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17Oct2017 Market Close: Wall Street Continues Making New Highs, Low Volume Says Investors Are Staying At The Station And Not Jumping On The Bull Rally Train

Written by Gary

The Dow hits the 23,000-mark and the SP 500 records another historic high (SPY +0.1%) just before the close. I guess we can expect to see this bull-train hit more highs soon.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

Exclusive: Microsoft responded quietly after detecting secret database hack in 2013

(Reuters) - Microsoft Corp's secret internal database for tracking bugs in its own software was broken into by a highly sophisticated hacking group more than four years ago, according to five former employees, in only the second known breach of such a corporate database.

Dow hits 23,000-mark, then backs off

(Reuters) - The Dow Jones Industrial Average breached the 23,000-mark for the first time on Tuesday, driven by strong earnings from UnitedHealth and Johnson & Johnson, but the S&P 500 was flat.

Powell likely next Fed chief, though Yellen best suited: economists

LONDON (Reuters) - Jerome Powell likely will be the next Federal Reserve chairman, according to a slim majority of economists in a Reuters poll - but most of them said current Fed Chair Janet Yellen would be the best option.

Harvey Weinstein resigns from Weinstein Co board: source

LOS ANGELES (Reuters) - Harvey Weinstein has resigned from the board of The Weinstein Company, a source close to Weinstein said on Tuesday, as he faces allegations that he sexually harassed or assaulted a number of women over three decades in the film business.

Big U.S. stock exchanges ask SEC to hold off on fee cap plan

NEW YORK (Reuters) - A proposed regulatory experiment to test the effects of lowering stock exchange fees could end up making stocks harder to trade and should be delayed pending a comprehensive market review, the three largest U.S. stock exchange operators said in a letter to the Securities and Exchange Commission.

Wall Street banks look beyond trading to drive profits

NEW YORK (Reuters) - Wall Street rivals Goldman Sachs Group Inc and Morgan Stanley topped analyst expectations on Tuesday, reporting third-quarter earnings gains from a range of products and services despite an industry-wide decline in bond trading.

New cancer drugs help Johnson & Johnson top profit estimates

(Reuters) - Johnson & Johnson posted better-than-expected third-quarter earnings, raising its full-year forecast due to growth from new cancer drugs and high-margin treatments picked up in its $30 billion acquisition of Actelion earlier this year.

Airbus takes control of Bombardier CSeries in rebuff to U.S. threat

MONTREAL/TOULOUSE, France (Reuters) - Airbus has agreed to take a majority stake in Bombardier's troubled CSeries jetliner program, securing the plane's future and giving the Canadian firm a possible way out of a damaging trade dispute with Boeing.

Patently tough: Long road ahead for Qualcomm in China case against Apple

SHANGHAI/BEIJING (Reuters) - Qualcomm Inc wants to hit Apple Inc where it hurts most: iPhone sales in China - one of its biggest global markets where most of its flagship smartphones are made.

Dow Fails To Hold 23,000 As Yield Curve Carnage Continues

The Dow is now up 17% YTD - crushing bonds and bullion - NOTE everything changed when China's central bank decided that it would remove a reserve requirement for financial institutions trading in FX forwards for clients by cutting it to zero from 20% currently..

But let's not spoil the party!

Dow 23,000...

1200 points in 27 days...

The Dow is now the most overbought in 8 months (and the past three times, the rally has stalled)...

Yes, Robot Lawyers Are Now A Thing

Via TheAntiMedia.org,

In China, where artificial intelligence (AI) is gradually being integrated into the court system, the latest development is a robot that helps litigants with legal advice.

Xiaofa, the state-run China Daily reported Friday, is 1.46 meters tall, can move its head and hands, and speaks in a child's voice.

"Xiaofa explains complicated legal terms in everyday language to help the public better understand legal definitions," said Du Xiangyang, the founder of the company that designed the machine.

"We used a child's voice to ease the tense emotions of litigants who come here for help."

On the screen on the Xiaofa's chest, answers to "over 40,000 litigation questions and 30,000 legal issues" will appear for those seeking advice, China Daily reports.

