WEDNESDAY 5/7/14; Fed Chair Yellen Speaks; 10-Year Note Auction; TSLA

Asian markets fall the most in seven weeks with all indexes down about -1% or more. Japan and South Korean markets are trading again after the holiday. The NIKK drops -2.9% to the 14K level. Dollar/yen 101.45. Financials are slapped silly with Mitsubishi UFJ plunging -3% and Sumitomo Mitsui collapsing -4.5%. The weak Asian banks follow the lead of the weak US banks. Australia’s retail sales are weaker than expected. KOSPI -1%. The Korean Won is at a six-year high against the dollar. The New Zealand Dollar remains elevated but pulls back after central bank governor Graeme Wheeler warns that the currency can be sold to stem the rise. India loses -0.6% as the country prepares for election results on 5/16/14 only nine days away.

Analysts say a correction is underway for Chinese property stocks. China services data ..................





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SCTY’s EPS loss is bigger than expected but revenue is better and it pops +7%. TSLA collapses -8% despite beating on top and bottom line earnings. Tesla’s forward guidance is disappointing. Z jumps +3.6% after missing on EPS but beating on top line sales. Companies that are beating on the top line number are being rewarded since they show that growth is possible going forward. FOXA jumps +3.4% on an earnings beat with the media company benefiting from the Super Bowl advertising and cable growth. So the earnings releases are generally positive except for Tesla. This should help global markets continue a bullish party.

The House votes to hold Lois Lerner, the figure at the heart of the IRS scandal, in contempt. A resolution also passes asking for a special counsel to investigate the scandal. The voting is along partisan lines but 26 democrats do cross the line and call for further investigation into the IRS scandal.

Global citizens are rising up to strike on 5/15/14 against MCD and other fast-food restaurant companies such as BKW and YUM  to protest low wages. The world becomes smarter each day realizing the central bankers are simply making themselves and their wealthy friends wealthier at the expense of everyone else.

The Nigeria girl abduction tragedy continues with the radical Boko Haram leader selling girls into slavery for as little as $12. Nigeria is a major economic power in Africa. The Boko Haram trouble is mainly in northern Nigeria. The oil fields are in southern Nigeria nearer the coast and remain somewhat unaffected by the ongoing tragedy. The Muslim population is greater in the north while the Christian population is greater in southern Nigeria. International aid is arriving in Nigeria to help locate the missing girls.

The US Department of Transportation orders all rail carriers to notify communities if transporting volatile Bakken crude oil. There are no restrictions placed on rail car design as yet. From the strange but true department, a man is denied a marriage license because he wants to marry his Apple MacBook computer.