THURSDAY 5/1/14; China PMI; XOM; COP; MA; K; CLX; Fed Chair Yellen Speaks; ISM; KRFT; LNKD

China, South Korea and Hong Kong are closed for May Day holiday. Sony cuts earnings forecasts. China April PMI disappoints at 50.4 versus 50.5 expected. Interestingly, the China data lately has all ticked ever-so-slightly lower across the board so the PBOC and Chinese officials are likely massaging and walking the data down slowly to create the illusion of a slower growth but stable economy. Australia loses -0.8% with commodities, iron ore and mining companies dropping due to the weaker China data.

Asian markets are mixed in the thinner trading. NIKK is up +1.3%. Brokerage firm Nomura jumps +6.3% after announcing a buyback. Japan is now implementing the buyback strategy to pump stock prices higher learning from the US buyback play book last year and early this year. Shamefully, companies are not taking central banker easy money to invest in capital equipment or jobs but instead using the free dough to fund buybacks to pump stock prices higher so the wealthy, that own stocks, become wealthier.

UK manufacturing data is stronger than expected. UK house prices are at a 4-year high. The pound is 1.6910 at levels from 2009. The FTSE is higher in thin trading. Much of Europe is closed from trading today for May Day. Germany and France are closed. Lloyd’s Bank gains +4.4%. BSkyB gains +3.2%. A suspicious package is found at 1 Churchhill Place in the UK, where Barclay’s Bank is headquartered, near where a bomb exploded years ago. Italy’s FM Padoan says the euro will likely not weaken anytime soon. European officials continue to play down the deflationary threat.

The IMF approves $17 billion in funds for Ukraine. Talk develops about a potential split of East Ukraine from Ukraine since all control is lost in the region. Russia continues aggressively moving west and the G7 sanctions do not have an impact. The US says that any Russia aggression against a NATO nation will be an act of war. The rhetoric is increasing as Putin takes over East Ukraine just like he took over Crimea. Violence and unrest continues in Turkey as police use water cannons and tear gas against May Day protestors during a May Day rally that tries to march to Taksim Square.

[Text is Redacted: Purchase May 2014-05 to Read the Complete Chronology]

MWW misses with earnings and is beaten -18%. Funds may have to start dumping Monster Worldwide if the price falls under the important five dollar level. TMUS gains +8.1% on the Sprint takeover talk. WLT is slapped -4% as coal cannot receive any love. Walters Energy has a 50% short interest and will likely receive a strong upside short-covering rally soon. INVN collapses -18% after lowering forward guidance.

At the closing bell, the SPX, Dow and RUT are flat with the Nasdaq gaining +0.3%. YELP created good will in tech and high-flying stocks today boosting the Nasdaq. The Dow and SPX did not print any new all-time highs. The SPX remains stalled at the 1884 resistance. TRAN gains +0.6% as the trannies are near creating another new all-time record high which will firmly verify the stock market rally from a Dow Theory perspective. The Treasury yields drop to multi-month lows. The 10-year yield is 2.62%.

After the bell, EXPE beats by a penny with a slight revenue beat and bounces +1.8% in AH trading. KRFT beats on EPS but misses on the top line. LinkedIn beats on earnings but guides flat to lower. LNKD is smacked -2.6% but drops like a stone to -4.2% as the conference call occurs. AKAM beats. OPEN drops -6.1% on disappointing earnings. Wynn Resorts beats strongly and the gambling business remains robust with WYNN popping +3.6%. OUTR gains +2.4% after beating on earnings and maintaining forward guidance. WU drops -0.4% beating on EPS but missing on the top line.

Barclay’s says the US economy is shrinking. Clients of brokerage firms such as Fidelity are requesting that data feeds be routed through the new IEX Exchange to negate the effects of HFT. The brokerage firms push back refusing to make the changes. High-frequency trading firms are at an advantage receiving the data feeds before other traders and investors.

Documents are released concerning the Benghazi terrorism incident on 9-11-12 and show that the Whitehouse may be involved in a cover-up in order to not lose the 2012 presidential election. The Whitehouse knew immediately that the Benghazi incident was terrorism but instead made up a story about an anti-Muslim video. Secretary of State Clinton repeated this story to the grieving families, in front of the four American coffins, vowing to bring the video perpetrator to justice. It may have all been a ruse, however, and if so, Clinton’s presidential aspirations in 2016 would be in jeopardy. The allegations are serious and bring back memories of Watergate and the Clinton-Lewinsky affair as these scandals slowly unraveled. To this day, no one knows where the president was on the evening of the terrorist attack, 9-11, of 2012.