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27Sep2017 Market Close: US Stocks Closed Higher As Tech Rebound Continued. Oil And Gold Fell As Dollar Strengthened.

Written by Gary

U.S. stocks were higher after the close on Wednesday, as gains in the Technology, Financials and Consumer Services sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 0.25%, while the S&P 500 index added 0.41%, and the NASDAQ Composite index gained 1.15%.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

Trump proposal slashes taxes on businesses, the rich amid deficit worries

WASHINGTON (Reuters) - President Donald Trump on Wednesday proposed the biggest U.S. tax overhaul in three decades, offering to cut taxes for most Americans but prompting criticism that the plan favors the rich and companies and could add trillions of dollars to the deficit.

Exclusive: N.Y. regulator subpoenas Equifax over massive breach

NEW YORK (Reuters) - New York state's financial services regulator has issued a subpoena to Equifax Inc demanding it provide more information about the massive data breach the credit-reporting firm disclosed this month, a person familiar with the matter said on Wednesday.

Quebec, Britain threaten retaliation after Bombardier tariffs

MONTREAL (Reuters) - The Canadian province of Quebec and Britain threatened retaliation on Wednesday over stiff U.S. tariffs imposed on Bombardier Inc's CSeries jet that could affect thousands of jobs in the two countries.

NAFTA negotiators make some progress amid strains in U.S.-Canada relations

OTTAWA (Reuters) - The United States, Canada, and Mexico said on Wednesday they had made some progress in talks to modernize NAFTA, but acknowledged that relations between Washington and Ottawa had become strained over a U.S. decision to impose preliminary subsides on Canadian jet manufacturer Bombardier.

Exclusive: Spotify's valuation turned up to $16 billion in private trades - sources

LONDON/STOCKHOLM (Reuters) - Private trades in Spotify shares are valuing the music streaming company at about $16 billion, according to people familiar with the deals, raising the prospect of a bumper flotation next year.

Exclusive: U.S. senators want probe of Allergan transfer deal with tribe - letter

(Reuters) - Four U.S. senators have asked the Senate Judiciary Committee to launch an investigation into a deal drugmaker Allergan Plc struck with a Native American tribe to protect some of its patents from generic challenge, according to a letter seen by Reuters.

Wall St. gains on financials boost, tax hopes

NEW YORK (Reuters) - U.S. stocks rose on Wednesday as gains in financial shares were powered by growing expectations for a December interest rate hike and on hopes President Donald Trump's administration may be making progress on a tax plan.

Exclusive: Republican U.S. tax framework sets 20 percent corporate rate

WASHINGTON (Reuters) - Republicans in the U.S. Congress and the White House called for slashing tax rates on businesses and the wealthy on Wednesday, as part of a new tax plan that offers few details about how to pay for tax cuts without expanding the federal deficit.

U.S. core capital goods data underscores economy's strength

WASHINGTON (Reuters) - New orders for U.S.-made capital goods increased more than expected in August and shipments maintained their upward trend, pointing to underlying strength in the economy despite an anticipated drag on growth from Hurricanes Harvey and Irma.

PIMCO Exposes The 'ABCs Of Caution', Warns "This Is As Good As It Gets"

The macro-economic climate is "about as good as it is going to get," according to a new economic outlook from PIMCO, with Joachim Fels and Andrew Balls warning that "the last time a similar combination prevailed was in 2006 - and that didn't end well."


As Good As It Gets

It's easy to get lulled into complacency by synchronized global growth, easy financial conditions and super-low economic and financial market volatility.

Yet, while the current macro environment and outlook appear better than many of the younger market participants can remember, the last time a similar combination prevailed was in 2006 - and that didn't end well.

Eleven years on, we don't think another major financial crisis is likely over our cyclical horizon spanning the next six to 12 months.

However, then as now, when the macroeconomic environment is as good as it gets and valuations are tight, it is time to emphasize caution, capital preservation and diversified sources of carry away from the crowded trades. Note: you just read our main high-level investment conclusion based on vigorous internal discussions at our September Cyclical Forum.

Here's more on the debate and the analysis underpinning our forecasts and investment conclusions.


Small Caps Surge Most Since Election As Bonds Suffer Worst Rut In Over 50 Years

Today in Small Caps...

SPOTTED: Chasing the $RUT

— Sven Henrich (@NorthmanTrader) September 27, 2017

Small Caps exploded over 2% higher - the biggest gain since the election - on Trump Tax hype... (we note that marketd di roll over a little once Trump began speaking)

(NOTE - today was the biggest short-squeeze in 2 months)

VIX was monkeyhammered back to a 9 handle... because why not...2500 was rescued once again...

