Translate

Search This Blog

Search Tool




Jul 19, 2018

Stocks at open Report: Stocks fall as earnings season rolls on, IBM shares jump I CNBC

cnbc.com

Stocks fall as earnings season rolls on, IBM shares jump

Fred Imbert, Silvia Amaro


Stocks opened lower on Thursday as investors digested the latest batch of corporate earnings, while trade fears simmer.
The Dow Jones Industrial Average fell 78 points, with Travelers Cos. and American Express lagging. The S&P 500 slipped 0.2 percent, with materials and consumer staples underperfoming. The Nasdaq Composite also pulled back 0.2 percent.
IBM shares rose more than 3 percent after the Dow component reported earnings and revenue that surpassed expectations. American Express, another Dow member, posted a profit that was just above estimates, while sales came in slightly below estimates. Shares of American Express fell 2.7 percent.
Shares of eBay fell more than 8 percent after the company posted revenue and guidance that disappointed investors. Earnings, however, topped estimates. Tech giant Microsoft is scheduled to report earnings after the close.
Spencer Platt | Getty Images News | Getty Images
Just over 13 percent of S&P 500 companies have reported calendar second-quarter earnings thus far, with 85.1 percent of those firms surpassing analyst expectations, according to FactSet.
“Clearly for the next few weeks earnings are likely to become a major driving force of the market,” said Michael Shaoul, chairman and CEO of Marketfield Asset Management.
“January’s strong (earnings)season had been fully discounted by the market and April’s was derailed by the emergence of the trade dispute and fears of margin compression. We are hopeful that third time might prove lucky, particularly for some of the globally integrated and economically sensitive groups that have remained becalmed for much of the recent recovery in the overall equity market,” Shaoul said.
Investors have high expectations for this earnings season, with analysts polled by FactSet expecting 20 percent year-over-year profit growth for the second quarter.
The earnings season comes as tensions between the U.S. and some of its key trade partners are simmering. On Thursday, European Union Trade Commissioner Cecilia Malmstrom said the EU is making a list of goods it could target as a way to retaliate against potential tariffs on European cars.
Malmstrom’s comments come after U.S. President Donald Trump threatened to hike tariffs on European car imports to 20 percent from 2.5 percent last month. Commerce Secretary Wilbur Ross said, however, it was “too early” to say whether the U.S. will impose tariffs on cars.

Comcast drops pursuit of its bid for 21st Century Fox assets I Breaking News I CNBC

cnbc.com

Comcast drops pursuit of its bid for 21st Century Fox assets

Liz Moyer


Comcast said Thursday it would not pursue its bid to buy assets of Twenty-First Century Fox, choosing to focus on its offer for Britain's Sky.
Here is the statement:
Comcast Corporation (Nasdaq: CMCSA) today issued the following statement regarding its pursuit of the assets Twenty-First Century Fox has agreed to sell to The Walt Disney Company: “Comcast does not intend to pursue further the acquisition of the Twenty-First Century Fox assets and, instead, will focus on our recommended offer for Sky.”
Brian L. Roberts, Chairman and CEO, Comcast Corporation, said, “I’d like to congratulate Bob Iger and the team at Disney and commend the Murdoch family and Fox  for creating such a desirable and respected company."

This story is developing. Please check back for updates.

