Thursday, April 30, 2015

FRIDAY 5/1/15; Global PMI’s; Labour Day; International Worker’s Day: May Day; CLX; CTB; CVS; DUK; FE; WY; ISM Mfg Index; Consumer Sentiment; US Stocks Rally; Copper Rallies +11% in 7 Days; BRKA

Labour Day, International Worker’s Day and other holidays have many world markets shuttered for this first day of May; May Day. Vietnam markets remain closed to complete a four-day holiday. Malaysia, Indonesia, Thailand and Singapore are closed on holiday. Malaysia remains closed on Monday and Thailand is closed until Tuesday.

Light volume trading occurs on the markets that are open. The SPASX200 gains +0.4%. The NIKK ends the session and week flat. Japan’s Consumer Inflation is +0.2% beating the +0.1% expectation. The core CPI is up +2.2% beating the +2.1% expectation and above the prior month’s +2.0% so Japan receives the tiniest whiff of inflation to make the BOJ happy. Japan’s household spending 

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 50 years as CEO of BRKA.

The Baltimore riots are calm after the city indicts six police officers on criminal charges in the death of Freddie Gray; the black man that died after he was arrested and in custody. Online services are restored for JPM and COF after software problems disabled the financial websites at noon time.

Euro 1.12. The euro moves sharply higher this week and US dollar index lower. USD 95.21. Dollar/yen 120.16. Pound 1.5139. WTIC oil is at 59.26 at the highs for the year. Brent oil 66.46. Natty gas 2.769. Gold sinks to 1177. Silver 16.115. Copper 2.94.

Treasury yields are; 2-year 0.60%, 5-year 1.50%, 10-year 2.12%, 30-year 2.83%. The 2-10 spread is 152 basis points. The yield curve is steepening. The 5-30 spread is 133 bips. German bund 0.357%. Japan 10-year yield 0.38%.

THURSDAY 4/30/15; NIKK Mini-Crash; EOM (End of Month); Huge German Bund Selloff; Personal Income and Outlays; ADP; COP; XOM; BZH; RYL; CY; MOS; Chicago PMI; US Stocks Selloff; AIG; GILD; V; EMN; EXPE; FLS; LNKD

The computer screens for the Asian indexes are a sea of red as the week of trading ends for many nations. Tomorrow is Labor Day with many markets closed. The BOJ leaves monetary policy unchanged as expected. The vote is 8 to 1. The BOJ continues to expect CPI to move steadily higher reaching the 2% inflation target during the first half of 2016. Japan pushes inflation targets further into the future due to the lower oil prices. The Nikkei Index prints the biggest loss in four months. The NIKK (the Nikkei Index was closed yesterday due to Showa Day) plummets 539 points, -2.7%, to 19520. HMC reports disappointing earnings and pukes -7%. Sony provides lower guidance. 

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JDSU drops -4% after reporting results. DWA drops -6%. SWKS gains +4% on an earnings beat.

The Maersk cargo ship abducted by Iran remains under their control and is holding $3.6 million in merchandise. The US Navy is accompanying all US ships travelling through the Strait of Hormuz where the US-friendly UAE is at the south shore and adversary Iran is at the north shore of the strait. Middle East tensions increase boosting oil prices.

Wednesday, April 29, 2015

WEDNESDAY 4/29/15; IP; LL; MA; MDLZ; NOC; NSC; FCAU; GRUB; HLT; HOT; GDP (Gross Domestic Product); European Stocks Mini Crash; FOMC Announcement; NXPI; PPC; MAR; SAM; VRTX; YELP

Japan trading is closed for the Showa Day holiday. The SPASX200 is beaten -1.9% with all major sectors lower. The KOSPI is down -0.2%. Samsung Electronics reports profits in line with expectations. Samsung is the top unit volume smartphone maker.

The SSEC is flat at 4477. The HSI drops -0.2%. The PBOC continues to support China’s economy with bank-friendly programs.

