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  • Finance 0

    No Brexit? GBP/USD Shoots 100 Pips Higher

    There is more evidence that Britain will stay in the EU also after the June 23rd referendum, at least according to yet another opinion poll. This joins previous polls by YouGov, ICM and ORB that all showed the same trend. The IPOS Mori poll shows an absolute majority for the Remain camp at 55% and only 37% in the Leave camp. The 18 point margin is quite spectacular. Nevertheless, this poll shows that even if all the undecideds opt for leaving, the pro-EU campaign still enjoys a large advantage. Opinion polls on the Brexit question dominate the scene. We did have short intervals for economic indicators, but they had only an hour in the s...
    On May 18, 2016 / By
  • Finance 0

    Staples Q1 Earnings And Sales Beat Estimates

    Staples Inc. (SPLS – Analyst Report), a leading retailer of office products and services, released first-quarter fiscal 2016 results, wherein adjusted earnings of 17 cents a share beat the Zacks Consensus Estimate by a penny and came in line with the year-ago period. Management now projects second-quarter fiscal 2016 earnings in the range of 11-13 cents a share. Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 has remained unchanged over the last 7 days. In the trailing four quarters (excluding the quarter under review), the company underperformed the Zacks Consensus Estimate by an average of 1.8%. Revenues:...
    On May 18, 2016 / By
  • Finance 0

    Do We Finally Stop Othello?

    The ridiculous up/down/up/down/up/down we’ve been living with in this market for, what, the past 18 months or so – – could it end today? (OK, I’m being facetious; the toggling has only been going a couple of weeks, but it’s absolutely maddening). Looking at the nice bright red numbers on my screen, I suppose it’s possible, but I’ll only believe it when I see it. A big event would be if the ES can manage to crack 2030.   Even more crucial, though, is crude oil. Oil matters more than Kuroda, or Draghi, or that stinking never-worked-in-private-enterprise dwarf named Yellen. The weekly inventory report rolls out at 7:30 PST, as alw...
    On May 18, 2016 / By
  • Finance 0

    Goldman Compares Elon Musk To Steve Jobs And Henry Ford, Upgrades Tesla To “Buy” With $250 Price Target

    Goldman unexpectedly weighed in bearishly on stocks, tactically downgrading global equities to Neutral over the next 12 months “on growth and valuation concerns”. It added that “until we see sustained earnings growth, equities do not look attractive. This especially on a risk-adjusted basis” in what some see as a potential upward inflection point in the market now that the biggest taxpayer backed hedge fund is buying what its clients have to sell. Goldman decided to unveil another surprise this time upgrading one of the biggest momentum/growth stocks, Tesla (TSLA), to a buy with a $250 price target. From Goldman: Putt...
    On May 18, 2016 / By
  • Finance 0

    E Mid Cap Best & Worst Report – May 18, 2016

    The best mid cap sectors are utilities and basic materials. The highest scoring mid cap industry is oil & gas equipment & services. The average mid cap score is 55.32, which is below the four week average score of 55.73. The average mid cap stock in our universe is trading -23.19% below its 52 week high, 0.99% above its 200 dma, has 6.95 days to cover short, and is expected to grow EPS by 16.3% next year. Utilities, basic materials, industrial goods, and consumer goods score best in mid cap. Technology scores in line with the average universe score. Healthcare, financials, and services score below average. The following chart shows hi...
    On May 18, 2016 / By
  • Finance 0

    FTSE 100 Under Pressure As Brexit Vote Nears

    Risk-taking in the United Kingdom continues to tumble ahead of the all-important “Brexit” vote set to take place next month. The atmosphere surrounding the vote is growing increasingly tense as politicians highlight the benefits of greater unity while business leaders tout the benefits of leaving.  However, the looming problem is not the vote itself, but rather the day after and how markets behave. Nailing down concrete and quantifiable evidence of the impact of an exit vote remains undetermined despite numerous models and estimates. The overwhelming problem is how the run up has dented risk sentiment and snuffed out investment in the UK...
    On May 18, 2016 / By
  • Finance 0

    Central Bankers Put Ponzi And Madoff To Shame

    Charles Ponzi must be turning in his grave! His pyramid scheme in 1920 guaranteed returns of 50% in 50 days and 100% in 100 days. And initial investors clearly achieved these returns but most of them were too greedy to cash in. His total scheme “only” lost $20 million ($225 million in today’s money) for the investors. In comparison, Madoff cost his investors $18 billion. At least Ponzi became famous for his achievement. So far Madoff has not achieved fame. But both Ponzi and Madoff were small time crooks compared to governments and central banks today. Because whether we take, Japan, China, the EU or the USA, they have all created Ponzi...
    On May 18, 2016 / By
  • Finance 0

    Johnson & Johnson Sees Having Five $1b Consumer Brands By 2020

    At a meeting today with the investment community, senior leaders from the Johnson & Johnson Family of Companies (JNJ) will review strategies and opportunities for growth in the Consumer and Medical Device segments. The company will highlight the strategic advantages of its broad base in human health care, its holistic approach to innovation and its strategy to achieve above-market growth across the enterprise. In its hospital medical device businesses, the company holds global leadership positions in Surgery and Orthopedics, as well as key regional leadership positions in China and other emerging markets. With plans to file more than 20 m...
    On May 18, 2016 / By
  • Finance 0

    Morning Call For May 18, 2016

    OVERNIGHT MARKETS AND NEWS Jun E-mini S&Ps (ESM16 +0.06%) are down -0.10% and European stocks are down -0.16% ahead of the minutes of the Apr 26-27 FOMC meeting. The minutes take on extra importance after stocks fell yesterday on hawkish Fed commentary. Atlanta Fed President Lockhart said that “currently my assumption is two, possibly three” Fed rate hikes this year and San Francisco Fed President Williams said that “gradual means two to three rate increases this year.” Another negative for equities is weakness in mining stocks as the price of copper (HGN16 -1.34%) falls -1.60% to a 3-month low. On the pos...
    On May 18, 2016 / By
  • Finance 0

    Stocks Take A Beating As Rate Hike Possibility Returns

    Speculation is heating up before the 2 p.m. release of the minutes from the last FMOC meeting. Both equity and bond markets reacted strongly Tuesday in anticipation of the hawkish Fed report. Stocks were trounced, with the S&P 500 off 0.9 percent to 2047. Treasury yields moved up but the 10-year remained steady at 1.75 percent. The Fed-sensitive two-year rose to 0.82 percent, from a low of 0.78 percent and the 30-year bond yield actually dipped slightly to 2.57 percent. At the April 26-27th meeting, the Federal Open Market Committee kept rates steady and repeated its mantra that it would raise rates only when deemed necessary. Today’s m...
    On May 18, 2016 / By