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Toppy Tuesday – S&P 1,950 Edition

SPX WEEKLYHere we go again!  

As you can see from Dave Fry's S&P chart, we're back in the top of the channel on a Tuesday and I will refer you to April 1st's "Triple Top Tuesday" and December 31st's "Terminal Tuesday" – both of which were points we thought the market was topping out before.  

Actually, in both cases, we did have a mild pullback, but nothing that broke the trend – so far.

Back in that December post, we were playing gold (/YG) bullish at $1,185 to finish the year, based on our premise of MORE FREE MONEY in 2014 keeping the markets afloat.  We also went bullish on SHLD at $40, which is like $30 post-spit.  

In the April post, it was our 3rd try at 1,880 on the S&P and we had just cashed out our Income Portfolio and I we lost $10 betting the Nasdaq would be above 4,200 at April expirations on a TQQQ spread (now 4,350 – so bad timing) but our support held and kept the damage to a minimum.  We also (in the morning post) called for selling the AAPL Jan $450 puts for $5.90 to pay for those spreads and AAPL just split 7:1 so those are now the $64.29 puts at .25.  7 x .25 = $1.75 so up $4.15 (70%) already on that play.  

RUT WEEKLYWe also had bullish trade ideas for HOV, CHL, FCX, ABX and RIG – right in the morning post!  Our best play, however, was shorting the Russell Futures (/TF) at 1,180 in Member Chat at 10:53 – as that was the beginning of an $9,000 per contract pullback on that index – all the way back to 1,090 (where we went long).  

As you can see from Dave's Russell chart, we're just playing a channel with our trades – it's really not that complicated.  Yesterday the Russell hit 1,180 and – guess what – we shorted it again!  Now you are catching on to our "secret" strategy!  

Already this morning the Russell Futures are down to 1,170, which is +$1,000 per contract from 1,180 but our big bet is on TZA (ultra-short Russell), where we pressed the June $17 calls at .10.  It's a gamble, as we only have two weeks for a pullback but, if we get only half the pullback we had in April, it's going to be a very profitable one!  Remember, as I said in yesterday's post, we're only gambling with the profits we made on our long Russell play from last week (TNA) – just playing the channel.  

We didn't have a Buy List yet but I did put up a bullish "Value List" of stocks for our Members that day, saying:

Good time to contemplate our value list and look for who's still on sale:

SHLD, RIG, VLO, F, GE, T, CHL, GLW, SPWR, IBM, BA, BRK.B, COST, DIS, INTC, MCD, PFE, X, CLF, HMY, DBA, XLF, FCX, CAT, BRCM, BTU, NLY, AGNC, FTR, RRD, BAC, JPM, ISRG, CSCO

We played some of those in our Long-Term Portfolio but we just cashed that one out too, which is why I put up a new consolidated Buy List this weekend (Members Only) with some of the same names and, of course, specific trade ideas for each one.  We usually go over these trade ideas on Tuesdays at 1pm, in our Live Trading Webinars (today's Free link is here).  Since some of them have already taken off, I'll give out a couple of free samples (and you won't miss any if you JOIN HERE):

BRCM was an idea we had on 5/20 and the text of the trade idea we sent out to our Members (via text and Email Alerts) was:

BRCM (5/20) is one we like to buy whenever they are not expensive.  They had a nice sell-off last year and we grabbed them at $25 but it doesn't look like that will happen again – now $30.23.  They only pay a .48 dividend (1.5%) so forget that and we can sell the 2016 $30 puts for $4.10 for a net $25.90 entry and leave it at that and, if they weren't already in the LTP (we sold the 2016 $25 puts for $3.10 when it was lower) I'd add it now.

With BRCM already at $38, the $30 puts are already down to $1.90 – up 53% in 45 days!  

