09Oct2019 Market Close: Wall Street Bounces Higher, Closed In The Green DOW Up 182 Points, WTI Settles At 52.65, US Dollar Rises To 99.12

Wall Street advances on renewed trade deal optimism

Tech stocks led Wall Street into the black on Wednesday, capping a three-day losing streak as a report that China was open to a partial deal heartened investors ahead of high-level trade negotiations.

Decreasing U.S. job openings point to cooling labor market

U.S. job openings fell to a 1-1/2-year low in August and hiring declined, suggesting employment growth was slowing largely because of ebbing demand for labor as the economy loses momentum.

Stocks rise on trade truce bets; lira shaken by Turkey move on Syria

Stocks gained on Wednesday on a report that China could yet agree to a partial trade deal with the United States despite recent tensions, while the prospect of a last-minute Brexit agreement between the European Union and Britain seemed as remote as ever.

J&J shares fall but $8 billion jury award likely to be slashed

Johnson & Johnson shares were off more than 2% on Wednesday, a day after a U.S. jury said it must pay $8 billion in punitive damages to a plaintiff in a case involving its anti-psychotic drug Risperdal, a penalty the company and others are confident will not stand.

Oil steady as military action in Syria boosts prices, crude inventories weigh

Oil prices edged up on Wednesday as Turkey launched an offensive in Syria that could disrupt crude production in the region and on hopes of progress in ending the U.S.-China trade war, but a build in U.S. crude inventories limited gains.

AT&T to sell certain assets in Puerto Rico, U.S. Virgin Islands for $1.95 billion

AT&T Inc said on Wednesday it would sell its wireless and wireline operations in Puerto Rico and U.S. Virgin Islands to Liberty Latin America Ltd for $1.95 billion, as the second-largest U.S. wireless carrier cuts its huge debt pile.

Halliburton cutting 650 jobs in U.S. as oilfield business slows

U.S. oilfield services firm Halliburton on Wednesday said it was cutting 650 jobs across Colorado, Wyoming, New Mexico and North Dakota amid slowing oil and gas activity.

Southwest finds cracks on two Boeing 737 NG airplanes during inspections

Southwest Airlines Co said Wednesday it found cracks on two Boeing 737 NG airplanes and removed them from service after U.S. regulators last week ordered urgent inspections.

Exxon names BAML to run Malaysia asset sales: sources

Exxon Mobil Corp has appointed Bank of America Merrill Lynch to run the sale of its Malaysian oil and gas assets as the U.S. firm accelerates a vast disposal program, banking and industry sources said.

No, The Poor Don’t Pay Higher Taxes Than The Rich

No, The Poor Don’t Pay Higher Taxes Than The Rich

Authored by Phillip Magness via The American Institute for Economic Research,

Are the poor actually paying a larger share of their earnings in taxes than the ultra-wealthy? That’s the claim at the center of a new New York Times article purporting to trace the effects of the previous year’s tax cut package.

Stocks Suddenly Slide On Report Chinese Say “Goodwill Damaged” And “Expectations For Progress Lowered”

Stocks Suddenly Slide On Report Chinese Say “Goodwill Damaged” And “Expectations For Progress Lowered”

With stocks trading all day as if some sort of trade deal between the US and China was imminent, 15 minutes before the close risk suddenly hit an air pocket and US equity indices suddenly slumped sharply lower after a Reuters report that Chinese officials had said the the US blacklisting of 28 Chinese companies had “damaged goodwill” and that as a result, “Beijing has lowered its expectations from the progress of trade negotiations.”

GOODWILL DAMAGED BY THE U.S. DEPARTMENT OF COMMERCE’S BLACKLISTING OF 28 CHINESE COMPANIES THIS WEEK-CHINESE OFFICIALS

BEIJING HAS LOWERED EXPECTATIONS FOR PROGRESS FROM U.S. TRADE NEGOTIATIONS THIS WEEK-CHINESE OFFICIALS BRIEFED ON TALKS

The report instantly cut over 80 points of gains from the Dow and the S&P was trading roughly where it opened, just around 2,920 as suddenly the market’s conviction of an “optimistic outcome” from tomorrow’s meeting was shaken to the core.

Elizabeth Warren Whips Out “Environmental Justice” Plan For Poor Communities

Elizabeth Warren Whips Out “Environmental Justice” Plan For Poor Communities

2020 Democratic candidate Elizabeth Warren announced a plan on Wednesday that would steer taxpayer dollars to fight ‘environmental injustice’ by helping poor communities grapple with the effects of climate change and pollution, according to Bloomberg.Â

First Rule Of QE Club, Don’t Call It QE

First Rule Of QE Club, Don’t Call It QE

Submitted by Mark Orsley, head of macro strategy at PrismFPÂ

Fed makes the full dovish pivot ” deeper rate cuts and asset purchases coming ” cycle end in sight

Emboldens long duration and tactical curve steepener calls ” 2s10s can now steepen

UER hits cycle lows but AHE reversal is more troublesome ” initial signs of layoffs

It’s safe to say the Fed has capitulated. After a (super) brief stint in œneutral that put the uptrend in Eurodollars at risk just a week or two ago Fed officials have fully pivoted back to dovish after the dreadful ISM data last week.

With regards to rate cuts, first was the Evans flip flop we discussed last week and then the mother of all hawks, Rosengren, even flipped on Friday:

Evans ” now indicating rate cuts once again:

THEN -> Sept 30th: œAfter rate cuts, the Fed should leave policy on hold for some time
NOW -> Oct 3rd: œISM was a confirmation of FOMC view and I am concerned; open minded about the October meeting
Oct 8th: œCould well be reasons for another 25bps cut; wouldn’t mind another cut

Rosengren ” downgrading growth and turning open minded (monumental shift):

THEN -> Sept. 20th: œadditional accommodation is not needed
NOW -> Oct 4th: œopen minded on monetary policy; data is coming out weaker than expected; I thought growth would be 2% but I’d now say it looks closer to 1.7%

With regard …

Will this festive season bring cheer or disappointment?

Will this festive season bring cheer or disappointment?Weaker global demand is also a factor, but our slowdown is largely home-grown.

Anil Ambani gets both sons on RInfra board

Anil Ambani gets both sons on RInfra boardBoth Anmol and Anshul have been actively involved in all operations of RInfra.

Vodafone Idea lambasts Jio on IUC move

Vodafone Idea lambasts Jio on IUC moveThis came on the back of Jio levying a charge of 6 paise per minute on its subscribers.

18 September 2019 FOMC Meeting Minutes: Will the Fed Be Expanding Its Balance Sheet?

— this post authored by Steven Hansen

The 18 Septembery 2019 meeting statement presented the actions taken. This post covers the economic discussion during this FOMC meeting between the members. An interesting quote:

… Participants agreed that developments in money markets over recent days implied that the Committee should soon discuss the appropriate level of reserve balances sufficient to support efficient and effective implementation of monetary policy in the context of the ample-reserves regime that the Committee had chosen. ….

Bond Report: Treasury yields climb after China moots ‘partial’ trade deal

U.S. Treasury yields head higher on Wednesday after reports say Chinese officials were amenable to a œpartial trade deal, news of which stirred a stock-market surge and put bonds under pressure.

The Fed: Fed grew more worried about economy at September meeting, minutes show

Federal Reserve officials grew more worried about the U.S. economy in September, according to minutes of their meeting released Wednesday.

Beat the System: A big drop in income could be as bad for your brain and your heart as it is for your wallet

Two new studies show lasting effects of a decline in financial status.