FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

03Jan2018 Market Update: Wall Street Sets New Historic Records. US Factory And Construction Data Brighten Economic Outlook, WTI Crude Climbs To The Mid 61 Handle

Written by Gary

US stock market indexes are hitting records today (SPY +0.6%). US factory activity increased more than expected, boosted by a surge in new orders growth.

Here is the current market situation from CNN Money

North and South American markets are mixed today. The Bovespa is up 0.61% while the S&P 500 gains 0.56%. The IPC is off 0.32%.

Traders Corner - Health of the Market


What Is Moving the Markets

Here are the headlines moving the markets.

S&P cruises past 2,700 as tech stocks climb

(Reuters) - Wall Street's main indexes hit records on Wednesday, with the benchmark S&P 500 index breaching the 2,700-mark for the first time on gains in technology stocks.

Spotify makes confidential filing for U.S. IPO: source

NEW YORK/SAN FRANCISCO (Reuters) - Music streaming service Spotify has filed confidentially for an initial public offering with the U.S. Securities and Exchange Commission (SEC) and is moving ahead with a direct listing in the first half of the year, a source familiar with the matter said on Wednesday.

U.S. factory, construction data brighten economic outlook

WASHINGTON (Reuters) - U.S. factory activity increased more than expected in December, boosted by a surge in new orders growth, in a further sign of strong economic momentum at the end of 2017.

Brazil's Petrobras settles U.S. corruption class action for $2.95 billion

NEW YORK (Reuters) - Brazil state-controlled oil company Petroleo Brasileiro SA said on Wednesday it had agreed to pay $2.95 billion to settle a U.S. class action brought by investors who claim they lost money as a result of a graft scandal.

Allergan to cut over 1,000 jobs as it works to return to growth

NEW YORK (Reuters) - Allergan Plc on Wednesday said it plans to cut over 1,000 jobs and eliminate an additional 400 currently open positions, as it works to cut costs in the face of new competition for its second most important drug, dry-eye treatment Restasis.

Design flaw found in Intel chips; fix causes them to slow: report

FRANKFURT (Reuters) - A design flaw has been found in microprocessors made by Intel Corp that requires updates to computer operating systems, a tech publication reported, adding that the fix causes the chips to operate more slowly.

Dominion Energy to buy Scana, assume failed nuclear project costs

(Reuters) - Dominion Energy Inc said on Wednesday it would buy Scana Corp in an all-stock deal worth about $7.9 billion, offering the utility a way out of dealing with unhappy customers and federal investigations following a failed nuclear project.

Automakers post lower December U.S. sales; eye taxes, rate hikes

DETROIT (Reuters) - Most major automakers on Wednesday reported lower December U.S. sales despite hefty consumer discounts, as higher interest rates and a new tax code cast uncertainty over their prospects in 2018.

U.S. blocks MoneyGram sale to China's Ant Financial on national security concerns

(Reuters) - Ant Financial's plan to acquire U.S. money transfer company MoneyGram International Inc collapsed on Tuesday after a U.S. government panel rejected it over national security concerns, the most high-profile Chinese deal to be torpedoed under the administration of U.S. President Donald Trump.

Unhinged - Part 1: David Stockman On The GOP's Fiscal Madness

Authored by David Stockman via Contra Corner blog,

The watchword for 2018 is: UNHINGED!

That refers to Wall Street, Washington, the Dems and the GOP, and all the far and near corners of the planet which are implicated in their collective follies.

The latter begins with the fact that Imperial Washington has become so dysfunctional that the most powerful government on earth can't seem to keep its doors open for more than a few weeks at a time.

The next continuing resolution (CR) deadline is January 19 and the route thereto resembles nothing less than kick-the-can-alley. It's strewn with $100 billion of unfunded disaster aid, defense and nondefense sequester caps fixing to be busted by another $100 billion, 700,000 dreamers waiting to be deported, 9 million poor children (CHAPS) facing termination of medical care and millions more ObamaCare recipients who have been promised that cost abatement subsidies to insurance companies will be funded forthwith.

And along with those major bouncing cans are countless more articles of graft and booty cued-up on Capitol Hill looking for a legislative gravy train (i.e. CR) to hop aboard.

