14Feb2019 Open Market Commentary: Wall Street Rally Hits The Skids, Dow Falls 200 Points As Biggest Retail Sales Drop In A Decade Thwarts US-China Trade Optimism

Here is the current market situation from CNN Money

European markets are mixed. The FTSE 100 is higher by 0.03%, while the DAX is leading the CAC 40 lower. They are down 0.65% and 0.04% respectively.

U.S. retail sales post largest drop since 2009; jobless claims rise

U.S. retail sales recorded their biggest drop in more than nine years in December as receipts fell across the board, suggesting a sharp slowdown in economic activity at the end of 2018.

JPMorgan Chase to create digital coins using blockchain for payments

JPMorgan Chase & Co said on Thursday it plans to launch its own digital coins, called “JPM Coin”, that customers will be able to use for instant transfer of payments over a blockchain network.

Wall Street set for flat open after weak retail sales data

U.S. stocks were set to open flat on Thursday, as a sharp drop in retail sales in December overshadowed optimism over a breakthrough in the U.S.-China trade talks.

Laptop ‘for him’, vacuum ‘for her’? HSBC draws ire with Valentine offer

A Valentine’s day special deal for HSBC staff in Hong Kong offering discounted laptops ‘for him’ but vacuum cleaners and kitchen appliances ‘for her’ has angered staff over the sexist implications of the campaign.

Exclusive: Alibaba in talks on stake in China operations of Germany’s Metro – sources

Chinese E-commerce giant Alibaba Group Holding Ltd is in talks with Germany’s Metro about taking a stake in the German retailer’s China operations, three sources told Reuters on Thursday.

Deutsche CEO faces investor pressure on investment bank: sources

Deutsche Bank said it has done enough to get its investment bank back on track as Chief Executive Christian Sewing came under renewed pressure from top investors.

Nissan, Renault and Mitsubishi executives reaffirmed importance of alliance: Mitsubishi chief

The chief executives of Japan’s Nissan and Mitsubishi Motors met with the newly appointed chairman of Renault in Tokyo on Thursday and reaffirmed the importance of their three-way alliance, Mitsubishi CEO Osamu Masuko said.

German govt adviser proposes broader view of EU antitrust rules

European Union antitrust rules could be reformed to introduce a two-stage review of mergers that would examine competition issues and then broader public interests, said the head of a German commission tasked with coming up with reforms proposals.

U.S. producer prices drop for second straight month

U.S. producer prices fell for a second straight month in January, leading to the smallest annual increase in 1-1/2 years, the latest sign of benign inflation that could allow the Federal Reserve to be patient about raising interest rates this year.

McCabe Tells CBS That He Rushed To Open Russia Probe For Fear Of Being Fired

In his first interview about the Russia probe since he was summarily fired by President Trump just 26 hours before he was set to retire and collect his pension, and while the possibility of criminal charges over his attempts to cover up his leaks to the press, former Deputy FBI Director Andrew McCabe sat for an interview with CBS about the early days of the Russia probe.

In an excerpt of the full interview, which is set to air on Sunday, McCabe described how he quickly moved to start the Russia probe a day after meeting with Trump in May 2017 in the days after James Comey’s firing, over fears that he would soon be fired. After authorizing the investigation into Trump’s Russia ties, McCabe sought to ensure that the investigation – which was eventually rolled into the probe eventually taken over by Special Counsel Robert Mueller – would be on “solid ground” even if he was booted from the FBI.

“I was very concerned that I was able to put the Russia case on absolutely solid ground in an indelible fashion that were I removed quickly or reassigned or fired that the case could not be cl …

Sorry AOC, A Stunning New Poll Finds That Public Support For Capitalism Is Growing In America

Authored by Michael Snyder via The End of The American Dream blog,

The meteoric rise of Alexandria Ocasio-Cortez and other young progressive politicians has led many to believe that the American public must be warming up to socialism. But what if that isn’t true at all?

Certainly there is a certain segment of the population that absolutely embraces the message that AOC, Bernie Sanders, Elizabeth Warren and other socialists are preaching, but could it be possible that the American people as a whole are actually moving in the opposite direction? According to a shocking Fox News poll that just came out, the percentage of Americans that want the government to leave them alone is going up, and the percentage of Americans that want the government to lend them a hand is going down…

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PPI Growth Slowest Since July 2017 As Energy Prices Plunge

Just in case the worst retail sales print since 2009 wasn’t enough, moments ago the BLS also reported that producer prices in January printed at -0.1% M/M, unchanged from December, and missing expectations of a rebound to 0.1%. On an unadjusted annual basis, headline PPI final demand rose just 2.0%, the weakest print since mid-2017.

The reason for the big miss, just like in yesterday’s disappointing CPI print, was the sharp drop in energy prices: as a result, the index for final demand goods fell 0.8 percent in January, the biggest drop since it slid 1.2% in September 2015.

US Equities Plunge After Retail Sales Slump, Trade-Talks “Deadlocked”

Just when you thought it was safe to get back in the water – reality takes two big bites out of your paddleboard.

Retail sales collapsed in December…

…enough said about that – sparking an initial leg lower in stocks.

But then, The Wall Street Journal struck with a headline warning that US-China trade talks are deadlocked:

Trade talks remain deadlocked as Beijing refuses to eliminate coerced technology transfers or government subsidies to Chinese companies.

During the negotiations this week that were in their fourth day Thursday, U.S. and Chinese officials have remained deadlocked on a number of issues underlying the current trade dispute, according to people with knowledge of the matter. These include Washington’s complaints that China pressures American firms to share technology and uses industrial po …

January 2019 Producer Price Final Demand Year-over-Year Inflation Moderated

Written by Steven Hansen

The Producer Price Index year-over-year inflation moderated from 2.5 % to 2.0 %..

Retail Sales Growth Disappoints In December 2018

Written by Steven Hansen

Retail sales was significantly slower according to US Census headline data. There is almost no year-over-year growth when one inflation adjusts the data.

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Metals Stocks: Gold declines, adds to weekly drop, as geopolitical tensions ease for now

Gold futures prices slip Thursday, holding to lower ground even though a gold-positive development emerged in the latest retail sales data, which showed the biggest monthly drop in nine years.

Vitaliy Katsenelson’s Contrarian Edge: Here’s the real secret about why corporate mergers fail

Companies tout ‘synergy’ and downplay challenges and culture clashes, writes Vitaliy Katsenelson.

Outside the Box: 3 reasons why the housing market isn’t as strong as it seems

Continuing declines in mortgage applications and buyers will hurt the U.S. economy, writes Sanjiv Das.