Written by Gary
US equities markets are higher on this last day of the week (SPY +0.4%) with the DOW trading over 150 points to avoid its longest slide in 40 years.
Here is the current market situation from CNN Money | |
 | North and South American markets are higher today with shares in U.S. leading the region. The S&P 500 is up 0.43% while Brazil’s Bovespa is up 0.29% and Mexico’s IPC is up 0.05%. |
A Tribute To Dr. Charles Krauthammer
Dr. Charles Krauthammer R.I.P. Thanks for your intellect, brilliant mind and clear thinking. You were Intelligent, knowledgeable and honest in an age of thoughtless partisanship. God bless him and his family.
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Trump threatens 20 percent U.S. tariff on EU car importsWASHINGTON (Reuters) – President Donald Trump on Friday threatened to escalate a trade war with Europe by imposing a 20 percent tariff on all U.S. imports of European Union-assembled cars, a month after the administration launched an investigation into whether auto imports pose a national security threat. |
| Harley says EU duties will prompt prices hikes in the autumnFRANKFURT (Reuters) – Harley-Davidson Inc expects to have to raise prices in Europe this autumn, when new motorcycle models are due to hit dealers’ showrooms, due to EU tariffs on U.S. goods, the head of its central European business said. |
| Schlumberger oil services wins in U.S. Supreme Court on patent damagesWASHINGTON (Reuters) – The U.S. Supreme Court ruled on Friday that companies can recover profits lost because of the unauthorized use of their patented technology abroad in a victory for Schlumberger NV, the world’s largest oilfield services provider. |
| Energy stocks push Wall Street higher; tech weighs(Reuters) – Wall Street rose on Friday boosted by higher oil prices after the OPEC agreed to a modest increase in output, but a drop in technology stocks capped gains. |
| OPEC agrees modest hike in oil supply after Saudi and Iran compromiseVIENNA (Reuters) – OPEC agreed on Friday on a modest increase in oil production from next month after its leader Saudi Arabia persuaded arch-rival Iran to cooperate, following calls from major consumers to help reduce the price of crude and avoid a supply shortage. |
| U.S. unveils new veto threat against WTO rulingsGENEVA (Reuters) – The United States ramped up its challenge to the global trading system on Friday, telling the World Trade Organization that appeals rulings in trade disputes could be vetoed if they took longer than the allowed 90 days. |
| Tesla recycling machine catches fire at Fremont, California campus(Reuters) – A machine used for paper recycling caught fire Thursday night at Tesla Inc’s Fremont, California, campus, outside the company’s car production factory, but manufacturing was not affected, the company said. |
| Walmart-Advent deal gets Brazil antitrust nodSAO PAULO (Reuters) – Brazil’s antitrust watchdog Cade on Friday approved buyout firm Advent International’s acquisition of Walmart Inc’s Brazilian operations, and sought no additional asset sales. |
| Exclusive: Tesla to close a dozen solar facilities in nine states – documentsLOS ANGELES/SAN FRANCISCO (Reuters) – Electric car maker Tesla Inc’s move last week to cut 9 percent of its workforce will sharply downsize the residential solar business it bought two years ago in a controversial $2.6 billion deal, according to three internal company documents and seven current and former Tesla solar employees. |
| Fun With The Fed’s “Stress” TestAuthored by Nicholas Colas via DataTrekResearch.com, Like many of you, I spent part of the late afternoon reading through the results of the Federal Reserve’s annual stress test of the US banking system. At first blush, everything looks good. Everyone passed. Now investors can look forward to next week’s Comprehensive Capital Analysis and Review, when we hear what sorts of buybacks and dividends these institutions can pay in the year ahead. It’s difficult not to gasp a little when you look at the “Severely adverse” scenario the Fed used in this year’s review: A 7 quarter recession that leaves GDP 7.5% lower than prior highs Unemployment rises to 10% over the same period Inflation drops to 1% and short term Treasuries yield close to zero At the same time, investors shun long term Treasuries and yields there remain unchanged Investment grade and mortgage yield spreads blow out to 5.75% and 3.5% respectively