05Jun2019 Pre-Market Commentary: Wall Street Set To Open Fractionally Higher, DOW Futures Up 80 Points, WTI Falls On Indications For U.S. Supply Build, Dollar Remains Weaker

Here is the current market situation from CNN Money

European markets are mixed today. The CAC 40 is up 0.28% while the FTSE 100 gains 0.18%. The DAX is even.

Stock futures pare gains as May ADP jobs number misses estimates

U.S. stock index futures pared gains on Wednesday after data showed that private employers added 27,000 jobs in May, falling far short of economists’ expectations.

U.S. private sector adds fewest jobs in May since 2010: ADP

U.S. private employers added 27,000 jobs in May, well below economists’ expectations and the smallest monthly gain in more than nine years, a report by a payrolls processor showed on Wednesday.

BMW and Jaguar Land Rover to jointly develop electric car parts

BMW and Jaguar Land Rover on Wednesday said they will jointly develop electric motors, transmissions and power electronics, unveiling yet another industry alliance designed to lower the costs of developing electric cars.

Mexican officials hope to avert U.S. tariffs in last-ditch talks

Mexican officials will seek to persuade the White House in talks hosted by U.S. Vice President Mike Pence on Wednesday that their government has done enough to stem immigration and avoid looming tariffs.

Samsung Electronics to cut China phone output as market share sinks

South Korea’s Samsung Electronics Co Ltd said on Wednesday it plans to cut production at a smartphone plant in China, as competition from domestic rivals squeezes its share of the world’s biggest smartphone market to less than a paltry 1%.

Effusive Trump promises Britain a ‘phenomenal’ post-Brexit trade deal

U.S. President Donald Trump on Tuesday promised Britain a “phenomenal” post-Brexit trade deal, dismissed differences over China’s Huawei and glossed over other disagreements as he heaped praise on the United States’ closest ally.

Trump says Prince Harry is a terrific guy, denies casting Meghan as ‘nasty’

U.S. President Donald Trump said Britain’s Prince Harry was a terrific guy and denied casting his American-born wife, Meghan, as a nasty person, claiming media had distorted his words as he actually felt she was very nice.

Fed’s slipstream leaves stocks beaming, dollar subdued

Global stocks gained for a third straight day on Wednesday, bolstered by investors’ growing hopes that the Federal Reserve might cut interest rates this year to boost a slowing global economy, while the dollar languished near seven-week lows.

SEC poised to adopt rules aimed at preventing broker conflicts, boosting disclosure

The U.S. Securities and Exchange Commission (SEC) on Wednesday will vote to adopt a package of rules mandating brokerage firms disclose potential conflicts in the fees investors pay and the commission brokers earn when giving financial advice.

Dollar, Stocks, Bond Yields Tumble After Dismal Jobs Print

The market’s kneejerk reaction to the collapse in employment growth was weakness in stocks and the dollar and a bid for bonds…

Bad news is not good news today for stocks…

ADP Employment Growth Crashes To 9 Year Lows

Following April’s strong beat on ADP employment (talked down with zeal by Mark Zandi), May was expected to show slowing growth in employment but instead it collapsed.

ADP reports that America added just 27k jobs in May (185k exp). This is the weakest growth since March 2010.

“This Is A Violation Of Policy”: Tesla May End Up A Pawn In Chinese Trade War

Tesla announced on Tuesday that it would start offering three year interest free financing in Beijing, also allowing customers in the Chinese capital to rent license plates for free for up to three years. However, those plans caused a stir on Chinese social media, according to The Global Times, where some people pointed out that China could investigate this offer as retaliation for the U.S. trade war with the country.

China has already clamped down on several American companies – fining Ford $23.6 million for antitrust violations and investigating FedEx for “wrongful deliveries”. Of these coincidentally timed hiccups, Andrew Polk, co-founder of research firm Trivium China in Beijing said: “At this stage I think our baseline assumption should be that there are no coincidences.”

America’s Demise In One Simple Chart – The Path To A FIRE Economy

Via Global Macro Monitor,

We originally posted this chart in February 2011, which we just updated also breaking out the real estate industry from FIRE (finance, insurance, and real estate). It is still just as shocking as it was back when we first produced it.

Economy Jumps The Shark

The U.S. economy jumped the shark in 1990 when FIRE overtook the manufacturing sector in terms of its contribution to GDP.

More stunning is that real estate is now the largest industry sector of the U.S. economy in terms of value added output, now surpassing manufacturing by 0.8 percent of GDP.

DHFL in deep waters as Crisil slashes its CP rating to ‘default’

DHFL in deep waters as Crisil slashes its CP rating to ‘default’The downgrade reflects delays in debt servicing by DHFL on some of the firm’s NCDs.

Inside Gadkari’s 5-yr plan to crank up growth

Inside Gadkari’s 5-yr plan to crank up growthGadkari said that the priority for him will be “rolling out all stuck highway projects”.

Mahindra reclaims UV crown from Maruti

Mahindra reclaims UV crown from Maruti Mahindra sold 19,524 utility vehicles last month, compared with 19,152 by the local unit of Maruti.

May 2019 ADP Job Growth Is 27,000. Small Business Employment Contracts

Written by Steven Hansen

ADP reported non-farm private jobs growth at 27,000 which was well below the range of expectations. This was the lowest growth since 2010. A quote from the ADP authors:

Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting.

Futures Movers: Oil falls on indications for U.S. supply build, draws closer to bear territory

Oil fell Wednesday, again threatening a return to bear-market territory as U.S. data hinted at a supply build and with futures unable to extend Tuesday’s recovery session, which came as the stock market soared.

Dow poised to extend powerful rally driven by hope of the Fed cutting interest rates

Stocks on Wednesday are poised to extend a potent advance after Federal Reserve Chairman Jerome Powell implied that the central bank would cut borrowing costs if financial conditions showed signs of weakening from tariff tensions.

Carnival Cruises ordered to pay $20 million for dumping plastic and garbage into the ocean — lawyer says it tried to ‘drown its deceit’

The Miami-based cruise line also admitted sending teams to ships to fix environmental-compliance violations ahead of inspections.