Interestingly, while Russell 2000 melted up insanely, its VIX also rose notably...

Quite a decoupling...

NFL Viewership Is Down 11% This Season As Fans "Take A Knee"

In the latest sign that viewers are turning out in droves over the politicization of professional sports, the Associated Press reports that through the first three weeks of the NFL season, viewership for national telecasts of NFL games is down 11% compared with 2016, Nielsen company said on Tuesday. While games had averaged 17.63 million viewers during the first three weeks of last season, that number has dipped to just 15.65 million so far this year.

The Nielsen figures don't include many of the Sunday afternoon games that are shown to a regional audience, but not a national one.

The report is the latest sign that NFL ratings are, in fact, sliding, as President Donald Trump has claimed. Earlier this week, NBC reported a week-over-week, and year-over-year, drop in ratings for "Sunday Night Football" as the primetime match-up between the 27-10 winning Washington Redskins and the Oakland Raiders snared an 11.6/20. That's the worst rating for SNF this season.

During the game, the Redskins linked arms last night, while nearly every single Raiders player sat on the bench during the anthem.

However, not every network saw a ratings dip. Bloomberg reports that CBS, whose Sunday night games included a closely fought matchup between the Green Bay Packers and the Cincinnati Bengals, experienced a small ratings bump, probably because the close score drew in more viewers.

Presid ...

Teachers Demand $3,200 From Each Kentucky Household To Fund Pension Ponzi For 2 Years

We have written frequently over the past couple of weeks about the disastrous public pension funds in Kentucky that are anywhere from $42 - $84 billion underfunded, depending on which discount rate you feel inclined to use. As we've argued before, these pensions, like the ones in Illinois and other states, are so hopelessly underfunded that they haven't a prayer of ever again being made whole.

That said, logic and math have never before stopped pissed off teachers and/or clueless legislators from throwing good money after bad in an effort to 'kick the can down the road' on their pension crises. As such, it should come as no surprise at all that the Lexington Herald Leader reported today that Kentucky's 365,000 teachers and other public employees are now demanding that taxpayers contribute a staggering $5.4 billion to their insolvent ponzi schemes over the next two years alone. To put that number in perspective, $5.4 billion is roughly $3,200 for each household in the state of Kentucky and 25% of the state's entire budget over a two-year period.

Kentucky's General Assembly will need to find an estimated $5.4 billion to fund the pension systems for state workers and school teachers in the next two-year state budget, officials told the Public Pension Oversight Board on Monday.

That amount would be a hefty funding increase and a painful squeeze for a state General Fund that — at about $20 billion over two years — also is expected to pay for education, prisons, social services and other state programs.

"We realize this challenge is in front of us. That's obviously part of the need for us to address pension reform," said state Sen. Joe Bowen, R-Ow ...

What Investors Don't Know About the Tax Plan

Investors can be sure the newly released Republican tax overhaul would improve companies' bottom lines. Whether it would benefit top lines is up in the air.

Why Big, Bad Boeing Is Picking on Bombardier

Why is Boeing picking on the little guy? Because that is how you stay big and dominant.

Saudi Arabia's Mega Bond Sale Sets Clock Ticking on Change

Saudi Arabia has been forced by the collapse of oil prices onto a road of change: the lifting of the kingdom's ban on women driving is another clear signal of that. But the country's jumbo $12.5 billion bond sale, after last year's even bigger $17.5 billion debut issue, is as much about where Saudi Arabia has come from as where it hopes to go.

August 2017 Pending Home Sales Seasonally Adjusted Index In Contraction

Written by Steven Hansen

The National Association of Realtors (NAR) seasonally adjusted pending home sales index again declined. Our analysis agrees. The quote of the day from this NAR release:

...many would-be buyers from earlier in the year are still in the market for a home, while others have perhaps decided to temporarily postpone their search ...

Durable Goods New Orders Improves in August 2017?

Written by Steven Hansen

The headlines say the durable goods new orders improved. However, the unadjusted three month rolling average declined.


The Tell: Why tax repatriation won't jolt the U.S. dollar

The proposed tax reform incentivizes companies to repatriate the cash they're currently holding abroad, but the direct impact on the U.S. dollar's exchange rate would be minimal, according to research by Goldman Sachs, which analyzed company filings and Senate reports.

The Tell: Mark Cuban, Pitbull step up, but Trump administration making Puerto Rico evacuees pay

Billionaire Mark Cuban and pop star Pitbull have lent their planes to help Puerto Rico, while the U.S. State Department is requiring evacuees to sign notes promising to repay the costs.

After the hurricanes: What to know before retiring abroad

Researching weather patterns and "testing out" retirement abroad are crucial

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