26Apr2019 Pre-Market Commentary: Wall Street Futures Recovering To The Unchanged Line, US First-quarter GDP Rose 3.2%, DOW Flat, US Dollar Index Moves Upwards

Here is the current market situation from CNN Money

European markets are mixed today. The DAX is up 0.29% while the CAC 40 gains 0.25%. The FTSE 100 is even.

China’s Xi says Belt and Road must be green, sustainable

China’s Belt and Road Initiative (BRI) must be green and sustainable, President Xi Jinping said in opening a summit on his grand strategy, adding that the massive infrastructure and trade plan would deliver “high-quality” growth for all.

Stock futures rebound as better-than-expected GDP data ease concerns about the economy

U.S. stock index futures rebounded on Friday after data showed the economy expanded at a faster-than-expected pace in the first quarter.

At around 8:33 a.m. ET, Dow Jones Industrial Average futures rose 12 points, indicating a gain of about 3 points at the open. Futures on the S&P 500 and Nasdaq 100 also inched into the green

Futures were lower before the GDP release after poor earnings from Exxon Mobil and Intel.

Britain calls China’s Belt and Road Initiative a ‘vision’

Britain is committed to help realize the potential of China’s Belt and Road Initiative (BRI), British finance minister Philip Hammond said on Friday, describing the policy as a “vision”.

American Airlines to take $350 million hit from 737 MAX groundings

American Airlines Group Inc cut its 2019 profit forecast on Friday, saying it expected to take a $350 million hit from the grounding of Boeing’s 737 MAX planes after cancelling 1,200 flights in the first quarter.

Britain must get to bottom of Huawei leak: UK finance minister

Britain must get to the bottom of the leak of confidential discussions during a top-level security meeting about the role of China’s Huawei Technologies in 5G network supply chains, British finance minister Philip Hammond said on Friday.

Uber sets terms for IPO, posts $1 billion first-quarter loss

Ride-hailing company Uber Technologies Inc is aiming for a valuation of up to $91.5 billion in its initial public offering, potentially the largest U.S. listing in years and a test of investor appetite for a high-growth but highly unprofitable business.

Renault to propose joint holding company with Nissan: Nikkei

Renault SA will propose to Nissan Motor Co a plan to create a joint holding company which would give both firms equal footing as the French automaker seeks further integration with its Japanese partner, the Nikkei newspaper reported on Friday.

Dollar off two-year highs ahead of U.S. GDP, shares subdued

The dollar slipped from 23-month highs on Friday ahead of keenly awaited U.S. gross domestic product data for the first quarter, while global shares were on track for a fifth successive weekly gain despite subdued trade.

‘Bonanza time’: Foreign carriers savor rising India demand as Jet Airways crumbles

The grounding of India’s Jet Airways is turning into a quick windfall and long-term opportunity for international airlines keen to scoop up nearly a million outbound passengers from what was once the nation’s biggest airline.

Macron Woos Yellow Vests With Tax Cuts, Immigration, And Warning Over Threat Of ‘Political Islam’

French President Emmanuel Macron gave a rare press conference on Thursday, where he promised to cut taxes and institute other economic reforms as he attempts to reboot his presidency (as FT puts it).

Exxon Tumbles After Big Miss In Earnings, Production

Exxon shares are slumping pre-market, weighing down The Dow, after big misses in earnings and production.

Blain: Which Of These Four Stocks Will Trigger The Market’s Jenga Moment

Blain’s Morning Porridge, submitted by Bill Blain of Shard Capital

“You’re an excellent judge of horse-flesh Trooper Tyree. You proved that when you stole my horse.”

That was an interesting week… What did we learn?

No surprise at the deepening crisis in Argentina or a comic elected president in Ukraine. Headlines this morning are about the lack of vol in currency markets, worries about Italian debt, and what did Putin promise Kim. Stock markets hit new highs as they continue to lap up any good news and discount negativity… How many column inches did Boeing get after withholding guidance due to the deepening uncertainty about the fix on the B-737 Max or the fact its received zero orders since the second crash? Almost none. Facebook’s privacy breach fine got swept under by the strong results, and the stock rocketed higher….

Traditionally Friday is my rant day….

Nothing surprises me that Facebook stock soared on the back of its strong results. But maybe it should? For months analysts, media and politicians have been fulminating about how the “Surveillance Capitalism” Stocks have pillaged our private data, changed the world and our behaviors through their algorithms, and how social media is damaging us all in ways we barely understand. But when the acid test comes? A call between a bad behavior fine, or increased revenue? Of course we lap up the stock because its advertising revenue is better than expected, discount the regulatory threats, and forget what we were complaining about last week.

Is it complacency, greed or just plain stupidity that makes market behave this way? What’s not to like about rising stock prices?

I worry. The world is so fundamentally changed from anything Ben Graham wrote in “The Intelligent Investor”. The Disruptive Tech companies that have dominated these last 10 years are now maturing. Some are proven. Others cont …

Trump: US Never Paid $2 Million Ransom For Otto Warmbier

Though the Washington Post said it couldn’t confirm whether the bill was ever paid, the revelation that North Korea had sent the Treasury a $2 million bill for American college student Otto Warmbier’s medical care led some to speculate that the US may have paid a hefty ransom to secure Warmbier’s release after he had lapsed into a coma from which he never recovered.

The parents of Warmbier, who died within six days of returning to the US, said the bill sounded suspiciously like a ransom. But in a Friday morning tweet, President Trump insisted that the bill was never paid, despite an American negotiator’s assurances to the North Korean government that the US would make good on the debt.

In the tweet, Trump contrasted his regime’s hard-line no ransom policy to the Obama administration’s willingness to pay thinly disguised ransoms to the Iranian government and the Afghan Taliban to secure the release of American prisoners, including “traitor” Sgt. Bergdahl.

No money was paid to North Korea for Otto Warmbier, not two Million Dollars, not anything else. This is not the Obama Administration that paid 1.8 Billion Dollars for four hostages, or gave five terroist hostages plus, who soon went back to battle, for traitor Sgt. Bergdahl!

— Donald J. Trump (@realDonaldTrump) April 26, 2019

Then, Trump touted his skills as a hostage negotiator, reminding his audience that 20 American hostages have been released since his inauguration, and that no money had ever been paid.

“President Donald J. Trump …

Rail Week Ending 20 April 2019: Rail Continues In Contraction

Written by Steven Hansen

Week 16 of 2019 shows same week total rail traffic (from same week one year ago) contracted according to the Association of American Railroads (AAR) traffic data. The economically intuitive sectors rolling averages remain in contraction – and are little changed.

Economic Report: Economy grows 3.2% in first quarter, GDP shows, much stronger than anticipated

The economy accelerated to a 3.2% annual rate in the first three months of 2019, the Commerce Department said Friday.

Cannabis Watch: Canopy Growth’s quiet co-CEO on the pot company’s ambitions in the U.S. and more

Canopy Growth Corp. co-Chief Executive Bruce Linton rarely declines an opportunity to talk with the news media, often making dozens of appearances in a day. His co-CEO, Mark Zekulin, is exactly the opposite.

Market Snapshot: Stock futures under pressure ahead of GDP data, as Exxon, Intel earnings disappoint

Stocks mostly slip lower on Friday ahead of a key read of the state of the U.S. economy amid persistent evidence of a weakening global economy.