24Feb2017 Market Close: Wall Street Rose From Session Lows To Close In The Green Near The Unchanged Line, Short-Term Indicators And Analysts Questioning Continuing Bull Run

China says no intention of using currency devaluation to its advantage

BEIJING (Reuters) – China said on Friday it had no intention of using currency devaluation to its advantage in trade, responding to U.S. President Donald Trump’s description of the Asian giant as the “grand champions” of currency manipulation.

U.S. new home sales rebound; consumer sentiment dips

WASHINGTON (Reuters) – New U.S. single-family home sales rose less than expected in January, likely held back by heavy rains and flooding in California, but continued to point to a strengthening housing market despite higher prices and mortgage rates.

J.C. Penney holiday quarter sales drop, to shut 130-140 stores

(Reuters) – Department store operator J.C. Penney Co Inc reported a bigger-than-expected drop in same-store sales for the holiday quarter citing weak demand and competition from online retailers, sending shares down to more than a year low.

Ghosts of past tech IPOs could haunt Snap’s performance

(Reuters) – Snap Inc appears set to make a splash next week with the biggest tech stock debut since Facebook Inc, but history suggests investors shut out of the initial public offering would be better off waiting a bit to chase this unicorn on the open market.

BCBS, Cigna among insurer groups to meet with Trump on Monday

NEW YORK (Reuters) – The Blue Cross Blue Shield Association, which represents insurers in every state, said on Friday that it would attend a meeting between the health insurance industry and President Donald Trump on Monday.

Porsche, Audi lift VW to record underlying profit

WOLFSBURG, Germany (Reuters) – Record Audi and Porsche sales helped Volkswagen swing to a record underlying profit in 2016, although a bigger than expected charge from the diesel emissions scandal meant it missed estimates for its operating profit.

Boeing to open first European factory, to invest 20 million pounds

(Reuters) – Boeing Co said it would invest 20 million pounds ($24.98 million) to open its first production facility in Europe to make components for certain aircraft.

On visit to London, Peugeot boss offers reassuring words on Vauxhall plants

LONDON (Reuters) – The head of French carmaker PSA played down the threat to British factories when he discussed the potential takeover of GM’s European operations with union officials and politicians in London on Friday.

Here’s What Happens When Trump Finds Culprit Behind Flynn Intel Leaks

Submitted by Ronn Blitzer via LawNews.com,

Information leaks from within the federal government led to the revelation that now-former National Security Adviser Michael Flynn spoke to the Russian ambassador about U.S. sanctions against his country soon after President Obama announced them. Flynn’s communication has led to speculation that he may have broken the law by talking to a foreign government about a dispute without U.S. authority. He was asked to resign after word got out that he lied to Vice President Mike Pence when he insisted that he didn’t discuss the sanctions with the ambassador.

But to President Donald Trump, the big story is that we know the story. Flynn was caught by U.S. intelligence officials after they wiretapped his communications with the ambassador. They also made transcripts of the conversations, but it wasn’t until that information mysteriously found its way to the Washington Post that anyone knew about it. On Twitter and in public statements, Trump has railed against the leaks, which the Post has only attributed to “current and former U.S. officials,” and heads will roll if he learns who’s behind them. As it turns out, the law is on his side. How …

White House Denies Axios’ Report Which Denied Reuters Report About Trump’s Border Tax

Around noon today, retail stocks jumped after Axios reported that Trump’s econ advisor Gary Cohn was opposing a House version of the Border Adjustment Tax, giving hope to retailers who were battered following yesterday’s Reuters interview in which Trump said that he supports “some form” of border tax.

The result, as we observed earlier, was a mirror image of yesterday’s retail selloff, “as now the market no longer has to fear Trump’s tweets, but his staggering position reversals, now coming inside the span of a day.”

In retrospect the market had nothing to fear, because shortly after its origianl report on BAT, Axios followed up with a second report, according to which the White House denies the original report on Cohn’s BAT statement, and says that Trump’s position is unchanged from what he said yesterday.

“There is no daylight between Gary Cohn and the President. His comment was taken out of context as it was part of a broader conversation about the proposals that are connected to border adjustability. At no point during this conversation did Gary make a statement of support or opposition to the House border adjustability plan.”