There is a shake-up in the Saudi Arabia political family structure. King Salaman names Interior Minister Mohammed bin Nayef as the new heir to the throne. Salaman’s son, Defense Minister Mohammed bin Salaman, is now second in line to succeed the king. King Salaman is placing younger more loyal faces higher up in the House of Al Saud hierarchy.

The Nepal earthquake tragedy continues as aid and rescue efforts fall far short of the need. The death toll is over 4600 and continues climbing.

Baltimore riots continue overnight but the situation is far less violent than the previous evening. The 10 PM EST curfew takes effect and groups of protestors refuse to leave the streets. One dozen arrests are made and law enforcement and the National Guard are restoring order.

European indexes begin the session moving higher but shortly after the opening bell fall on their sword. The FTSE, CAC and DAX trade dead flat. At 3:40 AM EST, S&P -3. Dow -26. Nasdaq -13. Euro 1.0995 a whisker from 1.10. Dollar/yen 118.92. Pound 1.5389. Aussie dollar 0.7993.

Oil trades lower. WTIC oil 56.67. Brent oil 64.36. Natural gas 2.53. Gold 1209. Silver 16.52. Copper is down -0.5% to 2.7745.

Treasury yields are; 2-year 0.56%, 5-year 1.40%, 10-year 1.99%, 30-year 2.69%. The German bund yield is running higher above 0.2% to 0.213%. A few hours ago the bund yield was under 0.16%. Japan 10-year yield 0.307%.

VW bounces +0.8% after beating on earnings. Norsk Hydro forecasts a 3% increase in demand for aluminum for 2015 ex China. Auto makers such as F moving to aluminum vehicle bodies are supporting demand. UK retailer Home Retail trades higher on strong profits. Retailer Next is up +2% beating sales expectations. Subsea 7, an oil services firm, jumps +4% after beating earnings expectations. BCS drops -0.7% after announcing plans to set further funds aside for litigation costs. Stainless steel company Outokumpu collapses -7%. KRFT trades down -0.8% after last evening's earnings.

The ECB plans to 

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 rollout of the Apple Watch after finding a defect in the watch. The ‘tapping’ functions of the watch are not working properly and a Chinese supplier AAC Technologies is blamed. AAPL has to scrap watches that were assembled and ready for shipment. Delivery delays are expected as Apple addresses the problem. Apple refuses to provide further comment. The early adopters and Apple cult enthusiasts receive a slap to the face. AAPL drops -0.5% in afterhours trading.

Monday, April 27, 2015

TUESDAY 4/28/15; Japan Retail Sales; UK GDP; AET; WHR; MAS; F; CNX; CMI; UPS; MRK, PFE; BMY; JBLU; VLO; AAPL All-Time High; Two-Day FOMC Meeting Begins; Consumer Confidence; AKAM; TWTR; BWLD; X; CLF; EIX; WYNN

Japan Retail Sales disappoint down -9.7% missing the -7.3% expectations. Traders will likely expect more stimulus from the BOJ after their meeting this week due to the weak data so the Nikkei Index will probably trade higher. The central bankers are the market. Oil trades lower. WTIC oil 56.27. Brent oil 64.15. Gold is steady at 1202. Copper drops -0.6% to 2.7610.

Asian indexes trade generally lower overnight following the weakness in the States with the NIKK up +0.4%. Fanuc, the industrial robot maker, trades higher after raising its dividend. HMC reports higher revenue but operating profit drops. Honda blames the weaker yen for the lackluster performance since many factories are now located internationally closer to the end users and do not benefit as much as other auto manufacturers from the weaker currency. HMC squeezes out a +0.3% gain. Komatsu drops -3% after earnings.

The SPASX200 drops -0.6% as the 6000 level, not seen for seven years, remains elusive. Gold miners trade higher. The KOSPI loses -0.5%. Korean auto makers trade down while shipbuilders trade higher. Bangkok SET loses -1.3% and the Jakarta Composite drops -1.2% down for the fifth consecutive day due to weak earnings out of Indonesia. The SSEC prints a rare down day losing -1.1%. The HSI is flat.

The Nepal earthquake death count exceeds 4000. The death toll may reach 10000 making the disaster worse than the 1934 quake.

