30Jan2019 Midday Update: Wall Street Stocks Jump On Strong Earnings, DOW Up 375 Points, U.S. Private Payrolls Rise Strongly, Housing Market Struggling, Investors Waiting For Fed Updates

Here is the current market situation from CNN Money

North and South American markets are mixed today. The S&P 500 is up 1.03% while the Bovespa gains 0.54%. The IPC is off 0.70%.

Apple, Boeing lift Wall Street ahead of Fed decision

U.S. stocks jumped on Wednesday, as Apple led a rally in technology shares and Boeing boosted sentiment with an upbeat forecast ahead of the Federal Reserve’s update on monetary policy.

Luxury stocks may yet lose luster despite China’s taste for Vuitton

Even if LVMH is right that Chinese demand is as strong as ever for items like its $3,150 Louis Vuitton mini-backpacks, there are still plenty of danger signs for luxury stocks this year, from slowing U.S. growth to a drop in Swiss watch exports.

J.P. Morgan sees Fed leaving $1 trillion in bank reserves

J.P. Morgan on Wednesday raised its estimate on the amount of excess reserves that the U.S. Federal Reserve would leave in the U.S. banking system to $1 trillion, double what it had previously projected.

Boeing shares soar on profit, aircraft forecast

Boeing Co raised its profit and cash flow expectations for 2019 on Wednesday, sending shares up more than six percent amid a boom in air travel and speedier 737 production.

Oil gains 3 percent on tighter U.S. supply, Venezuela sanctions

Oil prices rose nearly 3 percent on Wednesday, boosted by U.S. government data that showed signs of tightening supply, as investors remained concerned about supply disruptions following U.S. sanctions on Venezuela’s oil industry.

McDonald’s delivers global growth as U.S. challenges persist

McDonald’s Corp’s strong performance outside the United States drove better-than-expected results in the final quarter of 2018, as it battled punishing competition at home with initiatives ranging from $1 coffees to Uber Eats deliveries.

McDonald’s expects labor costs, strong dollar to hit earnings this year

McDonald’s Corp expects earnings per share this year to be pressured by higher labor and restaurant remodeling costs and the impact of a stronger dollar, the fast-food chain said on Wednesday.

AT&T’s wireless customer growth slows, revenue misses estimates

AT&T Inc reported slower wireless customer growth and larger declines in its pay-TV business than Wall Street expected, sending its shares down 4 percent on Wednesday.

U.S. private payrolls rise strongly; housing market struggling

U.S. private payrolls increased solidly in January, pointing to sustained labor market strength despite a recent easing in consumer and business confidence that has suggested a loss of momentum in the economy.

The Real Problem Is The Politicization Of Everything

Authored by Kai Weiss via The American Institute for Economic Research,

The Covington Catholic High School fiasco that has developed over the last weeks has shown more than ever why many are skeptical about the media these days. Facts and context — the reality on the ground — were put in the background in favor of a fable that confirmed a political allegory.

What is most shocking is that in today’s world, this is not an exception anymore. Much blame may be shifted to social media as a phenomenon that makes people feel safe in the anonymity of the online world and thus less inhibited than they would otherwise be. Still, the Covington Catholic saga is simply a symptom of a much bigger problem: the politicization of society — or, indeed, everything in life.

Needless to say, politicization is not new. But it feels as though, in today’s dramatically polarized climate, it is more extreme than in decades before. The Gillette ad, perhaps the only other “news story” that has garnered as much attention as Covington Catholic this year, is a prime example: regardless of what one thinks of it in the end, the question needs to be put forward why Gillette even thought it necessary to make a political statement in a commercial for razors. One needs to ask, to mention another example, why Ben & Jerry’s ever felt the need to launch a new ice creamnamed for “the Re …

Venezuelan Army Defectors Coordinate Over WhatsApp; Ask Trump For “Freedom” Weapons

Defectors from Venezuela’s army who are now loyal to self-declared president Juan Guaidó have called on the Trump administration to arm them in what they refer to as their quest for “freedom,” and are strongly opposed to the United States conducting a broad military intervention.

Two former soldiers, Carlos Guillen Martinez and Josue Hidalgo Azuaje, who live outside the country, told CNN they are in contact with hundreds of willing defectors who want US military assistance in their revolt against the Maduro regime.

