01May2019 Midday Update: Wall Street Sea-sawing Near The Unchanged Line, DOW Flat, SP 500 Set New Historic Record, Then Goes Negative, Dollar Slips Ahead Of Fed, US Manufacturing Disappoints

Here is the current market situation from CNN Money

North and South American markets are mixed. The Bovespa is higher by 0.17%, while the IPC is leading the S&P 500 lower. They are down 0.80% and 0.05% respectively.

Amazon dismisses idea automation will eliminate all its warehouse jobs soon

Amazon.com Inc dismissed the idea of running a fully automated warehouse in the near future, citing the superior cognitive ability of humans and the limitations of current technology.

Nations using oil ‘as a weapon’ causing damage to OPEC -Iran oil minister

Iran’s oil minister hit out on Wednesday against the use of oil sanctions “as a weapon” by the United States and the damage it was doing to OPEC, according to SHANA, the news outlet of the OPEC member’s oil ministry.

Apple results beat sets eyes back on $1 trillion

Apple Inc shares rose about 6 percent on Wednesday, pushing the iPhone maker’s market valuation back toward $1 trillion as its quarterly report and upbeat forecast calmed investors worried about slowing growth.

Thomas Cook sets May 7 deadline for interest in airline business: sources

Thomas Cook has set a deadline of May 7 for expressions of interest in its airline business, with Indigo Partners and Lufthansa among the likely bidders, sources said.

Boeing names special adviser to CEO amid 737 MAX crisis

Boeing Co on Wednesday named a new senior adviser to Chief Executive Officer Dennis Muilenburg and the board of directors as the world’s largest planemaker faces its biggest crisis in years after two deadly crashes of its 737 MAX jetliner.

Allergan CEO Saunders wins vote to keep chairman role

Allergan Plc shareholders have voted down a nonbinding proposal that sought an immediate split of the roles of chairman and chief executive, with 61.3 percent of shareholders backing Chairman and CEO Brent Saunders.

Brailsford hits back at critics as Sky becomes Team INEOS

Dave Brailsford is accustomed to answering awkward questions and the man who masterminded Britain’s rise as a cycling powerhouse was at it again as Team Sky transformed into Team INEOS on Wednesday.

The debate behind Trump’s move to tighten Iran oil sanctions

U.S. President Donald Trump’s unexpected decision to ban all Iranian oil purchases after May 1 – ending exemptions for eight nations – came after hawkish economic and security advisors allayed the president’s fears of an oil price hike, according to three sources familiar with the internal debate.

Yum beats expectations on KFC growth, Taco Bell weighs

Yum Brands Inc reported quarterly earnings and same-store sales above Wall Street estimates on Wednesday, as KFC recorded its best growth in three years, but weaker-than-expected growth at Taco Bell weighed on the company’s shares.

This Is What The Fed Will Say Today (According To Goldman)

In just over an hour, the FOMC will leave its rates unchanged.

As RanSquawk notes, the Fed will not publish new economic projections at this meeting (the next SEP is released in June), although the market will be closely watching whether the Fed outlines conditions that might compel the Committee to discuss lowering rates. There are some risks that the Fed might tweak its statement to reflect stronger growth and softer inflation since the last meeting, although the market has already priced in a “goldilocks” environment.

Endgame: Starting In 2024, All US Debt Issuance Will Be Used To Pay For Interest On Debt

While it is common knowledge that the US budget deficit is soaring even though the US economy is allegedly growing at a brisk, mid-2% pace, resulting in recurring bond trader nightmares about funding the growing twin US deficits (Budget and Current Account), what few people know is the increasingly ominous composition of this budget deficit.

As we first pointed out one month ago, when looking at the US ‘income statement’, most concerning by far is that for the first four months of fiscal year 2019, interest payments on the U.S. national debt hit $221 billion, 9% more than in the same five-month period last year, with the rate of increase breathtaking (see chart below). As a reminder, according to the Treasury’s conservative budget estimates, interest on the U.S. public debt is on track to reach a record $591 billion this fiscal year, more than the entire budget deficit in FY 2014 ($483 BN) or FY 2015 ($439 BN), and equates to almost 3% of estimated GDP, the highest percentage since 2011.

Dispatches From The Frontlines In The War On Cash

Authored by Mark Nestmann via InternationalMan.com,

Let’s face it, many forces are pushing for the abolition of – or at least serious restrictions on – cash.

Pelosi Invokes Obama’s Legacy To Kill The ‘Green New Deal’

Nancy Pelosi is employing a new weapon in her desperate battle to keep a lid on the restive progressives and “Democratic Socialists” who now represent a sizable voting bloc in the House: Invoking the legacy of President Barack Obama. According to Bloomberg, as the House prepares to vote on Alexandria Ocasio-Cortez’s ‘Green New Deal’ resolution, Pelosi is using Obama’s ‘leadership’ on climate change – like joining the Paris Climate Accords – to support her reasoning that there might be more moderate ways to deal with climate change short of banning air travel and calling for the reconstruction of nearly every building in New York City.

The report precedes two climate-change-related votes in the House this week: One on the GND resolution, and another proposal, which has Pelosi’s explicit backing, that would seek to stop President Trump from pulling out of the Paris Accord. Pelosi has made it clear that the latter bill both has a better chance of ultimately becoming a law and producing a tangible accomplishment, while the GND would simply hand Trump and his fellow Republicans a cudgel with which to bludgeon the moderate Democrats in swing districts who were responsible for the Democrats’ mid-term victory in the House.

Inflation-Adjusted March 2019 Construction Spending Year-over-Year Growth Deep In Contraction

Written by Steven Hansen

The headlines say construction declined month-over-month. Our analysis shows the rolling averages marginally improved.

Key Words: Mark Cuban dishes on his ‘best job ever’ and how serving underage drinkers led to the ‘best thing that ever happened to me’

Mark Cuban claims he invented the concept of the side hustle. Before he became the tech billionaire and outspoken owner of the Dallas Mavericks, Cuban says he tried a bit of everything, including being a dance instructor.

Key Words: Barr tells senators that spying has no ‘pejorative connotation’

Attorney General William Barr defended his previous use of the term “spying” in a hearing on Wednesday, telling senators he doesn’t see an issue with his word choice.

The Fed: The case for the Fed to keep an interest-rate hike on the table revolves around financial stability

Some economists think the Federal Reserve should keep the possibility of an interest-rate hike on the table to guard against potential asset bubbles.