KBH was initiated on 5/13 and is the first builder besides HOV we've like all year.  At the time they were trading at $16 and my trade idea for our Members was:

KBH is solid and, because they've taken massive losses in the past 5 years, it will be 5 years before they have to pay any taxes on earnings – that's nice too.  No dividend (.10) means no reason to own the stock and, because they look scary, we can sell the 2016 $13 puts for $1.60 and use that $1.60 to buy the $!5/25 bull call spread for $2.90 for net $1.30.  So we effectively own KBH for $16.30, which is what the stock cost now but, if it drops all the way below $13, we only have a net $14.30 cost if it's put to us.  So $2 of cushion for free and we make 100% of the upside between here and $25.  We can also potentially sell some short calls along the way if they move up a bit more.  

With KBH already at $17.29 as we enter the 2nd month of this trade, the $15/25 bull call spread has barely moved at $3.25 but the short $13 puts are now $1.30 for net $1.95, up 50% in the first 60 days.  Of course, the potential for this trade is to make $8.70 or 669% so 50% in 2 out of 18 months is only "on track" for this particular spread.  

IGT is an example of a classic PSW play from 5/13. We had just analyzed their earnings report and were baffled by the lack of market reaction to what we considered good earnings, so I sent out an Alert to our Members saying:

IGT (5/13) confuses me.  They just had good earnings yet they are being treated like dirt because they are in the midst of restructuring.  We love it when we can take advantage of a situation by simply being more patient than the current investors!  

IGT does pay a .44 dividend and they have expensive options so perfect for a buy/write where we buy the stock for $12.57 and sell the 2016 $10 calls for $3.40 and the $13 puts for $2.80 for net $6.37/9.19 so our WORST case is owning 2x at $9.19, which is 27% off the current price and that makes the .44 dividend 7% while we wait to see if we get called away at $10 for another $3.63 (57%) and, of course, we need to be over $13 to realize the full profit.  

As you can see from the chart, we got a nice pop yesterday, well over our $13 target on a buyout rumor (apparently I'm not the only one who thought they were undervalued) and, if the stock does get bought out over $13, we will realize our full 57% gain well ahead of schedule.  

WFM (5/13) was another of our favorite kind of plays – an over-reaction to an earnings report.  The stock gapped down from $48 to $39 and we decided to go bargain hunting in our Webcast, saying:

WFM  I have not liked for ages but $39.43 finally gets their p/e into the low $20s and they are moving into the UK and, as we've discussed before, they are merely getting squeezed by rising food costs they haven't passed on to customers yet.  

This one is easiest played by just selling puts and you can get $3 for selling the 2016 $33 puts and that gives you a net $30 entry, another 25% down from here.  TOS says net margin is $3.30 so almost 100% return on margin for promising to buy WFM for 25% less than it's trading for now – not too shabby

With WFM back at $41.14 already, those $33 puts are just $2.45 now (up 18%) but we paired them with the 2016 $35/45 bull call spread at $3.65 in our Income Portfolio for a net of just $325 on 5 contracts and now the spread is $4.80 ($2,400 for 5) less $1,225 for the short puts is net $1,175 – up 261% in just two months off our $325 cash entry!  

That's just 4 of our bullish trade ideas out of 29 on our Buy List and, as you can see from our Value List – there's still plenty of bargains to be had – even in this runaway bull market.  So there's no need to chase expensive stocks when we can use options to make the cheap ones even cheaper – which gives us a tremendous downside hedge as well as leveraged profits to the upside!  


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  1. Oil Lines

    R3 – 107.49 (wow!)
    R2 – 106.17
    R1 – 105.42
    PP – 104.10
    S1 – 103.35
    S2 – 102.03
    S3 – 101.28

    Crazy lines after a crazy move!


  2. AAPL & GOOG / Phil – Actually, GOOG wants you to use Google Now on your iPhone. You can use it in Chrome on any platform. Their model is for everybody to use it as much as possible. They don't monetize the platform, they monetize the content. That was the gist of the post – monetize the hardware or the cloud. Different strategies – both possible winners I guess.


  3. good morning scottmi, re: UNP, looks like they got an upgrade, on a tear again this am.

