07May2018 Pre-Market Commentary: Wall Street To Continue Friday's Rally, DOW Futures Up 100 Points, WTI Crude Slides Up To The Mid $70 A Barrel, US Dollar Index Tops 92, Up 0.28 Percent

Written by Gary

US stock index futures are moderately higher this morning (SPY +0.3%). WTI crude spikes higher over a possible collapse of Venezuela’s oil industry and possible new sanctions against Iran.

Here is the current market situation from CNN Money
	European markets are higher today as French and German shares show gains. The CAC 40 is up 0.09% while the DAX is up 0.69%. The British FTSE 100 is closed.

What Is Moving the Markets

Here are the headlines moving the markets.
	Futures higher as oil hits $70 (Reuters) – U.S. stock index futures were higher on Monday, with rising oil prices expected to keep Wall Street on track to extend Friday’s rally.
	Nestle to pay Starbucks $7.15 billion in global coffee alliance LONDON/ZURICH (Reuters) – Swiss-based food giant Nestle will pay Starbucks $7.15 billion in cash for the rights to sell the U.S. coffee chain’s products around the world, tying a premium brand to Nestle’s global distribution muscle.
	Blackstone to buy Gramercy Property in $7.6 billion deal (Reuters) – Blackstone Group LP said on Monday it would buy Gramercy Property Trust , which is an asset manager of commercial real estate, in a deal valued at $7.6 billion in cash.
	Buffett bashes bitcoin as nonproductive, thriving on mystique NEW YORK (Reuters) – Billionaire investor Warren Buffett on Monday said buyers of bitcoin, which he has characterized as “rat poison squared,” thrive on the hope they’ll find other people who will pay more for it.
	Oil surges to fresh highs on growing supply worries LONDON (Reuters) – Oil prices rose to their highest levels since late-2014 on Monday, boosted by Venezuela’s deepening economic crisis and a looming decision on whether the United States will re-impose sanctions on Iran.
	Cognizant revenue edges past estimates as healthcare clients spend more (Reuters) – Cognizant Technology Solutions Corp’s quarterly revenue rose 10 percent and edged past Wall Street forecasts, benefiting from higher spending by healthcare and financial services clients.
	Apple and Buffett saw value, and acted SAN FRANCISCO (Reuters) – Apple Inc was not the only one to leap on a chance to buy its stock at a fat discount last quarter as Warren Buffett stepped in to scoop up an additional 75 million shares for Berkshire Hathaway at the same time.
	Carlyle set to close new Asia fund at $6.5 billion: sources HONG KONG (Reuters) – Carlyle Group is set to close its biggest-ever Asia private equity fund at $6.5 billion, people with direct knowledge of matter said, in a deal that adds to the record levels of funds seeking deals in the region.
	Dollar surge bringing emerging market rate cut cycle to a halt LONDON (Reuters) – A resurgent dollar and higher borrowing costs are smashing through Argentina and Turkey’s currencies like a wrecking ball and raising the likelihood more broadly that emerging markets’ three-year long interest rate cutting cycle is at an end.
	Trump Rips Mueller’s “13 Angry Democrats”, Hints At Coming Revelation About DOJ “Conflicts Of Interest” As we anticipated late last week, President Donald Trump has seized the opportunity to gloat about a pair of legal victories last week that raised questions about the Mueller probe’s credibility in an official setting. During hearings about a potential dismissal of the charges against Paul Manafort and Mueller’s request for a delay in his Russian troll farm case, judges articulated doubts about the special counsel’s investigation that appeared to be almost ripped from the president’s previous tweets. In a series of early morning tweets, Trump declared that the Russian “Witch Hunt is rapidly losing credibility” after the “House Intelligence Committee found No Collusion, Coordination or anything else with Russia.” He also lashed out at the “13 Angry Democrats” – a group that includes people involved with the Mueller probe, including Special Agent Peter Strzok, who was removed after sending anti-Trump texts to his mistress. But most importantly, Trump also hinted that there might soon be another embarrassing revelation a …
	Dollar Index Positive For 2018 As Euro Tumbles The Dollar Index has erased all of 2018’s losses and is now green from the 12/29/17 close… Helped by Euro weakness, driven by soft economic data, especially the reading for Sentix investor confidence… This dollar strength is happening as the massive dollar short position begins to unwind…
	Tesla Admits It May Need More Capital, Reveals $300MM In Sales Came From Accounting Change Remember when one month ago, just as Elon Musk’s bizarre descent into twitter paranoia was beginning, the Tesla CEO infamously lashed out at The Economist (i.e., the messenger) for citing a Jefferies research report according to which Tesla would need to raise as much as $3BN in capital this year. Musk’s petulant response: “The Economist used to be boring, but smart with a wicked dry wit. Now it’s just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money.” The Economist used to be boring, but smart with a wicked dry wit. Now it’s just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money. — Elon Musk (@elonmusk) April 13, 2018 Few took Musk’s bluster seriously for one simple reason: it’s not the first time it has happened. In fact… Of course, as
	In “Worst Possible Outcome”, Air France Plummets Most In 16 Years After CEO Unexpectedly Resigns Shares of Air France-KLM crashed as much as 14% on Monday – the company’s biggest drop since 2002 – after CEO Jean-Marc Janaillac, announced his resignation as company workers rejected a pay proposal that would’ve ended a crippling strike. The company’s shares have slipped 40% since the beginning of the year, making it the worst performer in the 26-stock Bloomberg Airlines Index. Analysts at Bernstein warned that Janaillac’s departure is the “worst possible outcome” for the company’s stock, leaving Air France-KLM with no CEO, no labor contract, an ongoing dispute and “emboldened” unions. As
	Videogame’s Big Shooters Need to Aim High It takes more than a Fortnite to shoot down Call of Duty. But what happens when even more bullets start flying
	Why It’s Not Crazy to Buy a Mall Giant in the Age of Amazon The company betting billions to create a trans-Atlantic shopping-mall giant is playing a riskier game than its investors are used to. But in a riskier retail world, that may be no bad thing.
	Turkey Faces an Intensifying Storm A terrible week for the Turkey’s markets and economy may be made worse by rising U.S. interest rates and a stronger dollar.
	Economic Report: Only three states saw their economies contract in 2017 The state of Washington led the nation in growth in 2017.
	Economic Preview: Is worker pay inflated? No, but other things are pushing up prices and keeping the Fed on guard The painstakingly slow rise in what Americans get paid suggests higher inflation is unlikely to spring from the tightest labor market in nearly two decades. It’s the stuff people buy that could be the problem.
	Celgene shares get a lift on first-quarter beats, but long-term worries persist Celgene is facing an existential quandary about its future. A good quarter may not be enough to stave those concerns off.