Written by Gary
US stock futures point to a higher opening this morning (SPY +0.1%) with technology stocks looking to bounce back after a widespread sell-off.
Here is the current market situation from CNN Money | |
European markets are mixed today. The FTSE 100 is up 0.73% while the CAC 40 gains 0.18%. The DAX is off 0.20%. |
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.
What Is Moving the Markets
Here are the headlines moving the markets. | |
Pfizer beats profit estimates but lowers 2018 revenue forecastPfizer Inc topped Wall Street estimates for quarterly profit on Tuesday, driven by higher sales of its cholesterol and arthritis drugs, but the biggest U.S. drugmaker lowered its full-year revenue forecast due to a stronger dollar. | |
BOJ seeks to make its ammunition last longer as options dwindleThe Bank of Japan pledged to keep its massive stimulus in place but made tweaks to reduce adverse effects of its policies on markets and commercial banks, reflecting the central bank’s view that its inflation target remains stubbornly out of reach. | |
Pulp problems: Why shoppers may pay more for tissues, toilet paperWith toilet roll and tissues swept up in an escalating international trade row, it’s not just Procter & Gamble’s Charmin that’s going to get the squeeze. | |
Britain’s car industry cautions: No-deal Brexit is our nightmareA no-deal Brexit would seriously damage the car industry in Britain and the European Union by raising costs and sowing chaos for carmakers and consumers alike, the head of Britain’s car industry warned on Tuesday. | |
Futures edge higher as tech stocks bounceU.S. stock index futures edged higher on Tuesday, with technology stocks looking to bounce back after a widespread sell-off in the earlier session on rising concerns about the future growth of high-flying companies. | |
Procter & Gamble quarterly sales below estimates, shares fallProcter & Gamble Co’s quarterly sales fell below Wall Street estimates on Tuesday, as the consumer products company had a disappointing performance at its grooming unit that makes Gillette razors and shaving products. | |
Honda resists U.S. tariff hit for now, first-quarter profit at 12-year highHonda Motor said the impact of U.S. steel and aluminum import tariffs on its bottom line had so far been limited, as it posted a surprise jump in quarterly profits to their highest in more than a decade on improving North American sales. | |
Panasonic expects Tesla battery biz to contribute to profit as early as OctoberPanasonic Corp on Tuesday said it expects its battery business with U.S. electric vehicle maker Tesla to contribute to profit from the second half of its business year, as production of mass-market Model 3 cars picks up pace. | |
World shares under tech cloud, no lift from Japan’s dovish policy pledgeReassurance by the Bank of Japan that it will keep its super-easy monetary policies in place for an extended period pushed the yen and global bond yields lower on Tuesday, though mounting concerns about the tech sector kept world stocks under pressure. | |
Ron Paul: Trump’s Tweets End The Myth Of Fed IndependenceAuthored by Ron Paul via The Ron Paul Institute for Peace & Prosperity, President Trump’s recent Tweets expressing displeasure with the Federal Reserve’s (minor) interest rate increases led to accusations that President Trump is undermining the Federal Reserve’s independence. But, the critics ignore the fact that Federal Reserve “independence” is one of the great myths of American politics. When it comes to intimidating the Federal Reserve, President Trump pales in comparison to President Lyndon Johnson. After the Federal Reserve increased interest rates in 1965, President Johnson summoned then-Fed Chairman William McChesney Martin to Johnson’s Texas ranch where Johnson shoved him against the wall. Physically assaulting the Fed chairman is probably a greater threat to Federal Reserve independence than questioning the Fed’s policies on Twitter. While Johnson is an extreme example, history is full of cases where presidents pressured the Federal Reserve to adopt policies compatible with the presidents’ agendas — and helpful to their reelection campaigns. Presidents have b … | |