    I was looking at converting some of these to Nov verticals, as you had suggested yesterday:

    10 long Nov 95s and 10 short Jul 97.5s, roll the Julys to Nov 100s for small credit, that will be just about a double if holds 100 thru Nov

    4 long Nov 97.5s and 4 short Aug 97.5s, pay a bit to roll Aug 97.5s to Nov 105s, about a double if over 105 in Nov

    18 long Nov 97.5s and 18 short Aug 100s, these are in a small Roth I have, I can't afford to roll all to Nov 105s, but maybe roll 9 to Nov 100s and use the cash to roll the other 9 to Nov 105s, another double if over 105 in Nov

    Let me know what you think, or better to wait a bit before making these adjustments.  I should say many thanks for putting me on to these, no doubt I at least owe you a tequila :)


  4. Good article about bonds yields and how to evaluate them, Many factors need to be taken into account.

    http://qz.com/218639/spanish-bond-yields-have-dropped-below-those-on-us-treasurys-but-it-doesnt-mean-theyre-safer/

    But there are also important differences in currencies and rates of inflation and economic growth that should be taken into account. For instance, the chart above shows the nominal yield on 10-year government bonds. But you can also look at so called “real yields”—the yields on the inflation-indexed government bonds of both countries. Real yields tell investors the market’s best guess for how much money will be left over on an investment after inflation has eaten into those fixed returns.

    You can see that Spanish “real” yields are still far above “real” US yields. So what does that mean? Well, basically, that a lot of the decline in Spanish bond yields over the last year reflects not just the ECB’s guarantee, but also the prospect for very low levels of inflation, or possibly even deflation, which isn’t a good sign for the Spanish economy.


  5. Barry on why calling market tops is nearly impossible:

    http://www.bloombergview.com/articles/2014-06-10/why-is-calling-a-market-top-so-hard

    The world is a complex place. Most people really don't understand what has already happened. We have a loose understanding of recent events, but we are far less informed than we believe. Discerning what is going to happen is an almost impossible task.

    The bottom line is that these market calls are at best one part art, one part science. Whatever market calls people choose to make (or follow) it helps to understand this: No one is infallible, most are pretty bad, few are consistent. Luck plays a huge part as well. Even those who occasionally get it right are no more likely to continue that streak than anyone else.

    I have no idea when this market will reach a top; it could have been yesterday for all I know. But I can tell you that if your investing process is highly dependent on correctly identifying when a market is about to top and reverse, I expect you will need new investment plan eventually.


  6. PHIL/Hedging a $500K portfolio.

    I would like your recommendation on the best way to hedge.

    Thanks,


  7. Good Morning!


  8. Oil trading in the channel between $104.75 and $104.50 so far.  


  9. headfake?


  10. Stifel;

    nflx

    Pricing as of 6/9/14 market close.
    Target Price Methodology/Risks
    Our target price of $475 is 27.6x 2015E EBITDA. In addition to general market and macroeconomic risks, for
    Netflix, target price risks include international expansion, alternative distribution channels, and increasing
    competition for exclusive and non-exclusive content.


  11. /CL from SpringHeel….TA voodoo…but one has to respect the trend….


  12. http://finance.yahoo.com/blogs/breakout/jim-paulsen-s-picks--3-sectors-and-a-stunner-171406989.html

    Phil – I've been long the EEM for the past several months.  Jim Paulsen, of Wells Capital, who has made some really good calls for the past several years, is now recommending putting money in the emerging markets.  Any thoughts on spreads ?


  13. cramer says nflx is reasonably valued now..


  14. UNP/pwright – I like rolling half the july 97.5 to Nov 100s today for .40 or better with this morning's drop…  market still very toppy feeling..


  15. jabobeast NFLX Cramer, than it must be true!!!


  16. Good morning! 

    I was actually surprised how many of our Value List stocks are underperforming the S&P for the year:

    VLO, TCHL, SPWRIBM, BRK.BCOSTMCDPFEXCLFHMYDBABTU, FTRRRD  

    A couple made the buy list already but worth looking at all of them if the market holds up.  

