Written by Gary
A record rebound in U.S. retail sales, fresh support from the Federal Reserve, Bank of Japan, and upbeat trial results for a COVID-19 treatment boosted risk appetite today (SPY +1.9%).
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Wall Street closes higher on signs of economic recoveryWall Street advanced on Tuesday as the prospect of additional stimulus and a record jump in retail sales suggested the U.S. economy could bounce back sooner than expected, five months into its pandemic-inflicted recession. |
| Lufthansa shareholder Thiele raps bailout deal, raises stakeGerman investor Heinz Hermann Thiele sharply criticised a 9-billion-euro ($10.14 billion) bailout deal for carrier Lufthansa , saying he had raised his stake in the group to more than 15% and hoped alternative options could be explored. |
| Ex-Tommy Hilfiger boss Grieder to become new Hugo Boss CEOGerman fashion house Hugo Boss has appointed former Tommy Hilfiger boss Daniel Grieder as its next chief executive, it said on Tuesday. |
| Amazon to use AI tech in its warehouses to enforce social distancingAmazon.com Inc on Tuesday launched an artificial intelligence-based tracking system to enforce social distancing at its offices and warehouses to help reduce any risk of contracting the new coronavirus among its workers. |
| Why some black-owned U.S. businesses are hardest hit by coronavirus shutdownsAfter 15 years working as a hair stylist in other people’s salons, Gary Connell opened his “Healthy Hair” studio in Montgomery County, Maryland in early March, sinking his savings into a two-chair shop in a busy mall. |
| Stocks, dollar gain on U.S. retail sales, drug trialA record rebound in U.S. retail sales, fresh support from the Federal Reserve and Bank of Japan, and upbeat trial results for a COVID-19 treatment boosted risk appetite on Tuesday, driving global equity markets higher and strengthening the dollar. |
| Oil prices rise 3% on signs of U.S. economic recoveryOil prices rose 3% in volatile trade on Tuesday as Wall Street surged and the International Energy Agency (IEA) increased its oil demand forecast for 2020, but gains were capped by worries about a second wave of coronavirus cases. |
| Did elite David Boies law firm get a pandemic bailout? It’s a secretWhen the U.S. government announced a multibillion-dollar bailout of struggling small businesses amid the coronavirus pandemic, one of the top U.S. law firms sensed an opportunity. |
| Appeals court sides with exchanges in U.S. SEC fee rowA U.S. appeals court ruled on Tuesday that the Securities and Exchange Commission cannot force stock exchanges to conduct a costly experiment to see how the fees they charge and the incentives they offer affect brokers’ trading habits. |
| Stocks Soar As ‘Miracle Cure’ & ‘Recovery’ Hype Trumps 2nd-Wave COVID Concerns, WW3 FearsStocks Soar As ‘Miracle Cure’ & ‘Recovery’ Hype Trumps 2nd-Wave COVID Concerns, WW3 Fears Tyler Durden Tue, 06/16/2020 – 16:01 A regurgitated stimulus narrative,”surprising” rebounds from the depths of hell for some macro data (retail sales, yay! industrial production, boo!), and a press-release study showing a cheap steroid as a ‘miracle cure’ for COVID were enough to trump soaring COVID case counts in several US states, Beijing locking down 7 regions and shutting all schools, North Korea literally blowing up relations with South Korea, and China and India tensions escalating dramatically. Why don’t we just send the dextramethasone to China – “You’re cured mate!” To ‘V’ Or not to ‘V’, you decide… |
| “Circling The Drain” – The Fed’s Zombification Of America Will Have Dire Consequences“Circling The Drain” – The Fed’s Zombification Of America Will Have Dire Consequences Tyler Durden Tue, 06/16/2020 – 15:50 Authored by Sven Henrich via NorthmnaTrader.com, Small caps drop over 15% in 4 days only to rally over 10% in less than 24 hours. A rally was not a surprise after such a steep and fast drop. What probably shouldn’t have been a surprise, but still ended up being one was how quickly the Fed felt pressured to announce the immediate implementation of its corporate bond program (which was announced a couple of months ago) but now they actually implemented it with effect today. The timing is obvious. They can’t, won’t tolerate any market downside, so scared they are of losing control of the asset bubble they have created. Which begs the question: How scared are they of these markets that they have to intervene at every down turn? |
| CIA Was So Focused On Developing Cyber Weapons That “Woefully Lax” Security Led To Vault 7 LeakCIA Was So Focused On Developing Cyber Weapons That “Woefully Lax” Security Led To Vault 7 Leak Tyler Durden Tue, 06/16/2020 – 15:35 The CIA’s Center for Cyber Intelligence (CCI) was so busy making cyber weapons – including tools to crack into smartphones, hijack smart TVs, or make it look like a foreign adversary hacked someone – that they internal security become “woefully lax,” allowing a CIA employee to steal up to 34 terabytes of information later published by WikiLeaks in the spring of 2017. |
| The “Second Wave” Of COVID-19 Could Crush Oil MarketsThe “Second Wave” Of COVID-19 Could Crush Oil Markets Tyler Durden Tue, 06/16/2020 – 15:20 Authored by Nick Cunningham via OilPrice.com, The oil price rally may have come to an end, with the long-feared œsecond wave of coronavirus infections having now arrived, posing renewed threats to the global economy. |
| 20 Indian soldiers killed in clash with China in Galwan20 Indian soldiers killed in clash with China in GalwanAt least 20 soldiers have been killed in clash with Chinese forces. Sources say the toll may further rise. |
| Another relief package may be on the cardsAnother relief package may be on the cardsGurumurthy said that another fiscal package could be unveiled towards the end of the second quarter. |
| Global banks’ back offices embrace WFHGlobal banks’ back offices embrace WFHCaptive units of large global banks as well as technology firms have transitioned most staff to work from home. |
| Key Words: ‘The dollar is going to fall very, very sharply,’ warns prominent Yale economistStephen Roach, Yale University senior fellow and former Morgan Stanley Asia chairman, has a warning for U.S. dollar bulls. |
| Key Words: The rise of mom-and-pop investors in the stock market will ‘end in tears,’ warns billionaire CoopermanBillionaire Leon Cooperman on Monday said that the emergence of individual investors eagerly scooping up stocks that have been rocked amid the coronavirus-induced downturn will ultimately œend in tears for those individual investors. |
| This year’s stock-market run has an uncanny resemblance to 2009, analyst says, with big upside for stocks aheadDon’t overthink the ups and downs of the stock market this year, one analyst says. Look to 2009 for a roadmap – and that year ended pretty well. |
Summary of Economic Releases this Week
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