Comment by phil

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phil
May 1st, 2015 at 6:12 am

Good morning!  



Now we'll see if people are selling in May and going away.  Not so far in the Futures, which are up 0.3%.  We ended up down for the month of April, led by the RUT overall and you can see on this chart exactly what I've been saying about down volume vs up volume:



Certainly not a lot of damage, really – just interesting that it all comes to net nothing in the end.

Asia was generally down this morning but not too much considering our lead.  Some markets were closed for Labor Day:



Japan Stocks Slip on Kuroda as Yen Falls. Japanese stocks fell, with the Topix index poised for its worst weekly drop this year, after the central bank governor said no further policy easing was needed for now. The euro headed for its longest run of gains against the yen in almost six months and U.S. equity-index futures advanced. The Topix fell a second day, losing 0.7 percent by 11:14 a.m. in Tokyo following a fourth straight monthly gain. Markets from China to South Korea are closed Friday.

Japan Stocks Flat on U.S. Jitters

Japan Inflation Rises for First Time in Nearly a Year – Prices rose in Japan for the first time since April 2014, offering hope of a rebound in price growth.


• Although still remaining far below the BOJ's target, Japanese inflation ticked higher in March, with the country's core consumer price index showing 0.2% growth.
• Other data released today also offered modest signs of encouragement, including a further tightening of Japan's labor market and a smaller-than-expected drop in household spending.
• On Thursday, the BOJ kept its massive easing program in place and pushed back its target date for reaching 2% inflation to the first half of fiscal 2016.
• Nikkei +0.1% to 19,531.

• Fresh Easing Delayed?

 

China growth worries still remain

• China's manufacturing and services sectors showed signs of modest growth last month, though not enough to dispel fears about a downhill slide of the world's second largest economy.
• China's official manufacturing PMI came in at 50.1 in April, unchanged from March, in another sign the country is struggling to maintain momentum.
• The non-manufacturing sector remained above the 50 level but its expansion rate slowed to 53.4 from 53.7 last month.
• The readings come after China's weak performance in the first quarter. GDP grew 7% on year, the slowest pace since the first quarter of 2009.
• Chinese markets are closed today for Labor Day.

 

Bubble risk grows as China's stock boom defies gravity. What do a ketchup maker, a precious metal distributor and a medical device company have in common? They are the new poster kids of a boom in China's equity market – and a potential headache for policymakers, as valuations defy fundamentals. Fuelled in part by cheap credit and a crackdown on shadow banking, mom and pop buyers – who make up about 60 percent of the Chinese equities investor base – have been snapping up shares in a rally that has seen the benchmark Shanghai stock index double in six months.

South Korean Exports Drop for Fourth Month as Won Strengthens. South Korea’s exports declined the most in more than two years in April, amid concern that the won’s strength is undermining the competitiveness of sales abroad. Overseas shipments fell 8.1 percent in April from a year earlier, the fourth straight monthly decline, the Ministry of Trade, Industry and Energy said on Friday. The median of 18 estimates in a Bloomberg survey was for a 6.6 percent drop. ?

Europe is flatlining into the weekend, surprisingly strong after our poor lead.



It's May day and most of them are closed.  Interesting timing on our dip then…  If we have another big down day today (not looking like it so far), they will have a lot of catching up to do next week. 

Euro Reaches Two-Month High – The euro climbed to a fresh two-month high against the dollar, extending its recent rebound against the buck in quiet holiday trade


ECB too confident QE rescue plan has already worked, economists warn. Central bankers have been too quick to pat themselves on the back.

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EU to widen probe against U.S. tech companies

• Just two weeks after launching its landmark competition case against Google,  the European Commission is poised to widen its front against U.S. tech companies by initiating a separate investigation into a broader range of online platforms.
• The latest draft of the plan, seen by the FT, will encompass everything from online shopping to telecoms regulation and is set be approved by the commission next week.
• The "digital single market" probe could also bring in stricter rules to video services companies such as Netflix (NASDAQ:NFLX) and messaging apps like WhatsApp (NASDAQ:FB) and Skype (OTCQB:MFST) which have become big rivals to traditional European media and telecoms companies.

Friday's economic calendar

• Auto sales
• 9:45 PMI Manufacturing Index
• 10:00 ISM Manufacturing Index
• 10:00 Construction Spending
• 10:00 Reuters/UofM Consumer Sentiment

Atlanta Fed (the only ones who called Q1 correctly) just projected Q2 to be 80% below consensus:



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In Labor vs. Capital, Workers Gain a Slight Edge – WSJ chief economics commentator Greg Ip explores signs that labor may finally be gaining ground on capital and breaking out of a stagnant-wage rut.

 

Visa(V) forecasts current-quarter profit below Street. Visa Inc, the world's largest credit and debit card company, forecast profit below Wall Street expectations for the current quarter, hurt by continued pressure from lower crude prices and a strong dollar. 

Oil Producers’ Sale of Future Output Puts a Lid on Price Gains. Oil producers are taking advantage of the biggest monthly price increase since 2009 to sell more of their future output, threatening to slow the rally. New York-traded crude for next-month delivery gained 25 percent in April on signs a record drop in drilling rigs is starting to reduce production, easing the biggest U.S. oil glut in 85 years. December 2016 contracts were up just 8.7 percent in that period.  

CME Group(CME) suspends two gold futures traders for allegedly spoofing. CME Group Inc on Thursday suspended two traders from its markets for allegedly colluding to enter orders repeatedly with no intention of trading, a strategy that has been fingered as a key contributor to the 2010 Wall Street flash crash.

Tesla Unveils Line of Battery Packs – Tesla Motors Chief Executive Elon Musk unveiled a line of home and industrial battery packs, as his electric car company tries to break into energy storage.

 

Tesla Energy launches with a charge

• Tesla Motors (NASDAQ:TSLA) introduces Tesla Energy as it shifts into calling itself an energy innovation company in addition to being an automaker.
• Tesla Energy is a suite of batteries designed for use by households, businesses, and utilities.
• Households: The first consumer product to market from the new business will be the Powerwall Home Battery – a load-shifting lithium-ion battery that can be mounted on the walls of customers. The Powerwall will sell for $3.5K for the 10kWh version and $3K for a 7kWh unit.
• Businesses: Tesla Energy will also create energy storage systems for businesses through the use of solar arrays. A major selling point is expected to be the cost savings generated through the use of energy storage management. Test partners on board already include Target, Amazon, and EnerNoc.
• Utilities: Providing grid storage services on a large scale (500kWh to 10MWh+) is another primary goal of Tesla Energy. A utility storage system is being created in an attempt to manage peak demand and power fluctuations in an efficient and clean manner.

 

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