, Dow lower as J&J drags; Nasdaq hits record

(Reuters) - The S&P 500 and the Dow Jones Industrial Average were pulled lower by losses in Johnson & Johnson in early afternoon trading on Monday, while the Nasdaq hit a record high ahead of Google parent Alphabet's earnings report.

Organic ranchers eye Amazon distribution ahead of Whole Foods deal

(Reuters) - Amazon.com Inc plans to meet on Wednesday with a dozen U.S. ranchers, seeking to expand distribution of organic and grass-fed meats as it takes over Whole Foods Market Inc, according to the meeting's organizer.

U.S. home sales stumble as prices hit record high

WASHINGTON (Reuters) - U.S. home resales fell more than expected in June as a dearth of properties amid strong demand pushed prices to a record high, keeping first-time buyers on the sidelines.

Campaign group Avaaz calls on EU to block Bayer's Monsanto deal

BRUSSELS (Reuters) - Online campaigns group Avaaz has called on European Union antitrust regulators to block Bayer's purchase of Monsanto, saying it would hurt innovation and competition and push up prices.

Exclusive: Spotify, Warner hope to clinch royalty deal by September - sources

LONDON (Reuters) - Music streaming company Spotify is close to agreeing a new licensing pact with Warner Music Inc, the last big music royalty deal it needs before pushing ahead with a U.S. stock market listing, four sources familiar with the situation said.

Analyst slashes Chipotle stock target, casts doubt on menu price hikes

LOS ANGELES (Reuters) - Shares in Chipotle Mexican Grill Inc continued losing ground on Monday, after Credit Suisse chopped its price target by $100 and raised doubts about whether the burrito chain can raise menu prices to offset higher costs.

U.S. venture capital's digital coin quandary: cash-rich startups

NEW YORK (Reuters) - U.S. venture capital firms lining up for a slice of the burgeoning digital currency market are grappling with a novel challenge - some of the hottest tech startups that sell the coins just don't need their money.

KKR to buy WebMD in $2.8 billion deal

(Reuters) - Private equity firm KKR & Co has agreed to buy WebMD Health Corp in a deal valued at about $2.8 billion, bringing a slew of popular online health information websites under one umbrella.

Halliburton sees North America rig count flattening, shares down

(Reuters) - Halliburton Co reported impressive second quarter results on Monday but warned the growth in North American rig count was "showing signs of plateauing", sending shares down 3.4 percent.

Libya's Oil King Won't Be Stopped By OPEC

Authored by Tsvetana Paraskova via OilPrice.com,

Conflict-torn Libya, divided between rival factions in the east and the west, recently reached 1 million bpd of crude oil output - for the first time since 2013.

The oil production recovery has put in the spotlight the chairman of Libya's National Oil Corporation (NOC), Mustafa Sanalla, whom analysts see as a central figure in the oil sector, wearing the hats of both a diplomat and an oil minister. It will be Sanalla who will lead Libya's delegation at the upcoming meeting of the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) in Russia, at which he will argue his country's position and share production plans for the immediate future.

And the monitoring committee will be eager to find out how much Libya's plans could further offset the cartel and friends' production cuts, from which the African nation is—for now at least—exempt.

Winning exemption at the time of the November OPEC deal wasn't difficult for Libya, whose production was at the mercy of the civil strife and port blockades that plagued Libya over the past few years.

Libya's production averaged

These Are The 10 Most Crowded Long And Short Trades According To UBS

In this market where fundamentals long ago ceased to matter, and where positioning remains one of the few remaining sources of alpha, investors have been focusing on lists showing the most over and under-owned stocks. However, contrary to the narrative that the most heavily owned stocks outperform the most shorted, or underowned ones, and vice versa, recently BofA calculated that for the third year in a row, "the Top 10 most overbought stocks have trailed the S&P for each of the past three years, while the Top 10 "most neglected" stocks outperformed the S&P on average by 11.6%."

This is what BofA's quant team found:

As flows from active to passive funds have accelerated, one strategy that has worked unusually well for the last several years is a simple positioning trade of selling the 10 most overweight stocks and buying the 10 most underweight stocks by active managers. This single trade has yielded over 16ppt of alpha year-to-date. And implied derisking/ outflows on Brexit alone have been fierce, with the same strategy generating 5.2ppt of alpha just since last Thursday's close. Even if Brexit's impact on funds is limited from here, we believe that crowded stocks will likely continue to underperform neglected stocks: a whopping two-thirds of US large cap AUM still resides in active funds - there is likely a lot more to go in the rotation from active to passive.

Visually:

As such, a useful trading framework, would be to look at the Top 10 most crowded trades of active managers - on either side of the ledger - and to short the 10 most overweigh ...

America 2017 = France 1789

Authored by James Howard Kunstler via Kunstler.com,

We are looking more and more like France on the eve of its revolution in 1789. Our classes are distributed differently, but the inequity is just as sharp. America's "aristocracy," once based strictly on bank accounts, acts increasingly hereditary as the vapid offspring and relations of "stars" (in politics, showbiz, business, and the arts) assert their prerogatives to fame, power, and riches - think the voters didn't grok the sinister import of Hillary's "it's my turn" message?

What's especially striking in similarity to the court of the Bourbons is the utter cluelessness of America's entitled power elite to the agony of the moiling masses below them and mainly away from the coastal cities. Just about everything meaningful has been taken away from them, even though many of the material trappings of existence remain: a roof, stuff that resembles food, cars, and screens of various sizes.

But the places they are supposed to call home are either wrecked — the original small towns and cities of America — or replaced by new "developments" so devoid of artistry, history, thought, care, and charm that they don't add up to communities, and are so obviously unworthy of affection, that the very idea of "home" becomes a cruel joke.

These places were bad enough in the 1960s and 70s, when the people who lived in them ...

Car Industry's Diesel Woes Just Won't Die

This was supposed to be the year Volkswagen drew a line under its diesel-emissions scandal. Instead the scandal seems to be spreading to the other German car giants.

Good News: China Is Making Less Useless Stuff

After years of overinvestment, which helped to sink global prices for steel, aluminum and other products, some of the worst-offending sectors in China are looking a bit better.

Bringing In Wealth Beats Trading It for Julius Baer

Managing money for the rich looks like a better business than trading and investment banking: That is the upshot of half-year results for Swiss bank Julius Baer and the theme of last week's U.S. bank results.

June 2017 Headline Existing Home Growth Slows

Written by Steven Hansen

The headline existing home sales growth slowed with the authors saying "Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that's straining their budget". Our analysis of the unadjusted data agrees.

Trump administration stymies push for improved climate-risk disclosure among companies

Companies, including energy companies and insurers, favor greater disclosure of the risk of climate change and investors are on board too.

5 of the best places to see the 'Great American Eclipse' on Aug. 21

These are the top cities to be in to take full advantage of this once-in-a-lifetime solar phenomenon.

Earnings Outlook: McDonald's earnings: Sales expected to be boosted by menu, franchisee changes

Analysts expect McDonald's sales to benefit from changes to the company's menu and line-up of franchisees.

Earnings Summary for Today

Earnings Calendar provided by Investing.com.

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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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