Written by Gary
DOW rises over 170 points after report that US and China are said to restart talks to avoid trade war (SPY +0.6%). US and China are trying to resume negotiations to defuse a trade war between world’s two largest economies.
Here is the current market situation from CNN Money
North and South American markets are mixed today. The S&P 500 is up 0.70% while the IPC gains 0.15%. The Bovespa is off 1.26%.
Traders Corner – Health of the Market
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.|
China will keep its economic growth within a reasonable range and achieve this year’s target despite challenges, the state-run Xinhua news agency said on Tuesday as a trade war with the United States intensifies.
U.S. stocks rose on Tuesday, led by industrial companies, after a report that the U.S. and China were trying to resume negotiations to defuse a trade war between world’s two largest economies.
Pfizer Inc lowered its revenue forecast for this year, blaming the stronger dollar, and increased its planned spending on research and development, as the drugmaker works to launch new drugs to replace declining sales from its established products like Viagra.
Lloyd’s of London is reviewing all aspects of its business, including its centuries-old structure, to ensure it is cost-competitive and responsive to both clients and members, especially after Britain leaves the EU, industry sources said.
At least 140 people said they had fallen sick after eating at a Chipotle Mexican Grill Inc restaurant in Ohio, sending shares of the burrito chain down 8 percent in early trading.
Pfizer Inc Chief Executive Ian Read said on Tuesday that he believes the Trump administration intends to eliminate rebates on prescription drug purchases, but he does not know how quickly such a policy could be implemented.
United Parcel Service Inc said it would partner with a Los Angeles-based company to develop an electric medium-duty delivery truck, as the package delivery company expands its fleet of alternative-fuel vehicles.
Procter & Gamble Co’s fiscal fourth-quarter sales fell below Wall Street estimates on Tuesday, hurt by lower pricing and weak demand at its units that make Pampers diapers and Gillette shaving products.
CBS Corp’s board left Chief Executive Leslie Moonves in his post on Monday as it discussed sexual harassment claims against him and took steps to select an outside counsel to lead an independent investigation into the matter, the company said in a statement.
Back in the heyday of the Fed’s QE, it had become a trader mantra: buy stocks on POMO days, or when the Fed was actively purchasing bonds in the open market, and generate risk-free, outsized returns. It got to the point where even Goldman advised its clients to frontrun the Fed, as we documented back in October 2010, when Goldman’s trading desk sent out the following note.
Many years later, POMO is long forgotten (at least until Trump forces the Fed to relaunch POMO after the next market crash) and instead of Quantiative Easing we have Quantiative Tightening. But unlike back then, few traders care about days when the Fed’s balance sheet shrinks, or anti-POMO.
That may soon change.
As Nomura’s rates strategist George Goncalves writes, “for years macro-mavens the world over would track the size of the Fed’s balance sheet vs equities (notably the SP500 index) to draw the comparison that QE policy was driving stock markets upwards.”
Attorney and legal analyst Jonathan Turley has weighed in on Paul Manafort’s fate, as the first of two trials against the former Trump campaign aide gets underway in Virginia on Monday. Turley suggests that Manafort is “in the worst possible legal position” of having to “run the tables” – beating all 18 counts in his Virginia trial, as well as seven counts in his D.C. trial, while trying Mueller’s team will probably point out that he’s a multimillionaire Washington lobbyist that a jury is unlikely to identify with.
That said, there are many considerations to take into account which Turley describes – including the possibility of a presidential pardon, however if you want to know precisely how screwed Manafort is, read on:
Authored by Jonathan Turley via The Hill
Paul Manafort gambles against all odds at trial
Hunter Thompson once decried the fleeting fortunes of gamblers as “tomorrow’s blinking toads, dumb beasts with no hope.” Paul Manafort is about to discover if he is one of those “blinking toads.” The trial of the former Trump presidential campaign chairman in Virginia, on more than a dozen criminal counts of tax fraud, bank fraud and reporting violations, is about to begin. Rather than take a plea, Manafort has taken the gamble of a trial and the lingering chance of a pardon.
Manafort is in the worst possible legal position of having to “run the tables” by not only beating 18 counts in Virginia but then beating seven counts in a separate trial in Washington. He needs a sweep or nothing. That is quite a gamble and, frankly, Manafort is a bad bet. While he needs to beat all the charges, special counsel
Thousands of people have signed onto a petition calling on the British government to ban former White House chief strategist Stephen Bannon from entering the country.
Coming shortly after reports that Bannon plans to lead a populist revolt throughout Europe which, if successful, will crush George Soros and his network of open-border NGO’s to smithereens, the petition describes him as a “far-right political figure” and says that he “poses a direct risk” to the country’s security.
In fact, just a few hundred more and the UK government will be forced to respond to the petition…
Authored by Kevin Muir via The Macro Tourist blog,
I am sure many of you are sick of my yield curve talk. I have been babbling about the curve for far too long. I guess it’s a little understandable as I believe a steepener position will be “the” trade during the next crisis.
Yet there can be no denying that so far, I am wrong and the yield curve keeps going down faster than the plate of drinks at the end of David Hasselhoff’s table after a taping of Britain’s Got Talent.
It’s not an expensive position to carry, so it’s not like I …
The 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.
Written by Steven Hansen
The latest Conference Board Consumer Confidence Index’s headline number of 127.4 up from 127.1 in June.
The Tell: Former Target manager sticks to volatility strategy that made him millions as ‘three-headed horseman’ looms over market
It’s been a good year for Seth Golden. Not 2015-2017 good, but still, the investor, who success story went viral, a year ago claims he’s up about 24% since the beginning of 2018. That’s a far cry from last year, when he nearly doubled his portfolio, and before that, when he reportedly turned $500,000 into $12 million over a five-year stretch.
Protesters are taking financial action in response to family separations at the border.
The stock market in the world’s second largest economy has dropped more than 20%.
Earnings Summary for Today
leading Stock Positions
Current Commodity Prices
Commodities are powered by Investing.com
Current Currency Crosses
The Forex Quotes are powered by Investing.com.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated: