Financial Markets and Economy
Income gap: CEOs make 373 times average worker pay (CNBC)
The numbers are in on 2014 CEO compensation, and as the old Seinfeld joke goes, they are real and they are spectacular. CEO pay is also controversial as the income gap widens in America.
The average S&P 500 company CEO made 373 times the salary of the average production and non-supervisory worker in 2014, up from 331 times in 2013, according to the AFL-CIO.
Here's the story behind that huge disconnect in the stock market (Business Insider)
There's been a growing disconnect in stocks.
Over the last few weeks, we've highlighted versions of the following chart from Bank of America Merril Lynch, which shows that US equity funds have seen massive outflows this year while stocks continue to climb to record highs.
Wall Street is on the verge of saying 'recession' (Business Insider)
Wall Street has almost said it.
In a note to clients on Monday morning, Deutsche Bank's Jim Reid comes within inches of saying the word "recession" to describe the US economy's fate during the first half of the year.
Graphing The Evolution Of The World's Debt Addiction (Zero Hedge)
It's no secret that the world is addicted to debt.
China for instance, has an astounding $28 trillion debt load that amounts to 282% of GDP, while the country's local governments are now undertaking a multi-trillion yuan refi initiative in order to cut the debt servicing costs on a mountain on high interest loans they acquired off balance sheet in an effort to skirt official borrowing limits.
Bank of America is forecasting a ‘scary summer’ for the stock market (Market Watch)
Investors might want to add a little cash and some gold to their portfolio’s summer outfit.
So say analysts at Bank of America Merrill Lynch, who are forecasting a grim summer for stocks this year. In other words, it might be wise to apply ample dollops of market-correction block in addition to any sunscreen you might wear.
Stocks and Trading
Wal-Mart, Home Depot, TJX, Etsy earnings in focus (Market Watch)
Among the companies whose shares are expected to see active trade in Tuesday’s session are Wal-Mart Stores Inc., Home Depot Inc., TJX Cos., and Etsy Inc.
Take-Two Interactive Profit Tops Estimates on Evolve Game (Bloomberg)
Take-Two Interactive Software Inc., maker of the Grand Theft Auto video game, reported fiscal fourth-quarter earnings that beat analysts’ estimates on the strength of its shoot ’em up titles.
Peak Picasso – Did The Art Market Just Flash A "Sell" Signal For Stocks (Zero Hedge)
"Like any trend in an unhinged market, it's next to impossible to predict when the confidence will peak. Based on previous peaks, it could (should) be any time," warns Jason Goepfert, president of Sundial Capital Research.
As Bloomberg reports, Goepfert's recent note, analyzing the relationship between record art sales and the stock market, strongly suggests, "previous bouts of expensive art sales have indicated over-confident conditions in the stock market as well."
CARL ICAHN: Apple is worth $240 per share (Business Insider)
Carl Icahn thinks Apple shares are worth $240.
In an open letter to Apple CEO Tim Cook published Monday, Icahn argues that shares of the iPhone maker are worth $240, about 90% more than they are trading at today.
Drug Takeover Valuations Soar as Par Pharma Gains 300% (Bloomberg)
To see just how much drug-company valuations have ballooned, check out Monday’s takeover of little-known generics maker Par Pharmaceutical Holdings Inc.
Politics
Bush v. Rubio: Who Will Win Neocons' Hearts and Minds? (Mother Jones)
As Marco Rubio and Jeb Bush, once political pals, now compete for the Republican presidential nomination, one battle they will be waging with each other will be who has better neoconservative bragging rights. Both have recruited prominent policy wonks from the hawkish wing of the GOP, and they may be heading to a showdown over who gains more support from this influential cadre. (Should he enter the 2016 race, Republican candidate Lindsey Graham will take a stab at winning over this group too.)
Bill Clinton tweeted at Obama. Obama’s response was perfect (Market Watch)
If Hillary Clinton wins the White House, the fate of the @FLOTUS Twitter account is unclear; after all, it’s not yet known what a female president’s husband would be called. It is possible to change Twitter usernames without affecting existing followers, direct messages or @replies.
Bill Clinton has weighed in with one suggestion.
“My Scottish friends say I should be called ‘first laddie’ because it’s the closest thing to ‘first lady,’” he said in a 2007 interview on The Oprah Winfrey Show. “I’m not so worried about what I’m called as what I’m called upon to do.”
Technology
iPhone 7 Rumor Mill: New GPS Function? (Value Walk)
The iPhone 7 (or iPhone 6S) continues to be a focus of rumors in the tech community, and today is just like any other day. This time it’s pertaining to the acquisition of a startup that focuses on GPS technologies.
And because any time a company like Apple Inc. (NASDAQ:AAPL) makes an acquisition of any kind, people have to start pondering how the company might incorporate the startup’s technology into future products.
Health and Life Sciences
Researchers find brain area that integrates speech's rhythms (Science Daily)
Timing matters to the structure of human speech. For example, phonemes are the shortest, most basic unit of speech and last an average of 30 to 60 milliseconds. By comparison, syllables take longer: 200 to 300 milliseconds. Most whole words are longer still.
In order to understand speech, the brain needs to somehow integrate this rapidly evolving information.
Vitamins and Cancer Risk (Science Based Medicine)
One of the greatest triumphs of marketing over evidence was the incredible rise of vitamin supplement use in the 20th century. Supplement makers successfully created a “health halo” around vitamins, and taking your vitamins became a virtue, something mothers told their children to do. The evidence, however, does not tell such a simple story.
In recent years it has become increasingly apparent that there are unintended consequences to taking vitamin supplements, and in fact there may be a net negative health effect. This is especially true for those who are healthy and don’t need vitamins, and for those who exceed the recommend dosages.
Life on the Home Planet
Microsoft study claims human attention span now lags behind goldfish (Medical Xpress)
Microsoft has conducted a study aimed at learning how modern technology is impacting the attention span of people who use it. They have published their results on their own website, and claim also that they have used Sohlberg and Mateer's model of attention, which allows for providing a timed result. As part of their study, they note that there are three types of human attention: sustained (prolonged focus), selective (maintaining focus despite distractions) and alternating (shifting attention between tasks or stimuli). The study consisted of surveying 200 people and administering EEG scans to 112 volunteers.
Millions of spiders just rained from the sky in Australia (Business Insider)
Millions of tiny spiders recently fell from the sky in Australia, alarming residents whose properties were suddenly covered with not only the creepy critters, but also mounds of their silky threads. But that's not where the frightful news ends: Experts say that such arachnid rains aren't as uncommon as you might think.