US weekly jobless claims July 14, 2018 I CNBC

cnbc.com

US weekly jobless claims July 14, 2018

CNBC


Job seekers register before interviews during an Amazon jobs fair at the Amazon Fulfillment Center in Robbinsville, New Jersey. Getty Images
Job seekers register before interviews during an Amazon jobs fair at the Amazon Fulfillment Center in Robbinsville, New Jersey.
The number of Americans filing for unemployment benefits unexpectedly fell last week, hitting its lowest level in more than 48 1/2 years, as the labor market continues to strengthen.
Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended July 14, the lowest reading since early December 1969, the Labor Department said on Thursday. Claims data for the prior week was revised to show 1,000 more applications received than previously reported.
Economists polled by Reuters had forecast claims rising to 220,000 in the latest week.
The second straight weekly decline in claims, however, likely reflects difficulties adjusting the data for seasonal fluctuations around this time of the year when motor vehicle manufacturers shut assembly lines for annual retooling.
With manufacturers undertaking the retooling exercise at different times in July, this can throw off the model that the government uses to the smooth the claims data for seasonal variations.
The Labor Department said only claims for Maine were estimated last week.
The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,750 to 220,500 last week.
The claims data covered the survey week for the nonfarm payrolls component of July's employment report. The four-week average of claims dipped 500 between the June and July survey periods, suggesting solid job growth this month.
The economy created 213,000 jobs in June, with the unemployment rate rising two-tenths of a percentage point to 4.0 percent as more Americans entered the labor force, in a sign of confidence in their job prospects.
Federal Reserve Chairman Jerome Powell told lawmakers this week that with appropriate monetary policy, the job market will remain strong "over the next several years."
Employment gains averaged 215,000 jobs per month in the first half of this year. The labor market is viewed as being near or at full employment. There were 6.6 million unfilled jobs in May, an indication that companies cannot find qualified workers.
That was reinforced by the Fed's Beige Book report on Wednesday showing worker shortages persisting in early July.
The U.S. central bank said the scarcity of workers was across a wide range of occupations, including highly skilled engineers, specialized construction and manufacturing workers, information technology professionals and truck drivers.
The Labor Department's claims report also showed the number of people receiving benefits after an initial week of aid increased 8,000 to 1.75 million in the week ended July 7.
The four-week moving average of the so-called continuing claims rose 6,250 to 1.74 million.

Gold Outlook | Gold Outlook Mid-Year 2018 I Gold.org

gold.org

Gold Outlook | Gold Outlook Mid-Year 2018



In our outlook for second half of 2018, we have identified three key macro trends that will influence gold’s behaviour:

  • positive but uneven global economic growth
  • trade wars and their impact on currency
  • rising inflation and an inverted yield curve.

Combined with attractive entry levels, we believe that these trends will increase gold’s relevance for investors in the months ahead.

A rocky start for the year

The first half of 2018 proved quite eventful for financial markets. Stocks experienced a few pullbacks during the first quarter as geopolitical tensions rose but have been generally trading upward since the start of Q2. This was especially true in the US and Asia, where tech stocks captured most of the growth. So far, investors seemed to have shrugged off the escalating trade war rhetoric between the US and many of its trading partners or, at least, discounting the effect it may have on long-term economic growth.
Gold has thus far moved in the opposite way. Its price rose by more than 4% in the first few months of the year, only to finish June down by the same amount. This downward trend has continued in July as gold dropped almost an additional percentage point. But while gold’s volatility spiked in February and April, it has been moving in a relatively low range since. Gold’s performance has been driven by a combination of factors. Three stand out:
At the same time, gold’s price momentum and investor positioning in derivatives markets has accelerated its descent. We believe, however, that there may be reasons to be more optimistic on the second half.

Tech stocks have led market growth in 2018*

*As of 16 July 2018
Source: Bloomberg, ICE Benchmark Administration, World Gold Council.

