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Aug 11, 2016

Moody's Market Outlook: Productivity Slump Dampens Outlook (Capital Markets Research) August 11, 2016

 Moody's  has delivered its Weekly Market Outlook, with 21 pages covering the following Topics

  • Credit Markets Outlook and Review
  • The Week Ahead
  • Long View
  • Ratings Round Up
  • Market Data
  • Moody's Capital markets Research.
For Full Report Click link Below:

The Economist | This Week's Selected News

Warren Buffett’s wonky halo
The Sage of Omaha is an investing guru. That does not make him a model for America’s economy

A harvest of lead
The Philippines’ new president promised to fight crime by shooting first and asking questions later. Unfortunately, he is proving as good as his word

Wild horses: unbridled Congress
America’s Wild Horse and Burro Programme is a costly, ill-managed, foolhardy mess

Politics this week
The head of Zambia’s electoral commission said that “unprecedented” violence had marred presidential and parliamentary elections

Business this week
Walmart said it would buy for $3.3 billion, marking a big shift in the giant retailer’s internet strategy as it ramps up its competition with Amazon

DealBook Afternoon Top Stories - August 11, 2016: Top Story | Highlights | Buzz Tracker | Looking Ahead

The New York Times

Top Story
Brian Chesky, chief executive of Airbnb, during a presentation in April. The company is said to have allowed employees to sell their stock in the start-up, but with restrictions.
Airbnb and Others Set Terms for Employees to Cash Out
As Silicon Valley start-ups have delayed initial public offerings or sales, they have come under pressure to let their employees sell some of their private stock.

WSJ | Forex Closing on August 11, 2016

Major Currencies
Thursday, August 11, 2016

WSJ | Major Indexes Closing on August 11, 2016

Major Indexes

WSJ | Biggest Decliners Closing on August 11, 2016

THE WALL STREET JOURNALBiggest Decliners Closing
Biggest Decliners
4:47 pm ET 08/11/2016

WSJ | Most Actives Closing on August 11, 2016

Most Active Stocks by Volume
4:46 pm ET 08/11/2016

WSJ | Biggest Gainers Closing on August 11, 2016

THE WALL STREET JOURNALBiggest Gainers Closing
Biggest Gainers
4:47 pm ET 08/11/2016

FRB Press Release - August 11, 2016: Federal Reserve announces results of offering of seven-day term deposits on August 11.

Press Release

Release Date: August 11, 2016

Federal Reserve Bank of New York - August 11, 2016: Agency MBS Transaction Summary

All amounts reflect current face
Purchases summarize all trades executed during the indicated period including purchases associated with dollar rolls.*

Wall Street at Close Report, by CNBC on August 11, 2016: All Major US Stock Indexes Post Record Closes; Oil Rallies