    Meanwhile, we got a nice little pop at the open but fading back already.  Who can tell in this crazy market though, look at yesterday's chart:

    SPY 5 MINUTE

    This is the kind of nonsense that can happen when there's no actual volume in the market.  It takes nothing to move the S&P up and down 10 points in a day.  I remember, once upon a time, when a 10-point move on the S&P would send us running for the news feeds to see what kind of catastrophe or major announcement had occurred.  

    The Dow has been super-annoying but I'm still short – now 10 contracts at 16,926 so 5 off the table at 16,900 to raise the bar to 5 at 16,950ish.  Assuming it does go below, that will be my stop with a 15-point trail on the remaining half.  

    Oil gave us a quick $500 and then a re-entry and now halfway between.  

    RUT 1,173 still a short but scary.  

    Europe is kind of flat with FTSE down 0.25%.  

    • Dow -0.04% to 16,935.50. S&P -0.12% to 1,948.90. Nasdaq -0.03% to 4,334.35.
    • Treasurys: 30-year -0.3%. 10-yr -0.13%. 5-yr -0.07%.
    • Commodities: Crude +0.2% to $104.62. Gold +0.57% to $1,261.00.
    • Currencies: Euro -0.33% vs. dollar. Yen -0.28%. Pound +0.2%.
     
    • Stock futures suggest modest losses at the open, with some profit taking perhaps taking hold after the S&P 500 surged more than 4% over the past three weeks.; Dow -0.1%, S&P and Nasdaq -0.2%.
    • Investors are hoping for a fifth straight day of gains and 11th advance in the past 13 sessions, as the recent streak has run both the Dow and S&P to all-time highs and has the Nasdaq less than 1% off its best print in more than 16 years; even the Russell 2000 has rallied nearly 5% over the past four sessions and is now less than 3% off its own record peak.
    • Major European and Asian indexes trade in mixed fashion.
    • Treasurys hover near their lows, with the 10-year yield up 2 bps at 2.63%.

    AAPL $94 – should have bet the house on $100.  

    NFLX jumping up, $433 again on an analyst day.  

    Here's something to support oil – another delay in Kashagan:

    • Kazakhstan's giant Kashagan oil field will not produce any oil until at least 2016 while workers attempt to complete massive repairs, sources tell WSJ.
    • The Kashagan partners – which include Eni (E), Total (TOT), Royal Dutch Shell (RDS.A,RDS.B) and Exxon Mobil (XOM) – reportedly have concluded they must entirely replace two 55-mile pipelines before they can restart production at the troubled project.
    • Production was halted indefinitely in October when the pipeline conveying gas rich in highly corrosive and deadly components to the shore sprung multiple leaks; repair work is difficult in the Caspian Sea area, because ice envelopes facilities in the winter and extreme heat radiates across the field in the summer.

    It's not NEWs, but these guys will trade off any excuse.  

    And this is bad but XRT still $85.70:

    Redbook is up 3.5% though so chain-stores doing well, just small retailers getting killed (lack of on-line presence?).  

    Also, Small Business Optimism Index was back to Sept 2007 highs:

    Small Business Optimism Up Again in May

    Of course, those guys were idiots in Sept 2007 because things were falling apart but, on the other hand, they were way less optimistic than they had been, so let's not celebrate 97 – as it's still below 100:

    NFIB small business optimism report for June 2014

    Single Most Important Problem for Small Business

    Small business unfilled job openings through May 2014

    Small business jobs data through May 2014

    Wow, oil just tapped $105 – now we've got something to short!  

    Contract roll over on Friday, the 20th but we have the July 4th weekend for them to hang their hats on but I do like taking SCO as a bet $105 doesn't hold.  SCO is at $25.50 and the Oct $22/26 bull call spread is $2.40 and you can sell the $24 puts for $1.20 for net $1.20 on the $4 spread.  That's a good way to play.

    Also I like the USO June $39 puts at .75 for the Futures-challenged.  


