Dow Jones News Today: Stocks Continue to Fall as North Korea Threatens ‘Enveloping Fire’ on Guam

The stock market news today is highlighted by falling stock prices as tensions rise between Washington and North Korea. Dow Jones futures are down 48 points this morning ahead of earnings reports from brick-and-mortar retailers and major American brands. Traders will get to see how much Amazon.com Inc. (Nasdaq: AMZN) is impacting competition around the country.
Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:
Index Previous Close Point Change Percentage Change Dow Jones 22,048.70 -36.64 -0.17% S&P 500 2,474.02 -0.90 -0.04% Nasdaq 6,352.33 -18.13 -0.28%

This post was published at Wall Street Examiner on August 10, 2017.

SNAP Stock Just SNAPPED: Down 29% From Its March IPO

SNAP just reported earnings and plunged after hours after missing everything. It burned through $288 million in cash. The more it spends, the more it loses. An operational Ponzi scheme of sorts.
The SNAP IPO was led by Morgan Stanley, Goldman Sachs, JP Morgan, Deutsche Bank, Barclays, Credit Suisse and Allen & Company. All the usual criminal cartel banks aside from Allen & Company. Allen & Company is a financial ‘advisor’ – i.e. sleazy stock broker – driven firm based in Florida. I don’t know how Allen & Co. was put on as an underwriting manager other than it’s likely that one of SNAP’s co-founders is buddies with one of the owners at Allen & Co.

This post was published at Investment Research Dynamics on August 10, 2017.

Waiting for a Buy Signal

The August-September seasonally weak period for stocks seems to be in play. The main reason offered is heightened US-North Korea tensions but the fact of the matter is bullish sentiment simply reached an extreme (see Rydex Trader Bullishness Surpasses 2000 Tech Bubble) and, as a number of strategists and market technicians have been pointing out on our show, this meant conditions were ripe for a correction regardless of the exact catalyst.
With that said, if Barry Bannister is correct in his call for a near-term market top from current levels followed by a major peak next year with a bear market and recession in 2019 (see Barry Bannister’s Macro Outlook), investors are likely to be presented with at least one more major buying opportunity in the weeks and months ahead.
Here is one such indicator we use at our firm for attractive intermediate-term (multi-month) entry points:

This post was published at FinancialSense on 08/10/2017.

South Korean Investors Suddenly Wake Up To Nuclear Armageddon Risks Next Door

The always efficient markets of the world had, until very recently discounted zero probability of any ‘risk’ for South Korean stocks. Having soared 27% in the last few months, hot money EM flows have sent KOSPI soaring, despite endless escalations in rhetoric against their neighbor; until all of a sudden, after President Trump’s “fire & fury” escalation, KOSPI ‘risk’ just exploded…
While the ‘professionals’ in the credit markets have been pricing in increasing risk for South Korea for months…

This post was published at Zero Hedge on Aug 10, 2017.

“Black Sky Hazards”: Feds To Wargame “Widespread Power Outages” And “Cascading Infrastructure Failures”

As the world teeters on the brink of a nuclear confrontation with North Korea, FEMA and the U. S. Department of Energy are preparing to wargame so-called “Black Sky Hazards” that could result in a “subcontinent scale, long duration power outage, with cascading failure of all our other increasingly interdependent infrastructures.” Here’s how EarthEx2017 described the exercise:
Concerns have grown over the potential for severe malicious or natural ‘Black Sky’ hazards associated with subcontinent scale, long duration power outages, with cascading failure of all our other increasingly interdependent infrastructures. This creates a grim and difficult dilemma: Restoration of any sector will only be possible with at least minimal operation of all the others.
To deal with this deadlock, careful sector by sector and cross-sector resilience planning is crucial. However, such plans, to be effective, must be exercised. With the diversity and the national and global scale of the infrastructures we now depend on, this requires an unprecedented, multi-sector, national and international exercise series.

This post was published at Zero Hedge on Aug 10, 2017.

Is Ray Dalio’s Commitment To “Radical Transparency” Hurting Bridgewater?

