23Aug2017 Market Update: Wall Street Investors Concerned About A Government Shutdown, Analysts Question Whether The White House Is Bluffing, Investors Also Worry That New Home Sales Are Declining

Here is the current market situation from CNN Money

North and South American markets are mixed. The Bovespa is higher by 0.59%, while the S&P 500 is leading the IPC lower. They are down 0.35% and 0.27% respectively.

Wall Street lower on Trump’s threat of government shutdown

(Reuters) – U.S. stocks were lower in early afternoon trading on Wednesday after President Donald Trump warned of a government shutdown to secure funds to build the Mexico border wall, adding to nerves as the deadline to raise the U.S. debt ceiling looms.

Mexico, Canada dismiss Trump threats to scrap NAFTA trade pact

MEXICO CITY/OTTAWA (Reuters) – Mexico and Canada on Wednesday dismissed U.S. President Donald Trump’s threat to scrap NAFTA, describing it as a negotiating tactic designed to gain an advantage during talks to update one of the world’s biggest trading blocs.

U.S. new home sales fall to seven-month low

WASHINGTON (Reuters) – New U.S. single-family home sales unexpectedly fell in July, dropping to their lowest in seven months, which could raise concerns of a slowdown in the housing market recovery.

Whole Foods shareholders approve sale to Amazon

LOS ANGELES (Reuters) – Whole Foods Market Inc on Wednesday said shareholders in the natural and organic grocery chain cleared the way for its proposed $13.7 billion sale to Amazon.com Inc.

Cheap oil undercuts U.S. rail, bus service: study

DETROIT (Reuters) – Cheap gasoline is squeezing U.S. bus companies and the Amtrak passenger rail system that bet more consumers would embrace alternatives to driving for trips shorter than 400 miles, a study by researchers at DePaul University concluded.

American Express to pay $96 million over discriminatory card terms

WASHINGTON (Reuters) – American Express will end up paying $96 million to credit card customers in Puerto Rico and other U.S. territories for charging higher interest rates and engaging in other discriminatory practices, federal regulators said on Wednesday.

True price of an Uber ride in question as investors assess firm’s value

SAN FRANCISCO (Reuters) – What is the true cost of an Uber ride?

Lowe’s misses earnings estimates, forecasts slower margins growth

(Reuters) – Lowe’s Companies Inc reported lower-than-expected quarterly earnings on Wednesday and warned of slower growth in profit margins as it spends more on marketing and staffing to take advantage of a robust home improvement market.

Massive California verdict expands J&J’s talc battlefield

NEW YORK (Reuters) – A massive California verdict in a lawsuit alleging Johnson & Johnson’s talc-based products cause cancer has opened a new front in the litigation, upending the company’s hopes that the cases were only gaining traction in Missouri, legal experts said.

Transports- Global bulls market needs this support to hold!

Below looks at the Dow Jones Transports ETF (IYT) that remains in a long-term bull market.

How Rand Paul Can Free Americans From The Fed

Authored by Tho Bishop via The Mises Institute,

Ever since entering the Senate, Rand Paul has continued his father’s work in advocating for an audit of the Federal Reserve. This week, writing for the Daily Caller, Senator Paul renewed his efforts, illustrating how the recent era of unconventional monetary policy has made an audit all the more important:

In 2009, then-Fed Chairman Ben Bernanke was able to refuse to tell Congress who received over two trillion in Fed loans, and it took congressional action and a Bloomberg lawsuit to force the Fed to reveal the details of what it did in more than 21,000 transactions involving trillions of dollars during the 2008 financial crisis. A one-time audit of the Fed’s emergency lending mandated by Congress revealed even more about the extent to which the Fed put taxpayers on the hook.

When pushed to defend the lack of transparency for the Federal Reserve, officials like Janet Yellen and Treasury Secretary Steve Mnuchin point to the myth of the Fed independence – a position that requires outright ignorance of the history of America’s central bank and the executive branch. Of course it’s quite usual for the Senate to base the merits of legislation entirely off of fallacious arguments, so they have continued to be the legislative body holding up a Fed audit with little indication they are prepared to move.

Given that reality, it is time for Senator Rand Paul to change his approach and introduce another piece of legislation from his father’s archives: …

Compass Point: “Odds Of A Government Shutdown Are Now Dramatically Higher”

Over the weekend, Morgan Stanley reminded its clients that the biggest threat facing markets over the coming weeks is the “three-headed policy monster” inside Washington: raising the debt ceiling, passing a budget and embarking on tax reform. As MS cross-asset strategist Andrew Sheets noted, “none are easy, but we see the debt ceiling as the most immediate test.”

He then cautioned that while the most likely outcome is that, after some tension, the debt ceiling gets raised “we don’t think it will be easy, or smooth, and it may require some form of market pressure to get different sides to fall in line. I’ve spoken to investors who are comforted by FOMC transcripts from 2011 that discussed prioritization of debt payments in order to avoid default. I am not. First, I worry that this reduces the urgency of what remains a serious issue. Second, this prioritization would require delaying payments to programmes like Social Security and Medicare, with real human and economic cost. And third, while the mechanics of this prioritisation may work, it is untested in a live environment.”

As reported earlier, the market’s concerns about a potential debt ceiling crisis, so far mostly contained, have once again started to bubble to the surface, with the Oct. 5 T-Bill rate rising to the highest level since August 1st, suggesting that bond traders see rising odds of a “worst case outcome” and partially answering our question from Monday whether “Markets Are Sleepwalking Into A Debt Ceiling Crisis: Mnuchin Issues Another Warning.”

Clouds Part for Europe This Year

The latest cloud on the horizon has been the rising euro, but the eurozone of 2017 appears to be proving a resilient place.

The Problem With Dissing Teen Retailers

Investing in teen retailer stocks has always been treacherous. Now their volatility is being further compounded by low expectations.

WPP’s Problems Are Already in the Share Price

The rough patch faced by WPP has gotten rougher. Investors shouldn’t forget that it is a fundamentally strong business, and its shares are very cheap relative to their history and their peers.

July 2017 Headline New Home Sales Significantly Decline

Written by John Lounsbury and Steven Hansen

The headlines say new home sales crashed and well below market expectations. Our analysis continues to show a continuing deceleration of new home sales.

Market Extra: Trump ‘shutdown’ threat rattles stock market

President Donald Trump’s threat to shut down the U.S. government if Congress doesn’t’ fund his plan for a border wall unsettles markets somewhat, though analysts question whether the White House is bluffing.

4 reasons NOT buy a $700 million Powerball ticket (that have nothing to do with the crazy odds)

Wednesday’s blockbuster lottery jackpot is stirring up more lottery fever.

BookWatch: These 6 books can make you a better college student

Understand statistics, gain financial literacy and get out of your comfort zone.