20May2016 Pre-Market Commentary: USA Markets Look To Open Down

Here is the current market situation from CNN Money

European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.26% while France’s CAC 40 is up 0.89% and Germany’s DAX is up 0.84%.

Dollar cruises to third weekly win, stocks bounce

LONDON (Reuters) – The dollar cruised to its third straight week of gains on Friday as stock and commodity markets showed signs that they might be able to manage another U.S. interest rate hike in the coming months.

Exclusive: Suppliers question Tesla’s goals for Model 3 output

DETROIT/SAN FRANCISCO (Reuters) – Tesla Motors Inc has surprised parts makers with plans to move up the launch of high-volume production of its Model 3 to 2018, two years earlier than planned – an acceleration that supplier executives and industry consultants said would be difficult to achieve and potentially costly.

Ex-Dean Foods chairman, gambler charged for insider trading; Mickelson settles

NEW YORK (Reuters) – U.S. authorities on Thursday charged a former chairman of Dean Foods Co and a professional Las Vegas gambler with engaging in an insider trading scheme that netted more than $40 million and included a tip that benefited professional golfer Phil Mickelson.

Unsold U.S. retail inventory a challenge after dismal earnings season

CHICAGO (Reuters) – A pile-up of unsold inventory across U.S. retail chains is likely to squeeze profits further as stores struggle to make up for a weak first quarter marred by weak sales and share declines.

Exclusive: EU aims to rule on Amazon’s Luxembourg tax deal by July – sources

BRUSSELS – EU state aid regulators aim to rule on Amazon’s tax deal with Luxembourg by July, two people familiar with the matter said on Thursday, and it may order the country’s tax authorities to recover about 400 million euros ($448 million) in back taxes.

Volkswagen to unveil 2025 strategy in mid-June: CEO

HANOVER, Germany (Reuters) – German carmaker Volkswagen will announce a new strategy in mid-June, Chief Executive Matthias Mueller said, according to excerpts of a speech seen by Reuters on Friday.

Fiat Chrysler shares hit by squabble with Germany over meeting

MILAN (Reuters) – Shares in Fiat Chrysler Automobiles fell more than 2 percent in early trade in a higher Milan stock market after the car maker drew criticism from Germany’s transport minister for not showing up at a meeting over emissions.

‘Risk-off flows’ from stocks as hawkish Fed spook funds: BAML

LONDON (Reuters) – Global investors remained risk-shy over the past week, pulling $5.8 billion from equity funds – the sixth straight weekly outflow – while pumping more money into bonds and precious metals, Bank of America Merrill Lynch (BAML) said on Friday.

U.S.-based stock funds continue trend of outflows in latest week: Lipper

NEW YORK (Reuters) – Investors pulled another $3.9 billion from U.S.-based stock funds during the week that ended May 18, Lipper data showed on Thursday, bolstering a trend of outflows that has persisted most of this year.

“Shanghai Accord Flows Reverse” – Retail Investors Pulls Money From Stocks For 6 Straight Weeks

One week ago we showed that in a surprising twist, even as the broader market has remains stable and trading rangebound between 2040 and 2080 over the past month, actual equity outflows had accelerated and one week ago EPFR reporter another $7.4bn in equity fund outflows (the 5th straight week) driven by $4.8bn in mutual fund outflows and $2.7bn ETF outflows, leading to a $44bn equity exodus past 5 weeks, which as Michael Hartnett points out is the “largest redemption period since Aug 11.”

Frontrunning: May 20

Lacking new ideas, G7 to agree on ‘go-your-own-way’ approach (Reuters)

Japan’s Aso tells G7 FX stability vital, no competitive devaluations (Reuters)

Snubbed by West, Russia rolls out red carpet for Asian leaders (Reuters)

The Fed Has Something to Prove to Wall Street (BBG)

Trump’s Supreme Court list: all conservative, some provocative (Reuters)

Nasdaq Raises Lawsuit Threat Over SEC’s IEX Speed-Bump Plan (WSJ)

Credit-Card Debt Nears $1 Trillion as Banks Push Plastic (WSJ)

Alberta’s Wildfires Couldn’t Have Come at a Worse Time for the Local Economy (BBG)

Paris attack suspect refuses to speak at first French court hearing (Reuters)

Dollar Divergence Trade Spurs Best Run Versus Yen Since August (BBG)

Yahoo Suitors Expected to Bid $2 Billion to $3 Billion, Below Past Indications (

Egyptian Military Finds Debris, Personal Belongings From Crashed Airliner

The Egyptian military said it has found EgyptAir Flight MS804 debris 290 km north of the Mediterranean coastal city of Alexandria. Egyptian army spokesman Brg. Gen. Mohammed Samir said on his verified Facebook page Friday that his military’s search planes and vessels had discovered parts of the Airbus A320 along with some passengers’ belongings.The military is certain the debris comes from Flight MS804 Samir told NBC News by phone, adding that the wreckage will be brought back to Egypt for investigation.

Futures Rise As Fed Fears Subside; Global Stocks Rebound From Six Week Lows

It will be fitting, not to mention symmetric, if stocks which yesterday closed at 7 weeks lows and red for the year, end the week the same way they started it: with a rally on no news, just more hopes that oil (which as recently as two years ago none other than Chair Yellen said said would be be “unambiguously good” if lower) will continue rising. While US markets ended yesterday’s trading on a sour note, that weakness has failed to spread to the rest of the world, and global shares rebounded from a six-week low as crude and commodity prices recovered, while the yen weakened on reduced demand for haven assets.

Wal-Mart Joins Amazon in Squeezing Retail Rivals

Wal-Mart’s strong quarter may represent less of a bellwether for other retailers than a tolling bell.

Little Reason to Cheer for Deere

The slump in U.S. farm machinery demand is likely to take another toll on Deere’s fiscal second-quarter earnings Friday.

Monsanto and Bayer: A Tough Row to Hoe

Bayer’s unsolicited bid for Monsanto appears to be a long shot.

Rail Week Ending 14 May 2016: Rail Again Moves Deeper Into Contraction

Week 19 of 2016 shows same week total rail traffic (from same week one year ago) declined according to the Association of American Railroads (AAR) traffic data. Rolling averages continue moving deeper into contraction.

Less You And Me, More We: How Land-Use Regulation Impacts Inventory, Rents And Roommates

from Zillow

— this post authored by Sarah Mikhitarian

In many American cities, more means more – and not in a particularly good way. More tightly regulated land use in these cities is associated with more rapidly rising rents, more acute shortages of homes for sale and more adults living with roommates in the face of rising housing costs and fewer housing options.

Metals Stocks: Gold stabilizes but likely not enough to stop weekly, Fed-sparked loss

Gold and silver futures attempted a mild rebound Friday after closing at their lowest level in about three weeks Thursday amid swelling expectations for a Federal Reserve interest-rate hike as soon as next month.

Futures Movers: Oil prices pull back, but stay on track for weekly gains

Oil prices are moving toward gains for the week as traders focus on the prospect of supply disruptions, but pushed lower early Friday.

Market Snapshot: U.S. stocks set for comeback as investors put Fed behind them

Wall Street is set for a positive trading day, as fading fears of an imminent Federal Reserve rate increase and a slight rebound in oil prices help spur an upbeat investing mood.