Gold outlook focus: drivers of the gold price

Broadly speaking, drivers of the gold price can be grouped into four categories:
Wealth and economic expansion: periods of growth are very supportive of jewellery, technology, and long-term savings.
Market risk and uncertainty: market downturns often boost investment demand for gold as a safe haven.
Opportunity cost: the price of competing assets such as bonds (through interest rates), currencies and other assets influence investor attitudes towards gold.
Momentum and positioning: capital flows and price trends can ignite or dampen gold’s performance.
Copyright and other rights[+]
© 2018 World Gold Council. All rights reserved. World Gold Council and the Circle device are trademarks of the World Gold Council or its affiliates.
All references to LBMA Gold Price have been provided for informational purposes only. ICE Benchmark Administration Limited accepts no liability or responsibility for the accuracy of the prices or the underlying product to which the prices may be referenced. Other third party data and content is the intellectual property of the respective third party and all rights are reserved to them.
Any copying, republication or redistribution of content, to reproduce, distribute or otherwise use the statistics and information in this report including by framing or similar means, is expressly prohibited without the prior written consent of the World Gold Council or the appropriate copyright owners except as provided below.
The use of the statistics in this report is permitted for the purposes of review and commentary (including media commentary) in line with fair industry practice, subject to the following two pre-conditions: (i) only limited extracts of data or analysis be used; and (ii) any and all use of these statistics is accompanied by a clear acknowledgement of the World Gold Council and, where appropriate, of Thomson Reuters, as their source. Brief extracts from the analysis, commentary and other World Gold Council material are permitted provided World Gold Council is cited as the source. It is not permitted to reproduce, distribute or otherwise use the whole or a substantial part of this report or the statistics contained within it.
While every effort has been made to ensure the accuracy of the information in this document, the World Gold Council does not warrant or guarantee the accuracy, completeness or reliability of this information. The World Gold Council does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document.
The material contained in this document is provided solely for general information and educational purposes and is not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, gold, any gold related products or any other products, securities or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of gold, any gold related products or any other products, securities or investments, including without limitation, any advice to the effect that any gold related transaction is appropriate for any investment objective or financial situation of a prospective investor. A decision to invest in gold, any gold related products or any other products, securities or investments should not be made in reliance on any of the statements in this document. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.
Without limiting any of the foregoing, in no event will the World Gold Council or any of its affiliates be liable for any decision made or action taken in reliance on the information in this document and, in any event, the World Gold Council and its affiliates shall not be liable for any consequential, special, punitive, incidental, indirect or similar damages arising from, related to or connected with this document, even if notified of the possibility of such damages.
This document contains forward-looking statements. The use of the words “believes”, “expects”, “may”, or “suggests”, or similar terminology, identifies a statement as “forward-looking”. The forward-looking statements included in this document are based on current expectations that involve a number of risks and uncertainties. These forward-looking statements are based on the analysis of World Gold Council of the statistics available to it. Assumptions relating to the forward-looking statement involve judgments with respect to, among other things, future economic, competitive and market conditions all of which are difficult or impossible to predict accurately. In addition, the demand for gold and the international gold markets are subject to substantial risks which increase the uncertainty inherent in the forward-looking statements. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the World Gold Council that the forward-looking statements will be achieved.
The World Gold Council cautions you not to place undue reliance on its forward-looking statements. Except in the normal course of our publication cycle, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and we assume no responsibility for updating any forward-looking statements.

The Finance 202: Republicans muster more anger on trade following Trump's Putin meeting I The Finance 202 I The Washington Post

washingtonpost.com

The Finance 202: Republicans muster more anger on trade following Trump's Putin meeting



THE TICKER
Sen. Bob Corker (R-Tenn.). (Reuters/Leah Millis)
Blink and you might miss it, but congressional Republicans are considering what for them has become the rarest of moves: rebuking President Trump. The crack in GOP unity has formed over Trump’s disastrous Monday news conference with Russian President Vladimir Putin, yet it could give new energy to Republican lawmakers agitating to block his trade offensive. 
Sen. Bob Corker (R-Tenn.), a leading Republican critic of Trump’s tariffs, predicted in a Tuesday tweet that the “dam is finally breaking.” And he used the president’s embrace of Putin and antagonizing of European allies to stoke urgency for congressional GOPers to take back the initiative on trade:
The dam is finally breaking. Thankfully.
As the president taxes Americans with tariffs, he pushes away our allies and further strengthens Putin.
It is time for Congress to step up and take back our authorities.
We have legislation to do that. Let’s vote.

