14Nov2018 Pre-Market Commentary: Wall Street To Open Higher, DOW Futures To Open Up Over 100 Points, WTI Up To The Mid 56 Handle

Written by Gary

US stock futures points to a moderately higher open amid oil volatility (SPY +0.7%). Inflation data up to 2% plus WTI crude has rebounded 1.0%.

Here is the current market situation from CNN Money
	European markets are higher today with shares in Germany leading the region. The DAX is up 0.30% while London’s FTSE 100 is up 0.29% and France’s CAC 40 is up 0.04%.

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.
	Macy’s boosts annual earnings forecast ahead of holiday season Department store chain Macy’s Inc raised its annual earnings forecast on Wednesday, signaling a strong holiday shopping season ahead, as it benefits from a growing online business and a revamped loyalty program.
	Oil finds floor, stocks ease, sterling braces for wild swings Oil prices bounced from multi-month lows on Wednesday but stocks fell as disappointing data heightened worries over slowing global growth, while the pound wavered as Prime Minister Theresa May faced the hard task of selling her Brexit deal.
	U.S. farmers scramble to contain trade-war damage, find new markets Clouds crowded the Illinois sky as Nick Harre walked away from his combine at the peak of harvest to join four fellow farmers in greeting some unlikely visitors.
	Ford, Walmart to collaborate on designing automated-vehicle delivery Ford Motor Co , Walmart Inc and delivery service Postmates Inc will collaborate to design a service for delivering groceries and other goods to Walmart customers that could someday use autonomous vehicles, the companies said on Wednesday.
	Samsung BioLogics’ listing under review after regulator says it breached accounting rules South Korea’s top financial regulator said Samsung BioLogics Co Ltd had intentionally breached accounting rules ahead of its 2016 listing, leading to a suspension in trading of the biotech firm’s shares and a review of its listing status.
	Bain Capital Ventures closes $1 billion fund amid venture fund-raising frenzy Bain Capital Ventures, the venture capital division of the eponymous Boston-based investment firm, said it has raised a new $1 billion fund to invest in startups, adding to a year of big-dollar fund-raising by tech investors.
	Credit bureau TransUnion CEO to retire in May 2019 US consumer credit reporting agency TransUnion said on Wednesday Chief Executive Officer James Peck, who led the initial public offering of the company in 2015, will retire in May and be succeeded by Christopher Cartwright.
	VW’s Skoda Auto says October deliveries down 7.4 percent year-on-year Deliveries of Skoda Auto cars, part of the Volkswagen Group , dropped 7.4 percent in October, largely in European markets due to conversions to conform to the Worldwide Harmonised Light Vehicle Test (WLTP) anti-pollution rules.
	Euro under pressure as Italy sticks to deficit target in budget The euro struggled below $1.13 on Wednesday as Italy stuck to its deficit target in a re-submitted draft budget and after confirmation that the euro zone economy grew at its slowest pace in four years in the third quarter.
	Core Consumer Price Gains Weakest Since February As New Car Prices Slide After producer prices printed hotter than expected (surging most MoM in six years), hawkish fears were modestly allayed as consumer prices rose 2.5% YoY (as expected), a small rebound from September’s 2.3%. Headline CPI up 2.5% YoY… But core CPI slowed to +2.1% YoY – its weakest since February and below expectations of a 2.2% rise. The October advance in the CPI benefited from some bounce-back from September: used-car prices rose 2.6 percent, the most since 2009, after posting the bigg …
	Nomura: “Long-Awaited” Credit Contagion Emerges, Crushing Risk Sentiment For the past month, ground zero for “max pain” trades had been concentrated in equities, and specifically growth and tech stocks, which slumped into a bear market amid “peak profit” (and iPhone) and economic slowdown concerns, leading to dramatic losses for hedge funds which have been forced to liquidate positions and meet redemption requests ahead of a November 15 deadline. However, that changed in recent days when first the collapse in oil – coupled with a historic short squeeze in nat gas – redirected attention to the dramatic events in the commodity sector, leading to major losses for commodity CTAs and momentum traders. Meanwhile over the past 48 hours the sudden blow out in GE credit to junk bond levels, has shaken the investment grade bond market, prompting renewed fears about hundreds of billions in future “fallen angel” bonds, whose inevitable downgrade to junk could lead to the next bond market crisis according to such investors as Guggenheim’s Scott Minerd. Commenting on the “credit contagion” move, Nomura’s Charlie McElli …
	Was A “Behemoth” Energy Fund Just “Taken To The Chipper”? Authored by Kevin Muir via The Macro Tourist blog, Crude oil. Ugly move lower over the past two weeks. The market pundits will try to explain the price action. They will offer evidence of President Trump’s tweet as the catalyst for the sell off. Or they will point to the decline resulting from market participants’ belief the global economy is about to roll over. And if they don’t use that excuse, they will trot out the breakout in the US Dollar Index. Either way, the chart looks about as …
	German Economy Shrinks For First Time In 3 Years As Car Production Collapses After notching a tepid growth rate in the prior quarter, the Bundesbank’s warnings that the economic engine of Europe faltered during the third quarter have proved accurate. In what was its worst GDP print in three years, Germany saw its economy contract 0.2% in Q3, putting Europe’s strongest economy on the bring of a technical recession and providing the clearest sign yet that economic growth in the euro area stalled just as the ECB was preparing to end its massive bond buying program with an eye toward raising interest rates late next year, according to Bloomberg. While the hope is that the setback is related largely to new emissions tests that temporarily disrupted car production, the data will feed into fears that the euro area’s expansion has faltered as the Continent faces down risks including Italy’s confrontational populism, the looming Brexit, and the ongoing US trade conflict (which threatens to hammer the German auto industry if Trump changes his mind and decides to pursue tariffs). But analysts have found at least one scapegoat to blame the contraction: according to Bloomberg, Ger …
	Economic Report: Consumer inflation posts biggest jump in nine months on higher cost of gas, rent, used cars, CPI shows Americans paid more in October for gas, rent and used vehicles, triggering the biggest increase in consumer inflation in nine months. The consumer price index climbed 0.3% in October.
	What Amazon’s HQ2 will mean for house prices Amazon has decided to locate its new headquarters in both Long Island City, N.Y., and Arlington County, Va.
	Avon ladies sue company for allegedly discriminating against pregnant, nursing workers Former workers say the allegations are all the more hurtful, coming from supposedly ‘women-centric’ company.