Written by Gary
US equities markets crept into the green during early afternoon trading (SPY +0.2%, but just barely. The DOW is just up over 40 points and we expect the markets to run out of steam.
Here is the current market situation from CNN Money | |
North and South American markets are mixed today. The S&P 500 is up 0.20% while the IPC gains 0.14%. The Bovespa is off 2.26%. |
What Is Moving the Markets
Here are the headlines moving the markets. | |
Wall Street dips ahead of inflation data(Reuters) – U.S. stock indexes fell on Tuesday, undoing two strong days of gains that have settled some investor nerves ahead of a crucial reading on inflation. | |
‘Whistleblower’ alleges manipulation of Cboe volatility indexNEW YORK/BENGALURU (Reuters) – Wall Street’s most widely followed gauge of future stock market volatility is being manipulated, causing billions of dollars in losses a year to unwary investors, a law firm representing an “anonymous whistleblower” alleged in a letter to U.S. financial regulators and released on Monday. | |
Blue Apron puts EBITDA breakeven on table for late 2018, shares riseNEW YORK (Reuters) – Blue Apron Holdings Inc said on Tuesday it could break even on a key measure of profitability earlier than Wall Street analysts had expected, fueling a brief surge in the meal-kit maker’s shares. | |
Broadcom reduces Qualcomm board nominees before March 6 showdown(Reuters) – Broadcom Ltd on Tuesday cut the number of board seats it was trying to win at Qualcomm Inc to six from 11, and reiterated that its offer for the company was only good until the conclusion of a March 6 shareholder meeting at the chipmaker. | |
Apple CEO downplays special dividend at shareholder meeting(Reuters) – Apple Inc Chief Executive Tim Cook downplayed a suggestion that the company might issue a special dividend to shareholders with some of the $285 billion in cash that the company is now able to bring back from overseas. | |
Airlines turn to technology to solve overbooking puzzleLONDON/BERLIN (Reuters) – Being offered cash at the gate to take a later flight because of overbooking may become a rarity if technology being examined by major airlines such as British Airways , JetBlue and Qantas catches on. | |
Deason sues Xerox to block deal with Fujifilm(Reuters) – Xerox Corp shareholder Darwin Deason asked courts on Tuesday to block the company’s merger with Japan’s Fujifilm Holdings , claiming board members at the U.S. photocopier maker had failed in their duty to shareholders. | |
Goldman was caught ‘wrongfooted’ in trading but outlook better: CEONEW YORK (Reuters) – Goldman Sachs Group Inc’s trading division was caught “wrongfooted” last year, bracing for a return of volatility that did not materialize in financial markets, Chief Executive Officer Lloyd Blankfein said on Tuesday. | |
Blackstone names real estate chief Gray president in succession moveNEW YORK (Reuters) – Blackstone Group LP said on Tuesday that Jonathan Gray, who turned the buyout firm into the world’s biggest real estate investor as head of its property business, will take over from Tony James as president, setting him up as successor to Chief Executive Stephen Schwarzman. | |
Israeli Police Recommend Netanyahu Be Indicted For BriberyAfter a 14-month-long investigation, Israeli police have reportedly recommended that Prime Minister Benjamin Netanyahu be indicted on charges of bribery and breach of trust. As The Jerusalem Post reports, police say they have found enough evidence to recommend the state’s prosecution to indict Netanyahu in Case 1000, the “gifts affair” and Case 2000, the “Yediot Aharanot Affair.”
