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Archive for the ‘Uncategorized’ Category

Stocks Surge To 11-Month Highs (Then Drop) On Lowest Volume Day Of 2016

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By Tyler Durden

To sum up today: “Investors” bought stocks, bonds, gold, oil, Yen, Loonies, Iron ore, high yield bonds… and VIX?

The S&P took out Nov 2015 highs and reached all the way back to July 2015..

On the lowest volume day of the year…

Trannies loved the surge in crude prices (we assume costs don't matter anymore) but Nasdaq was not so happy…

The Dow topped 18,000 a few times without any extension, then fell…

But today was different, VIX extended its decoupling from stocks…

The ubiquitous VIX-smash disappeared and instead of melting up as it has for the last 6 days, stocks faded…

Futures show the double-top today…

Post-payrolls, crude leads gold and bonds lead stocks…

Year-to-date, only Nasdaq (black) remains in the red with Trannies and Small Caps leading…

Bonds were bid with Bunds making new record lows…

The US Dollar Index continued to flatline since Friday's close with commodity currencies surging…

Copper was clubbed today on a surge in inventories, Crude surged (because it can and the algos wanted to top $50) and PMs trod water bouncing back from early small losses…

Crude tops $50 (and closes above it) for the highest close of the year ahead of tonight's API data…

Charts: Bloomberg

Bonus Chart: Who will be right?

…read more

Source: Stocks Surge To 11-Month Highs (Then Drop) On Lowest Volume Day Of 2016

    

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NFL’s Twitter hacked, said commish Goodell died

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The NFL’s Twitter account was hacked to say that commissioner Roger Goodell had passed away.

Popular: Radical Islam in America | Graham Opposes Republican Leader | Guns in America

…read more

Source: NFL’s Twitter hacked, said commish Goodell died

    

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Desperate Lending Club Raises Interest Rates To Encourage Investors, Postpones Shareholder Meeting

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By Tyler Durden

After embattled Lending Club was briefly halted as it postpones today’s shareholder meeting until June 28th because it is “not yet in a position to report on the state of the company,” the stock is trading down 5% as the desperate (for investors) lender decides to raise prices (interest rates) in this case for borrowers (and tighten up lending standards).

So a double whammy… Postponed Annual Shareholder Meeting…

On June 7, 2016, LendingClub Corporation (the “Company”) adjourned its 2016 Annual Meeting of Stockholders (“Annual Meeting”). Given the developments of the last few weeks, the Company is not yet in a position to provide its stockholders a complete report on the state of the Company. Accordingly, the Company will reconvene its Annual Meeting at 11:00 a.m. Pacific Time on June 28, 2016, with the same virtual meeting access.

…the Company is not yet in a position to provide its stockholders a complete report on the state of the Company. Accordingly, the Company will reconvene its Annual Meeting at 11:00 a.m. Pacific Time on June 28, 2016, with the same virtual meeting access

And raising rates…

under pressure to bolster investor confidence in the loans it arranges online, is boosting interest rates and tightening criteria for borrowers to qualify.

Interest rates will increase by a weighted average of 55 basis points, the co. said Tuesday in a regulatory filing

LC also lowered the ratio of debt-to-income that it allows applicants to have

It seems the market is questioning the entire firm’s businesss model…

…read more

Source: Desperate Lending Club Raises Interest Rates To Encourage Investors, Postpones Shareholder Meeting

    

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April Flashback: 75% Of Economists Expected June Hike

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By Tyler Durden

Submitted by Michael Shedlock via MishTalk.com,

When Will the Fed Act?

Given the massive swing in rate hike sentiment following the disastrous jobs report last week…

…Inquiring minds may be interested in how economists saw thing about a month ago.

On May 12, the Wall Street Journal too a survey of economists on the question When Will the Fed Act?

About 31% of economists surveyed by The Wall Street Journal this month said the Fed will raise short-term interest rates at its June 14-15 meeting, while another 31% expected it to wait until September. Another 21% thought the Fed will next move at its July meeting. For the first time since February, June wasn’t the economists’ consensus pick for the next Fed rate increase.

In April, three quarters of respondents predicted the Fed would raise rates in June.

Those March and April surveys are downright amusing. In March, over 85% of economists expected a hike by June. No one thought the next move would be a cut.

In April, over 80% of economists thought there would be a hike by July.

…read more

Source: April Flashback: 75% Of Economists Expected June Hike

    

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Cold War Headlines Returns: "Risk Of Nuclear Dirty Bomb Surges On Poor US-Russia Relations"

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By Tyler Durden

The military provocations between NATO and Russia reached a new post-cold war high yesterday when Poland became the host to the largest joint NATO war game in eastern Europe since the end of the cold war. The purpose of the massive drill, according to the Guardian, is for NATO “partner countries to mount a display of strength as a response to concerns about Russia’s assertiveness and actions.” The 10-day military exercise dubbed Anaconda-2016, involves 31,000 troops and thousands of vehicles from 24 countries.

US Army Europe, which heads the exercise, says that the massive war games are “to train, exercise and integrate Polish national command and force structures into an allied, joint, multinational environment.” Anaconda-2016 will be formally closed by officials at a ceremony in Warsaw on June 17. While the scenario for the drill is kept secret, the statement briefly says it will be focused on conventional warfare, meaning the bloc will be testing its capacity to “deploy, mass and sustain combat power” against an enemy more capable and well-trained than the rebel groupings which the US and its allies fought against in Iraq and Afghanistan.

The massive war games also play well with the current right-wing government in Warsaw which frequently argues that NATO must permanently deploy troops in eastern Europe to deter what the bloc keeps calling “Russian assertiveness.”

As the Guardian admits, defense experts warn that any mishap could prompt an offensive reaction from Moscow. A defence attache at a European embassy in Warsaw said the “nightmare scenario” of the exercise, named Anaconda-2016, would be “a mishap, a miscalculation which the Russians construe, or choose to construe, as an offensive action”. Sure enough, earlier today Moscow said that the NATO military presence is unjustified. Speaking to journalists on Monday, Russian Foreign Minister Sergey Lavrov stated, “I am convinced that every serious and honest politician is well aware that Russia will never invade any NATO member. We have no such plans.”

Lavrov asserted that “there are no threats in this part of the world whatsoever, that would justify [NATO’s] build-up here.” In the meantime, Lavrov said, NATO’s decision to move its military infrastructure closer to Russia’s borders and accept new members will be seen in a negative light in Moscow. “Here, Russia’s sovereign right to ensure its security will come into force, [making use] of methods adequate to [respond to] today’s challenges.”

For the time being there is no end in sight in this reciprotcal tit-for-tat provocation between the two military blocs.

* * *

Right on cue, in a headline right out of the cold war, Reuters reported that “tension between Russia and the West may be distracting them from cooperating to prevent an accidental nuclear confrontation or a dirty bomb attack by militants, nuclear policy experts said on Tuesday.

Former U.S. Secretary of Defence William Perry said he regretted the current lack of communication between the United States and Russia, which went into a deep freeze after Russia’s 2014 annexation of Crimea. “We are about to …read more

Source: Cold War Headlines Returns: "Risk Of Nuclear Dirty Bomb Surges On Poor US-Russia Relations"

    

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We Think Copper Takes That Next Leg Down (Video)

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By EconMatters

By EconMatters


It is rather bearish when copper is fading both the overall commodities rally and equities being at all-time highs in a major risk on mode. We think Copper is ultimately going lower, and is a short here. When the entire market rolls over, and the technicals start to break in copper, the downside momentum will pick up speed substantially.

© EconMatters All Rights Reserved | Facebook | Twitter | YouTube | Email Digest | Kindle

…read more

Source: We Think Copper Takes That Next Leg Down (Video)

    

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Singer claims Lancome caved to ‘bullying’ China

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French luxury brand Lancome has been accused of ditching an outspoken celebrity from its promotional activities to please China. …read more

Source: Singer claims Lancome caved to ‘bullying’ China

    

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"Rogue Trader" Jerome Kerviel Awarded €400,000 Over "Unfair" SocGen Dismissal

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By Tyler Durden

It may seem like a different world now, but it was about 8 years ago when panicked traders woke up to find a dramatic collapse in overnight futures, which forced the clueless Fed to cut rates by 0.75% on fears that the great selling had started. It hadn’t, at least not just yet, and a few hours later it was revealed that the plunge was the result of the action of one solitary “rogue” trader: Jerome Kerviel, who at that time worked for SocGen, Kerviel was later convicted of causing a record trading loss of €4.9 billion at the second largest French bank, Societe Generale.

Then today, in a surprising twist, nearly a decade after his infamous trade, Kerviel won a payout of more than €450,000 in a Paris employment lawsuit over claims he was unfairly dismissed. According to Bloomberg, the award Tuesday includes €100,000 for unfair dismissal and his €300,000 bonus for 2007. The court, however, rejected Kerviel’s multi-billion euro request for more than the underlying loss at the bank.

The employment tribunal verdict is the latest twist in the story of the former trader who has taken equal turns as villain and folk hero since he was blamed for causing the record loss at France’s second-largest lender. The ruling could have an effect on other pending cases that Kerviel has filed in French courts. “Societe Generale can’t pretend it was not aware of Jerome Kerviel’s fake operations” before his dismissal in January 2008, Judge Hugues Cambournac said. The dismissal “didn’t sanction Kerviel’s acts, but its consequences.”

However, Kerveil will wait a long time before seeing the award if at all: SocGen has said it will “immediately” appeal the ruling, which includes an order to immediately pay Kerviel 80,000 euros. “It’s a scandalous decision,” said Arnaud Chaulet, a lawyer representing Societe Generale.

At a hearing last month, Kerviel’s lawyer, David Koubbi, justified the tit-for-tat demand for compensation by telling the tribunal that it was only fair because the bank had previously pressed for Kerviel to pay back the full trading loss. It was not clear where the solitary trader would have found the billions needed to fill the gap. So while an order requiring him to repay the amount of the trading loss has been overturned, Kerviel’s claims that he wasn’t responsible for the scandal have fallen on deaf ears in French courts.

Several verdicts found Kerviel exclusively guilty for the trading loss, yet he contests the amount of the loss and says Societe Generale should also be held responsible. As Bloomberg adds, the former trader has mounted a fresh legal challenge to his conviction after Nathalie Le Roy, the police officer who led Kerviel probes in 2008 and 2012, expressed concerns last year about how she was pressured to focus solely on evidence that would incriminate him. France’s court of review and reassessment in March indefinitely delayed a decision on the bid for a retrial. Judges said they want to wait for separate lines of inquiry into the use of …read more

Source: "Rogue Trader" Jerome Kerviel Awarded €400,000 Over "Unfair" SocGen Dismissal

    

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Lululemon founder says company has ‘lost its way’

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Lululemon founder and shareholder Chip Wilson is angry. He thinks that lululemon is losing ground to rivals Nike and Under Armour and he’s not happy the company didn’t give him a chance to speak at its recent shareholder meeting.

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Source: Lululemon founder says company has ‘lost its way’

    

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S&P Nears All Time High, Global Stocks Rally As Dovish Yellen Unleashes Animal Spirits

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By Tyler Durden

Stock whisperer Yellen said all the right things yesterday, when she sounded more optimistic than pessimistic on the economy but while the economy is “strong” it is most likely not strong enough to weather a rate hike in the immediate future. As a result, the S&P 500 climbed toward a record on Monday (and continued rising overnight) after Yellen said she expects to raise interest rates only gradually and held off from specifying any timeframe, a shift from her May 27 stance that a move was probable “in the coming months.” This was interpreted that both a June and July rate hike are now off the table, with September odds rising modestly.

And in a world where a hawkish Fed is bullish but a dovish Fed is even more bullish, stocks took their cue from Janet and sprang higher first in the US, and then across the globe, rallying with emerging markets because as Bloomberg put it, Yellen won’t “derail the recovery with a premature interest-rate increase.” If by premature BBG means a second hike one in a decade, then yes.

Of course, what Yellen really meant is to give algos a green light to trigger all stops at the new 2016 highs, and then to continue to the fresh all time high in the S&P500, which as of this moment is less than 1% away, and will likely be taken out today.

Thanks to Yellen, the MSCI All Country World Index headed for its strongest close since April, led by gains in energy companies and raw-materials producers. Emerging-market stocks and currencies advanced for a fourth day. The Bloomberg Commodity Index snapped a four-day gain that had pushed it to a bull market. The South Korean won surged the most in six years, and the currencies of Australia and India also rose after the nations’ central banks kept interest rates unchanged. The pound advanced as a poll showed the campaign to keep Britain in the European Union ahead. The odds of a rate hike by July dropped to 22 percent in the futures market, after halving to 27 percent on Friday as a report showed U.S. jobs growth in May was the weakest in almost six years. S&P 500 futures advanced 0.3%, indicating U.S. equities will extend gains on Monday that were propelled by Yellen’s remarks, and close at new 2016 highs, if not new all time highs entirely.

“It seems likely that we will get at most one rate hike this year and that’s positive for equities and commodities,” said Ric Spooner, chief analyst at CMC Markets in Sydney. “Of the beaten-down commodities, the oil market is the best place. We’re already seeing supply cutbacks.”

While a Brexit will ultimately not be allowed, analysts continue to pay attention to the latest polls out of the UK. According to the latest Times/YouGov poll, 43% would vote to remain in EU and 42% would vote to leave. ORB/Telegraph poll showed 48% would vote to remain in EU and 47% would vote to …read more

Source: S&P Nears All Time High, Global Stocks Rally As Dovish Yellen Unleashes Animal Spirits

    

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