18May2018 Pre-Market Commentary: Wall Street Is Pointing To A Negative Opening, DOW Up 6 Points, WTI Trading Down In The Mid 71 Handle

Here is the current market situation from CNN Money

European markets are lower today with shares in London off the most. The FTSE 100 is down 0.27% while Germany’s DAX is off 0.16% and France’s CAC 40 is lower by 0.03%.

China denies it has offered a $200 billion package to slash U.S. trade gap

BEIJING (Reuters) – China denied on Friday that it had offered a package to slash the U.S. trade deficit by up to $200 billion, hours after it dropped an anti-dumping probe into U.S. sorghum imports in a conciliatory gesture as top negotiators meet in Washington.

Stock futures edge higher with trade talks in focus

(Reuters) – U.S. stock index futures rose slightly in choppy trading on Friday as oil prices climbed, while investors kept a close watch on Sino-U.S. trade talks.

Elon Musk brings high-tech charm offensive to Los Angeles tunnel plan

LOS ANGELES (Reuters) – Billionaire entrepreneur Elon Musk promised a cheering crowd on Thursday that his controversial dream of burrowing a high-speed network of “personalized mass transit” tunnels under Los Angeles could be achieved without disturbance or noise at the surface.

Cambridge Analytica files for bankruptcy in U.S. following Facebook debacle

(Reuters) – Cambridge Analytica, the political consultancy at the center of Facebook Inc’s privacy scandal, filed for Chapter 7 bankruptcy in the United States late on Thursday.

Uber chief product officer to leave in latest executive departure

(Reuters) – Uber Technologies Inc [UBER.UL] Chief Product Officer Jeff Holden is leaving the ride-hailing company, an Uber spokesman told Reuters on Thursday, the latest of more than a dozen senior executives to depart since last year.

Exclusive: BP chief sees shale, OPEC cooling oil markets

LONDON (Reuters) – BP Chief Executive Bob Dudley expects a flood of U.S. shale and the reopening of OPEC taps to cool the oil market after crude rose above $80 a barrel this week.

Socially responsible funds dump or rethink Facebook over data privacy

BOSTON (Reuters) – Several socially conscious investment firms are selling or rethinking their Facebook Inc holdings, unsatisfied by the company’s moves to strengthen personal data protection and online safety after scandals involving the improper sharing of users’ information.

U.S. bank stock gains may stall after two-year rally

(Reuters) – After two years of sharp gains for U.S. bank stocks, investors betting on another big boost for 2018 may be disappointed unless loan growth accelerates or regulations slacken considerably.

Private equity firms bet on stock market’s fixer-uppers

NEW YORK (Reuters) – Private equity firms, armed with a record $1 trillion in cash, are investing more in public companies than at any time since the financial crisis, buying those left behind in Wall Street’s nine-year bull market.

Windbag Jean-Claude Juncker’s Pathetic Bluff Regarding Iran Sanctions

Authored by Mike Shedlock via MishTalk,

EC president Jean-Claude Juncker says the EU will activate a ‘blocking statute’ to avoid Iran sanctions.

Five hours ago Reuters reported the EU Will Start Iran Sanctions Blocking Law Process on Friday.

“As the European Commission we have the duty to protect European companies. We now need to act and this is why we are launching the process of to activate the ‘blocking statute’ from 1996. We will do that tomorrow morning at 1030,” European Commission President Jean-Claude Juncker said.

“We also decided to allow the European Investment Bank to facilitate European companies’ investment in Iran. The Commission itself will maintain its cooperation will Iran,” Juncker told a news conference after a meeting of EU leaders.

Solidarity Bu …

Police Shoot Man “Ranting About The President” Firing Shots At Trump Golf Resort

An anti-Trump man who was “ranting about the president” and actively firing gunshots at the Trump National Doral golf and spa resort in northwest Miami-Dade last night was shot multiple times by police, according to the Orlando Sun Sentinel.