Axios adds that the White House declined to make audio of Cohn’s comments available to Axios, citing the agreed-upon confidentiality of Cohn’s remarks.

While it is likely that the XRT has again tumbled on the news, at this point neither we, nor anyone else car, and we will simply wait for the next fake news market mov …

9 Lessons From The Reagan Tax Cuts

A close look at the ’86 tax reform shows why tax reform may not get done this year. As BofAML’s Ethan Harris notes, “we are skeptical.” Significant tax reform creates winners and losers, which may make it hard to find a “coalition of the willing.”

Via BofAML,

Is it a done deal?

By some accounts, tax reform is more or less a done deal. After all, Republicans control both the executive and legislative branches of government so reform could pass without one Democrat vote. In particular, Republicans can use the “reconciliation” process to avoid a filibuster and pass a plan with just 51 votes in the Senate. House Republicans already have a specific plan and the President has already suggested a less fleshed out alternative. The leadership in the House is planning to focus first on repealing the Affordable Care Act (ACA), then writing the tax reform bill after the spring budget passes and enacting the plan by the August recess.

We are skeptical: even with the Republican sweep last fall, tax reform could prove taxing. Any reform requires that some groups give up hard won tax breaks in exchange for lower rates. This creates a complex web of winners and losers, causing splits both across parties and within parties. Here, we draw nine history lessons from the 1986 tax reform.

Nine reasons tax reform is tough

#1 A proclivity for Swiss cheese: The US political system, with the strong influence of lobbyists, seems to have a natural tendency to add complications to the tax code. Loopholes had been steadily added to the tax system in the run-up to 1986 reform, and loopholes have been creeping back into the tax code ever since the reform. Also recall that the ’86 …

Is This Overlooked Statistic Signaling Investor Complacency?

Via Dana Lyons’ Tumblr,

The number of unchanged issues on the NYSE has spiked, often a sign of complacency among investors.

While the price structure and breadth in the stock market remain solid and supportive of higher prices, one area of concern that we have been noting is investor sentiment. Specifically, it is too complacent for our liking. Investors and traders seem to be outright dismissing the notion of risk in the stock market. And while extreme bullishness can persist for awhile, it usually ends up being mis-guided, eventually. One potential piece of evidence of complacency comes from a surprising, and typically overlooked, statistic: unchanged issues.

As opposed to advancing or declining issues, unchanged issues are those that close a particular day at the same price at which they closed the day before. Historically, we have found that, for whatever reason, elevated numbers of unchanged issues often occur near market tops of varying significance. This indifference towards large numbers of shares may be a signal of investor complacency during low-volatility, up-trending markets, i.e., out of sight out of mind. Conversely, low levels of unchanged issues are often emblematic of market bottoms as perhaps elevated levels of fear and awareness create a greater impetus to trade stocks.

Presently, it is the former case, i.e., elevated numbers of unchanged issues, that is relevant. In fact, as our Chart Of The Day reveals, yesterday saw the highest percentage of unchanged issues on the NYSE since 2003, and one of the highest readings since the move to decimalization.

Stocks are Frothy, but There’s No Bubble

Stocks have soared but except for valuation there are few signs of a bubble. That doesn’t mean the market can’t fall.

Apple, Samsung Need to Dazzle in a Slow Market

For the two largest players in the smartphone business, Apple and Samsung, the goal this year is to restore some luster to their brands. Both saw smartphone sales fall for the first time in 2016.

Cheap Flights to Europe: Bad for Airlines’ Fat Margins

The entry of long-haul, low-cost carriers like Norwegian Air to the trans-Atlantic market is upending a profitable patch for the likes of American, Delta and IAG-owned British Airways.

Market Extra: Stocks and bonds tell investors two different stories

Bonds and stock markets are sending conflicting signals about the health of the U.S. economy.

Personal Finance Daily: Here’s how you can win an Oscar and 10 car-buying apps

Friday’s top personal finance stories

Key Words: An ‘F’ for some school-voucher programs even as Trump pushes choice

A proposed $20 billion public-to-private school voucher program from the Trump administration may have the most momentum for such a plan in decades. That momentum, critics of market-based education policy worry, may leave three recent voucher-effectiveness studies—from the political left and right—worth little more than spit balls.