— Senator Bob Corker (@SenBobCorker) July 17, 2018
Later Tuesday, Senate Finance Committee Chairman Orrin G. Hatch (R-Utah), issued his sharpest critique yet of the administration’s trade agenda, along with a warning. “If the administration continues forward with its misguided and reckless reliance on tariffs, I will work to advance trade legislation to curtail presidential trade authority,” the usually reliable Trump supporter said in a Senate floor speech. “I am discussing legislative options with colleagues both on and off the Finance Committee and I will continue to do so.”
Across the Capitol, House Ways and Means Committee Chairman Kevin Brady (R-Tex.) sounded a similar note in Monday comments to reporters. “I think there will be growing momentum for a legislative response or solution,” he said, unless the administration ratchets down tensions, including by laying out a timeline for resolving its dispute with China and cleaning up a messy process for companies seeking exemptions to metals tariffs.
And today, a bipartisan roster of 149 House members is sending a letter to Commerce Secretary Wilbur Ross urging him against recommending auto tariffs. “We do not believe the imports of automobiles and automobile parts pose a national security threat,” the lawmakers, led by Rep. Jackie Walorski (R-Ind.), write. “Rather, we believe the imposition of trade restrictions on these products could undermine our economic security.”
The notion these stirrings will translate into substantive action deserves maximum skepticism. Beyond Hatch’s speech, there was no evidence in the Senate on Tuesday to support Corker’s assessment the tide is turning against the president on trade. A senior GOP aide familiar with member discussions counseled against reading too much into Hatch’s timing. “His remarks today encompass what he has been saying for several weeks now,” this aide said, adding Hatch will come to a decision “in the coming weeks.”
Brady’s tough statement Monday should be considered alongside his Tuesday appearance at Trump’s side in the Oval Office with other Ways and Means Republicans.
The president gathered lawmakers to discuss unveiling another package of tax cuts, a messaging bill that stands no chance of passage. But confronting Trump over the very real prospect that he will dramatically escalate trade hostilities with China, the European Union and other key trading partners is risky: Republicans don't want to alienate Trump supporters as the midterms approach.
Sen. Orrin Hatch (R-Utah). (AP Photo/Rick Bowmer)
That makes it doubtful fallout from Trump’s news conference will actually spark a longer-term revolt from Republicans that translates into real action.
Republican leaders on Capitol Hill have said the party can’t muster a veto-proof majority to curb Trump’s tariff push. Senate Majority Leader Mitch McConnell (R-Ky.) last month dismissed Corker’s proposal to do so as an “exercise in futility” because the president wouldn’t sign it. Last week, after the Senate approved a toothless resolution asserting a “role for Congress” in setting trade policy, a GOP aide wrote off the possibility that lawmakers would follow it up with an enforceable measure. Congressional Republicans, the aide told me, remain “a group of people who have no idea how to get an outcome, because there isn’t one.” 
Trump’s  cozying up to Putin while identifying the E.U. as a trade “foe” proved galvanizing enough to draw a striking if indirect reprimand from McConnell on Tuesday. Addressing reporters, the Kentucky Republican said he wanted to send a message to Europe that “there are a lot of people in both parties who believe that these alliances painstakingly built in the wake of the end of World War II are important and we want to maintain them.” And he said “there is a possibility that we may well take up legislation” if there is new evidence of Russian election interference. In the House, Speaker Paul D. Ryan (R-Wis.) said he’s leaving it to committees to determine whether more sanctions against Russia are warranted, in which case he’d be “more than happy” to consider them.
One way to reassure European allies, it seems, would be to vote to block the administration from imposing tariffs on imports of European autos in the name of national security. But don't get too optimistic it will actually happen.
You are reading The Finance 202, our must-read tipsheet on where Wall Street meets Washington.
Not a regular subscriber?

