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05Oct2017 Market Update: Wall Street Continue To Set New Historical Highs, US Jobless Claims Fall, Rise In Exports Helps Narrow Trade Deficit

Written by Gary

US stock market major indexes rose sharply to new highs today (SPY +0.5%) fueled by gains in technology stocks including Netflix, Microsoft and Amazon.com. While, not typical, rising crude and dollar indexes also have risen.


Here is the current market situation from CNN Money

North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 1.33% while Mexico's IPC is up 0.52% and U.S.'s S&P 500 is up 0.49%.

Looking at the last three columns (below), the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.

What Is Moving the Markets

Here are the headlines moving the markets.

Tech stocks power Wall Street indexes to fresh record-highs

(Reuters) - The three main U.S. indexes climbed to fresh record-highs for the fourth day in a row on Thursday, fueled by gains in technology stocks including Netflix , Microsoft and Amazon.com .

Netflix increases monthly subscription fees for two plans

(Reuters) - Netflix Inc has raised the monthly subscription fees for two out of its three main U.S. plans by $1 and $2 respectively, according to details published on the company's subscription page on Thursday.

U.S. jobless claims fall; rise in exports helps narrow trade deficit

WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits fell more than expected last week, but the continued impact of Hurricanes Harvey and Irma on the data made it difficult to get a clear picture of the labor market.

Wells Fargo executives, board must face lawsuit over fake accounts, federal judge says

(Reuters) - A federal judge said current and former Wells Fargo & Co officers and directors, including Chief Executive Officer Tim Sloan, must face nearly all of a lawsuit by shareholders seeking to hold them personally liable for sales abuses and the creations of millions of unauthorized accounts.

Wall Street moves to Frankfurt as Brexit doubts grow

LONDON/FRANKFURT (Reuters) - Some of the globe's biggest banks have decided to rent more office space in Frankfurt, bolstering Germany's financial hub after months of divorce talks between Britain and the EU have left London's future more uncertain than ever.

Doubts growing whether Clariant can seal Huntsman deal

FRANKFURT/LONDON (Reuters) - Doubts are growing among Clariant investors whether the Swiss chemicals maker will be able to drive through a $20 billion merger with Huntsman Corp in the face of opposition from an activist investor.

Panel finds U.S. washing machine makers hurt by South Korean imports

WASHINGTON (Reuters) - The U.S. International Trade Commission on Thursday found that imports of large residential washing machines were harming domestic producers, in a major step toward the imposition of duties or quotas on foreign-made Samsung- and LG-brand washers.

Wall Street rally on pause, but more gains seen in 2018: Reuters poll

NEW YORK (Reuters) - A more than eight-year bull market on Wall Street will simmer for the rest of 2017 before picking up again next year, said strategists in a Reuters poll who were optimistic about corporate profits but concerned about slow tax reform progress.

Bombardier eyes Asian markets amid U.S. trade spat with Boeing

NEW DELHI (Reuters) - Bombardier Inc is betting on fast-growing markets like India to boost sales of its Q400 and CSeries narrow-body planes, a senior executive said on Thursday, at a time when the Canadian planemaker faces a trade row over sales to the United States.

House Passes Budget, Jumps First (Smallest) Hurdle Towards Tax Reform

The House passed its 2018 budget resolution Thursday (with 18 Reps voting against) crossing the first threshold toward its goal of sending tax reform legislation to President Trump.

As WaPo reports, the House budget resolution includes major spending cuts demanded by the party's conservative wing, but the party's focus is now on passing a tax bill that could add as much as $1.5 trillion to the budget deficit. Special procedures set out in the legislation would ultimately allow Republicans to pass the bill over a potential Democratic filibuster in the Senate.

"Our budget specifically paves the way for pro-growth tax reform that will reduce taxes for middle class Americans and free up American businesses to grow and hire," House Budget Committee Chairman Diane Black (R-Tenn.) said during floor debate.

In a 219-206 vote, The Hill reports lawmakers approved a budget resolution for 2018 that sets up a process for shielding the GOP tax bill from a filibuster in the Senate.