| |
John Kelly’s “Cover-Up” Is Unraveling: AxiosJust as we anticipated not two hours ago, it appears White House Chief of Staff John Kelly is on the verge of an unceremonious exit from the White House after FBI Director Christopher Wray publicly contradicted Kelly’s account of when he learned about former White House aide Rob Porter’s history of spousal abuse. Axios reports that Chief of Staff John Kelly’s White House enemies are ready to use FBI Director Chris Wray’s testimony as a weapon to drive a knife right into his back (figuratively speaking, of course). Kelly and his allies insist they knew nothing about the domestic violence until the Daily Mail published a story about it involving two of Porter’s ex-wives, who decided to come forward and go public with their stories. Kelly initially defended Porter, before suggesting that Porter misled Kelly to get the positive statement. (Porter denies this and tells associates he gave Kelly a full picture of what would be in the story, though he denied the allegations of more serious abuse). Kelly said … | |
Exposing ETF-Induced Market SocialismGrizzle.com’s Chris Woods fears that so-called ‘wage growth’ has unsettled the ‘Goldilocks’ market era. The stock market’s biggest correction since Feb 2016 was – according to the common narrative – triggered by one strong wage number.
But Woods warns of the increasing homogeneity of modern markets (in addition to the dominance of algo-driven momo-trading machines): If a strong wage print has been the trigger for falling share prices, there has also been evidence in the past week of machine-driven selling accentuating the decline. One interesting point about the sell-off is the way volatility has surged in an American stock market which has become dominated in recent years by machine-driven “algo” trading and related passive investment strategies or pseudo passive strategies otherwise known as “smart beta”. Such passive investment strategies, also known as “indexation”, involve investors buying indices as opposed to individual stocks, a trend further encouraged by the explosive growth in recent years of exchange traded funds (ETFs). Net issuance of US domestic-equity ETFs has risen from US$38.5bn in 2010 to US$186bn in 2017, while assets of domestic-equity ETFs have surged by an annualised 23% over the same period to US$1.98tn at the end of 2017. | |
Goldman’s Abby Joseph Cohen Turns Bearish, Blames TrumpIn January, Goldman Sachs’ Global Markets Institute President Abby Joseph Cohen exuberantly told Bloomberg Quint that despite global equity indices hitting one record high after another, markets are not stretched to the point of danger. They are certainly not as cheap as they were though, cautioned Cohen while adding that cheap valuations provide a cushion which may not exist anymore. Lurking behind headlines of indices surging are concerns about low volatility, which many say cannot last forever. Cohen is one of them. Volatility has been too low not just in the equity markets but also in the fixed income markets, said Cohen.
Now, a month later, and 10% lower in stocks, and with volatility coming back as she warned amid a bond bloodbath, the infamous permabull from The DotCom era has changed her tune dramatically on stocks – for a new reason…
| |
The Next Big Number Keeping Markets on EdgeThroughout last year, investors worried about a phantom menace that could upset markets: higher U.S. inflation. They were wrong, to their own pleasant surprise. Now they could be right, which creates its own complications. | |
Time to Put Alibaba’s Ant Under the MicroscopeAnt Financial has a big share of China’s huge mobile payments market. That doesn’t mean investors should swallow talk of a lofty valuation as it gears up for a possible IPO. | |
The Wayfair RiddleThe furniture retailer’s business has serious flaws. But the stock keeps soaring. | |
Federal Reserve Chairman Jerome H. Powell Ceremonially Sworn-inWritten by Steven Hansen Today, Federal Reserve Chairman Jerome H. Powell participated in a ceremonial swearing-in event, and part of his remarks at the swearing in appear to support the continuation of the policies of his predecessors:
| |
Market Extra: Why investors shouldn’t panic over falling bond pricesIn a rising interest rates environment accompanied by stock-market volatility, bond funds typically take a hit as well, but the phenomenon is temporary and should not be a cause for abandoning them, according to financial advisers | |
Capitol Report: Why this investment pro thinks Wall Street’s inflation fears are overblownThe sudden panic on Wall Street over inflation that triggered a stock-market meltdown is exaggerated and likely to ease up, according to a prominent investment strategist. “This is a classic inflation scare.” | |
Here’s the most expensive city to buy a house — and it’s not even closeSan Jose was once again the most expensive in the U.S. in 2017, with a median price for a single-family home of $1.27 million, according to data from the National Association of Realtors released Tuesday. |
Earnings Summary for Today
leading Stock Positions
Current Commodity Prices
Commodities are powered by Investing.com
Current Currency Crosses
The Forex Quotes are powered by Investing.com.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated: