TUESDAY 8/12/14; Baghdad in Chaos Ahead of Potential Coup; NFIB; KATE; JOLTS; FOSL

Singapore Q2 GDP is +2.4% on target with expectations and above last quarter’s +2.1%. The NIKK climbs higher in the early going due to the weaker yen with the dollar/yen up to 102.26. Australia trades higher with miners strong. As the Aussie session continues the banks receive a strong bid resulting in an upside +1.3% rally for the SPASX200. The Thai holiday continues with Bangkok trading closed. The Nikkei Index finishes modestly higher up +0.2% with China stocks flat.

South Korea is pumping the markets and economy with easy money but the KOSPI ends the session only slightly higher. Money flows into Kia Motors gaining +2.2%. India stocks are +1% across the board with a party occurring due to the happy Tata Motors earnings and strong profits.

A convoy of 280 trucks are moving from Russia into the Ukraine providing humanitarian relief.




[Text is Redacted: Purchase August 2014-08 to Read the Complete Chronology]




 Clippers basketball team is official. As offensive and sickening the racist comments were by the prior owner, a sad day occurs in America since if you say something deemed offensive by a majority, authorities will step in and take your assets away.

The Crop Report indicates a record high corn crop expected although a hair under prior estimates. Corn price is printing at multi-year lows which will provide from the ongoing food inflation. High wheat yields are expected and soybean yields are also in line. Drought remains in southern States and especially out in California but overall a banner year for ag commodities is expected. Strong supplies and friendly weather conditions will keep prices lower.

Revel Casino is the fourth casino to close in Atlantic City, New Jersey, this year. Atlantic City is more a working-class destination so the ongoing structural underemployment and unemployment in America does not permit common folks to take gambling vacations anymore. The wealthy made richer by the Fed easy money policies gamble at more luxurious higher-class joints. Competition is far greater these days as well since the majority of States have changed laws to permit gambling. The casinos are the anchor that supports many local businesses so the social fabric of the city is torn to shreds with the closures.

Equities leak lower all day long on low volume. URBN trades higher on a Wunderlich upgrade. FSLR is added to the C focus list but trades -0.4%. Media stocks are weak.

At the closing bell, the SPX is down 3 points, -0.2%, to 1934. The Dow drops 9 points, -0.1%, to 16561. The COMPQ loses 12 points, -0.3%, to 4389.  The RUT small caps lose 9 points, -0.8%, to 1133. The VIX is down to 14.13 so volatility and the indexes both drop-one of them is wrong. The energy sector is weak.

After the close, KING is beaten -14% after revenue misses and the outlook is reduced. The Candy Crush game is a one-hit wonder. JDSU beats by a penny on EPS and the top line bears but the stock is down -6% due to lower guidance. CREE drops -6% on lackluster earnings and lower guidance. FOSL loses -0.5% after reporting strong earnings.