One day after all three US indexes hit record highs for the first time since December 31, 1999, US equity index futures, European stocks and Asian equities are little changed after the Nikkei jumped on the back of a Yen weakness, while China reported disappointing economic data and the PBOC suggested that the flood of new debt is slowing which pushed Chinese stocks higher by 1.6% on hopes of more stimulus.
Stock market “bulls” should pray that interest rates don’t rise. Don’t blame those poor consumers for not spending – they are spending everything they have and then some. Just one word describes the outcome of that event given the current excessively leveraged consumption based economy of today – disaster.
"Mrs. Clinton isn’t expected to unveil new policy in Thursday’s speech." according to The Wall Street Journal. Instead, Hillary will dial up a line of attack on Donald Trump’s economic proposals in a Thursday speech that casts his agenda as a crony giveaway that erodes his populist appeal, according to a campaign official...We wonder, if Hillary has all these brilliant ideas, then why did she not share them with President Obama - who just presided over the only term without a 3% growth year in the history of America.
According to Bank of America's internal aggregated credit and debit card data, consumer spending slowed in July, with retail sales ex-autos down 0.3% mom on a seasonally adjusted basis. As the bank concludes, "In our view, this sets up for a softer Census Bureau retail sales report on Friday – we would not be surprised to see either disappointing July sales and/or a downward revision to June."
Following yesterday's muted action which saw the S&P500 close unchanged, it has been more of the same listless trading overnight, with US equity index futures little changed as the Nikkei fell on the back of a stronger Yen, while government bonds rose and European stocks reversed early gains following the BOE failed bond monetization operation. Crude oil dropped for a second day after Saudi Arabia told OPEC that it pumped a record 10.67 million barrels of oil a day,
The State Department has approved the potential sale of more than 130 Abrams battle tanks, 20 armored recovery vehicles and other equipment, worth about $1.15 billion, to Saudi Arabia, the Pentagon said on Tuesday.
Unfortunately, it appears too late to reverse the tidal wave of system failure that has been brewing for three decades now.But there is a sliver of hope.If Donald Trump is elected, eschews a law and order crusade and does not capitulate to the destructive policies of the Wall Street/Washington/bicoastal establishment, there is a way forward..
As the following charts from Deutsche Bank show, on a GAAP basis, trailing 12 month GAAP margins have now tumbled to the lowest level since before the global financial crisis; in fact the last time GAAP net margins were here was some time in 2006, when the S&P was trading about 700 points lower.
S&P500 index futures were unchanged (up less than 0.1%) following another modest, low-volume levitation in European, Asian shares in a mostly eventless overnight session; oil comes off following gaining overnight with WTI trading just around $43.