A total of 18 Republicans voted against the resolution, along with all the Democrats, but GOP lawmakers hailed the vote as meaningful because of the tax measure.

"We haven't reformed this tax system since 1986. We need to pass this budget so we can help bring more jobs, fairer taxes, and bigg ...

Russia Increases Economic Support For North Korea As China Backs Away

Over the past two months, China, North Korea's economic benefactor and formally the source of 90% of its foreign trade, has been withdrawing financial support, ostensibly under the auspices of US sanctions, as Communist Party leaders try to rein in the North's nuclear program to appease the US and prevent a potentially destabilizing conflict on its border - a development that would be particularly unwelcome during the Communist Party's upcoming national congress.

As we reported earlier this week, North Korea's thriving black-market economy (the county earns hundreds of millions of dollars a year from illegal weapons sales, along with other illicit activities rumored to include counterfeiting of US dollars and the manufacture of methamphetamine) has helped blunt the economic impact of UN sanctions meant to reduce the country's legitimate exports by 90%.

Last month, China ordered North Korean businesses operating in the country to close, and asked its banks to stop doing business with North Korean businesses and individuals in accordance with the latest round of UN Security Council sanctions.

But as China withdraws, Reuters reports that Russia, which shares a small border with North Korea along the country's eastern flank, is quietly stepping in to offer economic support for its restive neighbor, even after declining to us ...

Did the Fed's #2 Quit to Avoid Blame for the Coming Inflationary Storm?

Inflation is coming.

Vice-Fed Chair Stanley Fischer recently resigned unexpectedly from the Federal Reserve. Many were left wondering why Fischer would give up his role as the Fed's second in command, arguably the second most powerful Central Banking position in the world.

Wonder no more:

The current soft patch of inflation will not last, the No.2 official on the U.S. central bank said Wednesday.

"I still believe we will have higher inflation," Fischer said, in an interview on Bloomberg TV.

With unemployment declining, wages will go up "at some stage," Fischer said.

"You have to wait a long time, usually longer than you expected to wait for something to happen, but then, if it is a very basic force... it will show up," Fischer said.

Source: Marketwatch

It's not difficult to connect the dots here. The last time the US had a major inflationary spike (the 1970s) the head of the Federal Reserve at the time (Paul Volcker) was fired.

So was Fischer abandoning ship in anticipation of another similar disaster?

Consider that the $USD has already collapsed over 10% this year. And that's before inflation even clears the Fed target of 2%. Indeed, the long-term chart is even uglier with the $USD looking to collapse in a horrifying spiral over the next 12 months.

This is THE BIG MONEY tre ...

Why Google's Gadgets Are Worth the Reach

Expanding product lineup helps the web giant get services into more hands.

Even Tougher Choices Ahead for Teva After FDA Shocker

A surprise move from the Food and Drug Administration means that a recovery for Teva Pharmaceutical Industries just got much more difficult.

Curb Your Enthusiasm About the Jobs Report

The way the stock market reacts to Friday's jobs report may say more about the stock market than it does about jobs.

August 2017 Manufacturing New Orders Improve

Written by Steven Hansen

US Census says manufacturing new orders improved. Out analysis agrees - but the rolling averages declined.

August 2017 Trade Balance Insignificantly Improved

Written by Steven Hansen

Trade data headlines show the trade balance insignificantly improved from last month.

Market Extra: Dow industrials flirtation with 23,000 is a sign of the stock market's velocity

A resurgence in the so-called Trump trade has investors once again contemplating a fresh milestone for the Dow Jones Industrial Average.

Key Words: Just doing my job, says female reporter after Cam Newton laughs at her question—on receiver routes

Carolina Panthers quarterback Cam Newton on Wednesday laughed at a female reporter who asked about one of his teammates, saying it was "funny to hear a female" ask this particular question, about wide receiver Devin Funchess embracing the physicality of routes.

Market Extra: Puerto Rico has more than $70 billion in debt because of this

Puerto Rico and domestic entities linked to the U.S. territory owe creditors more than $70 billion. A double-whammy of devastating hurricanes in recent months, Maria and Irma, only exacerbated the plight of the Caribbean island.

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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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