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04Aug2017 Market Close: Wall Street Closes Modestly Higher, DOW Hit New High, WTI Crude Climbs To The High 49 Handle, Analysts Warn Of A Pull Back In The Works

Written by Gary

US stock markets closed solidly in the green (SPY +0.2%) with the DOW closing at it new high (22,092.81). Analysts are starting to worry about the markets future.

Todays S&P 500 Chart

.... But eight years into the bull market, this latest milestone is bad news for most investors , according to Rex Nutting, and a sign of a bigger decline to come , in Tim Mullaney's opinion. And don't forget the warnings that stocks really are overvalued and that history tells us a crash always follows .

Not that pessimistic? The bull market may not be near its end, but there are plenty of reasons to expect a temporary pullback , writes Howard Gold.
Still, investors with short memories (the Dow has suffered corrections of 10% and 12% over the past two years) may not be ready for another major decline , reports Mark DeCambre.

The Market in Perspective

Here are the headlines moving the markets.

Former drug company executive Martin Shkreli is convicted of fraud

NEW YORK (Reuters) - Martin Shkreli was convicted of fraud by jurors in a U.S. court in Brooklyn on Friday, in a blow for the controversial former drug company and hedge fund executive, who had forcefully and repeatedly proclaimed his innocence.

Volkswagen executive pleads guilty in U.S. emissions cheating case

DETROIT (Reuters) - Volkswagen AG executive Oliver Schmidt pleaded guilty on Friday in U.S. District Court in Detroit in connection with a massive diesel emissions scandal that has cost the German automaker as much as $25 billion.

Dow cruises toward eighth straight record closing high

(Reuters) - The Dow Jones Industrial Average headed for its eighth straight record high close on Friday, with strong gains in JPMorgan Chase and other banks after data showed U.S. employers hired more workers than expected in July.

Toyota, Mazda invite U.S. states to compete for a rich prize

WASHINGTON (Reuters) - Toyota Motor Corp opened the door to a bidding war among Midwestern and southern states seeking to land jobs and investment when it announced on Friday it would build a $1.6 billion U.S. assembly plant with Mazda Motor Corp .

Strong U.S. jobs report bolsters case for further Fed tightening

WASHINGTON (Reuters) - U.S. employers hired more workers than expected in July and raised their wages, signs of labor market tightness that likely clears the way for the Federal Reserve to announce a plan to start shrinking its massive bond portfolio.

Yelp shares soar with Grubhub sale

SAN FRANCISCO (Reuters) - Shares of Yelp Inc jumped more than 27 percent on Friday, a day after the company announced the sale of its Eat24 business to Grubhub .

New 'Game of Thrones' episode leaks online through HBO partner

(Reuters) - The unaired fourth episode of the new season of HBO's hit series "Game of Thrones" has been leaked online, the premium channel's distribution partner Star India said on Friday.

Ackman's Pershing Square says it plans to nominate directors at ADP

BOSTON (Reuters) - Billionaire investor William Ackman on Friday said his Pershing Square Capital Management hedge fund plans to nominate directors to, but not try to control, the 10-person board at payroll services company Automatic Data Processing Inc .

Google developing technology for Snapchat-like media content: Wall Street Journal

(Reuters) - Alphabet Inc's Google is developing technology to create media content along the lines of Snap Inc's "Discover" platform, the Wall Street Journal reported, citing people familiar with the matter.

Dow Gains 1600 Points In 9 Days; S&P, Bonds, Gold & Dollar Unchanged

Despite the payrolls beat, "hard" data in the US economy closed the week lower for the 5th week of the last 6 to the lowest since May 2015... as The Dow surges for the 9th day in a row to the 8th record close in a row...

Because...

So this happened...

From the payrolls print, bonds and bullion were sold, stocks were flat...

Equity Futures also struggled post-payrolls with dip-buyers unable to sustain any gains...

The Dow just keeps on rising but Tech stocks suffered their second weekly drop in a row - Small Caps were worst as The S&P managed a small green close

Odds Of Facebook CEO Zuckerberg Being President In 2020 Better Than Hillary, Harris, & Biden

For a few brief hours this week - after news broke of the hiring of Joel Benenson, a former top adviser to President Barack Obama and the chief strategist for Hillary Clinton's failed 2016 presidential campaign, as a consultant - the odds of Facebook CEO Mark Zuckerberg running for President in 2020 surged to 65%.

And while the odds of him running has declined today...

Source: PredictIt

The hopes of the liberal technorati are picking up as bookies slash their odds of the social media superstar running the free world...

While Donald Trump is still favorite at 5/2, Paddy Power has just reduced the odds of Facebook co-founder Mark Zuckerberg winning the 2020 US presidential election from 25-1 to 16-1.

Source: Paddy Power

Trump's deputy Mike Pence is tied with Senator Elizabeth Warren with odds of 15-2.

Other interesting inclusions to the betting odds list are wrestling super star and actor Dwayne Johnson (pop ...

Kunstler Warns "'Russiatosis'... Will Blow Up In America's Face"

Authored by James Howard Kunstler via Kunstler.com,

Russia hysteria has become a full-blown national psychosis at a moment in history when a separate array of troubles poses the real threat to America's well-being. Most of these have to do with the country's swan dive into bankruptcy, but meeting them honestly would force uncomfortable choices on the grifters and caitiffs in congress. Meanwhile, the Treasury Dept is burning through its dwindling cash reserves, and all government activities will face a shutdown at the end of the summer unless congress votes to raise the debt ceiling — which may be way harder than passing the stupid Russia sanctions bill.

That bill, vaingloriously called The Countering America's Adversaries Through Sanctions Act will only blow up in America's face. This country's actual trade with Russia is negligible, but the bill aims to interrupt and punish Europe's trade, centering on oil and natural gas, which they need desperately. Mainly, the US bill seeks to interrupt a gas pipeline under the Baltic Sea that would bypass several of the Baltic Nations currently being used by America — under the NATO banner — as staging areas for unnecessary and provocative war games on Russia's borders.

Germany is certain to not stand for it, and like it or not, they are the straw that stirs the European drink. The sanctions pretend to seek to isolate Russia, but the effect will only be to isolate the United States. Europe will laugh at the measure as impin ...

Bankrupt Apparel Stores Finally Learn That Rent Is Expensive; Try To Make A Comeback Online

After retail bankruptcies soared an astonishing 110% in the first half of 2017 (something we discussed here: The Amazon Effect: Retail Bankruptcies Surge 110% In First Half Of The Year), it seems that the new wave of retail operators are finally figuring out that in-store payrolls and excessive mall rents are simply an insurmountable economic disadvantage in the post-Amazon world. The following info-graphic from the Wall Street Journal helps to put the offline vs. online cost structure of apparel retailers into perspective:

Retail private equity investors have purchased a number of failed apparel companies over the past 12 months. But, while they're buying the brand name and maybe some manufacturing equipment, these PE firms are not assuming many mall leases.

Gordon Brothers purchased Wet Seal for $3 million in March, the same month that the teen retailer sold its inventory and closed the last of its stores, and is now working to restart Wet Seal's manufacturing. It aims to open an online store in the fall.

Private-equity firm Sycamore Partners in 2014 hired Newmine LLC to relaunch Coldwater Creek, a fashion brand that had closed that year but retained a following among middle-aged women. Clothes were available for sale online four months later after a "fast-paced, SWAT-team-l ...

No Cure in Sight for Teva

Don't be fooled by the low valuation. Teva Pharmaceutical Industries is a dangerous stock to own.

Square: Don't Overpay for Payments Hype

Payments company Square turned in a solid quarter, but its shares are just too expensive.

A Ferrari SUV? Investors Should Hope So

Ferrari is speeding toward a fork in the road. It shouldn't hesitate to take the more ambitious path.

Capitol Report: Companies to workers: We're hiring, but don't expect a big raise

Companies big and small are rushing to fill a near record number of job openings, but what they aren't doing is offering bigger paydays.

Oprah's windfall on Weight Watchers hits $340 million

With Weight Watchers soaring after a blowout earnings report, Oprah Winfrey could make about $340 million on her initial investment of $43 million.

Currencies: Dollar rallies after strong jobs report, snaps 3-week skid

The U.S. dollar spikes on Friday, rebounding off a near-15-month low on Friday after the closely watched U.S. jobs report topped expectations, which was seen as clearing a path for the Federal Reserve to tighten its balance sheet.

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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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