The Baltimore, Maryland, USA, riots continue overnight as law enforcement receives criticism over the handling of the situation. Fires and looting is rampant for this major US city. Curfews are in effect today to try and restore order. Schools are closed and the only folks that should be on the streets are those commuting to and from work.

European indexes sell off from the opening bell. Greece PM Tsipras limits the duties of the flamboyant and controversial FM Varoufakis reshuffling the bailout negotiation team. The ECB and Eurogroup officials were very unhappy dealing with Varoufakis. German Chancellor Merkel says Russian sanctions will likely be renewed. BP and Total each gain +1.3% after both report profits above expectations. Spain’s Santander bank is up +0.7%. Daimler gains +2.4% after releasing earnings. AAPL trades +1.6% higher in Frankfurt.

At 4:11 AM, the DAX is down -0.4%. CAC -0.8%. FTSE -0.7%. IBEX is marginally lower. Greece stocks gain +0.4%. US futures are negative. S&P -5. Dow -34. Nasdaq -5. Euro 1.0872. Dollar/yen 119.08. Pound 1.5230. Aussie dollar 0.7880.

WTIC oil 56.49. Brent oil 64.30. Natural gas 2.47. Gold 1201. Silver 16.37. Copper is flat at 2.7775.

Treasury yields are; 2-year 0.54%, 5-year 1.35%, 10-year 1.93%, 30-year 2.62%. German bund 0.161%. Japan 10-year yield 0.30%. UK 10-year yield 1.697%. Greece 10-year yield 11.51%.

At 4:30 AM, UK GDP is disappointing at +0.3% month on month versus +0.5% expectations the weakest read since Q4 2012. The pound drops to 1.5185. January was a soft month. European stocks weaken as the session continues. DAX -1.5%. CAC -1.9%. FTSE -1.3%.

Today is a huge and important earnings day providing a wide cross section of companies providing broad-based insight into strength of the economy. At 6 AM, AET trades marginally lower in the pre-market after beating on EPS but missing on the top line. F misses on the top and bottom lines and is whacked -2%. European auto sales are weak and Ford reports a slowdown in sales at small Chinese cities. COH is bludgeoned -7% after reporting weak earnings. AAPL is running strongly higher in pre-market trading up +2.5% near 136 a new all-time record high.

Pfizer beats by two cents on EPS and on the top line at $10.86 billion versus $10.76 billion expected. PFE drops -0.7%. MRK gains +4.2% after beating on the top and bottom lines and providing strong guidance. BMY drops -1% after earnings.

At 7:20 AM, S&P -9. Dow -83. Nasdaq -9.

WHR drops -1.4% after 

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 potential violence but the general expectation is that the evening will be peaceful. Protestors are in the street but the demonstrations are calm and orderly. Baltimore Mayor Stephanie Rawlings-Blake conducts a press conference donning a hat with the “UA” logo so the popular hip athletic retailer Under Armour receives free publicity. Tensions increase as the sun begins to set on Baltimore; the curfew is 10 PM EST.

Sunday, April 26, 2015

MONDAY 4/27/15; SCCO; PMI Services; AAPL; BXP; PCL; RCII; SWFT; SPX All-Time Record High; COMPQ 15-Year Record High; Baltimore in Chaos

Asian indexes are set to begin a new week of trading. At 9:05 AM Sydney, Australia time (7:05 AM Shanghai, China and Hong Kong, Hong Kong time; 8:05 AM Tokyo, Japan time; 7:05 PM EST Sunday evening in the United States), the Aussie and Japan futures are set for a higher open following the Friday euphoria in the States. Australia, Japan and South Korea stock markets begin trading in one hour (10 AM Sydney time and 9 AM Tokyo and Seoul, South Korea time).

US futures are a touch above the flat line. S&P +1. Dow +6. Nasdaq +5. The tech joy from Friday calms. Euro 1.0865. Dollar/yen 118.90. USD 96.95. Pound 1.5175 (sterling was under 1.50 last Thursday morning). Aussie dollar 0.7824.

