Written by Gary
US stock markets indexes open fractionally higher, but are cautiously being traded (SPY +0.3%). U.S. new home sales rebound, but the ongoing trend still points to a weakening housing market.
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 0.26% while Mexico’s IPC is up 0.19% and Brazil’s Bovespa is up 0.07%. |
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. | |
| World trade’s top court close to breakdown as U.S. blocks another judgeThe supreme court of world trade is close to breakdown after the United States turned down a last-ditch petition to reappoint one of the four remaining judges at the World Trade Organization. |
| Kaepernick boost just doesn’t do it for NikeNike shares fell 3 percent on Wednesday as the sportswear maker stopped short of raising its financial forecast even as sales received a boost from a controversial ad campaign featuring former NFL player Colin Kaepernick. |
| U.S. new home sales rebound, but trend weakeningSales of new U.S. single-family homes rebounded in August after two straight monthly declines, but the underlying trend still pointed to a weakening housing market against the backdrop of rising mortgage rates and higher home prices. |
| Merck’s Frazier to remain CEO beyond 2019Merck & Co Inc’s Kenneth Frazier will stay on as chief executive beyond 2019, the drugmaker said on Wednesday, after it scrapped a policy requiring its CEO to retire at the age of 65. |
| Uber settles for $148 million with 50 U.S. states over 2016 data breachUber Technologies Inc has settled with the top legal officers in all 50 U.S. states over a massive data breach that the company failed to disclose in 2016, resolving one of the more catastrophic embarrassments that have engulfed the ride-hailing company over the last couple of years. |
| China leads world stocks higher ahead of Fed rate decisionAn advance in Chinese equity markets set a modestly positive tone for world stocks on Wednesday, despite continued trade tensions with the United States, as investors awaited an expected interest rate increase by the U.S. Federal Reserve. |
| Health stocks lift Wall Street as banks dip ahead of expected rate hikeHealthcare stocks helped prop up Wall Street on Wednesday, although banks slipped ahead of a widely expected interest rate hike by the U.S. Federal Reserve. |
| Rupert Murdoch’s Fox to sell Sky stake to ComcastTwenty-First Century Fox agreed to sell its stake in Sky to Comcast , securing the U.S. cable group’s $40 billion takeover of its European peer and ending Rupert Murdoch’s relationship with the UK-based broadcaster. |
| Oil eases, but Iran sanctions keep Brent above $80 a barrelOil prices eased on Wednesday after U.S. data showed a surprise build in domestic crude inventories, but an impending drop in Iranian exports kept Brent futures above $80 a barrel and on track for a fifth straight quarterly gain. |
| One Trader’s Tough Talk To The Fed: Hike Faster Or Get Off The PotIn challenges involving tortoises and hares, slow-and-steady is apparently the optimal strategy. However, in the monetary policy race of life, the slow-and-steady pace of rate-hikes is increasingly throwing shade and casting doubt on The Fed’s self-confidence of its own forecasts for growth and employment. As we stand, Fed Funds futures imply a very modest chance of a rate-hike in 2020, and OIS imply an actual rate-cut in 2020 – both well below the expectations of a notable hike implied by The Fed’s dots…
Former fund manager and FX trader Richard Breslow feels the same, inferring that Jay Powell should hike faster or higher… or get off the economically exuberant narrative pot. Via Bloomberg, The FOMC is going to raise rates this afternoon. I assume that doesn’t come as a shock to anyone. |
| Trump Accuses China Of Interfering With US ElectionRoughly a week after Axios published a leak claiming that President Trump was preparing to launch a new “broadside” against China that would tie “Russia and China” together, the substance of this mysterious hint has finally been revealed. During remarks before the UN Security Council (the US, one of five permanent members, assumed the chairmanship this year) Trump accused China of launching election interference efforts similar to those purportedly orchestrated by Russia. China’s goal, Trump said, was to stop him from winning reelection in 2020.
