09Jul2019 Open Market Commentary: Wall Street Opened Lower, DOW Down 115 Points, US Dollar Stronger Today, Gold Steady Just Below 1400

Here is the current market situation from CNN Money

U.S. government to provide licenses for sales to Huawei if national security protected

The U.S. Department of Commerce will issue licenses to U.S. companies seeking to sell to Chinese telecoms equipment giant Huawei Technologies Co Ltd [HWT.UL] where there is no threat to national security, Commerce Secretary Wilbur Ross said on Tuesday.

Wall St. set to open lower on concerns over trade war fallout

Wall Street was set for a lower open on Tuesday as investors fretted over a hit to earnings from the protracted U.S.-China trade dispute and lowered expectations of a big rate cut by the Federal Reserve later this month.

U.S., China to relaunch talks with little changed since deal fell apart

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

U.S. expects China to buy farm products amid ongoing trade talks: Kudlow

White House economic adviser Larry Kudlow on Tuesday said China was expected to move forward with agriculture purchases from the United States even as trade talks continued between the two countries.

IBM closes $34 billion deal to buy Red Hat

International Business Machines Corp said on Tuesday it has closed its $34 billion acquisition of software company Red Hat Inc as it looks to ramp up its cloud computing business.

ARAMCO awards $18 billion in contracts to boost output capacity at Marjan, Berri oilfields

Saudi Aramco has awarded 34 contracts with a total value of $18 billion for engineering, procurement and construction projects at its Marjan and Berri oil fields, a statement from the company said.

Exclusive: Russian output falls to three-year low as oil rivals clash

Russian oil production fell close to a three-year low in early July, as output was undermined by a row between Russian oil pipeline monopoly Transneft and the country’s biggest producer Rosneft .

Global stocks drop for third day, BASF warning stings Europe

World stocks fell for a third straight day on Tuesday after a stinging warning from German chemicals giant BASF about the effects of the global trade war and as hopes dwindled of a hefty U.S. interest rate cut this month.

Cisco to buy Acacia Communications for $2.8 billion

Network gear maker Cisco Systems Inc said on Tuesday it would buy optical component maker Acacia Communications Inc for $2.84 billion in cash.

“I Witnessed This Environment From The Front Row In 2008 As A Trader At Lehman Brothers”

From Bloomberg Market Live commentators and former Lehman trader, Mark Cudmore

The asymmetric reaction function of equities to data is likely to shift toward the downside, and do so soon.

Equity bulls have been crowing as bad data caused stocks to rise in recent weeks, thanks to the perception that it guarantees easier Fed policy. They should enjoy their moment as this evolution has been seen before and it doesn’t always end well for shares.

In “normal” markets, where rate policy is deemed as roughly appropriate for the economy, strong data is positive for stocks, and weak data is negative.

When the economic outlook deteriorates sharply, benchmark policy rates suddenly appear inappropriately high, leading to a risk-averse environment. This is what we saw in the U.S. in May after the trade war escalated.

Trump Hints At New Trade War With India

Rarely a week goes by without President Trump trying to open a new front in the trade war (Europe, Japan, South Korea and Mexico have all been threatened with new levies), and this sleepy post-holiday week is no exception.

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Watch: Honey Bees Drop Dead Following California Earthquake

If the dwindling bee population across the US wasn’t enough, new footage uploaded onto social media shows, in one instance, thousands of bees dropping dead upon a series of earthquakes that shook California last week, reported Sputnik.

Southern California was hit by two earthquakes late last week: a 6.4 magnitude quake on Thursday, accompanied by a 7.1 magnitude earthquake Friday evening, both with an epicenter near the Mojave Desert.

The New Hysteria: Rate-Cut Rationalizing

Authored by Jeffrey Snider via Alhambra Investments,

Even though it was everywhere, one of the primary things that struck me about the peak period for Reflation #3 was how ridiculous it got. If you have a strong argument, there’s no need for so much hyperbole. But it wasn’t just that, it had become openly ridiculous.

Interest rates had nowhere to go but up, “they” said. Fine, it was always possible. But inflation, we were repeatedly told, was the only outcome, the definite product of skillful monetary handling leading to a biblically tight labor market. And to prove it, there would be no data just the strongest possible wording?

There was scarcely a day that didn’t go by without some anecdotal story of the labor shortage. If it had been real, there wouldn’t have been any need for them. The data on its own would’ve more than sufficed. The hearsay was clear overkill.

Therefore, if you really understood what was happening, what officials, Economists, and especially bond kings were actually saying wasn’t that an inflationary breakout was occurring right then – it was going to happen at some point before much longer. Even at its height, this was always a future property.

That’s why the anecdotes; the stories about a labor shortage were absolutely, certainly, guaranteed eventually to lead to the data backing them up. Except, you got the sense “they” were trying a little too hard to make the case. It was far less assured than anyone let on. Rather than being 100% convincing as was intended, the evident lunacy made it all the more questionable.

The first time I used the term “inflation hysteria” it was …

TCS Q1 profit rises 11% to Rs 8,131 crore, beats estimates

TCS Q1 profit rises 11% to Rs 8,131 crore, beats estimatesThe company’s board has declared an interim dividend of Rs 5 per share.

Govt as property dealer? A new plan on anvil

Govt as property dealer? A new plan on anvilModi government is aiming to rationalise the use of residences, land and buildings, and generate revenue.

Meet the researchers who took on Google

Meet the researchers who took on GoogleCCI ordered an investigation into Google in April for alleged abuse of its Android platform to hurt rivals.

3 in 4 older parents make this financially disastrous mistake

New study finds that when parents who help struggling adult children, “these decisions may not result in the best financial outcome for the parent.”

Economic Report: Small-business sentiment dips on trade ‘uncertainty,’ NFIB says

Owners of small businesses turned more cautious on hiring and making big purchases, an industry group said.

Futures Movers: U.S. oil prices seen up for fourth straight day

U.S. oil futures seen heading for a fourth straight advance in Tuesday trading, as broader financial markets awaited appearances this week by Federal Reserve Chairman Jerome Powell and any hints on the likelihood of an interest-rate cut later this month.