Stocks closed higher Thursday, with the three major indexes closing at new record highs, amid sharp gains in oil prices and strong quarterly results from retailers.
"I think there are two main drivers here. One of them is oil," said Mariann Montagne, senior investment analyst at Gradient Investments. "The other part is this retail rally."
Thursday also marked the first time since 1999 the Dow, S&P and the Nasdaq posted record closing highs on the same day, according to Bespoke.
The Dow Jones industrial average closed about 115 points higher, with3M contributing the most gains. The 30-stock index also traded above a previous record high of 18,622.01.
The benchmark S&P 500 advanced about 0.5 percent, with energy rising more than 1 percent. The index also briefly traded above its previous all-time intraday high of 2,187.66.
"We have good things happening with the consumer right now," said JJ Kinahan, chief strategist at TD Ameritrade. he also said the positive quarterly results from Alibaba are helping the market, as they show the Chinese consumer is doing well. Alibaba's U.S.-listed shares were up 6.14 percent.
The Nasdaq composite rose about 0.5 percent as the iShares Nasdaq Biotechnology ETF (IBB) gained 1.07 percent.
"This has been a broad-based rally," said Bruce Bittles, chief investment strategist at Baird. "The market is following the broader trend, which is higher."
U.S. oil settled 4.27 percent higher at $43.49 a barrel on comments from the Saudi oil minister about possible action to stabilize prices and as the International Energy Agency forecast crude markets would tighten in the second half of 2016, a day after falling nearly 2.5 percent amid an unexpected build in inventories. "Oil is about stabilization," said Art Hogan, chief market strategist at Wunderlich Securities. "If we get that above $40, we're going to be OK."
Peter Cardillo, chief market economist at First Standard Financial, said "I think oil is going to stay in this $42-$45 range."
U.S. equities have recently traded in a tight range, but have managed to hit record highs. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 11.7, down 2.4 percent.
Still, Matt Tuttle, CEO of Tuttle Tactical Management, said "what worries me is volatility is so low." "I think this is over-extended." He also said that, "even though everything is bullish, I think we're due for a correction."
"This week feels like [people said] 'let's get in that last vacation before school starts," TD Ameritrade's Kinahan said. "As Labor Day comes and people start getting more serious about the election, ... I think you're going to see more volatility."
Macy's reported fiscal-second quarter earnings and revenue that were above estimates, sending the stock surging 17.09 percent. The department store giant also said it close 100 locations.
"I think the good news from Macy's is they're closing 100 stores," said Maris Ogg, president at Tower Bridge Advisors. "It's a necessary step."
"When McDonald's began to turn things around, they realized they needed to stop opening stores" and reduce their square footage, Ogg said. "We need to see more of the same thing."
Kohl's also posted quarterly results that were better than expected, and its stock spiked 16.17 percent. The SPDR Retail ETF (XRT) gained 2.42 percent.
"We knew coming into this week that we were going to hear a lot about the consumer," Wunderlich's Hogan said, adding Macy's and Kohl's results "should be a positive" for the broader stock market.
On the data front, U.S. import prices rose unexpectedly in July, according to Labor Department data released Thursday morning.
Import prices edged up 0.1 percent last month after an upwardly revised 0.6 percent increase in June. Economists polled by Reuters had forecast import prices falling 0.3 percent in July after a previously reported 0.2 percent advance in June.
Meanwhile, weekly U.S. jobless claims fell slightly to 266,000.
"This weekly data point remains a broken record in a good way in that the pace of firing's remains muted. This is also not inconsistent with the slowing pace of job gains as we approach the 8th year of this expansion and there are less available bodies to hire," Peter Boockvar, chief market analyst at The Lindsey Group, said in a Thursday note to clients.
U.S. Treasurys fell, with two-year notes yielding 0.75 percent and the 10-year note yield holding near 1.57 percent. The Treasury Department sold $15 billion worth of 30-year notes amid tepid demand.
"I think demand for U.S. paper should be good, even though we're at the long end of the curve," First Standard's Cardillo said.
The dollar rose slightly against a basket of currencies, with the eurotrading near $1.114 and the yen holding around 101.9.
DJIADow Industrials18613.52
S&P 500S&P 500 Index2185.79
The Dow Jones industrial average closed 117.86 points higher, or 0.64 percent, at 18,613.52, with Nike leading advancers and Wal-Mart the biggest laggard.
The S&P 500 rose 10.30 points, or 0.47 percent, to close at 2,185.79, with energy leading nine sectors higher and consumer staples the only laggard.
The Nasdaq advanced 23.81 points, or 0.46 percent, to end at 5,228.40.
About nine stocks advanced for every two decliner at the New York Stock Exchange, with an exchange volume of 763.27 million and a composite volume of 3.332 billion.
Gold futures for December delivery settled $1.90 lower at $1,350 per ounce.
—Reuters contributed to this report.
On tap this week:
*Planner subject to change.
Earnings: Nordstrom, Petrobras, Planet Fitness, Ruby Tuesday
8:30 a.m. Retail sales
8:30 a.m. PPI
10 a.m. Consumer sentiment
10 a.m. Business inventories

CMI Metal Spot Prices Closing on August 11, 2016

Spot Prices as of traditional New York closing times

Thursday, August 11, 2016

RT Max Keiser Report: Phantom Pension Funding (E952) - August 11, 2016

RT Max Keiser Report Collapse of Political World (E951) Originally Published on August 9, 2016