WTIC oil 57.21. Brent oil 65.44. Natural gas 2.48. Gold 1179. Silver 15.75. Copper is down -0.3% to 2.7445.

US Treasury yields are; 2-year 0.50%, 5-year 1.31%, 10-year 1.91%, 30-year 2.61%. The 2-10 spread is 141 bips.

DB Q1 profit is cut in one-half as legal charges hamper the bank. Deutsche Bank plans a strategic overhaul of operations. The power struggle at Volkswagen ends with long-time chairman Ferdinand Piech, and his wife Ursula a board member, resigning. Martin Winterkorn wins the battle and will take over control of VW Europe’s largest car manufacturer.

Tremors and aftershocks continue in Nepal with the death count increasing to 2500. The monetary cost of the major quake will likely total about one-third of the poor country’s GDP. 80% of the houses in the area of the quake in and around Kathmandu are leveled. World nations are providing aid and rescue and recovery support.

The SPASX200 begins trading up +0.4%. Aussie dollar 0.7834. The NIKK begins trading flat. Dollar/yen 118.83. The KOSPI is up +0.3%. The Korean Won is at 1076.43 with a six-week rally in play.

Asian indexes end the session with Australian stocks at seven-year highs. The SPASX200 gains +0.8% to 5983. Iron ore prices jump +5% printing at $57 per tonne a six-week high. Fortescue Metals catapults over +16% higher. Rio Tinto is up over +3% and BHP Billiton gains nearly +2%. The NIKK finishes marginally lower down -0.2% dropping under 20K to 19983. KOSPI -0.1%.

Chinese stocks continue the parabolic move higher as traders expect more stimulus from the PBOC. The SSEC gains +3.1% printing seven-year highs day after day. The HSI gains +1.3% to 28434 the highest print since late 2007. Chinese and Hong Kong traders, including dishwashers, housewives and taxi drivers, are taking their life savings and investing in the stock market regardless of price since they do not want to miss out on the huge increases day after day. The PBOC is creating the same distorted markets as the Fed, BOJ, ECB and other central bankers create in their markets. The Jakarta Composite drops -3.4% due to weak earnings releases.

Boko Haram Islamist radicals are attacking the Niger Island Army complex at Lake Chad over the last two days. Boko Haram continues to expand the Islamist caliphate across northern Africa. Cyber criminals take over TSLA’s and CEO Elon Musk’s TWTR accounts posting erroneous messages including an offer for free Tesla cars. The disruptions continue as Twitter engineers work to resolve the problem.

European indexes jump higher out of the gate but the joy is short-lived with stocks reversing course and turning negative during the first one-half hour of trading. At 3:38 AM EST, the DAX is down -0.4%. FTSE -0.5%. IBEX -0.9%. MIB -1%. CAC -1.2%. US futures retreat from the overnight highs. S&P -1. Dow -9. Nasdaq +4. AAPL is up +1.1% in Frankfurt trading ahead of the earnings release today boosting the Nasdaq futures. Euro 1.0875. Dollar/yen 119.17. The pound is 1.5173 at a seven-week high. The Aussie dollar is 0.7820 remaining buoyant with the higher iron ore prices.

WTIC oil 57.00. Brent oil 65.18. Natural gas 2.48. Gold 1183. Silver 15.84. Copper is up +0.3% to 2.76.

US Treasury yields are: 2-year 0.52%, 5-year 1.32%, 10-year 1.91%, 30-year 2.60%. The 2-10 spread is 139 basis points. German bund 0.14%. Italy 10-year yield 1.477%. Spain 10-year yield 1.437%. UK 10-year yield 1.648%.

The UK election is only 10 days 

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Baltimore burns. There are fires and rampant looting occurring all night long. People complain about mistreatment by police for years and the death of the man in police custody is the straw that broke the camel’s back. Three people are shot in Brooklyn, New York, and fears grow that the violence is spreading to other American cities. Social unrest is on the rise in the United States. The Federal Reserve has rewarded the rich over the last six years with their easy money policies while ignoring the middle class and poor and now the lower social classes are fighting back against the establishment.