Ray Dalio’s Bridgewater Associates might become the first hedge fund to hand over the reins to an algorithm. At least that’s the takeaway from Bloomberg’s latest profile of the hedge fund billionaire, who founded Bridgewater Associates, presently the world’s largest hedge fund with more than $160 billion AUM. The profile offers an update on the firm’s difficulties in formulating a succession plan, as well as its founder’s quest to automate many of its management functions.
Of course, in addition to personnel issues, Dalio’s vision for Bridgewater’s future relies heavily on artificial intelligence. His efforts to creating a proprietary artificial-intelligence software called ‘the Book of the Future’ that will eventually help manage the firm were first detailed in a WSJ profile published late last year. As the firm’s returns have sagged in recent years, investors and the media have started to question Dalio’s commitment to ‘radical transparency.’

This post was published at Zero Hedge on Aug 10, 2017.

Puerto Rico’s Housing Debt Likely To Be Paid In Full (Opposed to PR’s General Obligation and Agency Debt)

Puerto Rico is seeking to reduce $74 billion of debt, but Federal housing bonds may be paid in full. Thanks to the US Department of Housing and Urban Development (HUD).
(Bloomberg) – While Puerto Rico and its agencies seek to reduce $74 billion of debt in a record bankruptcy, commonwealth bonds repaid with federal housing money and tobacco settlement funds may dodge a restructuring, according to Moody’s Investors Service.
After Puerto Rico first began defaulting on its obligations two years ago, a federal oversight board on May 3 sought for the commonwealth a form of bankruptcy called Title III. There are six entities remaining that have yet to miss payments to investors. Of those, debt sold by Puerto Rico’s Housing Finance Authority and the Children’s Trust Fund may avoid asking bondholders to accept losses on their securities, Ted Hampton, a Moody’s analyst, wrote in an Aug. 9 report.

This post was published at Wall Street Examiner on August 10, 2017.

Ray Dalio: With Two Potential Crises, Buy Gold In Case “Things Go Badly”

It’s been a while, years in fact, but suddenly it’s gold’s time to shine again.
The yellow metal – insurance against systemic collapse, hyperinflation and infinite political stupidity – which in recent years has seen its popularity fade as the younger generation has gravitated toward the far faster moving crypto currencies – is once again back in the spotlight.
As UBS’ strategist Joni Teves, who has been recommending the precious metal for a long time despite the BOJ’s relentless suppression, writes “gold bounces from recent lows in line with other safe havens amid risk-off sentiment across markets following geopolitical headlines over the past 24 hours.” Below are the key considerations from today’s UBS note:
Key technical levels come into focus for gold, triggering some decent market activity in the middle of this typically quieter summer period.

This post was published at Zero Hedge on Aug 10, 2017.

Strong 30Y Auction Stops At Lowest Yield Since October, 2nd Highest Indirects On Record

In a mirror image of yesterday’s ugly, tailing 10Y auction, moments ago the Treasury sold the last batch of paper for this week, when it auctioned off $15 billion in 30Y bonds, in a strong sale which printed at 2.818%, stopping through the When Issued 2.819%, the lowest yield for the tenor going all the way back to October 2016 as the curve has aggressively flattened since then.

This post was published at Zero Hedge on Aug 10, 2017.

Fed’s Facebook Page Gets Viciously Trolled

Whomever runs social media for the Federal Reserve learned a tough lesson about the cruelty of the internet this week.
The Fed’s Facebook page got wickedly trolled after the central bank posted a simple warning about potential scams.
The post seemed innocent enough. The Fed simply wanted to warn people about scammerssending out emails that claim to be from the Fed.
The very first comment gave a pretty good indication as to how this was going to go.
Whether it is or isn’t from the federal reserve the answer is yes…it is a scam.’
From there, people just piled on.

This post was published at Schiffgold on AUGUST 10, 2017.

