28Jan2019 Market Close: Wall Street Ends Lower As Caterpillar, Nvidia Warnings Weigh, DOW Closes Down 109 Points, Nasdaq Composite Loses 1.1%

Wall Street ends lower as Caterpillar, Nvidia warnings weigh

U.S. stocks ended lower on Monday after warnings from Caterpillar Inc and Nvidia Corp added to concerns about a slowing Chinese economy and tariffs taking a bite out of U.S. corporate profits.

Exclusive: Snapchat weighs what was once unthinkable – permanent snaps

Snap Inc is considering changes to its Snapchat app, known for disappearing photos and videos, that could make users’ public posts longer lasting or even permanent, people familiar with the matter said.

Oil falls 3 percent on rising U.S. production, economic slowdown fears

Oil fell about 3 percent on Monday, its biggest one-day percentage drop in a month, after an increase in U.S. crude drilling pointed to further supply growth amid continuing concerns about a global economic slowdown.

Shutdown costs pegged at $3 billion as government reopens

The U.S. economy was expected to lose $3 billion from the partial federal government shutdown over President Donald Trump’s demand for border wall funding, congressional researchers said on Monday as 800,000 federal employees returned to work after a 35-day unpaid furlough.

General Electric stock buyers preach patience, eye progress

Investors who have scooped up decimated shares of General Electric Co are willing to wait years to reap a solid return but also hope the U.S. conglomerate will show progress in its turnaround plan and avoid more negative surprises.

Caterpillar stock slides on profit miss, China sales forecast

Caterpillar Inc on Monday missed quarterly earnings estimates, hurt by soft Chinese demand, higher manufacturing and freight costs, sending shares of the heavy machinery maker tumbling as much as 10 percent.

Exclusive: Boeing nears $3.5 billion 737 MAX jet deal with Japan’s ANA – sources

Boeing Co is close to a deal worth $3.5 billion at list prices to sell 30 Boeing 737 MAX jetliners to ANA Holdings, two people familiar with the matter said.

China worries send stocks down, rising supply hits oil

Global stock markets tumbled on Monday after Caterpillar and Nvidia Corp warned of weak Chinese demand while oil headed for its biggest one-day drop in a month on expectations of growing U.S. crude supply.

Facebook plans content oversight board, tightens paid ad rules

Facebook Inc on Monday laid out plans for an independent content oversight board with the power to overturn company decisions on user posts, aimed at addressing concerns over misinformation and abusive behavior on the platform.

China, Chips, CAT, Crude, Copper, & Crypto All Clubbed…

So… apart from China’s Industrial profits collapsing, CAT earnings crashing, NVDA’s outlook crushed, The ECB talking back up QE as the EU economy is clubbed like a baby seal, and US earnings expectations at 6-month lows, “all is well”…

China’s Industrial Profits plummeted overnight, and stocks did not see the “good” news in that bad news…

Yuan spiked to 6-month highs (after a big strengthening of the fix) before tumbling back weaker on the day

Morgan Stanley “Confident This Early Year Rally Will Fade”

On a day when investors puke belwether stocks such as CAT and NVDA on the heels of weak earnings and weak outlooks, it is perhaps worth a brief reminder of just how “tricky” as Morgan Stanley describes it, this earnings season already is.

As stocks rebound on a bed of freshly squeezed shorts and expanding central bank balance sheets, earnings expectations have plunged to six month lows…

Aggregate results are beating consensus estimates and some areas of the market (like Banks and Semis) are suggesting decelerating/negative growth may be priced, but as Morgan Stanley’s Michael Wilson warns:

…we are hesitant to draw a bullish signal on either front though given that a) the bar for “beats” has been substantially lowered in the last few weeks and b) those areas of the market seeing the biggest rallies were also those where valuation was at extremes, which is not true of many parts of the market which also happened to be the most favored by investors.

As always, given the diverging realities in the chart above, the only solution left for analysts is to create hockey-stick versions of the future – just far enough ahead th …

Venezuelan Oil Company Bonds Rally As US Unveils Sanctions

Update 2: Speaking about the upcoming US-China trade talks, Larry Kudlow said the scope will be the broadest in history.