SUNDAY 4/26/15

The death toll from the Nepal earthquake rises to 2000 with nearly 5000 injured. Aftershocks of 6 magnitude and greater continue. Many remain buried alive inside buildings with rescue efforts intensifying. Avalanches 

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unclassified emails were read by the cyber criminals. Government officials claim, however, that no confidential information has been compromised.

Saturday, April 25, 2015

SATURDAY 4/25/15

A cash register and computer system outage disrupts sales in 8000 SBUX stores in US and Canada Friday evening into early Saturday morning but operations are back on line. Starbucks expects all stores to reopen today.

A 7.9 magnitude earthquake 

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 Advertisers, journalists, lobbyists, business leaders and celebrities schmooze each other playing the political game of influence peddling. The Washington elite, grossly out of touch with the rest of America, enjoy an evening of luxurious dining, fine wine and entertainment.

Thursday, April 23, 2015

FRIDAY 4/24/15; Greece Meeting; Arbor Day; AAL; BIIB; SPG; STT; TYC; Durable Goods; SPX, COMPQ and NYA All-Time Record Highs; AMZN, GOOGL, MSFT and SBUX Explode Higher

Asian indexes are set for a flat to marginally higher open. New Zealand is hit with a strong 6.3 magnitude earthquake. Buildings and houses are damaged. The NIKK loses -0.8% during the session to 20020. Japanese airlines are weak. The NIKK is up +2% this week.

Aussie stocks are strong with the SPASX200 up +1.5% providing enough strength to create a +1% gain this week. Energy and materials stocks run higher and Australia is optimistic that the PBOC will 

[Text is Redacted: Purchase April 2015-04 to Read the Complete Chronology]

 Financial author James Altucher says, “The reality is we’re at the all time highs in the stock market and it’s going to continue.” Altucher says every time someone says something bad about the stock market they are wrong. Altrucher says “the reality is that we are at all-time highs in the stock market and its going to continue.”

7000 SBUX stores in the United States and 1000 in Canada close due to cash register and computer system problems. The outages begin at 7:30 PM EST. Starbucks remains cryptic concerning the outage chalking it up to “technical difficulties.” Starbucks Evolution Fresh and Teavana stores are also affected.

THURSDAY 4/23/15; Global PMI’s; St George's Day; ABBV; GM; MMM; MO; CAT; DOW; LLY; PEP; UNP; PG; New Home Sales; SPX and COMPQ New All-Time Record Highs; AMZN; GOOGL; MSFT; SBUX

The NIKK gains +0.3% to 20188 printing new 15-year gains each day on rumors of more BOJ stimulus. Japanese banks and brokers trade higher. Sony drops -1.6% despite raising earnings forecasts. Australian stocks are marginally higher. SPASX200 +0.2%. Fortescue Metals leaps +10%. The KOSPI is up +1.4% and is very strong in recent days. The stock buying frenzy in China is filtering into South Korea. Hyundai Motor, SK Hynix and LG Display lead higher. South Korea growth numbers are meeting and beating expectations.

China HSBC PMI manufacturing data disappoints at 49.2 a one-year low. The consensus forecast was 49.6. China’s official PMI is 50.1. Metals and aluminum trade lower on the disappointing numbers. The SSEC gains +0.4% since weak economic data means more stimulus from the PBOC to goose stocks higher. The global central bankers have created a sick world. The HSI is down -0.4% giving up strong gains earlier in the session. Chinese banks, gaming and entertainment companies trade lower. 

The Chile Calbuco volcano erupts with fire, smoke and ash causing the evacuation of thousands of people within 10 km (6.2 miles). Flights are cancelled in Chile and Argentina. Chile declares a state of emergency.

European indexes trade higher out of the gate but quickly fade and begin a steady downward path printing red numbers. European manufacturing data surprises to the downside. German factory orders are slowing.

Emergency liquidity assistance (ELA) is provided for Greece to provide breathing room for the troubled nation. The ECB and European officials are waiting for a detailed reform package from Greece for the last two months. “Grexit” refers to Greece exiting the euro and C introduces a new moniker “Grimbo” a word to 

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 been involved in influence peddling (performing tasks for cash) and fraud. A couple of intrepid reporters are researching a trail of cash and favors. The news will hamper Hillary Clinton’s presidential aspirations.

