MONDAY 5/19/14; CPB

The Indian Rupee is at a one-year high at 58.7825 continuing to strengthen after Modi’s election. ICN continues higher. Indian banks ICICI and HDFC catapult +10% and +6% higher, respectively. TTM +2.6%. The BSE is at 24122 and climbing with the Nifty above 7.2K. Nearly all assets are higher in India. Modi says he is “doing God’s work.” Indian ETF’s such as EPI and IFN move higher. S&P futures are +3.

Japan Machinery Orders jump strongly higher +16.1% far above expectations. The positive data dampens the expectations for more easing from the BOJ so the yen strengthens and the dollar/yen leaks lower. Dollar/yen 101.40. The NIKK dumps -0.6% overnight. The SSEC loses -1.1% and Australia’s SPASX200 is beaten -1.3% the worst performer in Asia. Iron ore prices continue to drop and miners lose from -1% to -4% across the board. The top Aussie banks drop about -1%. Thailand’s growth numbers are shrinking more than expected.

China property market data shows that a slowdown in the housing sector may be accelerating. New regulations are implemented in the banking sector to crack down on shadow banking. Chinese banks and property stocks tumble from -2% to -3% lower. Asia trades lower across the board with the exception of the KOSPI printing positive by a hair building on last week’s big +3% bounce.

Russia’s oil and gas giant Gazprom is up for eight consecutive days. Sanctions are a joke. NATO says there are no signs that Russian troops are pulling back from East Ukraine border areas but Putin says they have pulled back. BOE’s Carney says the UK house prices are the number one worry. European indexes open and trade flat to lower. Healthcare, basic resources and banks are lower. Qatar investors, the Royal Family, take a major stake in DB which trades -0.4%. CS drops -1.2% as talks to settle the fines from US regulators continue. Euro 1.3720. At 4 AM, S&P futures leak lower to -4.

PFE makes a final offer for AstraZeneca to $117 billion which is refused. AZN plummets -14%. T buys DTV for $48.5 billion the third largest deal this year. The global M&A in the telecom sector continues. GE continues to jump through hoops now seeking partners to win French approval for the Alstom deal.

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The SPX gains 7 points, +0.4%, to 1885. The Dow gains 21 points, +0.1%, to 16512. The Nasdaq leaps 35 points, +0.9%, to 4126. The RUT jumps 12 points, +1%, to 1114. The high-growth biotech stocks outperform. IBB +1.4%. Semiconductors also provide bull juice. SOX +1.1%. Utilities are sold off today with UTIL dropping -1.5%. TRIP gains +5.2%. WAG jumps +3.1%. AZN collapses -12%. CPB -2.4%. LifeLock dies with LOCK collapsing -18%. Pepsi announces and demonstrates the ‘Spire’ kiosk beverage dispenser innovation. Spire permits the consumer to mix their beverage of choice through a touch-screen selection process. PEP loses -0.5% but was lower earlier in the session. HD loses -1.1% with earnings on tap in the morning. Does someone know something ahead of time?

After the bell, Urban Outfitters misses on earnings with a 20% profit drop. The retailer is slow to embrace the new trend of ‘fast retailing’, which speeds the process of bringing fashion from the catwalk to the consumer. URBN is beaten -4.6%. GoPro, the head-mounted camera-maker popular with athlete’s, files for an IPO.