The shooting at the resort, located off the Palmetto Expressway at Northwest 36th Street and 87th Avenue, occurred at around 1:30 am, according to Miami-Dade Police Director Juan Perez, who delivered an update on the situation at a pre-dawn news conference outside the resort.

#UPDATE: #MDPD and @DoralPolice responded to a shooting where a subject opened fire in the lobby of the @TrumpDoral. Officers exchanged gun fire, striking the subject. Thankfully, there were no shooting victims. An officer suffered a broke …

S&P Futures Rise, Yields Drop As Ongoing Dollar Juggernaut Routs Emerging Markets

In a surprising twist to end the week, global markets are in the green and US equity futures are near session highs despite two negative overnight developments: China denying it had agreed to cut the US trade deficit by $200BN, and the official formation of a populist, budget-busting Italian government. There were also some disappointing earnings overnight (Applied Materials, Deere, Nordstrom), which followed drops in marquee names Walmart and Cisco after their results failed to impress the market.

European stocks traded little changed after erasing initial declines as the euro tumbled amid uncertainties in Italy, sending Europe’s Stoxx 600 Index heading for an 8th straight week of gains, even as Italian bond yields spiked to 2.22%, the highest in 10 months, with the BTP/Bund spread blowing out another 10bps, and Italy’s default risk surging.

Italy CDS Blows Out As Anti-Establishment Parties Reach Government Deal

After a series of false alarms over the past week, on Friday morning Italy’s anti-establishment Five Star Movement (M5S) and the far-right Northern League have finally agreed on a policy program, ending a monthslong stalemate.

The 57-page “Contract for a Government of Change” was published early Friday and includes a handful of key provisions that have, unsurprisingly, made bondholders nervous:

ITALY FIVE STAR, LEAGUE PROGRAM URGES REVIEW OF EU FISCAL RULES

FIVE STAR, LEAGUE PLAN SEEKS 15%, 20% TAX RATES FOR COS, PEOPLE

FIVE STAR, LEAGUE PLAN SEEKS REVIEW OF BAIL-IN RULES: PROGRAM

According to Bloomberg, the proposed program, published on Di Maio’s Facebook page, includes a review of EU fiscal rules, the rolling back of pension reforms that raised the retirement age, as well 15-20% tax thresholds for companies and people. According to an estimate by former IMF official Carlo Cottarelli, it may cost as much as 126 billion euros ($148 billion).

The document, the culmination of two months of work following a political stalemate in the euro zone’s third-largest economy, calls for billions of euros in tax cuts, additional spending on welfare for the poor and a roll-back of pension reforms. Here’s a roundup of its key clauses courtesy of Bloomberg and the Financial Times:

Seeks 15% and 20% tax rates for companies and people

Seeks guaranteed minimum income for poorer Italians

Universal basic income of 780 per person per month, funded in part through EU

Seeks end to Russia sanctions

No mention of a refere …

Nordstrom Racked by Macy’s Good Numbers

Macy’s cheery report, when it posted strong earnings, was a positive sign for retail—and a welcome rebuff of the notion that the sector is doomed. It was not so great for Nordstrom, however, which was put in the unenviable position of having to follow Macy’s act.

Kroger’s Big, Risky Bet on Grocery Delivery

Kroger is betting that robots will give it an edge in the food fight with Walmart and Amazon. Investors can expect a long receipt.

China Won’t Dominate Lithium Forever

China Inc. wants to lock up supply of lithium, a critical battery component, and is reportedly closing in on a key mine in Chile. Electric-vehicle investors shouldn’t panic.

Market Extra: Microsoft could be a $1 trillion company in a year, Morgan Stanley says

One of the biggest companies in the world, which has already seen steep gains over the past year, may not be anywhere near done growing.

Outside the Box: Tesla’s space-cruising Roadster is carrying a huge load of Earth’s germs

Have we launched a backup copy of Earth life?

BookWatch: The ‘Big One’ is a threat even if you don’t live in California

A powerful West Coast earthquake will one day shake the entire U.S. economy, writes seismologist Lucy Jones.