16Mar2018 Midday Update: Wall Street Higher As Financial Stocks Gain On Strong Data, Oil Just Spiked Above $62 In Sudden Move, Goldman: Not Much Upside Left For The Market

Here is the current market situation from CNN Money

North and South American markets are mixed today. The S&P 500 is up 0.41% while the Bovespa gains 0.11%. The IPC is off 0.77%.

Wall Street higher as financial stocks gain on strong data

(Reuters) – Wall Street ticked higher on Friday as financial stocks tracked gains in yields following data that showed strong U.S. factory output and improving consumer sentiment.

Trump’s tariffs head for a legal minefield

GENEVA (Reuters) – President Donald Trump’s announcement last week of a 25 percent tariff on U.S. imports of steel and 10 percent on aluminum caused a global outcry.

EU calls for industry input on U.S. tariff retaliation list

BRUSSELS (Reuters) – The European Commission called for industry views on Friday on a list of U.S. products it will subject to import tariffs if the United States taxes European steel and aluminum.

After pay vote, Disney investors question Iger’s rich deal

BOSTON (Reuters) – Walt Disney Co Chairman and Chief Executive Robert Iger stands to earn up to $423 million over four years, according to a new analysis of a compensation package rejected by shareholders, and some investors want to raise the bar on his performance targets.

Qualcomm discussing Jacobs leaving board of directors: sources

(Reuters) – Qualcomm Inc’s board of directors was meeting on Friday to discuss former chairman Paul Jacobs leaving its board after he informed the U.S. semiconductor company he was exploring ways to acquire it, people familiar with the matter said on Friday.

Caterpillar says to close facilities, could affect 880 positions

(Reuters) – Caterpillar Inc said on Friday it will close two facilities and is contemplating the closure of its engine manufacturing plant in Illinois, which could potentially result in about 880 job losses.

Goldman Sachs reports gender pay gap of 55.5 percent

LONDON (Reuters) – Goldman Sachs on Friday reported a mean gender pay gap in Britain for its international business of 55.5 percent and a mean bonus gap for the unit of 72.2 percent.

Ten years after JPMorgan/Bear Stearns deal banks may have already seen biggest gains

(Reuters) – Ten years after JPMorgan bought failing investment bank Bear Stearns, one of the first big harbingers of the financial crisis, investor views on U.S. banks are significantly brighter, although the sector may have already put its biggest gains behind it.

Under scrutiny, New York Fed sets short list for Dudley successor

NEW YORK (Reuters) – The Federal Reserve Bank of New York is considering a “handful” of candidates for what is seen as the second most influential job at the U.S. central bank, its directors said on Friday, as political pressure mounts to choose someone who breaks with past precedent.

DOJ Investigating Possible Abuses In Wells Fargo’s Wealth-Management Unit

Some weeks, it seems like barely a day goes by without learning about some new nefarious activity perpetrated by Wells Fargo, or their repercussions.

Case in point, yesterday, Reuters reported that the Office of the Comptroller of the Currency was preparing to sanction the bank for charging customers for auto insurance they didn’t really need. The bank has blamed a third party for wrongly layering the insurance policies on its auto borrowers.

Wells Fargo’s auto insurance woes stem from a policy drivers must carry when they borrow money to buy a new car. It pays out to the bank when a car is stolen or destroyed.

Wells Fargo required drivers to carry their own policies, but had a right to “force-place” a policy on borrowers who let insurance lapse. Insurers working for Wells Fargo pushed policies onto 570,000 customers who already had coverage and then delivered profits for the bank.

Wells is investigating auto insurance abuses back to 2005 and estimates it will need to refund $145 million to borrowers, and adjust account balances by another $37 million, according to securities filings. That is up from its initial cost estimate of $80 million.

Then on Friday, the Wall Street Journal reported that the Department of Justice is investigating possible abuses in the bank’s wealth-management business. The abuses reportedly took place in the Phoenix area, which was also an epicenter of the bank’s cross-selling scandal. After whistleblowers reportedly informed the US government that there might be something amiss in Ph …

Paulson Fires Heads Of Equity And Credit Trading As Slump Deepens

Having watched over his AUM plunge 70% in two years, to just $9 billion, John Paulson has axed several key employees, according to NYPost.

After reaching a peak of $38 billion in AUM in 2011, of which roughly 50% was contributed by outside clients, Paulson now runs about $9 billion, 80% of which is his own money. And it appears this slump has finally forced him to make across the board cuts in staff, including several very senior personnel (who have been with the fund for more than 10 years).

Among the senior level hedgies being shown the door were:

Keith Hannan, head of trading;

Brad Rosenberg, head credit trader; and

partners Victor Flores and Allen Puwalski.

Of course, as we noted previously, just last summer Pa …

“I’m In”: Trump And Kelly Reach A Truce

When White House Press Secretary Sarah Huckabee Sanders told reporters on Thursday that Kelly “is not going anywhere,” it appears she meant it. Because less than a day after CBS speculated that Kelly could be the next senior White House staffer to be pushed out, the Wall Street Journal reported that President Donald Trump and Kelly have reached an (uneasy) truce.

While Kelly’s relationship with the president had deteriorated markedly by mid-week, the two men had a “productive” meeting on Thursday, and apparently ended it with an understanding that Kelly would remain on board – for now, at least.

Jarred by the treatment of former Secretary of State Rex Tillerson, whom the president fired by tweet on Tuesday morning, Mr. Kelly suggested to colleagues that he may be the next to be pushed out of the White House. Mr. Kelly’s cryptic comments left several White House staffers with the impression that Mr. Kelly would force the issue with the president, and that they should start looking for new jobs, too.

The internal drama …

WTI Suddenly Spikes Above $62

WTI Crude futures just suddenly spiked above $62 (with no obvious news catalyst)…

Bloomberg points to today’s gains (pre-spike) as being driven by investors weighing surging U.S. crude production against a warning from the International Energy Agency of an impending shortfall in global supplies.

“The market is probably less concerned about the rise in U.S. oil production because the global economy is doing quite well, so there is demand for the additional oil,” said Jens Pedersen, senior analyst at Danske Bank A/S.

“It seems like oil has found its feet following a volatile start to the year.”

But this is not the first sudden spike to run stops above $62..

Drinkers Go Crazy for Gin, Investors for Tonic

It’s party time in the gin industry—but buying a gin producer may not be the best way for investors to join the fun.

What Happens If AT&T Beats the Government?

No matter who wins, the blockbuster antitrust trial pitting AT&T against the U.S. government will reshape the media landscape. What it won’t do is end the upheaval of an industry contending with new competitors and new technologies.

Alibaba’s Homecoming May Not Prove a Home Run

Alibaba’s investors may feel excited about its plan to list on a mainland Chinese stock exchange. In reality, there may not be much to celebrate.

The Tell: Fed needs ‘an acrobatic sense of balance’ to keep markets calm next week

U.S. stock-market investors have grown concerned about interest rates of late, with many accepting that they’re going to rise, but still worried that the jumps will happen too quickly. According to one analyst, assuaging these fears will be like walking a tightrope.

In One Chart: This political-risk gauge just hit a 15-year high — and here’s what it means for the stock market

Add heightened political risk to the growing number of factors that have been contributing to volatility on Wall Street.

MarketWatch First Take: Undaunted, Broadcom will still look for deals, but smaller ones

Broadcom Ltd., a few days after President Trump blocked what would have been the biggest deal in tech, remains undaunted and will look for other companies to acquire, albeit on a smaller scale.