The Closing Look

Stocks rallied on Monday as investors digested the latest round of economic data and last week’s Fed symposium in Jackson Hole. Consumer spending edged higher by +0.3% in July which matched the Street’s consensus. Meanwhile, the personal consumption expenditures (PCE) price index, which is one of the Fed’s preferred inflation indicators, rose 0.1% in July and is up 1.6% over the 12 months through July. That is still shy of the Fed’s 2% forecast. Elsewhere, the Dallas Fed Manufacturing General Activity Index fell to -6.2, lower than the last reading of -1.3.

Gary’s Thoughts: $200 billion of printed money/month insuring markets here and around the globe. Yes…just between Japan and Europe $200 billion/month. This does not include others, 0% rates and the $15 trillion of negative rates! Good day yesterday. Lots of stocks setting up in tight action…just like the indices.

The Morning Look

Market Update:

Stock futures are quiet ahead of Tuesday’s open as the market continues trading near record highs.

Gary’s Thoughts: Apple told to pay billions in taxes. Not much else happening!

Economic Data:

  • Redbook 8:55 AM ET
  • S&P Case-Shiller HPI  9:00 AM ET
  • Consumer Confidence 10:00 AM ET
  • State Street Investor Confidence Index 10:00 AM ET
  • 4-Week Bill Auction 11:30 AM ET

Highlights:

  • Apple Invitation Announces Sept. 7 Event
    Gary’s Thoughts: New Iphone…yippeeee!
  • Chinese Drug Sales to the U.S. Grow Despite Safety Concerns
    Gary’s Thoughts: Headache anyone?

The Closing Look

Thursday was another quiet day on Wall Street as the market continued to consolidate the recent and strong post brexit rally and waited for Yellen’s speech and the latest reading on GDP on Friday. Economic data topped estimates, with initial jobless claims falling for a third consecutive week to 261,000. Separately, durable goods orders jumped +4.4% in July, easily beating estimates for +3.7%. The Fed began its annual meeting in Jackson Hole and a few Fed heads came out and were a little hawkish. Esther George, Kansas City Fed President and voting member, said “I do think it is time to move that rate” and then Dallas Fed President Robert Kaplan said the central bank was “moving toward being able to take another step.” For the past few years, at nearly every meeting, the Fed has been teasing of another rate hike but when push comes to shove, they back off and do nothing.

Gary’s Thoughts: Sickening we have to wait on a speech from people that have done nothing more than screw savers and created massive bubbles around the globe. If I was Prez, they would be back to teaching their nonsense.

The Morning Look

Market Update:

Stock futures are quiet ahead of Friday’s open as the market waits for GDP and Yellen’s speech from Jackson Hole, WY.

Gary’s Thoughts: 10 am Yellen speech…blah blah blah! We’ll have big report for you on Sunday. And do not forget…WE ARE NOW INTO END OF MONTH WINDOW DRESSING…even though it is illegal to window dress so it does not happen!

Economic Data:

  • GDP 8:30 AM ET
  • International Trade in Goods 8:30 AM ET
  • Corporate Profits 8:30 AM ET
  • Consumer Sentiment 10:00 AM ET
  • Janet Yellen Speaks 10:00 AM ET
  • Baker-Hughes Rig Count 1:00 PM ET

Highlights:

  • Chinese Takeovers Trigger Global Backlash Ahead of G-20 Summit
    Gary’s Thoughts:  Will they pay for paying up? 
  • Uber Loses at Least $1.2 Billion in First Half of 2016
    Gary’s Thoughts: Wow…did not know this. No wonder they haven’t gone public. That’s a lot of cake.

Didn’t the President who never lies tells us premiums were coming down?

Source: http://www.wsj.com/articles/obama-administration-seeks-to-ease-concerns-over-health-insurance-spikes-1472061666

Crappy capitalism-Mylan!

Yesterday on Fox Business, we noted that Mylan kept raising prices on the Epipen because they could get away with it. There was no one else in the market and anyone who tried to compete, was slowed down by an ineffecient and ineffective approval system as well as politics. They have now been found out to be a bunch of greedy #@%#@ that took advantage of a monopoly. We then went on to say the outcome will be the CEO having to answer questions on Capital Hill and that Mylan would lower prices.

Already, this morning, Mylan lowered prices on the Epipen…BY OFFERING BIGGER COUPONS. We are not sure exactly what that means but let’s just say they cut the cost. We are now sitting here watching the CEO on TV claiming it is not their fault. It is the system’s fault. A simple question comes to mind: WHO IS SHE TRYING TO KID? This is simply a case of mindless greed…nothing more, nothing less. This is a case of crappy capitalism where someone tries to make more and more off the backs of consumers off of their drug monopoly and only when there is blowback do they do something different.

We wholeheartedly believe in capitalism. We do not believe in crappy capitalism and we certainly do not believe in bull—t artists like this CEO who is not doing her company a service by blaming their assinine price hikes on everyone else but themselves.

 

The Closing Look

Stocks slid on Wednesday, dragged lower by a steep decline in Gold and Silver. Gold and Silver stocks have been one of the strongest areas in the market all year but are now in pullback mode as they recently placed a near term top and broke below their respective 50 DMA lines on Wednesday. Economic data was mixed. Existing home sales slid by -3.2% last month to 5.39 million units, missing the Street’s estimate for 5.52 million. A separate report showed that home prices edged higher by 0.2%, also missing estimates for a gain of +0.3%.

Gary’s Thoughts: Crummy day. Our thoughts on gold/silver coming to fruition but that was ugly in the stocks. Market hit decently, especially healthcare. Probably on Hillary yapping about Mylan. We are actually complimenting her (really) as Mylan took advantage of a monopoly. Egregious and greedy come to mind.

The Morning Look

Market Update:

Stock futures are lower ahead of Thursday’s open as the market pulls back ahead of GDP and Yellen’s speech on Friday.

Gary’s Thoughts: A little more downside off of yesterday. Tomorrow, Yellen speaks. Hope she gets laryngitis.

Economic Data:

  • Durable Goods Orders 8:30 AM ET
  • Jobless Claims 8:30 AM ET
  • Bloomberg Consumer Comfort Index 9:45 AM ET
  • EIA Natural Gas Report 10:30 AM ET
  • Kansas City Fed Manufacturing Index 11:00 AM ET
  • Fed Balance Sheet 4:30 PM ET
  • Money Supply 4:30 PM ET

Highlights:

  • Gold and Silver stocks fell hard on Wednesday
    Gary’s Thoughts: Saw it coming but that was harsh.
  • Ford to Recall 91,000 Cars to Fix Fuel-Pump Issue
    Gary’s Thoughts: Recall city!

The Closing Look

Stocks rallied on Tuesday as investors digested the latest round of mixed economic and earnings data. Shares of Best Buy Co. Inc. ($BBY) gapped up after the retail giant reported earnings. The company said online sales helped last quarter and they are going to do more to win market share back from Amazon.com (AMZN). On the economic front, a few European PMIs were released and they did not show a major post brexit slowdown, as so many people had feared. In the U.S., new home sales in July unexpectedly jumped to the highest level in almost nine years. New home sales came in at 654k, beating estimates for 580k. A slew of housing stocks rallied on the news. Separately, the Markit Manufacturing PMI for August, came in at 52.1, missing estimates for 53.2.

Gary’s Thoughts: BBY sales growth…a big fat 0%. Otherwise, market better than Dow up 17 but not as good as Dow up 100. Gold/silver stand out as a continued topping process (for now). A few too many names now below 50 day.