FTC News & Events and USDA to Host Roundtable in Washington, D.C. on October 20, 2016, to Examine Consumer Perceptions of “Organic” Claims for Non-Agricultural Products

FTC@100 Banner

FRB Press Release - August 11, 2016: Enforcement Actions on First Bankshares Inc and Liberty Bank

European Markets at Close Report, by CNBC on August 11, 2016:

Sharp oil rebound lifts Europe stocks at close; K+S tumbles

Arjun Kharpal, Alexandra Gibbs, Holly Ellyatt
European stocks finished higher on Thursday as investors cheered on a sharp rebound in oil prices, while digesting another set of earnings from leading European corporates.
FTSE FTSE 6901.38 34.96 0.51% 516399736
DAX DAX 10727.20 76.31 0.72% 57660928
CAC CAC 4498.27 46.26 1.04% 56360082
IBEX 35 IBEX 35 Idx 8729.40 70.50 0.81% 110412536

The pan-European STOXX 600 hit session highs by the close, jumping 0.65 percent with almost all sectors closing in the black.
Looking at individual bourses, France's CAC and Germany's DAX posted solid gains by the close, up 1 and 0.7 percent respectively. Meanwhile, the U.K.'s FTSE 100 saw some of its gains capped, as sterling fell slightly against the U.S. dollar. The FTSE 100 closed up just 0.5 percent.

Oil prices rebound thanks to IEA

Oil remains a talking point for markets, as prices fluctuated during the session, as a build in U.S. crude inventories and record Saudi Arabian production continued to add pressure to the market. Both Brent and U.S. crude reversed earlier losses to trade higher in afternoon trade, hovering around $44.90 and $42.45 respectively in afternoon trade.

Famous investors have recently picked gold as their favorite asset. Would you go for gold?

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Oil had fallen sharply in the previous session after data from the U.S. Energy Information Administration showed crude inventories rose 1.1 million barrels in the week ended August 5, scuppering expectations for a drawdown instead.
Meanwhile on Thursday, the International Energy Agency (IEA) released its latest report on the market, with the organisation predicting that the world would consume less oil in 2017 than previously thought, as a climate of economic insecurity continues to shake up markets.

Commodities stocks still saw slight signs of pressure but pared most of its losses following the recovery in oil. Inside the oil and gas sector, SBM Offshore led the way, up over 2 percent after it reiterated its 2016 guidance and delivered a decent set of results.
Several basic resources stocks recovered despite metal prices pointing in different directions. Glencore was in the black following the release of its first-half production report, in which it raised its full-year production guidance for copper but lowered it for coal and oil.

Old Mutual slides 4.5%; Housing stocks take a hit

The insurance sector was in focus after key earnings from a number of companies. Zurich Insurance posted net income of $1.6 billion for the first half, down 22 percent on-year. But shares were up 4.5 percent after the firm said operating profit at its general insurance business rose, beating market expectations for a fall.
Swiss Life popped some 2.5 percent, after the insurer delivered a first half net profit that beat expectations. Old Mutual, however, capped gains in the insurance sector after the British firm reported a fall in pre-tax profit. Shares sank 4.5 percent.
Sticking in Germany, utility RWE posted first-half operating profit that missed analyst expectations, but shares jumped over 2 percent.
And German industrial group ThyssenKrupp said core earnings fell 16 percent year-on-year, however shares reversed earlier losses, to trade up.
Potash miner K+S was the STOXX 600's worst performer, with its shares sinking 6.5 percent after it warned that earnings could fall sharply in 2016.

U.K. housebuilders also weighed on the STOXX 600. The Royal Institution of Chartered Surveyors (RICS) reported slowing activity in the U.K. housing sector. The institution's house price balance fell to plus 5 in July from +15 in June, its lowest since April 2013.
RICS cited uncertainty around Brexit as the key reason behind the fall. Berkeley Group sat near the bottom of the STOXX 600, off over 4 percent, with other names such as Travis Perkins also sharply lower.