  17. ~~RUT 1,173 still a short but scary, Phil

    If it stays down currently 1% below yesterday's peak could be a solid short, TLT is troubling.


  18. scottmi re: UNP, I was wrong, I have long Aug 95s rather than Novs, I may just roll forward the weeklies for credits in Jul and let them close out in Aug


  19. Phil – Nice call on LULU.


  20. Ocean Power Technologies Inc. (OPTT) has fired Chief Executive Officer Charles Dunleavy. David Keller, a director, was appointed interim CEO.

    Dunleavy was terminated “for cause” yesterday and will receive no severance payments, according to a filing with the Securities and Exchange Commission today. No details were provided. ( trading halted)


  21. WYNN getting it on the chin down to 194.50 today 


  22. amzn and nflx up and others down…

    mkt trying to recover.

    can't believe people still listen to sell-side anal ysts???

    Phil--is there a shot that this mkt could actually have a bad day?

    Or do you expect the invisible hand to come back for his daily stick save?


  23. Phil, Are you bullish on EBAY given the Paypal president resignation?


  24. New trade idea 

    VGR a stock which has a 7.6% yield. 

    I buy the Nov 17.5/20 BCS @ 1.95 already .90 ITM and sell the Nov 20 p @ 1.30 cash outlay .65

    Even that the stock pays .40 div until Dec I would only receive .80 buying the stock @ 20.90. In this case I sell the  20 put for 1.30 discounting the stock to 18.70. If the stock holds 20$ I am still looking for a credit on the BCS of 2.50 – .65 = 1.85


  25. Wow, nice dip on the RUT already.  

    GOOG/StJ – I know that's their "strategy" but, with nothing proprietary to push the devices (and GOOG is taking a lot of the revenue stream so bad for the phone/tablet makers), I think it's a long-term negative for Chrome vs iOS.  AAPL understands how to share the wealth and make their platform attractive to the content producers.  Over time, I think that will be the winning strategy.  GOOG relies on manufacturers to make low-margin devices – that can only work for so long.

    Bonds/StJ – Good point. 

    Tops/StJ – While it's hard to call a top or a bottom, I feel it's not that hard to know when the VALUE of stocks is too high or too low – the rest is just waiting for others to agree with you!  

    Hedging/IHS – Well, it depends on the portfolio.  You should be at least 1/2 cash in this kind of market and no more than 70% bullish, no matter how bullish you feel so figure $500K of margined play (1/2 ordinary) means a 10% move down in the S&P will cost you 7% (70% of 10%) or $35,000 so you want to cover about $20,000 and that means something like 50 TZA Oct $12/18 bull call spreads at $1.30 ($8,000) pays $30,000 if TZA (now $15) goes up 20%, which is a 7% drop in the RUT (back to 1,088).  

    Since you are starting out $3 in the money, you don't lose unless the market is higher (there will be some decay in the ETF) – in which case you should be happy with your bullish positions.  Of course, I prefer to offset these hedges with short puts on stocks I REALLY want to own if the S&P does drop 20%, like IBM 2016 $160 puts at $8.80 – you can sell 5 of those for $4,400 and your worst case is owning 500 shares of IBM at $160 ($80K).  Unfortunately, the VIX is so low, we're not getting good prices for our put sales.

    Channel/Bruce – Spoke too soon, it broke up (but now back down!).   Such a silly market.  

    Oil/Pharm – Doesn't take into account that people simply won't pay $4 a gallon for gas.  It's idiotic to think commodities should behave the same way stocks do on charts – I can't understand why TA people don't seem to realize this.  

    EEM/Albo – I liked EWZ in Feb, but that was back at $38 and now they are up over 15% in 3 months so a little chasey to me – especially at a top it has failed 4 times since 2012.  I think I'd bet against Jim Paulson and go for EDZ (3x Bear Emerging Markets) at $31.65 with the Oct $35/42 bull call spread at $1.20.  You can use that to hedge your bullish EEM trade but I just like the EDZs.  