The Senate approves President Obama’s selection for the new Attorney General Loretta Lynch. Saudi Arabia begins airstrikes against the Houthi rebels in Yemen again. The US Navy is watching and trailing Iranian-ships in the waters south of Yemen and Oman suspected of supplying arms to the Houthi rebels.

Wednesday, April 22, 2015

WEDNESDAY 4/22/15; NIKK 20K; SSEC 4400; Greece 3-Year Yield 30%; Earth Day; Administrative Professionals Day; BA; BK; MCD; KO; DHI; OC; Existing Home Sales; T; FB; TXN; EBAY; PBR

Japan and China stocks close at multi-year highs. The NIKK closes above 20K for the first time in 15 years. The Nikkei Index gains +1.1% to 20134. Japan exports are stronger than expected but imports weaker than expected. Japanese banks and securities firms leap from +3% to +7% higher. The BOJ may abandon its +2% inflation target to the +0.5%-1.0% range citing the drop in oil prices. The central bankers are the market and conveniently when a goal cannot be reached despite the obscene money printing (+2% inflation goal), then simply lower the bar so the goal can be attained more easily.

Australia stocks trade lower with the SPASX200 down -0.6%. Aussie inflation is running at +1.3% annually. Aussie dollar 0.7766. Australian banks are weak since interest rate cuts remain on hold. S&P cuts the rating on Fortescue Metals. The KOSPI is flat. Steel maker Posco falls -4% on weaker than expected earnings.

The SSEC jumps +2.5% to 4400 another seven-year high (February 2008). The Shanghai Index is parabolic and the increase in margin requirements on the over-the-counter stocks on the weekend has no effect on dampening the euphoric rally. The SSEC is up from 3200 to 4400, 1200 points, +38%, in only 33 days. The Shanghai is rising at the rate of 36 points, +1.2%, per day for the last two months! No wonder the market is in frenzy with cab drivers, dishwashers, housewives and folks of modest means throwing money at the market. Infrastructure stocks trade strongly higher. The HSI gains +0.3% at 27934.

The NIKK, SSEC and HSI indexes are pumped higher by the BOJ and PBOC central bankers with the remainder of Asian markets negative overnight. The happiness in Asia cascades to Europe.

European indexes begin trading running higher. The DAX and MIB are each up +0.7%. CAC +0.6%. FTSE +0.2%. Greece FM Varoufakis says there is “clear convergence” to reach a deal but not at Friday’s important meeting of European finance ministers. The optimism creates a happy mood. The Greece 3-year yield is 29.63% after teasing above 30% a level not seen since the 2012 European turmoil. A UK poll, about three weeks in front of the election, shows David Cameron’s Conservative Party trailing Britain’s opposition Labour Party by two percentage points.

UK grocer Tesco rises nearly +4% after reporting a record annual loss and expecting a challenging environment going forward. French luxury goods provider Kering loses -5%. Luxury goods maker Richemont drops -1.5% on disappointing sales. Swedish carmaker Volvo jumps +13% on news of robust profits and a change of CEO leadership. Drug maker Roche bounces over +2% on strong sales. Chip equipment maker ASML jumps +8% on new orders for their specialized machines.

US futures spike higher after the European opening bell. S&P +6. Dow +52. Nasdaq +14. Euro 1.0758. Dollar/yen 119.56. Pound 1.4953. Aussie dollar 0.777.

Oil drops on less tensions in the Middle East after Saudi Arabia ends the Yemen airstrikes. Oil inventories also remain high pressuring prices lower. EIA Oil Inventories are released at 10:30 AM EST. WTIC oil 56.01. Brent oil 61.61. Natural gas 2.56. Gold is 1203 continuing to oscillate above and below the 1200 level. Silver is 16.04 remaining sticky at 16. Copper is flat at 2.7065.

