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Turkey Wars

turkey

      by Larry Levin   I wrote this last Thanksgiving but not only is it still relevant, it is still going on. NO resolution, NO overhaul. Are we surprised? From 2013: The turkeys are squabbling....the big turkeys that is. This Thanksgiving battle is not pilgrims versus Indians, but the big banks suing the regulators. JPMorgan Chase, Goldman Sachs and their other compadres are fuming over far-reaching new rules passed in the wake of the financial crisis. So guess what, they plan to haul the Commodity Futures Trading Commission to court. The banks, … [Read more...]

Disappointing Domestic Data Dents Early Gains

Stocks Swing

      The U.S. equity markets have pared gains in early action, as disappointing reads on domestic durable goods orders, jobless claims and personal income and spending are knocking some of the luster off of yesterday's stronger-than-expected 3Q GDP report. Meanwhile, volume is likely to be lighter than usual with the U.S. markets set to be closed tomorrow and trade in an abbreviated session on Friday in observance of the Thanksgiving holiday. Treasuries are trading higher on the data, which will continue to pour in after the opening bell, with reads on housing sales, … [Read more...]

Chuck

wallstrally

      by Larry Levin     I read an interesting op-ed that ran in the Wall Street Journal from Charles Schwab. I found it intriguing to read a Wall Street veteran that didn't sound like one of the high-priests of the Keynesian religion of economics. I hope you enjoy it too. For America’s 44 million senior citizens, plus tens of millions of others who are on the threshold of retirement, last month marked a watershed moment that is worth celebrating. At the end of October, the Federal Reserve announced the first step in returning to a more normal … [Read more...]

China and Eurozone Stimulus Hopes Boost Stocks

china

    The domestic equity markets are moving higher in late-morning action, with the Dow and S&P 500 notching more record highs. Global equities are getting a boost from surprising rate cuts in China, which were the first in more than two years. Moreover, European Central Bank President Mario Draghi suggested it may be nearing a full-fledged quantitative easing campaign to combat low inflation. Gold and crude oil prices are gaining ground, along with the U.S. dollar and Treasuries, with the domestic economic calendar light today as an upbeat read on regional manufacturing … [Read more...]

Muppets

Muppets1

      by Larry Levin   Yes, I have written about Goldman before but it's hard to ignore these stories. From Zero Hedge: If only the $3.2 billion Goldman Sachs Global Opportunities hedge fund had listened to the firm's equity strategists, life would have been great. However, as Bloomberg reports, the so-called 'best-ideas' fund dropped 5.6% in October leaving it down 2.6% for 2014 as interest-rate bets went pear-shaped amid the crash-and-dash that was October's market manipulation. "We believe monetary policy needs to catch up with growth, and that … [Read more...]

Stocks Retreat From Record Highs as Fed Report Looms

Downgrade

    After the Dow and S&P 500 notched more record highs yesterday, the domestic equity markets are trading lower in afternoon action, with the Street awaiting the release of the minutes from the Federal Reserve's October meeting. Meanwhile, a plethora of upbeat earnings reports from the retail sector are failing to boost stocks, with Target Corp beating the Street's quarterly forecasts, along with Lowe's Companies and Staples, while PetSmart topped analysts' profit forecasts and is getting a boost from buyout chatter. Treasuries are lower following the housing report, which … [Read more...]

Triple Dip

Triple Dip2

      by Larry Levin   Overnight we found out that things have gotten even worse economically in Japan. It has just recorded a triple dip recession. A recession is usually defined by a period of economic decline, or negative GDP, for two consecutive quarters. Double dip recessions are two recessions separated by a brief period of positive GDP, usually a month or two. A triple dip recession is simply extended by one more positive GDP surge, then right back into “negative growth,” which is where Japan finds itself today. The Japanese government … [Read more...]

Mixed Markets Amid Massive M&A Reports

M&A

    The U.S equity markets are mixed in afternoon action, with some large corporate deal news offsetting global growth concerns as an unexpected contraction in Japanese GDP growth for the second-consecutive quarter met the technical definition of a recession. Treasuries are trading lower despite the global growth concerns and as U.S. economic reports showed industrial production and capacity utilization both missed expectations and regional manufacturing growth accelerated by a slightly smaller amount than forecasted. In equity news, Dow member Pfizer agreed with Germany's Merck … [Read more...]

Pay Up

Pay Up2

      by Larry Levin   Yesterday I described how the banking cartel were able to fleece (read: screw) all FX traders (read: Muppets) over a period of many years. As usual, the fine did not nearly fit the level of crime committed by the cartel, which may be enormous. According to the Bank for International Settlements, there is at least a DAILY turnover of $5.35 trillion, while the FX rigging scandal went on for years. The penalty? $4.3 billion across all banksters in total...with a blue-light discount of 30% if paid early! In Part II, however, I would like … [Read more...]

Equities Modestly Higher Following Employment and Retail Reports

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      The U.S. equity markets are trading slightly to the upside in early action, despite a larger-than-expected rise in domestic weekly initial jobless claims, aided by Dow member Wal-Mart Stores' stronger-than-expected quarterly results. Meanwhile, Dow component Cisco Systems topped the Street's profit projections, but offered slightly softer-than-expected 2Q guidance, while Kohl's Corp missed analysts' earnings estimates and J.C. Penney Co missed quarterly same-store sales forecasts and issued a disappointing 4Q outlook. Treasuries are trading higher following the … [Read more...]