The Closing Look

Stocks fell after most of Wednesday’s economic data strengthened the argument for another rate hike. ADP, the country’s largest private payrolls report, said private U.S. employers added 177k new jobs, beating estimates for 175k in July. Weekly mortgage applications rose by +2.8%, which was higher than last week’s reading of -2.1%. Elsewhere, pending home sales jumped +1.3%, beating estimates for +0.6%. Not all the data beat estimates, the Chicago PMI came in at 51.5, missing estimates for 55.2. In other news, crude oil sliced below its 50 DMA line after the EIA report showed inventories rose.

Gary’s Thoughts: Another drop but somewhat controlled but a bunch of areas stated in trouble. As long as financials and semis keep the bid, major indices should be ok.

The Morning Look

Market Update:

Stock futures are higher ahead of Thursday’s open as the Dow Jones Industrial Average pulled into its 50 day moving average line for the first time since Brexit. Elsewhere, UK factory orders jumped higher which helped alleviate concern that brexit would adversely affect their economy.

Gary’s Thoughts: A wee bit higher as market awaits tomorrow’s fake employment number. There has been some deterioration in a bunch of sectors but financials and semis still got the bid…

Economic Data:

  • Motor Vehicle Sales
  • Chain Store Sales
  • Challenger Job-Cut Report 7:30 AM ET
  • Jobless Claims 8:30 AM ET
  • Productivity and Costs 8:30 AM ET
  • Gallup Good Jobs Rate 8:30 AM ET
  • PMI Manufacturing Index 9:45 AM ET
  • Bloomberg Consumer Comfort Index 9:45 AM ET
  • ISM Mfg Index 10:00 AM ET
  • Construction Spending 10:00 AM ET
  • EIA Natural Gas Report 10:30 AM ET
  • Loretta Mester Speaks 12:25 PM ET
  • Fed Balance Sheet 4:30 PM ET
  • Money Supply 4:30 PM ET

Highlights:

  • Dilma Rousseff Ousted in Historic Brazil Impeachment Trial
    Gary’s Thoughts: Another corrupt socialist gone!
  • Oil’s Bear Market Is Hurting Commodity Economies: Canada economy has biggest quarterly drop in seven years
    Gary’s Thoughts: And its not getting any better just yet.

The Closing Look

Stocks fell on Tuesday as investors digested the latest round of economic data. The S&P  Case-Shiller Index slid -0.1% on a monthly basis and missed estimates for a gain of +0.1%. Overall, the index rose by 5.1% vs the same period last year. Elsewhere, consumer confidence rose to 101.1, beating estimates for 97.3.  Shares of Hershey (HSY) plunged after the company rejected the latest buyout offer. Finally, shares of Apple (AAPL) fell after the EU said it wants to fine them $14.5B.

Gary’s Thoughts: A little more deterioration…more to come.

The Morning Look

Market Update:

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

Gary’s Thoughts: Dollar/discount retail, Gold, silver, metals, mining, steel, utilities, reits (not all), retail (many), tobacco, other consumer staples,auto part retail, lots of healthcare…..notice more and more areas under pressure here. Does not mean the end of the world especially with financials getting good money flows. Just paying attention.

Economic Data:

  • Bank Reserve Settlement
  • Eric Rosengren Speaks 3:15 AM ET
  • MBA Mortgage Applications 7:00 AM ET
  • Neel Kashkari Speaks 8:00 AM ET
  • ADP Employment Report 8:15 AM ET
  • Chicago PMI 9:45 AM ET
  • Pending Home Sales Index 10:00 AM ET
  • EIA Petroleum Status Report 10:30 AM ET
  • Farm Prices 3:00 PM ET
  • Charles Evans Speaks 3:15 PM ET

Highlights:

  • SpaceX to Reach Another Milestone With Re-Use of Rocket Booster
    Gary’s Thoughts: Hoping for success.
  • Lamborghini Pivots to Target Women and Families
    Gary’s Thoughts: At $300,000 a pop?

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.