US Treasury yields are; 2-year 0.52%, 

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corruption scandal. PBR trades down -2.6%. Many questions remain for the troubled Brazilian oil giant.

The bullish market sentiment continues. The TRIN Arms Index drops to 0.42 indicating uber bullish euphoria. Volatility remains subdued. VIX 12.71. Television commentator Larry Kudlow continues his bullish mantra telling investors to “buy any and all dips.”

Tuesday, April 21, 2015

TUESDAY 4/21/15; Cascading Global Rally; Kaisa Default; BHI; DD; ITW; KSU; LMT; TRV; UA; UTX; VZ; BRCM; NBR; YHOO; YUM

Asian indexes perform the reverse of yesterday up across the board except for South Korea that finishes a touch lower. Global stocks run higher due to the PBOC cutting the reserve requirement ratios for banks on the weekend. Increased bank lending should spur global economic activity. NIKK +1.4%. SPASX200 +0.7%. KOSPI -0.1%. The SSEC gains +1.8% above 4294. The HSI catapults +2.7% above 27850.

Japan stocks such as Mitsubishi Electric and TM gain +3.5% and +2.2%, respectively. RBA meeting minutes show that Australian bankers want to wait for more economic data before committing to interest rate cuts. Aussie dollar 0.7696. The KOSPI takes a rest down marginally ending a seven-day winning streak. South Korean brokerage companies such as Samsung Securities and Hundai Securities are each down -3%.

The Shanghai Index is at new seven-year highs. Chinese real estate developer Kaisa defaults on two debt payments for 2017 and 2018. Investors are increasingly concerned over the debt problems that may surface for Chinese companies. Kaisa is the first Chinese property developer to default on US debt.

European indexes open for trading and launch higher feeding off the rally in Asia. The DAX is up over +1% in quick order and the CAC climbs over +0.5%. The ECB is preparing for curbs on Greek banks. Greece is cash deficient instructing all nation banks to provide available cash to the government. The deadlines continue to extend with July now targeted as the date that Greece will be completely out of money. Nonetheless, Greece is running out of time and has to choose its path forward during the coming weeks. Former ECB-head Jean-Claude Trichet says, “No one is optimistic about Greece.” Greece ASE is down -3.2%.

EU leaders meet today to discuss the humanitarian situation where migrants are fleeing war torn areas such as Libya and end up dying in the Mediterranean Sea from overloaded and unstable ships. The ship tragedy on the weekend killing hundreds is forcing leaders to step in and find a solution to the growing refugee problem from ongoing Middle East regional wars.

TEVA is up +2% and MYL gains +10% on news that Teva Pharma will make a formal bid for Mylan. It would be the largest takeover deal of the year but Mylan has already downplayed the potential takeover. Cosmetic maker L’Oreal reports strong sales. Sky Plc gains +5% after reporting the strongest sales in a decade and high demand for its pay-TV offerings. Credit Suisse faces challenges moving forward as the CEO change occurs over the next couple months. CS trades down -3%.

The DOJ wants five large banks including JPM, BCS, C, RBS and UBS to resolve the litigation concerning foreign exchange market manipulation. Each bank would be expected to pay $1 billion or more in fines. An Egypt court sentences ex-president Mursi to 20 years in prison.

At 3:49 AM, European stocks are running higher with the DAX up +1.4%, CAC +0.9% and FTSE +0.6%. S&P futures +12. Dow +111. Nasdaq +29. Euro 1.0676. Dollar/yen 119.56. Pound 1.4877. Aussie dollar 0.7707.

WTIC crude oil 56.02. Brent oil 62.99. Natural gas is up +1% to 2.56. Gold 1195. Silver 15.95. Copper is down -0.7% to 2.7105.

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NBR beats on EPS expectations but misses on the top line. Nabors has canned nearly one in every five global employees ending last year. Nabors axed over 40% of its workforce in the US drilling operations and 26% at Canadian drill rigs. Rental company URI beats on the top and bottom lines an encouraging sign for economic activity.