MARKET MOVERS
The Google logo at the company's headquarters in Mountain View, Calif. (AP Photo/Marcio Jose Sanchez)
EU slaps Google with $5 billion fine. WSJ's Laurence Norman and Sam Schechner: "The European Union hit Alphabet Inc.’s Google with a record antitrust fine of €4.34 billion ($5.06 billion) on Wednesday, according to an official familiar with the matter, a decision that could loosen the company’s grip on its biggest growth engine: mobile phones. EU commissioners agreed on the fine in a Wednesday morning meeting, according to the person, marking Brussels’ sharpest rebuke yet to the power of a handful of tech giants... The EU’s antitrust regulator has been looking into whether Google had abused the dominance of its Android operating system, which runs more than 80% of the world’s smartphones, to promote and entrench its own mobile apps and services—particularly the company’s search engine.
— Fed to stay course. The Wall Street Journal's Nick Timiraos: “Federal Reserve Chairman Jerome Powell told Congress on Tuesday that strong U.S. economic growth and stable inflation should keep the central bank on track to gradually raise short-term interest rates. But he also highlighted growing risks if the Trump administration’s recent efforts to lower trade barriers result instead in permanently higher tariffs. The Fed’s rate-setting committee 'believes that — for now — the best way forward is to keep gradually raising' rates, he said, in offering a roundly upbeat assessment of the economy at a two-hour hearing before the Senate Banking Committee.
"Most Fed officials have signaled they expect the central bank will need to raise rates to a neutral setting that neither spurs nor slows growth. But the addition of the words 'for now' underscored how the Fed hasn’t put rates on autopilot and hasn’t resolved key debates over how to proceed once rates reach a neutral level.”
Powell warns about tariffs. Bloomberg's Reade Pickert  and Christopher Condon: “Powell said protectionism can hurt economic growth and potentially undermine wages, just as the U.S. ratchets up trade tensions with commercial rivals as well as longstanding allies. ... 'In general, countries that have remained open to trade, that haven’t erected barriers including tariffs, have grown faster. They’ve had higher incomes, higher productivity,' he said. 'Countries that have gone in a more protectionist direction have done worse.' "
And worries over the decline in workers' share of growth. The Washington Post's Jeff Stein: "The fall in the percentage of economic growth flowing to workers is 'very troubling,' a worrisome sign in an otherwise bright U.S. economy...Powell [said]... Powell expressed concern that the share of the national income going to American labor had fallen 'precipitously' for more than a decade and was not reversing course."
— Debt markets bullish on America. Bloomberg's Sid Verma and Luke Kawa: “Global debt markets are flashing a bullish signal on America’s economic trajectory, leaving Europe and emerging markets in the dust. Money managers in America Inc. debt are shrugging off late-cycle angst and the trade-war fallout thanks to an upswing in earnings — while the rest of the world struggles for traction. The premium to hold high-yield dollar bonds around the globe versus U.S.-listed corporate peers has widened to levels last notched back in 2002, according to data compiled by Bloomberg. In other words, rarely has U.S. debt looked in such good shape relative to peers in the $2.4 trillion market.”
— Industrial production picks up. The Associated Press's Paul Wiseman: “The Federal Reserve said Tuesday that industrial production — which includes output at factories, mines and utilities — climbed 0.6 percent in June, recovering from a 0.5 percent drop in May. The May reading was warped by a fire at a Michigan parts factory that disrupted production of Ford Motor’s F-series pickup trucks, America’s bestselling vehicle. American industry continues to look healthy despite trade conflicts with China, Europe and Canada and a rising dollar that makes U.S. products more expensive abroad.”
Federal Reserve policy makers appear confident that they have the weapons they’ll need to fight the next financial crisis. Some of their predecessors on the front lines are not so sure.
Bloomberg
TRUMP TRACKER
TRADE FLY-AROUND:
President Trump at the White House in Washington on July 17. (Andrew Harnik/AP)