However, Secretary of State Mike Pompeo said there would be “no question” that the midterms will be safe from foreign influence. Back in July, Director of National Intelligence Dan Coats said China, along with Russia, Iran and North Korea, “are penetrating our digital infrastructure and conducting a range of cy … |
| Kolanovic: There Is A “Profound” Danger To The Dollar’s Reserve StatusIn his latest note released this morning, JPM’s head quant, Marko Kolanovic, reiterates his recent tactical call that the “unprecedented outperformance” of US equities vs. the rest of the world is over, and again recommends “gradually tilting towards Emerging Markets”, a trade which in recent weeks has generated profits as beaten down EM have found a floor and have indeed outperformed the developed world (whether or not this trend continues will depend on the Fed, the trade war with China, and various other intangibles). For now, Marko is sticking to his conviction, and writes that “markets are likely sensing that the tide may be turning in the trade war” and “the tables are turning as a stronger USD, higher yields, and trade tariffs start impacting US profit growth, and YoY earnings comparisons soften.” Echoing his latest note from late August, Kolanovic says that “while we think that US equities will drift higher, the days of rampant outperformance vs. the RoW are likely over.” Whether Kolanovic’s attempt to bottom tick the EM/DM trade will be successful will be revealed in due course. What we found far more intriguing, however, was the second part of Kolanovic’s report, in which the JPM strategist shares his thoughts on a topic that has fascinated many in recent days – including politicians in both the EU, Iran and the US – namely Europe’s ongoing desire to circumvent SWIFT and Trump’s ability to “weaponize” the dollar, in order to maintain commerce with Iran in a narrow sense, but more broadly, to bypass Washington’s “veto” on global commerce and transactions that involve the world’s reserve currency: the US Dollar. As a reminder, yesterday we reported that Europe has unveiled a “Special Purpose Vehicle” to do just that, which not only would bypass SWIFT, but potentially jeopa … |
| Avenatti Reveals Alleged Kavanaugh “Gang Rape” Scheme Involving Spiked PunchAttorney Michael Avenatti has levied new allegations of sexual misconduct against Supreme Court nominee Brett Kavanaugh. Avenatti’s client, Julie Swetnick, claims that Kavanaugh and his friend Mark Judge made efforts to cause girls “to become inebriated and disoriented so they could then be “gang raped” in a side room or bedroom by a “train” of numerous boys.” According to the declaration, Swetnick holds “active clearances” with the Treasury Department, the US Mint and the IRS, and held “inactive clearances” with the State Department, DOJ, Homeland Security and Customs and Border Protection.
Sweatnick’s declaration reads in part: “During the years 1981-1982, I became aware of efforts by Mark Judge, Brett Kavanaugh and others to “spike” the “punch” at house parties I attended with drugs and/or grain alcohol so as to cause girls to lose their inhibitions and their ability to say “No.” This caused me to make an effort to purposely avoid the “punch” at these parties,” reads Swetnick’s declaration.
|
| August 2018 Headline New Home Growth ImprovesWritten by John Lounsbury and Steven Hansen The headlines say new home sales improved. Median sales prices were lower – and backlog of unsold homes grew.
|
| Market Extra: Should investors fear October, a historic ‘jinx month’ for stocks?The month of September hasn’t lived up to its reputation for historical weakness in the U.S. stock market, which could provide some comfort to superstitious investors looking ahead to October, a month that is notable for historic crashes and other turmoil. |
| The Ratings Game: Nike says the Colin Kaepernick ‘Just Do It’ campaign is driving traffic and engagementNike’s CEO Mark Parker says the company is proud of its ad campaign featuring Colin Kaepernick, and it’s resonating around the world. |
| Market Extra: Why trade tensions could become a bigger risk for stocks on Jan. 1The U.S. stock market has repeatedly in 2018 looked past escalating tensions between the U.S. and its major trading partners, rallying to records despite multiple rounds of tariffs being instituted across the world. |
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:
