Written by Gary
US equity futures are up after a positive earnings report from Apple (AAPL 217.70, +8.92, +4.3%).
Here is the current market situation from CNN Money | |
European markets are mixed today. The DAX is up 0.31% while the CAC 40 gains 0.19%. The FTSE 100 is off 0.58%. |
What Is Moving the Markets
Here are the headlines moving the markets. | |
Fiat Chrysler defies slowdown thanks to North America performanceFiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its RAM pick-up brand in North America helped it to defy an industry slowdown. | |
Fiat Chrysler CEO says it has strong momentum into second halfFiat Chrysler enters the second half of the year with strong momentum, especially in North America and Latin America, Chief Executive Mike Manley said on Wednesday. | |
GE posts loss, takes Boeing hit but raises forecast; CFO to leaveGeneral Electric Co swung back to a financial loss in the second quarter as the cost of restructuring its ailing power business and the grounding of a Boeing Co jetliner drained more cash than expected from GE’s otherwise profitable industrial units. | |
Trade tensions drag on stocks as markets await Fed verdictFresh trade war fears weighed on global stocks on Wednesday before a U.S. Federal Reserve meeting, with the dollar holding firm and Britain’s pound subdued on growing fears of a no-deal Brexit. | |
Apple woos investors with China gain, market value nears $1 trillionShares of Apple Inc rose 4.2% on Wednesday, after the company calmed Wall Street nerves with an improvement in sales in China and as several brokerages predicted a boost from its services business and the launch of new iPhones in the second half of 2019. | |
Amazon to buy Israeli startup E8 storage: mediaE-commerce giant Amazon has agreed to buy Israeli storage technology startup E8 Storage, Israeli financial media reported on Wednesday. | |
Oil rises as market awaits U.S. Fed rate cutOil prices rose for a fifth day on Wednesday, supported by a drop in U.S. inventories and investor expectations that the U.S. Federal Reserve will lower borrowing costs for the first time since the financial crisis more than a decade ago. | |
Spotify revenue beats but adds fewer-than-expected paid subscribersSpotify Technology SA reported better-than-expected second-quarter revenue on Wednesday, but added fewer paid subscribers than estimated, sending its shares down 2.2% in trading before the bell. | |
Futures drift higher on Apple results; Fed rate decision awaitedU.S. stock index futures edged higher on Wednesday, as trade worries eased after Apple reported upbeat earnings and forecast, while investors awaited an almost certain cut in interest rates by the Federal Reserve. | |
“Yes, The Fed Will Cut And No, It Won’t Be Enough”Submitted by Michael Every of Rabobank Gresham’s Law, Say’s Law, and Godwin’s Law It’s Fed day and I honestly can’t bring myself to repeat what was already said on Monday and Tuesday other than “Yes, the Fed will cut but it won’t be enough”. Instead, let us take a moment to contemplate several laws that seem pertinent to our current situation. First, Gresham’s Law: that bad money drives out good. That used to be the measure of how far a government or a central bank could debase money before everyone hoarded the good stuff and circulated only less valuable coinage. Yet as we contemplate everyone slashing rates again, the opposite appears to be true: everyone is piling into bad and/or directly money-losing assets as benchmark rates decline! One could make the argument for gold, of course, given there is a clear desire to see currencies go lower on the part of central banks, even if they can’t openly say so. (They now leave that to the politicians, of course.) But USD is still, for now, a modern version. Second, Say’s Law: supply creates its own demand. This is the “Just build and they will come!” hope as we re-embark on monetary policy previously reserved for extreme crisis: Of course, first you have to get them to build, not speculate on money-losing assets. And even then Say’s Law doesn’t hold true – you can and do get over-supply of goods relative to demand both in one market and in aggregate. Then we end up with all vs. all as sluggish economies parasite the consumers of others – all the more so if the central banks nudge-nudge wink-wink their currencies lower too. Consider those laws and is it any surprise that as the US and China sit down to talk trade we see US President Trump tweet: “China is doing very badly, worst year in 27 … | |
ADP Employment Data Rebounds But Small Business Bloodbath ContinuesWhile The Fed has clearly veered from any data-dependence (aside from the level of The Dow), some still care about the state of the nation’s ‘real’ economy and today’s ADP was expected to rebound from dismal May and June data and its did with a better-than-expected 156k print for July. | |
Dem Debate Post Mortem: “Racism”, Williamson Wins, & Socialists SlammedOne word – “Racism” – dominated the first night of the second round of Democratic Party Presidential Nominee debates… Former Democratic Colorado Gov. John Hickenlooper came in last with 8 minutes, 49 seconds of speaking time. The debate lasted for more than two hours. Here is a complete list of the totals: Democratic Massachusetts Sen. Elizabeth Warren: 18:33 Independent Vermont Sen. Bernie Sanders: 17:45 Democratic South Bend, Indiana, Mayor Pete Buttigieg: 14:07 Democratic Montana Gov. Steve Bullock: 10:59 Former Democratic Texas Rep. Beto O’Rourke: 10:58 Democratic Minnesota Sen. Amy Klobuchar: 10:49 Former Democratic Maryland Rep. John Delaney: 10:31 Democratic Ohio Rep. Tim Ryan: 9:47 Author Marianne Williamson: 8:52 Former Democratic Colorado Gov. John Hickenlooper: 8:49 And despite having almost the least time and at one point appearing to almost yodel while warning of ‘dark psychic forces’…
…self-help guru Marianne Willi … | |
With All Eyes On The Fed, US Futures Defy Global Gloom After Disappointing End To Trade TalksThe unexpectedly early end to the latest round of trade talks in Shanghai, indicating that any goodwill to restore US-China trade is now dead and buried, weighed on global stocks on Wednesday ahead of the highly anticipated Fed meeting, even as US equity futures levitated higher on the back of strong results and even stronger guidance from Apple (which is expected to surpass a $1 trillion market cap again today), with Treasury rates unchanged, the dollar holding firm and Britain’s pound subdued amid rising fears of no-deal Brexit. | |
Ambani readies billion-dollar war chest to take Jio to next levelAmbani readies billion-dollar war chest to take Jio to next levelJio plans to raise Rs 6,871 crore via offshore loans to fund purchases from South Korean companies. | |
Coffee Day to probe Siddhartha’s suicide noteCoffee Day to probe Siddhartha’s suicide noteThe Board of Coffee day Enterprises met in the aftermath of the demise of its VG Siddhartha. | |
Fiscal deficit crosses 61% of budgeted targetFiscal deficit crosses 61% of budgeted targetThe government has set a fiscal deficit target of 3.4% for 2019/20, same as 2018/19. | |
July 2019 ADP Job Growth Is 156,000Written by Steven Hansen ADP reported non-farm private jobs growth at 156,000 which was at expectations. A quote from the ADP authors:
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Economic Report: ADP says 156,000 private-sector jobs added created in JulyThe nation’s businesses created 156,000 private-sector jobs in July, payroll processor ADP said Wednesday, showing that companies are still willing to hire despite stiffer headwinds for the economy such as the ongoing trade spat with China. | |
The Tell: Markets are warning that ‘monetary policy will not work,’ says BofA Merrill LynchCurrency markets suggest easing by global central banks will fail to boost inflation, say analysts at BofA Merrill Lynch Global Research. Here’s why. | |
Market Extra: Oil bulls look to Fed rate cut to overcome demand worriesWill a Fed rate cut be the magic bullet that propels oil higher? |
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