12Aug2016 Pre-Market Commentary: US Futures Drifting Lower, Gold Skyrocketing, US Dollar Water-Falling And WTI Crude Melts Up To The 43 Handle

Here is the current market situation from CNN Money

European markets are lower today with shares in Germany off the most. The DAX is down 0.40% while London’s FTSE 100 is off 0.15% and France’s CAC 40 is lower by 0.04%.

Futures flat after indexes close at record highs

(Reuters) – U.S. stock index futures were little changed on Friday, a day after all three main indexes closed at record highs for the first time since 1999.

U.S. labor market firming; inflation remains benign

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits fell last week, pointing to sustained labor market strength in early August that could help spur faster economic growth.

Fed should raise interest rates this year, Williams says

SAN FRANCISCO (Reuters) – The Federal Reserve should raise interest rates further this year, a top U.S. central banker said in an interview published on Thursday, reflecting improved labor market conditions and the likelihood that inflation is heading higher.

Didi’s Cheng Wei: Chinese patriot who tamed Uber

BEIJING (Reuters) – Cheng Wei, 34, was once assistant to the head of a foot massage firm. Last week, his company Didi Chuxing bagged Uber’s China business in a deal valuing his ride-hailing start-up at $35 billion – a second success in as many years in a grueling battle with a rival.

Taking on Tesla: China’s WM Motor sees mass market electric cars

SHANGHAI (Reuters) – It remains more promise than product, but the electric vehicle (EV) sector is drawing more talent from mainstream automakers which are reluctant to go full tilt at the new technology.

Exclusive: Wall St. banks ask Fed for five more years to comply with Volcker rule

(Reuters) – Big Wall Street banks are asking the U.S. Federal Reserve to grant them an additional five-year grace period to comply with a financial reform regulation known as the Volcker rule, people familiar with the matter said.

Electronic Marlboro sucks Japanese smokers away from Japan Tobacco

TOKYO (Reuters) – Marlboro maker Philip Morris International says its e-cigarette has rapidly captured close to 3 percent of Japanese tobacco sales, making inroads into a market Japan Tobacco (JT) relies on for 40 percent of its profit.

Email campaign asks McDonald’s to take U.S. antibiotic curbs global

LOS ANGELES (Reuters) – A charity looking to fight the rise of dangerous, drug-resistant bacteria on Thursday asked the public to help convince McDonald’s restaurants around the world to stop serving meat and milk from animals raised with routine use of medically important antibiotics.

Valeant stock falls as report of criminal probe adds to woes

NEW YORK (Reuters) – Valeant Pharmaceuticals International Inc shares fell about 11 percent on Thursday as new details about a criminal investigation into the drugmaker reignited investor concerns about the company’s past business relationship with a mail-order pharmacy that sold its products.

Hillary Sounding Suspiciously Like Trump On Trade

Submitted by Michael Shedlock via MishTalk.com,

When it comes to free trade, Hillary Clinton sounds more and more like Donald Trump every day.

This is a clear attempt to take votes from Trump’s strongest supporters: disgruntled rust-belt workers who blame China and Mexico for stealing US jobs.

CNN Money reports Hillary Clinton Vows to Slap Tariffs on Trade Cheaters

For months, Trump has slammed U.S.’ trade deals with Mexico and South Korea as “horrible” and “disastrous.” He wants to fix them by placing hefty fines — known as tariffs — on goods coming into the U.S. from foreign countries that don’t play fair.

Now, Clinton says she’s ready to impose tariffs too.

“When countries break the rules, we won’t hesitate to impose targeted tariffs,” she told the crowd at a manufacturing plant in Warren, Michigan.

“I’m going to ramp up enforcement by appointing a new chief trade prosecutor, tripling the number of enforcement officers,” she said.

On Thursday, Clinton went out of her way to stress that she is not supporting the controversial Trans-Pacific Partnership trade deal that President Obama has been pushing.

“I oppose it now, I’ll oppose it after the election, and I’ll oppose it as president,” she said.

Trump’s Big Plans

Also consider

“The Final Melt Up”, “A Blow Off Top”: Money Floods In As Investors Turn Euphoric At Triple Record High

In a historic trifecta, yesterday for the first time this century, all three US indexes posted concurrent record highs. The last time this had happened was on December 31, 1999.

At the same time, as the WSJ points out, the ratio of NYSE and NASDAQ stocks hitting 52-week highs versus 52-week lows surged to its highest level in years. “The last time we’ve seen levels like this consistently was in 2013, which went on to be one of the best years for stocks,” said Frank Cappelleri, executive director of institutional equities at Instinet LLC. In 2013, the S&P 500 rose 30%.

Ironically, the ongoing meltup continues even as major sellside banks from JPM to Goldman Sachs, have been warning about an imminent downturn. Less than two weeks ago, we reported that Goldman had turned outright bearish, urging clients to “sell” stocks over the next three months, reiterating a bearish call it has made for the past quarter. Framing our skepticism, we asked whether “Goldman will again be wrong? It’s distinctly possible, in which case we expect t …

Money “Madness” Negative Interest Rates Sees Gold Buying Surge

Gold buying surged to record levels in H1, 2016 due to increasing concerns about the political, economic and monetary outlook. In particular, deepening concerns about the negative interest rate money “madness” of central banks today.

Heike Hofmann sells fruit and vegetables in Germany. She reacted to negative rates by cutting spending & buying gold bars. Photo: Georgi Kantchev/ Wall Street Journal

Yesterday we covered this surge in gold buying in western markets as detailed by the World Gold Council and what is driving this increased demand. Monetary policies and their impact on savers, along with political risks, contributed to record H1 gold investment demand, surpassing even that of the 2009 financial crisis.

One of the key causes of the sur …

Frontrunning: August 12

Stocks Hit New Highs, and That Could Be Just the Start (WSJ)

China Slows as Stimulus Impact Wanes (WSJ)

How the China Shock, Deep and Swift, Spurred the Rise of Trump (WSJ)

Italian Economy Unexpectedly Stagnates in Threat to Renzi (BBG)

Clinton disparages Trump’s economic plan, vows to help workers (Reuters)

Email Questions Haunt Hillary Clinton (WSJ)

Congressional leaders were briefed a year ago on hacking of Democrats (Reuters)

Senior Justice Official Raised Objections to Iran Cash Payment (WSJ)

Fidelity Plans Non-Transparent Exchange-Traded Product (WSJ)

Broker-dealer TradeZero launches first ‘dark pool’ exchange for bitcoin (Reuters)

Turkey prosecutors seek five years in jail for pro-Kurdish party leader (Reuters)

Fast and furious? China’s stalling box …

Why Shutters are Coming Down at Macy’s

Macy’s move to close 100 stores isn’t a magic bullet, but it is better than standing still.

Why Earnings Beats Are a Poor Measure of Corporate Health

Whether profits beat or fall short of analyst forecasts has succumbed to Goodhart’s Law: When a measure becomes a target, it ceases to be a good measure.

Italy: At the Heart of Europe’s Growing Pains

Stagnation in Italy emphasizes the importance of Matteo Renzi’s constitutional reform referendum.

Economic Report: U.S. wholesale prices fall sharply in July

Prices at the wholesale level fell 0.4% in July, the biggest monthly decline since September 2015, the Labor Department said Friday.

In One Chart: How oil prices are trapped in a vicious circle, in one chart

Oil is on track for a sizable weekly gain, thanks in large part to Saudi Arabia sparking hopes for a production freeze.

Economic Report: Retail sales stall in July

Retail sales were flat in July below expectations and down from a strong June report.