23Jul2018 Pre-Market Commentary: Wall Street To Open Flat, DOW Futures Up 6 Points, Global Trade Fears Simmer, Gold Just Entered Into A Death Cross, WTI Back Up Into The 69 Handle After Touching 67 Earlier

Here is the current market situation from CNN Money

European markets are lower today with shares in France off the most. The CAC 40 is down 0.50% while Germany’s DAX is off 0.16% and London’s FTSE 100 is lower by 0.14%.

Bond yields rise worldwide on BoJ easing talk, stocks slip

Signs that the Bank of Japan (BoJ) might scale back its monetary stimulus faster than expected sent tremors through bond markets on Monday, while European stocks and U.S. futures slipped as threats of further U.S. tariffs on China drained risk appetite.

Stock futures flat as caution reigns in earnings-heavy week

U.S. stock index futures were flat on Monday as investors assessed the impact of an escalating trade conflict between the United States and China on corporate results in an earnings-heavy week.

Blackstone wins EU approval to buy Thomson Reuters unit

U.S. private equity firm Blackstone Group has secured EU antitrust approval to acquire a majority stake in Thomson Reuters’ Financial and Risk unit, the European Commission said on Monday.

Facebook to double office presence in London

Facebook said on Monday it would double its presence in London, acquiring nearly 600,000 square feet (56,000 square meters) of office space across two buildings in King’s Cross – enough for more than 6,000 workstations.

Tesla shares drop after report on supplier talks

Shares of Tesla Inc fell more than 4 percent in trading before the bell on Monday, after a report that the electric car maker has turned to some suppliers for a refund of previously made payments in a bid to turn a profit.

Halliburton revenue beats on higher North America rig count

Oilfield services provider Halliburton Co’s quarterly revenue rose 24 percent to beat analysts’ estimates on Monday as higher oil prices encouraged U.S. oil and gas producers to put more rigs to work.

New Fiat Chrysler boss must deliver Marchionne plan

New Fiat Chrysler boss Mike Manley faces the task of executing his predecessor’s plan to boost production of SUVs and catch up on electric cars to keep the world’s seventh-largest carmaker competitive in the absence of a merger.

Magna-BAIC deal raises prospects for an ‘automotive Foxconn’ in China

In China, where the future of the car is looking more and more electric, newcomers to the auto industry are looking for partners to help them build their vehicles.

Toymaker Hasbro’s quarterly revenue, profit top estimates

Toymaker Hasbro Inc topped Wall Street estimates for profit and revenue in the second quarter as it emerged from the worst effects of last year’s Toys ‘R’ Us bankruptcy, sending its shares up nearly 7 percent in premarket trading.

Public Support For Mueller Investigation Waning

As President Trump’s approval rating rises (despite the ‘resistance’ best efforts), Americans are losing support for special counsel Robert Mueller’s investigation.

Mueller oversees the investigation into Russia’s efforts to influence the 2016 presidential election, and he also examines whether the Russian government worked with Trump during the election. The special counsel investigation began when President Trump fired former FBI director James Comey.

As Statista’s Sarah Feldman notes, Mueller’s inquiry has been going on for over a year now.

Is The Oil World In Panic Mode?

Authored by Daniel Dicker via Oilprice.com,

Oil markets have shown tremendous weakness in recent days, losing nearly seven dollars before rallying back a bit on Thursday.

What’s causing it? Market analysts have been struggling to find a single reason for it, preferring to cite a cocktail of negative news and rumor to explain the downdraft.

There have been reports of increased Saudi production to Asian customers, which many cite as a breaking of the dam of OPEC production guidelines – a break that would have many in the oil world in full panic mode.

But I don’t see these promises as a collapse inside the cartel. The Asian contracts are merely adding stability to the oil markets in front of the threats of renewed U.S. sanctions on Iran. It’s been made clear that the Iranians won’t stand for any production increases that are over and above the agreed upon increases at their Vienna meeting last month – and equally clear t …

Frontrunning: July 23

Trump Warns Iran of ‘Consequences’ If It Threatens the U.S. (WSJ)

Trump, Aides Diverge Further on Russia (WSJ)

Bank of Japan Policy Change Speculation Roils Markets (BBG)

Small-Caps Surge, but Their Haven Status Is in Jeopardy (WSJ)

Trade Tensions Threaten Global Economic Growth, G-20 Cautions (BBG)

China state-backed funds sit on their hands during stock market slump (Reuters)

Sudden CEO Shift Jolts Fiat Chrysler (WSJ)

Fiat Chrysler Europe Chief to Quit After Being Passed Over (BBG)

Private Pension Product, Sold by Felon, Wipes Investors Out (WSJ)

Mortgage, Groupon and card debt: How the bottom half bolsters U.S. economy (

China Says It Has “No Intention” To Devalue Yuan To Boost Exports

China said on Monday that it has “no desire” to devalue the yuan to help exports, noting that the value of its currency is driven by market forces and after Washington said it was monitoring the currency’s weakness after President Donald Trump took issue with the yuan’s month-long losing streak.

At a daily news briefing on Monday, foreign ministry spokesman Geng Shuang was asked about comments on Friday by U.S. Treasury Secretary Steven Mnuchin, who told Reuters the yuan’s weakness would be reviewed as part of the Treasury’s semi-annual report on currency manipulation, which is due on Oct. 15.

“The exchange rate of China’s RMB is determined by the market. There are ups and downs. It’s a two-way float,” Geng said adding that “China has no intention to use means like the competitive devaluation of its currency to stimulate exports.”

The Chinese Foreign Ministry also said that “threats and intimidation will never work on our Chinese people and we are confident of our ability to uphold our interests” after Trump said he was ready to impose tariffs on all $500 billion of goods imported from the country.

Urging the U.S. to “remain calm and maintain a rational attitude”, Geng said that “the U.S. is bent on provoking this trade war. China does not want a trade war but we …

What the Fed Is Missing, Again

The Federal Reserve isn’t worried about the yield curve, and it has reason why. The problem: It is pretty much the same reason it wasn’t worried about the yield curve before the financial crisis.

Scott Pruitt’s staff at EPA worried about exposure to formaldehyde — but only for their boss

Employees at the Environmental Protection Agency were so worried that a fancy desk that their former boss Scott Pruitt had ordered for his office might contain high levels of a known carcinogen that they arranged to set it up in a warehouse and let it air out for a week. The same office suppressed a report on the substance that showed Americans are highly exposed to it.

In One Chart: Jamie Dimon was best-paid bank CEO last year — wait till you see who came in fourth

Jamie Dimon was the highest-paid CEO in the U.S. banking sector last year, snagging a tidy $28.3 million in total compensation, up 3.9% from the previous year, according to S&P Global Market Intelligence.

Need to Know: Stocks are breaking out and look set for new highs, says this chart

The stock market is kicking off this earnings-heavy week by sizing up President Trump and Iran’s war of words, as trade tensions also stay in the mix. Our bullish chart of the day basically says get ready for new highs for the S&P 500.