Amazon Online Grocery Boom? Not So Fast…

All big gorillas have been trying, but consumers just don’t want to.
Maybe Amazon has figured out that you’re not the only one who isn’t buying groceries online. Maybe it has figured out, despite all the money it has thrown at it, that selling groceries online is a very tough nut to crack. And no one has cracked it yet.
Numerous companies have been trying. Safeway started an online store and delivery service during the dotcom bubble and has made practically no headway. A plethora of startups, brick-and-mortar retailers, and online retailers have tried it, including the biggest gorillas of all – Walmart, Amazon, and Google. Google is trying it in conjunction with Costco and others. It just isn’t catching on.
And this has baffled many smart minds. Online sales in other products are skyrocketing and wiping out the businesses of brick-and-mortar retailers along the way. But groceries?
That’s one of the reasons Amazon is eager to shell out $14.7 billion to buy Whole Foods, its biggest acquisition ever, dwarfing its prior biggest acquisition, Zappos, an online shoe seller, for $850 million. Amazon cannot figure out either how to sell groceries online though it has tried for years. Now it’s looking for a new model – namely the old model in revised form?
This is why everyone who’s online wants to get a piece of the grocery pie: The pie is big. Monthly sales at grocery stores in June seasonally adjusted were $53 billion. For the year 2016, sales amounted to $625 billion:

This post was published at Wolf Street on Aug 10, 2017.

Gold Market Morning: August-10-2017: FOMC and North Korea

Gold Today – New York closed yesterday at $1,279.30. Londonopened at $1,278.00 today.
Overall the dollar was stronger against global currencies, early today. Before London’s opening:
– The $: was stronger at $1.1732 after the yesterday’s $1.1760: 1.
– The Dollar index was stronger at 93.70 after yesterday’s 93.61.
– The Yen was weaker at 109.98 after yesterday’s 109.75:$1.
– The Yuan was much stronger at 6.6594 after yesterday’s6.6782: $1.
– The Pound Sterling was weaker at $1.2980 after yesterday’s $1.3005: 1
Yuan Gold Fix
New York closed just under $10.00 higher than Shanghai’s close yesterday. Then today sees Shanghai lifting the gold price even higher as you can see. London is still lagging but not by much as it opened
We were looking to see if this was a jump on the back of the deteriorating situation with North Korea. We would have thought that if this were so, the gold price would have jumped higher. So far the evidence is not there.

This post was published at GoldSeek on 11 August 2017.

August Top Full of Fire and Fury

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As the North Korean threats continue escalating, the US has sent a colloquial response ‘full of fire and fury the world has never seen’ that signaled institutions to take some stock market profits. Some bullies will say anything for attention on the school playground. Bullies seeking importance by announcing preparations to attack with nuclear missiles minutes from the US mainland can quickly move beyond the limits of civil discourse. The new tit for tat between Kim Jung-un and Trump was enough to spoil another record breaking day in the stock market and send investors scurrying for the exits. However, in the big picture prices only fell 1% and half of that has already been recovered, setting the table for another run to new highs.
In June we presented the chart below as our likely outline of the price action to come with the possible culmination of a stock market peak in August.

This post was published at FinancialSense on 08/10/201.

Tesla Cars Aren’t As Carbon (And Taxpayer) Friendly As You Think

Tesla proponents love to remind people how their vehicles are ‘carbon free’ (in spite of Tesla CEO Elon Musk’s own carbon profligate lifestyle):
Fact: the Tesla Model S is an environmentally friendly, zero emissions electric vehicle that won’t pollute the air like gas-powered cars. Carbon emissions from a gas car’s tailpipe has a dangerous impact on global warming…. In addition, Tesla CEO Elon Musk explains that, ‘combustion cars emit toxic gases. According to an MIT study, there are 53,000 deaths per year in the U. S. alone from auto emissions.’
But in reminding people about how they don’t burn fossil fuels, they make sure to omit and/or obfuscate all the other emissions-laden factors that go into production of Tesla automobiles, including the oft-unspoken costs of the vehicles to the taxpayer and to other auto manufacturers.
Start with the power source for the Tesla; their electric power plant uses lithium-ion batteries to store the electricity required to run the car. And while a good amount of lithium is produced at salt lake brines that use chemical processes to extract the requisite lithium…

This post was published at Zero Hedge on Aug 10, 2017.