Likewise, the casino gamblers on Wall Street complacently attempt to tag another record at 2700 on the S&P 500. Yet that would represent a nosebleed 25X LTM earnings heading into a bond market rout that is certain to result from soaring treasury issuance and the Fed's impending bond dump-a-thon.

Worse still, the Donald insouciantly unleashes tweet storms about the alleged Trumpian boom when the next recession is statistically just around the corner. After all, the current so-called recovery will pass the existing 118 month record, which occurr ...

Ripple Ramp Continues - 2017's Best-Performing Crypto Is Up 30% Already In 2018

After gaining over 36,000% in 2017 - the best-performing crytocurrency, Ripple is soaring again today (after a brief dip yesterday) to $100 billion in market cap and up 30% year-to-date for 2018.

While Bitcoin grabbed many headlines - testing $20,000 - in percentage terms it never came close last year...Ripple, the centralized bank-focused digital currency, claimed the gold medal with a staggering 36,018% return over the past year.

Source: CoinTelegraph

And despite a very modest drop yesterday - after Peter Thiel Bitcoin headlines - Ripple is now up 30% for 2018...

And as Bloomberg notes, Bitcoin alternatives are closing the gap with the market leader after names like stellar and cardano became red hot as 2017 was closing.

The biggest cryptocurrency's share of market value has fallen to a record 36 percent from 56 percent a month ago, according to CoinMarketCap prices for coins and tokens.

Allergan Fires 1,000 In Hopes Of Halting Stock Slide

Not too long ago, Allergan was one of the best performing stocks largely thanks to the rollup nature of its Carl Icahn-sponsored core "roll-up" vehicle of Forrest Labs/Actavis, and led by mercenary activist CEO Brent Saunders, at least until its ill-fated 2015 merger with Pfizer was unceremoniously blocked by the Obama administration in April 2016, when the pharmaceutical company suffered a breach in its upward trajectory and has since suffered a steep decline in the past two years. In fact, in 2017 AGN stock was one of the worst performers in the S&P.

And so, with rumors of disgruntled activists swirling (which is ironic as current CEO Saunders is an activist puppet himself), Allergan had no choice but to do something, and moments ago the pharmaceutical company said it plans to cut more than 1,000 jobs and eliminate an additional 400 currently open positions, as it works to cut costs in the face of new competition for its second most important drug, dry-eye treatment Restasis.

The cuts would predominantly come from parts of the business that are facing new competition, the drugmaker said in a filing.

As Bloomberg notes, in November, Chief Executive Officer Brent Saunders said the company was preparing as though a generic version of Restasis, a dry-eye drug, would launch in the beginning of 2018. Allergan had attempted to shield Restasis from one type of patent challenge with an unconventional deal with a Native American tribe but a judge later ruled the patents were invalid on scientific grounds.

And now, with all other hail mary's having failed ...

Ant-Moneygram's Demise Spells the End for China-U.S. Deal Making

CFIUS's decision to block the proposed $1.2 billion deal shows that Beijing's recent efforts to relax foreign investment rules aren't going to meet with much reciprocity.

Can Amazon Do With Clothes What It Did With Books? is 24 years old but certainly isn't acting its age. With its shares up 57% last year and a forward price to earning ratio of 276, the company looks more like a fast-growing teenager than an adult. Its biggest challenge is how to stay young.

Why European Banks Will Struggle to Rally

U.S. bank stocks had a great run in 2017: Europeans, not so much. Those betting on a Continental banking catch-up in 2018 shouldn't get their hopes up.

November 2017 Headline Construction Spending Growth Improves

Written by Steven Hansen

The headlines say construction spending was up and within expectations. Our view is that this does not consider inflation.

Intel suffers an epic security fail, offering a big opportunity for AMD

Intel will be scrambling to find hardware and software fixes, while AMD could tout its robust security. By Ryan Shrout.

HGTV's Chip and Joanna Gaines are expecting their fifth child — why that's a luxury for most Americans

Raising just one child from birth to adulthood costs more than $233,000.

What time is the $440 million Powerball drawing — and the $418 million one for Mega Millions?

Neither lottery has had a jackpot winner since October.

Earnings Summary for Today

Earnings Calendar provided by

leading Stock Positions

Leading Stock Quotes powered by

Current Commodity Prices

Commodities are powered by

Current Currency Crosses

The Forex Quotes are powered by

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

Click here for Historical Releases Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Live Market

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved