Morning 7-16 (A bit late)

 Cool off period ahead?… President Donald Trump reportedly has indicated to aides that he doesn’t want to further escalate tensions with Beijing and has ruled out additional sanctions on top officials for now. (Pro farmer)

 Stock News:

 Twitter accounts of High-profile users hacked yesterday, Bill gates, Obama, Elon Musk just to name a few, in a bitcoin scam. Twitter stock down a couple percent but off premarket lows

Earnings news:

Morgan Stanley

  • $2.04 vs $1.14
  • Trading profit tripled thus Revenue and earning all time highs for a quarter (Thanks Fed!)

BAC

  • 37c vs 25c
  • Trading revenue $4.41b vs $3.83B
  • Loan Loss reverses %5.1B vs Expected $5.49 still it was the largest number since 2010
  • Stock trading lower

JNJ:

 Full year sales view topped estimates as profit and sales beat stock -1% as slow down in elective surgeries weigh

Economic News

  • China GDP surprises to upside 
  • China Q2 GDP: 11.5% q/q vs 9.6% cons; 3.2% y/y vs 2.5% cons
  • -China Jun Ind Prod: 4.8% m/m vs 4.7% cons; -1.3% YTD vs -2.8% prev
  • . But retail sales misses -1.3 vs f/c .3
  • EU trade balance better than expected 8B vs f/c 4.5B
  •  

A bit of Risk Off in markets Due to Chinese stocks

 A bit of State media criticism and you get China CSI 300 drops 4.9% Shanghai -4.5%, NKY -.76% Stoxx -.8% Dax -.84 and The unwind continues Nasdaq -1.3% whereas the other main US indices down less than .9% From Bloomberg …

      Still, it’s interesting to observe that the NDX is leading the charge to the downside after dramatically underperforming the Russell 2000 yesterday. It’s tempting to portray that as a significant change in tone, but that’s not really the case. Going back to the start of 2010, there have been 5 days in which the NDX has a) lagged the Russell by more than Wednesday’s margin, while b) rallying on the day. Four of those days came earlier this year. Of course, the NDX has posted most of its greatest outperformances this year as well. The 100-day vol of the NDX/RTY cross is 32%, so I guess it’s natural that we’ll get some big swings. Still, it’s probably worth keeping an eye on this for signs of a significant rotation. It looked like there might be one underway last month, but that swiftly fizzled

  Bonds up a bit Bunds =30 waiting on ECB press conference Gold a touch heavy -.4% silver-.6% Dollar choppy…… Markets waiting on retail sales, Jobless claims and ECB press conference

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