23Feb2017 Market Update: Wall Street Records New Highs And Then Looses Steam As Unemployment Rises, Several Analysts Are Warning About A Possible Market Plunge

Here is the current market situation from CNN Money

North and South American markets are mixed. The S&P 500 is higher by 0.01%, while the Bovespa is leading the IPC lower. They are down 1.77% and 0.41% respectively.

Wall Street reverses as tech losses outweigh oil gains

(Reuters) – The S&P 500 and the Dow Jones Industrial Average reversed course after hitting record intraday highs late Thursday morning as losses in tech stocks offset the impact of a surge in oil prices.

Tech breakthroughs take a backseat in upcoming Apple iPhone launch

SAN FRANCISCO (Reuters) – When Apple Inc launches its much-anticipated 10th anniversary iPhone this fall, it will offer an unwitting lesson in how much the smartphone industry it pioneered has matured.

Trump again vows to bring back U.S. jobs, but offers few details

WASHINGTON (Reuters) – President Donald Trump told about two dozen chief executives of major U.S. companies on Thursday he plans to bring millions of jobs back to the United States, but offered no specific plan on how to reverse a decades-long decline in factory jobs.

U.S. labor, housing markets data underscore economy’s stamina

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits rose slightly last week but the four-week average of such claims, considered a better gauge, fell to a 43-1/2-year low in a sign of a strengthening labor market.

NYSE plans trial run for Snap IPO

(Reuters) – The New York Stock Exchange will conduct a trial run of Snap Inc’s initial public offering on Saturday, according to a notice given last week to stock traders, in anticipation of what is expected to be the biggest U.S. technology IPO in nearly five years.

Former Valeant and Philidor executives plead not guilty in fraud scheme

NEW YORK (Reuters) – A former Valeant Pharmaceuticals International Inc executive and the former chief executive of mail order pharmacy Philidor Rx Services pleaded not guilty on Thursday to charges they orchestrated a multi-million dollar fraud and kickback scheme.

Peugeot-Opel deal promises Big Bang in small cars: sources

PARIS (Reuters) – French carmaker PSA Group is planning an engineering blitz to redevelop Opel’s core models with its own technology if it succeeds in buying General Motors’ European arm, company sources and advisers told Reuters.

Time Warner to sell TV station as it seeks AT&T merger OK

WASHINGTON (Reuters) – Time Warner Inc said on Thursday it plans to sell a broadcast station in Atlanta to Meredith Corp , which could help speed the company’s planned merger with AT&T Inc .

Kohl’s profit beats as lower inventories boost margins

(Reuters) – Department store operator Kohl’s Corp followed larger rival Macy’s Inc in reporting a better-than-expected profit for the holiday quarter, as lower inventories helped the company avoid deep discounting.

Is An Inflation Comeback In The Works?

Authored by Bonner & Partners Bill Bonner, annotated by Acting-Man’s Pater Tenebrarum,

Exterminating Angel

Amid all the sound and fury of the Trump news cycle, hardly anyone noticed. There is a specter haunting this economy. It is the specter of inflation…

See, if you want to whip inflation now, you don’t need to do any of the really difficult things, such as printing less money… or God forbid, return to honest, market-chosen money (shudder!). All you need is intelligent nutrition!

Bloomberg has the report:

The U.S. cost of living increased in January by the most since February 2013, led by higher costs for gasoline and other goods and services that indicate inflation is gathering momentum. The consumer-price index rose a larger-than-forecast 0.6% after a 0.3% gain in December, Labor Department figures showed Wednesday. Compared with the same month last year, costs paid by Americans for goods and services rose 2.5%, the most since March 2012.

French investment bank Natixis makes a related observation:

The return of inflation in the euro zone with the rise in the oil price will drive the European Central Bank to give up QE […] Our estimate is that an end to QE would raise interest rates by 110 basis points.

…

Mediocre Demand For “Tailing”, 7Y Treasury

If Tuesday’s 2Year auction surprised to the upside thanks to trading rather special in repo, and yesterday’s 5Y auction was poorly received with no repo tightness, then today’s 7Y auction of $28 billion in Treasuries was set to be the most disappointing of all, after it was trading at a generous +0.50% in the repo market.

And, predictably, when today’s 7Y printed at 2.197%, the lowest yield since October (if above the previous six auction average of 1.883%) it tailed the WI of 2.196% by 0.1bp, as once again there were few overhanging shorts to squeeze.

The internals were average at best, with the Bid to Cover printing at 2.49, above last month’s 2.45 but below the 6MMA of 2.50. Indirect demand dipped, with foreign official buyers taking down 63.8%, below the 72.8% in January, and the lowest since October; it was however in line with the 6 month average of 64.8%. Like yesterday, the Direct Bid picked up, and was left with 11.4% of the allottment. As a result, Dealers were left holding 24.9% of the auction, the most since October.

Overall, a mediocre auction, which however was fractionally better than its tailing headline would suggest.

David Einhorn Gets A Divorce, Shorts Sovereigns, Is Bullish On Gold

First it was Ken Griffin, then Bill Ackman, now it’s David Einhorn’s turn.

Perhaps eager for a complete “change of scenery” after years of moribund returns, some of America’s most prominent hedge fund managers are taking the metaphorical knife to their personal lives, and wives.

According to the Post, David Einhorn is separating from his wife of 24 years, Cheryl Strauss Einhorn, and the pair is heading for divorce. The billionaire Greenlight Capital founder, whose stock picks have moved markets, if perhaps a little less in recent months, has separated from Cheryl, whom he married in 1993 before he made his fortune, now estimated at $1.55 billion.

Among the possessions at stake in the upcoming divorce is the 10,000-square-foot home in Rye, NY, and supposedly Einhorn’s rumored vault of gold stashed at a secret location in New York City. He has said the gold is used by his fund as a hedge against inflation.

Cheryl, with whom David has three children, is an award-winning financial reporter and media consultant who has also taught at Columbia University Graduate School of Journalism and Columbia Business School. According to the Post, she is also credited with coming up with the name “Greenlight” when he launched his fund in 1996. The couple is well-known in New York for their philanthropic work. In 2002, they established the Einhorn Family Charitable Trust, “with the vision of building a more peaceful and harmonious society,” according to its website, which features numerous photos of Cheryl and David.

He also serves on the boards of City Year, the Michael J. Fox Foundation for Parkin …

‘Tailored’ Accounting Takes Companies Into Alternate Reality

Recent moves by the Securities and Exchange Commission serve as a reminder that non-GAAP corporate results should be digested with a grain of salt.

Big Investors Are Too Scared to Run, Too Scared to Fight Trump Rally

Some big investors are worried about what President Donald Trump’s actions might do to the stock market. That doesn’t mean they will bet against the rally. At least not yet.

Barclays Leaves Investors Behind on Road to Recovery

Barclays returned to profit in 2016 but investors aren’t getting to share in the recovery yet, even as its bankers are doing just fine.

Slide Show: An Oscar-worthy Los Angeles home with classic celebrity ties

One of Hollywood’s iconic homes, the John Schesinger residence, has been listed for sale at just under $15 million. Schlesinger was the Academy Award winning director of “Midnight Cowboy” and other films.

Apple, Uber and Google say they’re against Trump’s transgender policy

Notable technology companies spoke out against a rollback of Obama-era policies that protect transgender students.

The Ratings Game: Nvidia’s stock rocked after analysts say it’s time to sell

Nvidia’s stock tumbles after Instinet and BMO Capital downgrade the graphics chip maker to rare bearish rating.