Written by Gary
U.S. stock index futures are pointing to a muted open (SPY -0.06% flat). U.S. consumer spending posts biggest gain since 2009.
Here is the current market situation from CNN Money
European markets are mixed. The FTSE 100 is higher by 0.20%, while the DAX is leading the CAC 40 lower. They are down 0.08% and 0.06% respectively.
What Is Moving the Markets
|Here are the headlines moving the markets.|
U.S. consumer spending increased by the most in more than 9-1/2 years in March, but price pressures remained muted, with a key inflation measure posting its smallest annual gain in 14 months.
Boeing Co said on Monday it was making steady progress to certify its grounded 737 MAX jets with a software update and completed a final flight test prior to the certification flight.
Anadarko Petroleum Corp said on Monday it planned to resume talks with Occidental Petroleum Corp over its $38 billion bid, putting pressure on Chevron Corp to raise its $33 billion offer.
The CEO of Scandinavian airline SAS has told negotiators to thrash out what concessions the company can make to end a pilot strike that has disrupted travel plans for hundreds of thousands of passengers.
Global shares were steady on Monday as a weak euro zone sentiment survey and political uncertainty in the wake of Spain’s elections proved a drag on earlier gains driven by strong economic data out of China and the United States.
Tighter U.S. sanctions on Iranian oil planned for May are adding to a wealth of factors curbing global supply of heavy-medium crude, driving up prices for scarcer barrels and setting up a stand-off between buyers and sellers.
U.S. stocks were on course to open lower on Monday after hitting another closing high in the previous session, as investors awaited inflation data and a fresh batch of earnings.
Tesla Inc said on Monday it could seek alternative financing sources although it expects cash generated from its business would be enough to fund its investments and pay down debt.
China’s ZTE Corp reported on Monday a first-quarter profit of 862.6 million yuan ($128.2 million), as expected, up from 276 million yuan in the preceding three months, as it recovered from last year’s U.S. sanctions.
After lagged (govt shutdown) and mixed performances in the last two months, income and spending growth was expected to rebound notably in March (despite a weak signal from within the GDP data) and while income growth was lower than expected (+0.1% MoM vs +0.4% MoM exp), spending exploded…
Personal Spending rose 0.9% MoM (well above the 0.7% expected) and the biggest rise since August 2009…
The United States has recorded a whopping 695 cases of measles in 22 states, its largest outbreak since public health officials in 2000 declared the disease “eradicated” apparently rather prematurely.
The outbreak has led to fines being imposed in major cities and the quarantine of over 1,000 as the outbreak spread across Los Angeles universities.In fact, according to the latest CDC numbers, the number of measles cases registered four months into 2019 has surpassed the count of cases from last decade.
All new cases since the eradication declaration have come from foreign travelers.
Ahead of Boeing CEO Dennis Muilenburg’s first showdown with shareholders since the March 10 crash of Ethiopian Airlines flight 302, the FAA has drawn attention to recent reports about dangerous hydraulic leakages involving the Boeing 787, otherwise known as the ‘Dreamliner’.
The regulator is imposing a new ‘flight directive’ on Dreamliners, meaning planes could be grounded if they don’t undergo additional rounds of inspections and records checks to make sure parts including the aileron and elevator power control units are still working properly.
Shares dumped as this news added to anxieties about a weekend report about Boeing’s failure to alert the FAA and Southwest, its biggest customer, that it had disabled an important safety feature on the 737 MAX 8.
Tesla filed its keenly-awaited 10-Q for the first quarter 2019 this morning, and the document was full of additional color on the company’s horrific Q1 earnings report, which missed analyst estimates by a mile and caused the stock to crater more than 10% in the days following the report.
Hilariously, the company turned more of its focus to the Model Y in the 10-Q, saying that production of the new model will reach “high volume” by the end of 2020. This is also funny because, as we first reported, customer deposits actually decreased after the introduction of the Model Y.
Consumer spending rose 0.9% in March while core inflation moderated to a 1.6% annual rate, the government said Monday.
In the fall of 2018, Felix Zulauf, head of Swiss hedge fund Zulauf Asset Managment, said investors were facing the start of a “structural bear market.” In other words, not much upside and a downside that’s limited by central banks. Here’s his latest.
However, if the S&P 500 breaks down below 2,884 points, a larger decline could follow.
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