— Trump to host Junker. AP: “Trump will meet with the president of the European Commission next week at the White House, days after labeling the European Union a 'foe' of the United States. White House press secretary Sarah Sanders says President Jean-Claude Juncker will meet with Trump at the White House on July 25. She says security, counterterrorism, and energy will be on the agenda, as well as trade. The commission is an institution of the European Union.”
Uranium next? Bloomberg's Jennifer Jacobs: "The Trump administration plans to open an investigation into whether uranium imports are harming national security, a move that could lead to tariffs on foreign shipments of the metal, said three people familiar with the matter. U.S. uranium producers Energy Fuels Inc. and Ur-Energy Inc. filed a petition in January asking the Commerce Department to investigate the matter under Section 232 of the 1962 Trade Expansion Act, the same provision the president used to slap tariffs on steel and aluminum imports. U.S. industry wants the government to shield it from competition from state-owned companies in countries including Russia and Kazakhstan. The timing of the probe remains unclear... Some administration officials are debating whether to wait until the controversy blows over from... Trump’s meeting in Helsinki with Russian President Vladimir Putin on Monday."
Treasury, House Rs tangle over CFIUS bill. Bloomberg's Jenny Leonard, Roxana Tiron, and Erik Wasson: "Republican lawmakers and the Treasury Department are struggling to reach agreement on legislation to bolster national security reviews of foreign investments, which could upend... Trump’s less confrontational approach toward Chinese firms taking stakes in U.S. companies, according to two people familiar with the matter. The White House last month decided against the harshest measures to restrict Chinese investment through invoking a national emergency law and instead rallied support for existing legislation to strengthen the Committee on Foreign Investment in the U.S., or CFIUS. U.S. lawmakers... are negotiating a compromise for two separate bills that they aim to pass with an annual defense spending bill later this month.
"Treasury Secretary Steven Mnuchin is leading the negotiations with Capitol Hill and has been making the case to lawmakers that the president is willing to use stricter investment curbs if the talks on a new CFIUS bill -- the Foreign Investment Risk Review Modernization Act, or FIRRMA -- fail to result in strong legislation. A key GOP lawmaker, Representative Jeb Hensarling of Texas, is pushing for FIRRMA to be taken care of outside of the defense spending negotiations and that may result in watering down the final language."
— Car dealers look for workarounds. WSJ's Adrienne Roberts: “Dealers say many customers can’t afford more expensive vehicles. So auto retailers say they may curtail orders of vehicles built abroad, and some say they may focus on used cars with higher margins. The tariff, to a lesser extent, could also inflate prices for U.S.-built cars, because many of them use foreign-built car parts, car companies say. ... Mazda and Mitsubishi are expected to be hurt more than many other foreign brands because they are 100% reliant on imports to stock U.S. dealer lots and typically sell to price-sensitive buyers. The Alliance of Automobile Manufacturers, the auto industry’s chief lobbying group in Washington, estimates a 25% tariff would increase the average price of an imported vehicle by $5,800.”
— Tariffs hurt pork exports. Reuters's Tom Polansek: “Before the U.S.-China trade war, American pig processors exported nine out of every 10 pigs’ feet and heads they shipped overseas to China and Hong Kong — for prices higher than they would fetch anywhere else... The pipeline for these profitable pig parts, known collectively as offal, is closing fast after China slapped two tariffs on U.S. pork totaling 50 percent. That’s forcing U.S. processors to sell an increasing amount of such parts for pennies to be rendered into food for pets and livestock. U.S. shipments of byproducts affected by the duties fell by about a third in April and May combined, after China imposed the first 25 percent tariff on American pork in April, according to the latest data from the U.S. Department of Agriculture.”
And increase newsprint prices. AP's Kevin Freking: “About a dozen members of Congress warned Tuesday that newspapers in their home states are in danger of reducing news coverage, laying off workers or going out of business if the United States maintains recently imposed tariffs on Canadian newsprint. ... Newsprint is generally the second-largest expense for local papers. The tariffs have generally increased newsprint prices by 25 to 30 percent. Sens. Susan Collins and Angus King of Maine both argued that the tariffs will hurt the industry they’re designed to help because it will diminish the market for newsprint in America as newspapers shrink or close.”
MELTDOWN WATCH:
— Trump changes his tune after Helsinki. The Washington Post's Ashley Parker, Robert Costa and Felicia Sonmez: “Trump on Tuesday grudgingly sought to inch back his warm remarks about Russia and its leader during a summit in Helsinki a day earlier, saying he had misspoken when he appeared to accept... Putin’s denials that Russia had interfered in the 2016 presidential election. Initially crossing his arms in front of him, and reading haltingly from prepared remarks, the president said he accepts the U.S. intelligence community’s assessment that Russia sought to influence the election — but added that it 'could be other people also,' an assertion not backed by evidence. ... 'I accept our intelligence community’s conclusion that Russia’s meddling in the 2016 election took place,' Trump said Tuesday, flanked at the White House by Republican members of Congress who were preparing for a meeting on tax policy. 'Could be other people also. A lot of people out there. There was no collusion at all, and people have seen that, and they’ve seen that strongly.' The scene carried echoes of past moments of political crisis for Trump, including his comments last year that 'both sides' were to blame for a deadly white-supremacist rally in Charlottesville. Then, as now, Trump backtracked with apparent reluctance after a period of public outcry.”
So many people at the higher ends of intelligence loved my press conference performance in Helsinki. Putin and I discussed many important subjects at our earlier meeting. We got along well which truly bothered many haters who wanted to see a boxing match. Big results will come!
— Donald J. Trump (@realDonaldTrump) July 18, 2018
POCKET CHANGE
Goldman Sachs chief executive Lloyd Blankfein in New York on June 19.
— Blankfein says he's retiring. The Washington Post's Renae Merle: “Goldman Sachs’s longtime chief executive, Lloyd Blankfein, announced Tuesday that he is retiring and turning one of Wall Street’s most coveted jobs over to an investment banking veteran — and occasional DJ. David Solomon, 56, was named CEO of Goldman at a time the New York bank is trying to move into new markets and shed its long-held reputation as a secretive trading house. Blankfein’s retirement has long been expected. The 63-year-old is one of Wall Street’s longest-serving CEOs, helping Goldman navigate the perils of the global financial crisis. The bank is now smaller, in both revenue and profits, than when Blankfein took the reins in 2006. But it is also poised to benefit from the Trump administration’s regulatory rollback. The bank reported Tuesday that its profits jumped 40 percent to $2.6 billion during the second quarter. Its revenue rose 19 percent to $9 billion.”
More:
  • NYT's Michael de la Merced runs down Blankfein's highs and lows at Goldman. The lows include the firm's recent performance. 
  • Blankfein predecessor Jon Corzine thinks he'd make a good mayor, Bloomberg's Max Abelson reports
  • Blankfein himself says he's looking forward to unrestrained tweeting:
Looking forward to unrestrained tweeting! https://t.co/zFcwq97djQ
— Lloyd Blankfein (@lloydblankfein) July 17, 2018
— Johnson & Johnson beats expectations. AP's Linda A. Johnson: “Fueled by a 20 percent sales jump in its prescription drugs business, Johnson & Johnson posted a 3 percent increase in second-quarter profit. Still, the world’s biggest maker of health care products trimmed its forecast for 2018. J&J’s prescription medicine business, which had lagged its medical device business until a couple years ago, accounted for half its $20.83 billion in total revenue. ... The $20.83 billion in revenue topped analyst expectations for $20.21 billion.”
— MGM sues shooting victims. Las Vegas Review-Journal's Rachel Crosby: “MGM Resorts International has filed federal lawsuits against more than 1,000 Las Vegas mass shooting victims in an effort to avoid liability. The company, which owns Mandalay Bay and the Route 91 Harvest festival venue, argues that it cannot be held liable for Oct. 1 deaths, injuries or other damages, adding that any claims against MGM parties 'must be dismissed,' according to complaints filed Friday in Nevada and California. 'Plaintiffs have no liability of any kind to defendants,' the complaints argue. The company cites a 2002 federal act that extends liability protection to any company that uses 'anti-terrorism' technology or services that can 'help prevent and respond to mass violence.'”