    Oil back below $104.50 – nice!  That's the stop now, of course.  

    RUT/Shadow – Told you so.  Hit 1,166 but back to 1,171 now – gotta be quick on that one (and not greedy).  

    Thanks Albo.  

    OPTT/Randers – That's interesting.  

    Bad day/Jabob – I think a bad hour is all we can hope for these days!  

    EBAY/Ging – I don't think it's a positive but I don't think it kills them either.  Call it less excited. 


  26. Phil

    I agree with you on the RUT and oil. Right now the local stations dropped diesel to $3.99 when crude has driven the price to $4.30 at $105. Maybe there selling some of that but gas pumps are empty along with the roads. Still think what I said yesterday could be a build tomorrow and my gas pump survey says it must come down very soon or tourists season will be a bust.


  27. IWM sold a 2 million share block +- $320M below bid. Pretty big get out.


  28. mistake $230M


  29. Price adjustment of diesel at German pumps. It is not very important if the oil price goes up or down. These crooks adjust the prices at the hour and at the day. For example Sunday and Monday was a holiday here. People travel more the price was 1.39€ per liter. today Tuesday 1.32€ 


  30. PHIL/ Hedge   Thanks for you input.


  31. Hertz

    When I returned a rental Hertz said there system is down you will receive an e mail receipt

    When the receipt shows up Hertz uses your flight time as the return time adding an hour or more to your bill. Happened twice at different airport last two weeks. They are sorry when you call

    I think of the people who do not call

    Anyone else have this experience?


  32. For people who want a big mover on earnings, I give you ULTA tonight:

    Consensus Estimate – $0.74
    Whisper Number – $0.76
    Average Move – 10.2%
    Priced into Options – 9.3% (June expiration)

    They got clobbered in December after earnings. Tough one to call – $80 seems like a good support line and $100 a resistance line.


  33. From my wife on Hertz which is her competition in MX. They known not to make their money on car rentals but on all extra charges such as over charging on car damages and excidents 


  34. HTZ/qcmike – looks like not just their system is down…


  35. yodi fuel prices here don't change more than every couple weeks. The action is they try to boost prices because skiers are coming or tourists to Yellowstone park but after a while they have to sell fuel to pay the bills, that starts next week. They may try for the holiday but that push won't start until June 30. They have to sell to the locals, no tourists. Coastal people fly but the poorer country center drive for vacations and so far no one is coming.


  36. Fuel prices no Shadowfax they change here even by the hour!!! In the morning more expensive than in the afternoon.


  37. yodi

    That must really suck although they may track the real market a little better, here they shoot up instantly and drop very slowly. I know that next week I need gas and 2 to 5 dollars means something to me using 1 tank per month. Everyone does the same.


  38. HTZ – yikes.. looks like they don't know how to run their business anymore. out of control.


  39. scottmi 

    HTZ

    It’s good for business; I wonder how many people look at their bill


  40. scottmi

    Car rental is something I have know well for a very long time. Individuals and lower level business travel is their market and both are in a big squeeze. The rich don't rent cars, especially the ones that fly private jets.

    So they push the low level employees to charge every penny and what I remember from my days of renting cars every week Yodi's wife has the story right. They charge for top repairs and then bondo repair even skip clear coat finish. They never even change the oil.


  41. I have been renting a small U-haul truck for a local move and large, dirty stuff that will not fit into our fuel conserving cars. They do not even trust the customer to return the vans full of gas and require that you provide a fuel receipt or they will add on a fuel charge.


  42. IWM broke the 2 day triangle squeezy thing to the lower.

    HTZ is big in selling used cars, seems they sell for all the rental companies. BEWARE of bargains!


  43. Exporters seem to be doing better than domestic only companies:

    http://www.bespokeinvest.com/thinkbig/2014/6/9/performance-based-on-international-vs-domestic-revenue.html

    The basket of Domestics is made up of S&P 500 companies that generate at least 90% of their revenues in the United States (or North America if US revenues are not specified), while the Internationals basket is made up of S&P 500 companies that derive at least half of their sales outside of the United States.

