07Jun2019 Market Close: Wall Street Rallies On Rate Cut Hopes, Trade Optimism, DOW Closes Up 263 Points, WTI Rises Nearly 3% Into The 54 Handle, US Dollar Slips -0.5%

FedEx to end Amazon contract for FedEx Express plane service

FedEx Corp said on Friday it has decided to not renew its contract with Amazon.com Inc for U.S. cargo delivery through FedEx Express, the unit that delivers packages on planes.

Trump sees ‘good chance’ of Mexico migration deal as clock ticks down to tariffs

U.S. President Donald Trump said on Friday there was a “good chance” that the United States would be able to reach a deal with Mexico over a surge of migrants on their common border, although his administration was still pushing ahead with a plan to slap import tariffs on all Mexican goods next week.

Anadarko pressed Occidental for cash, expecting investor opposition -filing

Anadarko Petroleum exacted a top price for itself by repeatedly spurning Occidental Petroleum’s approaches and pushing for all-cash offers, reasoning the market might react negatively to the blockbuster $38 billion deal, according to securities filings released on Friday.

Wall Street rallies on rate cut hopes, trade optimism

Wall Street’s main indexes rose about more than 1% on Friday, as a sharp slowdown in U.S. job growth raised hopes of Federal Reserve interest rate cuts and Washington’s decision to delay tariffs on Chinese goods adding to an appetite for risk.

Oil rises nearly 3% as Saudi signals OPEC deal extension, stocks rally

Oil prices rose nearly 3% on Friday, climbing further from five-month lows hit this week, after Saudi Arabia said OPEC was close to agreeing to extend an output production cut beyond June and as Wall Street rallied.

Weak U.S. employment report raises red flag on economy

U.S. job growth slowed sharply in May and wages rose less than expected, raising fears that a loss of momentum in economic activity could be spreading to the labor market, which could put pressure on the Federal Reserve to cut interest rates this year.

Is the U.S. economy about to contract? Three charts say maybe not

Weak U.S. hiring data led investors to raise bets on Friday the U.S. Federal Reserve will cut interest rates later this year to stave off a recession. Is the U.S. economy really showing signs of rolling over?

Boeing delayed fix of defective 737 MAX warning light for three years: U.S. lawmakers

Boeing Co learned that a cockpit warning light on its 737 MAX jetliner was defective in 2017 but decided to defer fixing it until 2020, U.S. lawmakers said on Friday.

Exclusive: Facebook suspends app pre-installs on Huawei phones

Facebook Inc is no longer allowing pre-installation of its apps on Huawei phones, the latest blow for the Chinese tech giant as it struggles to keep its business afloat in the face of a U.S. ban on its purchase of American parts and software.

FedSpeak Sparks Best Week For Stocks In 6 Months; USD & Yields Plunge

Alt-headline: “Markets Jump On Optimism US Economy Sliding Into Recession”

Japanese game shows are the craziest. pic.twitter.com/nti6OlOBFZ

— Only In Asia (@Crazyinnasia) June 7, 2019

But, for those relying on help to save the day, The Fed won’t cut rates until stocks plunge, which won’t happen because the Fed is expected to cut if stocks plunge…

Never mind that – just buy it!!!

“Whatever It Takes” > “Whatever”

Submitted by Michael Every of Rabobank

Market comments

Yesterday was the ECB’s big day in the sun. As our ECB experts Mr De Groot and Van Geffen note, Draghi both revised down growth and inflation expectations a tad, allowed for yet more TLTROs, flagged that rate hike that was expected last December now isn’t happening, re-opened the door to a possible rate cut, hinted at more QE to come, and even appeared to accept that there is an argument that at this stage Europe needs fiscal policy not monetary policy in order to escape. (For more granular analysis, please see here.)

For such a conservative institution that kind of volte-face, or just six months after proudly saying the opposite I would argue a volte-farce, should have been major news to the markets. However, while Draghi might have thought he had wheeled out “Whatever it takes” again to show off in public, judging by both Bund yields and the inflation gauge of the EUR 5-Y-5Y forward swap, the market reaction was “Whatever”. True, EUR jumped vs. USD, but given USD is having a great year vs. most EM FX, that just makes Europe even more expensive as exporters and holiday destinations.

After all, it isn’t as if we haven’t seen other central banks–just look at the BOJ!–talk big and then endlessly fail to deliver on inflation promises alongside far more impressive monetary and fiscal policy combinations than the thin-gruel-at-some-point-down-the-road being offered by the ECB in a Europe where Germany appears determined not to have any public debt at all. (In conjunction with no functioning infrastructure or NATO and an impending existential clash with Italy: how do you say “So much win …

Consumer Credit Jumps The Most Since November As Credit Card Debt Soars

One month after an unexpectedly poor March consumer credit print, when just $10.3 billion (since revised to $11 billion) in revolving and non-revolving debt was created to fund another month of US purchases on credit, moments ago the Fed reported that in April, things went back to normal, as total consumer credit jumped by $17.5 billion, more than the $13 billion expected and the most since November’s $21.7 billion…

This Is Huawei’s “Secret Weapon” For The Trade War

Considering how much attention has been paid to Washington’s lobbying efforts to keep Huawei’s technology out of the 5G networks of America’s European allies, the Chinese telecoms giant’s increasingly successful efforts to colonize the ocean floor – still one of the most vital conduits for digital information – has gone almost unheeded.

Chopper rides, foreign trips: Ex-IL&FS bosses took favours for loans

Chopper rides, foreign trips: Ex-IL&FS bosses took favours for loansThe SFIO probe reveals several cases where the bosses got benefits from borrowers in return for faster loans.

SBI to link home loans to repo rate from July

SBI to link home loans to repo rate from JulySBI has also announced to pass on 25 bps repo rate cut to some cash credit borrowers.

10-yr jail proposed for cryptocurrency users

10-yr jail proposed for cryptocurrency usersBesides making it completely illegal, the bill makes holding of cryptos a non-bailable offence.

31 May 2019 ECRI’s WLI Growth Rate Deeper In Contraction

Written by Steven Hansen

ECRI’s WLI Growth Index which forecasts economic growth six months forward declined and has traveled deeper into contraction.

April 2018 Headline Wholesale Sales Declined?

Written by Steven Hansen

The headlines say wholesale sales declined month-over-month with inventory levels very elevated. Our analysis shows an acceleration of the rate of growth for the rolling averages.

This is the biggest threat for toddlers this summer

This type of incident is the number-one cause of accidental death for children ages 1 to 4

People are spending thousands on puppy concierge services to find the perfect dog

The American Kennel Club just launched a service to pair people with dog breeders and animal rescues.

Bond Report: 10-year Treasury yield carves out 21-month low after weaker-than-expected job gains

Treasury yields fell Friday after the jobs report suggested the labor market’s health is starting to deteriorate, adding to expectations for cuts in interest rates.