Sunday, April 19, 2015

MONDAY 4/20/15; China Stimulus Creates European and US Stock Rally; MS; HAL; HAS; RCL; IBM; PKG; ZION

As Asian indexes prepare for the new week of trading (7 PM EST Sunday evening in the States), China futures are down from -3.4% to -6.0%. The HSI futures are down -2.6%. S&P futures are +5. Dow +38. Nasdaq +7. Euro 1.0790. Dollar/yen 118.99. Pound 1.4951. Aussie dollar 0.7796.

WTIC oil 56.18. Brent oil 64.03. Natural gas 2.59. Gold 1204. Silver 16.26. Copper is up +1.5% to 2.8095 receiving a big boost from China’s triple R cut that should spur bank lending and increase economic activity.

US Treasury yields are; 2-year 0.51%, 5-year 1.31%, 10-year 1.87%, 30-year 2.52%. The 2-10 spread is 136 points.

New Zealand inflation data surprises with the indicators showing disinflation rather than inflation. Taco Bell opens a store in Japan and is exploring other markets going forward; YUM will respond to the new plan in Monday’s trade.

March house sales rise in China. VW auto sales in China miss expectations. Chinese auto sales remain robust at +7% per year but are flatlining and no longer growing. Chinese real estate developer Kaisa remains in bankruptcy trouble with a large payment due today. China and Pakistan meet and agree on $28 billion in military and infrastructure trade deals. China is providing eight submarines to Pakistan.

Asian indexes finish red except for South Korea. NIKK -0.1%. Panasonic gains +2% on robust sales and profits. SPASX200 -0.8%. KOSPI +0.2%. India stocks are trading down -1% at three-week lows. Copper is on fire up +1.7% to 2.8165. Euro 1.0804. USD 97.437.

Chinese stocks are down but not as bad as the futures reactions late Friday and a few hours ago. SSEC -1.6%. The HSI is down -2% the largest loss in four months. The triple R cuts temper the negativity created by the new margin requirements for over-the-counter stocks. Chinese bank and brokerages stocks are slapped from -2% to -7%.

European indexes run higher out of the gate. Mining stocks are strong. The China stimulus announced yesterday (triple R cuts) boosts stocks. Greece remains a thorn in the side of Europe. ECB President Draghi says, “Greece must try to save itself” and their fate is in the “hands of the Greek government.” Greece FM Varoufakis warns that if Greece exits the euro contagion will occur across Europe.

Eurogroup head and Dutch Minister of Finance Jeroen Dijsselbloem says Greece is only 2% of the European economy. An emerging view may be that the ECB and European officials are viewing a Grexit (Greece exiting the euro) as manageable. They may be playing with fire. The Greece drama continues with two large debt payments due in early May. Greece has not yet provided a detailed reform package. The European finance ministers meet on Friday to discuss Greece.

At 4 AM, European indexes are up about +1% across the board including Greece. S&P +13. Dow +106. Nasdaq +22. Euro 1.0781. Dollar/yen 118.71. Pound 1.4960. WTIC oil 56.18. Brent oil 63.74. Natural gas 2.59. Gold 1207. Silver 16.28. Copper loses its overnight luster up +0.2% to 2.775 but threatening to slip negative.

Treasury yields are; 2-year 0.51%, 5-year 1.30%, 10-year 1.86%, 30-year 2.52%.

Millionaire Juha Sipila 

[Text is Redacted: Purchase April 2015-04 to Read the Complete Chronology]

 Islamist radical beheadings continue across Libya and the Middle East. The Whitehouse spokesman finally acknowledges that Christians are targeted by the Islamist militants but President Obama continues to refuse to call out Muslims for the escalating Holy War across the Middle East and northern Africa. No president wants a legacy of creating a Holy War in the Middle East. The president’s decision to pull all troops from Iraq created the growth of Islamist radicalism in Syria and Iraq that is now spreading internationally.

The Whitehouse continues to downplay the Islamist radicalism insisting that ISIS is not spreading to Libya, Yemen and Afghanistan but the news reports on the ground and group assassinations say otherwise. The Obama administration appears out of touch or in denial saying that ISIS is only active in Syria and Iraq.