IRS TO START SENDING OUT TAX REFUNDS NEXT WEEK: COMMISSIONER

KUDLOW SAYS HE DOESN’T AGREE ON CBO ESTIMATES OF SHUTDOWN

NO PERMANENT DAMAGE TO ECONOMY FROM SHUTDOWN: KUDLOW

KUDLOW SAYS TRUMP HAS EXPRESSED GUARDED OPTIMISM ON CHINA TALKS

MNUCHIN: EXPECTATION IS SIGNIFICANT PROGRESS AT CHINA MEETINGS

* * *

Update: Sarah Sanders revealed that Trump will join trade talks in Washington later this week between the US and a Chinese delegation led by Vice Premier Liu He, the top official in charge of managing the negotiations, before turning the microphone to Steve Mnuchin and John Bolton, who reviewed the US’s plans for imposing sanctions against Venezeula’s state-owned oil company.

The sanctions, which will limit the sale of oil products and ensure that all further proceeds from US sales will end up in ‘blocked accounts’ that will ideally be turned over to Juan Guaido, the US-backed opposition leader, Mnuchin said the sanctions may have a modest impact on US oil refineries (the US is the largest importer of Venezuelan oil).

MADURO MUST ALLOW FOR FAIR, CREDIBLE ELECTIONS, SANDERS SAYS

U.S. STANDS WITH PEOPLE OF VENEZUELA, SANDERS SAYS

U.S. ANNOUNCES SANCTIONS AGAINST VENEZUELA’S PDVSA

BOLTON SAYS U.S. ANNOUNCING SANCTIONS AGAINST VENEZUELA’S PDVSA

MNUCHIN SAYS TREASURY TOOK ACTION AGAINST PDVSA

MNUCHIN: WILL CONTINUE TO USE ALL TOOLS TO SUPPORT GUAIDO

MNUCHIN: CITGO ASSETS IN U.S. WILL BE ABLE TO KEEP OPERATING

BOLTON: TRUMP HAS MADE CLEAR ALL OPTIONS ON TABLE FOR VENEZUELA

MNUCHIN: VENEZUELA OIL MONEY WILL HAVE TO GO TO BLOCKED ACCOUNT

MNUCHIN: ANTICIPATE MODEST IMPACTS ON U.S. REFINERIES

BOLTON SAYS STABILITY, DEMOCRACY IN VEN …

Trump Administration Rolls Out Low-Yield Nukes

The United States has begun manufacturing a low-yield nuclear warhead to be used in Trident missiles, reports The Guardian citing an emailed announcement by the National Nuclear Security Administration (NNSA).

The new weapon – the W76-2, is a modification of an existing Trident nuclear warhead. According to the NNSA, the first batch have come off the production line, and an unspecified number of them referred to as “initial operational capability” will be ready for delivery before the end of September.

According to Stephen Young, a senior Washington representative of the Union of Concerned Scientists, the yield on the W76 was likely reduced to created the W76-2 by removing one stage from the original two-stage device.

“As best we can tell, the only requirement is to replace the existing secondary, or second stage, with a dummy version, which is what they do every time they test fly a missile,” said Young, who noted that the amount of the hydrogen isotope tritium may also be adjusted.

The result is that the yield has been reduced by 95% – from 100 kilotons o …

In One Chart: Ray Dalio’s Bridgewater cements spot as top performing hedge fund of all time

Ray Dalio’s Bridgewater topped all other hedge funds in 2018, according to data provided by LCH Research, a fund of hedge funds run by Edmond de Rothschild.

Cannabis Watch: Marijuana stocks rise after Organigram doubles revenue forecast

Recreational pot sales are off to a strong start for Organigram Holdings Inc., and Chief Executive Greg Engel said he expect sales to double in the first full quarter of legal marijuana sales in Canada.

Bond Report: Treasurys erase losses as stocks slide, shaking off impact of debt auctions

Treasury prices recover Monday after a stock-market selloff draws investors into haven assets like government paper, helping to offset a round of debt auctions.