“As Venezuelan soldiers, we are making a request to the US to support us, in logistical terms, with communication, with weapons, so we can realize Venezuelan freedom,” Guillen Martinez told CNN.

Hidalgo Azuaje said: “We’re not saying that we need only US support, but also Brazil, Colombia, Peru, all brother countries, that are against this dictatorship.”

The appeal came as US national security advisor John Bolton on Sunday warned the Maduro government that violence against Venezuela’s political opposition—or against its leader and self-declared president Juan …

The TBAC Is Suddenly Worried Who Pays For $12 Trillion In US Deficits… And The Dollar’s Reserve Status

Today at 830am the Treasury Borrowing Advisory Committee (aka the TBAC, which many years ago we dubbed the Supercommittee That Really Runs America, an assessment which 8 years later Bloomberg now generally agrees with) “released minutes of its Jan. 29 meeting held at the Hay-Adams Hotel in conjunction with the U.S. government’s quarterly refunding announcement.

First, the highlights from the refunding announcement revealed no surprises, with the Treasury announcing no increase in nominal coupon or FRN auction sizes in the coming quarter, and expects TIPS issuance of $22-27BN this calendar year. Specifically, the Treasury will sell $38BN in 3 Year notes, unchanged from December, $27BN in 10 Year notes, unchanged from last quarter, and $19BN in 30 Year Bonds, also unchanged from last quarter. In total, the Treasury will sell $84BN in long-term debt next week vs $83BN last quarter, in the process raising $29.9BN in new cash.

In this context, the TBAC recommended keeping nominal coupon auction sizes unchanged for the coming quarter, while gradually increasing TIPS by $1b per auction, with the increases starting with the 30Y TIPS in February, 5y TIPS in April and 10y increases to be considered subsequently. Following were dealers recommendations for coupon auction size increases: $1BN in 5y and 10y, $2BN in 30y, noted increases could be gradual and 30y could at first be increased by just $1BN. Primary dealers also suggested increasing TIPS issuance gradually, resulting in $24b increase over rest of CY2019; committee agreed increase should be gradual, with bulk coming from new October 5y security

The treasury also said that Bill supply will increase gradually and will start moderating in early-April, w …

Ocasio-Cortez: Billionaires Like Howard Schultz Should “Work Their Way Up”

Rep. Alexandria Ocasio-Cortez says that Billionaires who want to run for president should work their way up – starting perhaps with city council.

Referring to former Starbucks CEO Howard Schultz’s bid for President in 2020, the former bartender and Bernie Sanders 2016 organizer tweeted on Wednesday: “Why don’t people ever tell billionaires who want to run for President that they need to “work their way up” or that “maybe they should start with city council first”?”

Why don’t people ever tell billionaires who want to run for President that they need to “work their way up” or that “maybe they should start with city council first”? https://t.co/3d8Nenrvl5

— Alexandria Ocasio-Cortez (@AOC) January 30, 2019

Ocasio-Cortez was referring to Schultz’s comment that

December 2018 Pending Home Sales Seasonally Adjusted Index Remains In Contraction Year-over-Year.

Written by Steven Hansen

The National Association of Realtors (NAR) seasonally adjusted pending home sales index remains in contraction and worsened year-over-year. Our analysis shows continued worsening of growth. The quote of the day from this NAR release:

… So far, the partial government shutdown has not caused any obvious damage to home sales. Seventy-five percent of Realtors reported that they haven’t yet felt the impact of the government closure …

Foxconn is reconsidering plans for Wisconsin plant touted by Trump and then-Gov. Scott Walker

The $10 billion Wisconsin plant, much ballyhooed by the current administration, is likely to hire far few workers, and fewer blue-collar workers, than originally promised, despite $3 billion of taxpayer-funded subsidies.

What are my options with an inherited IRA and 401(k)?

You’ll have many choices — and some restrictions.

The Margin: How cold is it? Ask this toilet

The Midwest is in a world of arctic hurt as the coldest weather in decades — think wind chill 60 degrees below zero — settles over the region. In fact, states of emergency have been issued in Wisconsin, Illinois and Michigan schools and businesses shutting down until it warms up, which is expected to happen later this week.