Texas Instruments Inc said on Tuesday that Brian Crutcher had resigned as the company's chief executive officer just six weeks into the role, after finding following a report that he had violated the chipmaker's code on personal behavior.
Reuters
Berkshire Hathaway Inc on Tuesday eliminated a restriction on its ability to buy back its own stock, a change that could help billionaire Chairman Warren Buffett deploy more of the conglomerate's cash.
Reuters
Musk faced intense backlash after attacking British diver Vernon Unsworth on Twitter.
Allyson Chiu
MONEY ON THE HILL
House passes reg relief. Washington Examiner's Joseph Lawler: "The House of Representatives voted overwhelmingly Tuesday to approve a bipartisan legislative package of financial regulatory rollback measures, raising the prospect of Senate Democrats being asked to vote for a regulatory relief bill for a second time this year. The legislation, labeled the JOBS Act 3.0, is a grab-bag of several dozen provisions, many meant to make it easier for startups to raise funds... The bill also would change some rules relating to banks and to the insurance system, and even have the federal government weigh in on cryptocurrencies... The question is whether Democrats are eager to take another vote to cut regulations on the financial sector, and under what conditions."
Quarles confirmed, again. WSJ's Ryan Tracy: "The Senate confirmed Randal Quarles to a full term on the Federal Reserve’s governing board, eliminating uncertainty that has persisted since he took office last fall. Mr. Quarles, a former banking lawyer, is already serving as a Fed governor and as the Fed’s vice chairman for supervision, a position that puts him in charge of the Fed’s bank regulatory agenda in addition to his monetary-policy responsibilities. Senators in October approved him for a four-year term as vice chairman and to a term as Fed governor that expired in January. Mr. Quarles needed another vote to give him a full 14-year term on the Fed board."
Dems look to stall CFPB nominee. The Hill's Lydia Wheeler: "Democrats on the Senate Banking Committee are calling on the panel's chairman, Sen. Mike Crapo (R-Idaho), to delay Thursday’s hearing for... Trump's nominee to lead the Consumer Financial Protection Bureau if the administration does not respond to requests for information in time. In a letter sent Tuesday night... the panel's Democrats said the administration has not responded to requests for relevant documents and other information in advance of Thursday’s hearing. Senators are scheduled to consider the nominations of Kathleen Kraninger to lead the CFPB and Kimberly Reed to be the president of the Export-Import Bank."
Treasury ends dark money disclosure. The Post's Michelle Ye Hee Lee and Jeff Stein: "Nonprofits that spend money to influence elections but are not required to disclose donors to the public — called 'dark money' groups by critics — no longer need to share their donors’ names or addresses in their tax filings under a new Treasury rule announced Monday. The decision was immediately heralded by free-speech advocates who have long sought to protect donors’ private information. But it was rebuked by those who want to reduce the role of money in politics, who claim it would make U.S. elections more susceptible to anonymous foreign donations."
DAYBOOK
Today
Coming soon
  • The Senate Banking Committee holds a confirmation hearing tomorrow for Kathy Kraninger, Trump's nominee for director of the Consumer Financial Protection Bureau, and Kimberly A. Reed, Trump's nominee for president of the Export-Import Bank.
  • House Intelligence Committee hearing titled “China’s threat to American government and private sector research and innovation leadership” tomorrow.
  • Two House Small Business subcommittees hold a joint hearing on financial investment in rural areas on July 24.
THE FUNNIES
From the New Yorker's George Booth:
BULL SESSION
Former president Barack Obama said in a speech that “you have to believe in facts”:
The Kilauea volcano has created a tiny new island:
D.C. region hit with heavy rain, cars left stranded:

Black students falsely accused of dine and dash I CNN Video