US stocks drop by 65% in early 2019, and the VIX goes over 60 House prices drop 30% and commercial real estate by 40% I don’t know about you, but to me that looks like the recipe for revolution more than a regulatory what-if scenario, but let’s go with it. Two points: #1) If the US banking system is really as robust as the Fed’s analysis indicates, doesn’t that merit a higher multiple on domestic stocks than historical norms? A bullet proof banking system should be worth a systematic premium over a shaky one, after all. America’s banks should be able to provide capital in even a severe downturn, make orderly markets if they have capital markets desks, and generally act as they would at any other point … |
| 12 European States Revolt Against Merkel, Macron Plan To Reform EuropeTwo days ago, when we laid out the components of Merkel and Macron’s blueprint to reform the EU, we said that while “Macron suggested the proposal will be presented to other countries, with specifics to be worked out later this year and the plans to take effect from 2021, it was unclear how he plans to get “other countries” to vote for a proposal which has already led to the alienation of Central and Eastern Europe, Brexit and an openly populist government in Italy.” We did not have to wait long for confirmation, because just two days later, Europe’s two self-proclaimed leaders were facing an unexpected backlash from most other European governments against the German and French plans for a common eurozone budget, dealing a blow to the two countries’ ambitions for a big overhaul of the single currency area. As the FT reports, the rest of Europe’s “core”, including the Netherlands, Austria and Finland are among 12 governments questioning the need for any j … |
| Tesla Suffered Another “Structure Fire” On Thursday At Fremont Campus, Tent DamagedThe last time Tesla announced that it had suffered a fire due to sabotage, Fremont Police Department were quick to point out that they “did not receive or respond”…
This time is the Fremont Fire Department that confirmed a “structure fire” at Tesla’s Fremont Campus:
Who could have seen that coming?
Will ‘damage’ to the tent be enough of an excuse for missing his Model 3 production goals this quarter? |
| Supreme Court: Cops Can’t Track Cell Phone Location Without A WarrantTHe Supreme Court ruled Friday that law enforcement cannot track people’s movements for periods of weeks or months without a warrant.
In a 5-4 ruling, the court held that the acquisition of cell-site records by government officials is covered under the Fourth Amendment. Chief Justice John Roberts who wrote the opinion sided with the court’s four liberal judges; Sonia Sotomayor, Elena Kagan, Ruth Bader Ginsburg and Stephen Breyer – while Justice Anthony Kennedy, Clarence Thomas, Samuel Alito and Neil Gorsuch dissented.
While stressing that their decision doesn’t question longstanding surveillance techn … |
| CEO Loss Forces Intel to Face Its FutureThe surprise resignation of Intel’s CEO means the chip maker needs to deal with longer-term challenges now. |
| Beijing Paddles Hard as a Bear Market ThreatensChinese stocks are down nearly 20% from their most recent high. Beijing has to balance its desire for market stability with a need to keep up the impression of calm. |
| For Investors, Europe is Back to Muddling ThroughConfidence can more easily be lost than won. After 2017’s strong growth and political calm brought hopes that Europe was finally turning a post-crisis page, 2018 is back to unfinished business. |
| Futures Movers: Oil prices rally after OPEC agrees to smaller-than-expected production boostOil prices rally Friday as OPEC members agree to essentially raise output by an amount that isn’t expected to flood the market with crude. |
| Market Extra: Greece gets green light to exit bailout program, but worries lingerEurozone finance ministers have made a deal that paves the way to Greece’s graduation from its third bailout in August and provides some debt relief measures. But despite a pickup in the economy, Athens still faces big challenges. |
| Commodities Corner: 5 things investors need to know about OPEC’s decision to lift oil outputThe Organization of the Petroleum Exporting Countries agreed on Friday to rein in production cuts, essentially lifting output to help make up for an expected shortfall in global supplies. |
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