Bezos’ Parents May Have Reaped 12,000,000% Return On Early Amazon InvestmentAnyone who has invested in Amazon (and held through the numerous subsequent drawdowns) over the past three decades has made a lot of money. But according to a stunning new analysis, one particular “group” of Amazon investors may have generated the greatest return of all time: Jeff Bezos’ parents. Bloomberg reports that according to a late 90’s prospectus, in 1995 Jackie and Mike Bezos invested $245,573 into their son’s then brand new e-commerce website. “It was a big gamble”, Mike Bezos, the stepfather of Amazon.com founder Jeff Bezos, said onstage during a 2015 event at the National Constitution Center in Philadelphia. His son, the world’s richest man, agreed “I want you to know how risky this is,” Jeff Bezos told his parents some 23 years ago “because I want to come home at dinner for Thanksgiving and I don’t want you to be mad at me.” If the Bloomberg analysis is correct, Bezos’ parents have no reason to be mad; in fact quite the opposite because one IPO and three stock splits later, their original stake could be worth almost $30 billion today making them wealthier than Microsoft’s co-founder Paul Allen, the 30th-richest person on the Bloomberg Billionaires Index. | |
Futures Rise As Traders Digest Data Deluge After Tech Rout; Fed LoomsIt has been another relatively quiet session, as traders remain on the sidelines spooked by the sudden reversal in the growth/value trade following a sharp drop in tech stocks while keeping an eye on yields and currencies in the aftermath of the BOJ’s half-hearted attempt to steepen the JGB yield curve even as the central bank “forward guided” to years of easy policy to come as it slashed inflation expectations for FY19 (1.5% from 1.8%) and FY20 (1.6% from 1.8%). Meanwhile, the Eurozone added even more confusion after it reported that GDP unexpectedly slowed coming below expectations while inflation beat consensus, printing above 2.0% for the first time since 2012. As a result, markets and futures are largely in the green, if only modestly so. It all started with the BOJ, which took its time to announce just after 1pm local time that it is introducing forward guidance signaling that interest rates will stay low for an “extended period of time”, even as it tweaked Yield Curve Control parameters, which however were not adjusted in same manner as sources had previously hinted, disappointing markets and leading to a sharp drop in JGB yields. | |
Kuroda Tries To Pull Off A “Draghi” As He Tweaks Monetary Policy, FailsIn the end, BOJ governor Haruhiko Kuroda tried his best to pull off a Mario Draghi – introducing a tightening event while smothering it in “easy” forward guidance – and failed. While Kuroda was not faced with anything nearly as dramatic as announcing the end of QE as Draghi did last month, the BOJ head still tried having his monetary easing cake while somehow modestly steepening yield curves to give Japanese banks a little extra support now that the BOJ has been forced to admit that its inflation targeting timeframe has been a disaster, and QE will continue indefinitely, or at least until it runs out of bonds to buy. For now, it is unclear if he will succeed, especially since the market’s reaction was not what Kuroda had expected, and for good reason: the “market” knows well that even the smallest gambit to reverse policy would blow up in Kuroda’s face. But that doesn’t mean he won’t try. As a reminder, here is what happened overnight: as previously leaked to the press, the BOJ took – or at least tried to take – several steps to alleviate the strain on banks and the market distortions stemming from its policy while keeping unchanged its two major benchmarks – negative interest rate and the 10-year yield target of 0%. The central bank added modest flexibility on rates while keeping the 10Y anchored at 10%, it also pulled a page out of the ECB’s playbook and added forward guidance on rates, while making small superficial changes to its ETF buying program. The initial response was underwhelming, with JGB yields sliding after the announcement was released just minutes after 1pm local time, as the market realized that contrary to the leaks, the BOJ would keep its Yield Curve Control in its current form. For those who missed | |
Bonds Need to Catch Up on the NewsThe bond-market tide may be on the turn. After weeks of inaction, 10-year Treasury yields are eyeing 3% once more. Continued momentum in the global economy could lead yields higher still. | |
Economic Report: Worker pay and benefits climbing at fastest pace in 10 years, ECI findsAmerican workers are finally reaping the benefits of the lowest unemployment rate and best jobs market in decades: Wages and benefits are rising at the fastest pace in a decade. | |
The Tell: His winning bet during the financial crisis garnered him fame—now, he’s betting against Elon Musk’s TeslaEisman says Tesla’s quarterly results could be pivotal for the electric-car manufacturer whose polarizing founder has been ensnared in a series of controversies in recent weeks and has been described by critics as a megalomaniacal distraction for Tesla. | |
The jobs market is smokin’ hot—on dating sitesSingletons are hitting up people on Tinder and OKCupid to promote their businesses and get a leg up in their career. |
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