Written by Gary
The SP 500 erased losses today (SPY +0.3%) after minutes from the Fed meeting suggested higher inflation may not result in faster interest rate hikes.
Todays S&P 500 Chart
Looking at the last three columns (below), the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.
The Market in Perspective
Here are the headlines moving the markets. | |
S&P 500 erases losses following Fed minutes(Reuters) – The S&P 500 erased losses to trade little changed on Wednesday after minutes from the last Federal Reserve meeting suggested higher inflation may not result in faster interest rate hikes. | |
China signals to state giants: ‘Buy American’ oil and grainsSINGAPORE/BEIJING (Reuters) – China will import record volumes of U.S. oil and is likely to ship more U.S. soy after Beijing signaled to state-run refiners and grains purchasers they should buy more to help ease tensions between the two top economies, trade sources said on Wednesday. | |
Comcast prepares to top Disney’s $50 billion offer for Fox(Reuters) – Comcast Corp confirmed on Wednesday it was preparing a higher, all-cash offer for most of the media assets of Twenty-First Century Fox , setting up a bidding war with rival Walt Disney Co , which already has agreed to a $52-billion deal with Fox. | |
Small banks trump Wall Street on Dodd-Frank rewriteWASHINGTON (Reuters) – Congress on Tuesday rolled back some of the restraints imposed on banks after the 2007-2009 global financial crisis, but big players like Goldman Sachs Group Inc , Morgan Stanley and JPMorgan Chase & Co , will not be breaking out the champagne. | |
Tesla shares poised to rise after ‘fever pitch’ of bad news: analystSAN FRANCISCO (Reuters) – Immaterial negative news stories about Tesla Inc have hit a “fever pitch”, and the electric carmaker’s stock is set to surge as output of its Model 3 sedan improves, according to an analyst. | |
Uber ends Arizona self-driving program following fatalitySAN FRANCISCO (Reuters) – Uber has shut down its self-driving car operation in Arizona two months after a fatal crash involving one of its vehicles, the company said on Wednesday. | |
Deutsche Bank looks to cut 10,000 jobs to reduce costs: sourceFRANKFURT (Reuters) – Deutsche Bank plans to cut 10,000 jobs, or about a tenth of its global workforce, as part of efforts to reduce costs, a person with knowledge of the matter said on Wednesday. | |
Trump teases ‘big news’ for U.S. auto workers, suggests NAFTA linkWASHINGTON (Reuters) – President Donald Trump, who has repeatedly pledged to revive American manufacturing, said on Wednesday that “big news” was coming that would be welcomed by U.S. auto workers, and he suggested it was somehow linked to NAFTA trade talks. | |
U.S. Senate panel to hold hearing on Sprint T-Mobile mergerWASHINGTON (Reuters) – A U.S. Senate committee plans to hold a hearing on June 27 on the proposed $26.5 billion merger of U.S. wireless carriers T-Mobile US and Sprint Corp . | |
Bond Bears Battered As Yields Tumble But Credit & Cryptos CrushedBond, Buy Bond… Markets appear to have interpreted FOMC Minutes in a dovish manner, sending the dollar lower and bonds, stocks, and gold higher… Overall, stocks managed to scramble back into the green for the day after the Fed…with growthy Nasdaq bid after the dovish Fed statement… Growth >> Value… | |
Saudis Release Photo Of Crown Prince To Deny Rumors Of His DeathAs wild speculation and questions abounded early this week over the whereabouts and status of Saudi crown prince Mohammed bin Salman (MbS) — with some going so far as to suggest he was assassinated during a palace shootout a month ago — Saudi Arabia tried to clamp down on the rumors by releasing an awkward photo of the crown prince socializing with other heads of state, including President Sisi of Egypt, at a swimming pool while wearing a baseball cap pulled low over his eyes. The prior ball cap photo in which half of bin Salman’s face was obscured only served to fuel more rumors and conspiracies about his fate, prompting a lengthy article in the Spectator chronicling the theories and examining the photo, which was deemed “impossible to verify” and “a strange way to convince the world MBS is fighting fit.” Official photographic “proof” of the crown prince chairing a meeting released early Wednesday by his press spokesman via Twitter. And below the initial ‘baseball cap photo’ released earlier this week. | |
Kass: “These Are The Ingredients Of A Toxic Market Cocktail”Authored by Doug Kass via Seabreeze Partners,
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Erdogan Tells Turks Not To Exchange Their Crashing Lira Into Foreign CurrencyIn a desperate attempt to prevent a currency crisis just as the Turkish Lira was crashing to record lows, dragging Turkish bonds and the broader economy with it, today the Turkish Central Bank did what many expected it would do long ago: it hiked rates in an emergency meeting, pushing the Late Liquidity Window rate higher by 3% to 16.5%. While some, such as Fidelity and Old Mutual, were content with the move saying the central bank did “just enough” to calm the market, many said that the 3% hike may not be enough, as the floated “whisper” stabilization rate was as high as 20%. To wit, Brown Brothers Harriman said that the Turkish central bank’s decision to raise its benchmark rate by 300 basis points to 16.5% is “a very weak response” to the depreciation in the lira. Shamaila Khan, director of emerging-market debt at AllianceBernstein, echoed the skepticism saying the move by the Turkish central bank to stem a slide in the lira “is a step in the right direction, but won’t be enough to change market sentiment.” Wells Fargo similarly said that the Lira support is only temporary, noting that “without more concrete and sustained signs of central bank commitment to bringing down inflation, the Turkish currency will likely remain under pressure going forward.” Also skeptical was Capital Economics whose economist Jason Tuvey said that “while today’s move has provided some support to the currency, investors are likely to be waiting for signs that this represents a more fundamental shift in policy.” BBVA was on the same page saying that the reaction from the Turkish central bank should be enough to stem the late selloff, but more is needed to restore credibility. “It’s finally a reaction and topped our initial expectation of an emergency 250 hike.” Others, such as SEB EM strategist Per Hammarlund took on a sl … | |
Why the Property Industry Isn’t Buying WeWorkWeWork has convinced tech investors that short-term office rentals are the next big thing, and well worth a high price. Savvy real-estate investors also like that business, but not at WeWork’s valuation. | |
What Is Happening to Global Growth?The soft patch in the global economy is looking more soft and less like a patch. | |
The Sea of Leverage in Chinese MarketsPassive investors are about to get more involved in Chinese stocks thanks to MSCI’s decision to include several of them in its key indexes. They will find themselves exposed to a market swimming in leverage. | |
02 May 2018 FOMC Meeting Minutes: There Seems Divergent Views On The Timing Of the Next Federal Funds Rate Increase— this post authored by Steven Hansen The 02 May 2018 meeting statement presented the actions taken. This post covers the economic discussion during this FOMC meeting between the members (minutes were released today). There continued to be considerable discussion on inflation and timing on the next federal funds rate increase, and an interesting quote:
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The Fed: Fed minutes show support for June hike and calm about inflation outlookMinutes of the Fed’s May meeting show central bankers supported a June rate hike and were not worried about an overheated economy. | |
Ireland’s abortion referendum under siege from bots and fake adsAs Ireland gears up for a historic referendum on abortion on May 25, there are growing concerns that campaigners are resorting to some of the same tactics used in the U.S. presidential election and Brexit vote to win over undecided voters. | |
The New York Post: NFL owners reach ‘compromise’ that keeps anthem kneelers off fieldThe group sets a new policy that states that if players are on the field during the anthem, they must stand. For those who wish to join Colin Kaepernick’s movement, they can stay in the locker room. |
Summary of Economic Releases this Week
Earnings Summary for Today
leading Stock Positions
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