Pending Home Sales Disappoint, Realtors Fear Unhealthy Price Appreciation

Following New Home Sales rebound to their highest since 2008, amid record high prices, Pending Home Sales disappointed with a mere 0.2% MoM rise (versus +1.2% expectations) showing very little bounce off May's tumble. Northeast sales saved the day with a 3.2% surge but The South and West both continued to slide. As NAR's Larry Yun noted however: "home prices are showing little evidence of slowing to a healthier pace that more closely mirrors wage and income growth."

Chinese Stocks Sink Over Fears Regulators Will Curb Wealth Management Schemes

Overnight China's Banking Regulatory Commission drafted new rules curbing the nation’s multi-trillion market for wealth management products, which was not taken well by the local stock market, leading to a plunge in stocks in early Chinese trading, before rebounding at the close of trading. China's ChiNext index of smaller companies sank as much as 5.5%.

Silver Surges Over $20 After Dismal Durable Goods Data

After 21 straight days of economic imporvements, today's dismal durable goods orders appears enough to prompt 'the QE trade' as bonds, stocks, and bullion surge (and dollar drops). Silver just spiked to $20...

What Wall Street Thinks Of Apple's Earnings Beat

After beating on revenues and earnings despite a steep drop in both revenues and iPhone orders and projecting a third consecutive quarter of declining profits, Apple is up nearly 8% pre-market as traders clearly liked what Tim Cook did in the quarter. More importantly, Wall Street liked the results too. Here is a summary of what some of the key analysts thought.

Durable Goods Orders Crash Most In 2 Years - Longest Non-Recessionary Streak Of Declines In US History

Despite the longest winning streak for US macro data in US history, Durable Goods Orders collapsed in June. The 4% MoM plunge (vs -1.4% exp) is the biggest drop since Aug 2014. This represents a 6.6% YoY crash - the biggest drop since July 2015. The drop appears driven by  plunge in airplane orders (non-defense aircraft and parts). Worse still, core durable goods orders extended their annual declines to 18 months straight - the longest non-recessionary streak of declines in US history.

Dan Loeb Compares Managing Money In 2016 To A "Game Of Thrones" Slaughter

"Watching Jon Snow’s epic “Battle of the Bastards” scene in the penultimate episode of this season’s Game of Thrones gives investors a sense of how it has felt to manage money during some periods over the past year. Surging enemies forming a seemingly  impossible perimeter, a crush of fellow soldiers on the field, arrows coming in overhead..."

Frontrunning: July 27

  • Democrat Clinton makes history with U.S. presidential nomination (Reuters)
  • Democrats Achieve an Uneasy Détente at Convention (WSJ)
  • Obama Economy Left Behind the Backers That Clinton Needs to Win (BBG)
  • European stocks rise, Asia lifted by Japan stimulus (Reuters)
  • PM Abe's plan for $265 billion stimulus puts pressure on BOJ to ease (Reuters)

Global Stocks, Futures Continue Rise On Apple, Japan Stimulus; Yellen On Deck

The markets were following a rollercoaster night for the Japanese Yen, when after several media headlines Abe was said to have announced a stimulus package that would be more than JPY28 trillion, sending Japanese stocks higher 1.7% while the USDJPY spiked but well off overnight highs, pushing risk assets higher. Europe and US futs were also in the green on optimism from AAPL's earnings, but all eyes will be on today's FOMC announcement.

Assange: "A Lot More Material" Will Be Released

Wikileaks founder Julian Assange said Tuesday his whistleblowing website might release "a lot more material" relevant to the US electoral campaign. Assange was speaking in a CNN interview following the release of nearly 20,000 emails stolen from the Democratic National Committee by suspected Russian hackers.

Unsound Money Has Destroyed The Middle Class

Prolonged stagnation, cultural upheavals and policy failures are combining to shake the balance between democratic legitimacy and global order...The candidacy of Mr. Trump is a result. Those who reject the chauvinist response must come forward with imaginative and ambitious ideas aimed at reestablishing that balance... Our civilization itself is at stake.

The Day Data-Dependence Died: US Macro Has Longest-Winning Streak In History

Something 'odd' is going on. Amid the plethora of 11-foot-tall-men multiple-standard deviation beats in recent economic data, the Citi Macro Surprise Index did something it has never done before - it rose for 21 days straight. After 18 months of disappointment, out of nowhere, the index ripped higher at the fastest rate since 2009 to its highest since Jan 2014. With China calm, Brexit behind us, US equities at record highs, volatility at near-record lows, and macro data trends never been better... what possible excuse does a 'data-dependent' Fed have for not hiking rates today?

Beware The "Crisis Actors" - Goring, Erdogan, Krugman, Cramer, Draghi, Yellen

Crisis acting isn’t found in the secret construction of a crime scene. It’s found in the public construction of a social Narrative. It’s found in the public statements of the Missionaries (to use the game theory term) who create Common Knowledge — what everyone knows that everyone knows...Janet Yellen and Mario Draghi and their central bank Missionary kin are also crisis actors, pretending that their “emergency policies”, now more than seven years old, are anything less than a permanent political shift in the global allocation of money and credit.

Stop Drinking The Kool-Aid, America: Political Fiction In An Age Of Televised Lies

Make no mistake: Americans only think they’re choosing the next president. In truth, however, they’re engaging in the illusion of participation culminating in the reassurance ritual of voting. It’s just another Blue Pill, a manufactured reality conjured up by the matrix in order to keep the populace compliant and convinced that their vote counts and that they still have some influence over the political process. Stop drinking the Kool-Aid, America.

Yen Plunges On Yet Another Strawman Headline About Stimulus, Then Surges On Denial

That didn't last long - Japan Ministry of Finance say it is not true they are considering 50yr bonds - debunking earlier WSJ story --Rtrs

USDJPY just spiked back over 106.00 after headlines suggesting Japanese PM Shinzo Abe will unveil new stimulus as soon as today. News reports on 27t yen fiscal stimulus and issuance of 50-year bond, both spur yen selling, says David Lu, HK-based director at NBC Financial Markets Asia. We suspect there will be some disappointment after the algos are finished as FNN reports the package will include 13t yen of low-interest loans (so a smaller helicopter than expected) and besides, it's not like the Japanese are suffering from rate being too high.