Legal professionals tested the machine before it debuted in a Beijing court on Thursday.

Ma Laike, deputy ...

Schrodinger's Market: Goldman Now Has Two Year-End S&P Price Targets

For months, we were wondering how much longer Goldman would ignore the relentless market meltup without revising its year-end S&P500 price target, which at 2,400 was not only among the lowest on Wall Street, but also some 150 points away from twhere the S&P currently is. Furthermore, as of this weekend, Goldman's 2018 and 2019 targets for the US equity index, were 2,500 and 2,600, implying there was only 50 points of upside for the next 26 months.

All that changed today, when Goldman unveiled that quantum mechanics is not the only arena where objects can exist in superposition: it turns out the "Schrodinger's S&P" can also have two distinct states prices at the same time, too.

In a report from chief equity strategist David Kostin, he unveils that Goldman now has not one but two price targets for the S&P500: the first one is the traditional one, the same 2,400 as noted before. However, in a plot twist, one which casts the entire role of equity strategist into question, Kostin also said that the S&P 500 price target may "perhaps be 2650" if tax reform passes.

As he explains, "the 2400 target assumes no reform and P/E of 17.3x. 65% probability of passage by 1Q." However, "with tax reform, target could be 2650 (17.9x)."

Of course, the fact that it is Kostin's job to take all these probabilities into account when making his year end price target - his one price target - seems to be lost on the strategist, who like the rest of Wall Street had no idea how far the S&P would keep rising and instead of chasing the market, has decided to just bracket it with a low and high "target." And what better way to avoid getting pestered by angry clients at the end of the yearm than to just give them the option of picking which target they like better.

This is how Goldman gets from its baseline 2018 EPS of $139 to the higher possible scena ...

Hawaii Judge Blocks Trump's Travel Ban For The Third Time

In the latest court challenge to the Trump administration's push to prevent potentially dangerous individuals from entering the US, a district court judge has blocked the Trump administration's third travel ban, which it had introduced late last month following the expiration of a temporary ban that had been hobbled by court challenges.

The decision from Hawaii-based Judge Derrick K. Watson - a recurring Trump antagonist who also challenged the last two bans - in Hawaii is sure to be appealed. But for now, at least, it means that the administration cannot restrict the entry of travelers from six of the eight countries that officials said were either unable or unwilling to provide information the US wanted to vet their citizens, according to the Washington Post.

The Trump administration unveiled the updated ban late last month. The updated ban - which, like its predecessor, was purportedly designed to avoid a court challenge - abandoned wholesale prohibitions in favor of severe restrictions on travelers from an expanded group of eight countries.

The open-ended ban targeted people from Iran, Libya, Syria, Yemen, Somalia, Chad and North Korea, as well as certain government officials from Venezuela. It was slated to take effect tomorrow, according to Reuters ...

Why It's Time to Get Back into Goldman

Wall Street's big two investment banks, Morgan Stanley and Goldman Sachs, have shown that they can perform reasonably well even when the environment is tough. What happens if things get better?

Chinese Cash Will Help Aramco Prove Its Relevancy

With Saudi Arabia bleeding market share in both of the world's top oil consumers, pitching a public offering to investors may prove difficult. A big private placement with brawny Chinese bidders—reportedly in the works—might do the trick.

Should Credit Suisse Break Up? The Answer Isn't Obvious

There are things about Credit Suisse that don't make sense, but RBR Capital Advisors's plan to split it in three seems unlikely to help.

Market Extra: 30 years after Black Monday, could stock market crash again?

It has been three decades since the most disastrous single day in U.S. stock market history, and investors can be forgiven for wondering if Wall Street learned its lesson.

States sue Betsy DeVos over delays to Obama-era crackdown on for-profit colleges

The suit is the latest in the battle over the gainful employment rule.

Capitol Report: U.S. trade representative says he's 'surprised' as Nafta talks pushed into 2018

The U.S. trade representative on Tuesday said he was "surprised" and "disappointed" as talks with Canada and Mexico on renegotiating Nafta were pushed into next year.

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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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