    As shown in the chart below, both domestically (15.62%) and internationally (22.48%) focused companies have done well over the last twelve months.  The only difference is that the Internationals have handily and steadily outperformed Domestics. 


  44. Tourist season/Shadow – That's why I want to bet after July 4th.  Into the holiday, there's no holding back the bulls. 

    Price-fixing/Yodi – Same game over here.  

    You're welcome IHS.  

    HTZ/QC – So many companies do things like that to screw people.  When you call, they are happy to reverse the charges (so you don't end up complaining to regulators) but 90% of the people never call and they make a fortune.   I would suggest picking earlier flight times!  

    ULTA/StJ – Nice and low in the channel but not a stock I follow.  

    1,166 on /TF!  

    Hey, I found some oil!  

    • Sinopec (SNP +1.7%) has doubled production at its Yadvaran oil project in Iran, WSJ reports, a rare success as the country struggles to revive its flagging oil output.
    • Production at the project reportedly has increased to ~50K bbl/day from 25K in early April, and SNP is pushing to start a new phase to boost output to 135K bbl/day.
    • The push is part of a broader attempt by China and Iran to mend fences after the April cancellation of a $2.5B oil deal with PetroChina.

    Meanwhile:

    U.S. wholesale inventories, jobs rise

    • U.S. wholesale inventories increased 1.1% in April after advancing by the same rate in March. The rise was more than predicted by economists for April, expecting only a 0.5% gain. Sales at wholesalers increased 1.3% for the month, although down from 1.6% in March. - That's down from the month they said was severely impacted by weather! 
    • Growth for this quarter is expected to go over a 3% pace, although sturdy gains in wholesale inventories for April could initiate a rise to GDP estimates. Inventories are a crucial component for gross domestic product changes.
    • The U.S. Bureau of Labor Statistics reported jobs rising in April – showing 4.5M openings, compared to 4.2M in March.

    Junk bonds make another run at sub-5%

    • It was May 2013 when the yield on BAML's benchmark index slipped below 5% for the first time ever, after four months earlier falling below 6% for the first time ever. What happened next was a bear market in fixed income which sent yields on all instruments sharply higher.
    • This year's big bull run for fixed-income has brought 5% back into play, with the yield on the BAML index sliding to 5.002% this morning. Junk bonds (HYGJNK) have already delivered a return of 5.16% YTD, and now yield just 350 basis points more than comparable Treasurys.
    • ETFs: HYGJNKHYLDHYSSJNKSJBHYHGANGLHYLSUJBXOVRTHHYSHYG,QLTCHYGHHYNDHYZD

    Crude-by-rail shipments from western Canada seen tripling in next two years

    • Shipments of crude oil by rail from western Canada are expected to more than triple in the next two years to ~700K bbl/day in 2016 from 200K in late 2013 amid a severe shortage in pipeline capacity, according to the annual forecast from the Canadian Association of Petroleum Producers.
    • Rail transportation is widely regarded as more dangerous than pipelines, but oil trains can be ramped up fast in response to market demand because they are not as regulated as pipelines.
    • Oil supplies in western Canada from the oil sands and from new shale plays continue to increase, while four major pipeline projects – Keystone XL (TRP), the TransMountain expansion (KMIKMP), Northern Gateway (ENB) and Energy East – await regulatory approval and construction.

    Twitter higher as Wells Fargo joins upgrade parade

    • Wells Fargo has become the sixth firm to upgrade Twitter (TWTR +1.8%) since its  May 6 lockup expiration, lifting shares to Market Perform albeit while keeping its $36-$39 valuation range.
    • Though admitting Twitter still trades at a premium to peers, Wells thinks its current valuation range is "supported by Twitter’s strong monetization ramp, new product introductions, and broad advertising interest."
    • Like many others, it's still worried about slowing user growth/engagement, and thinks declining activity among older demographics (more valuable to advertisers) "could present downside risk.."
    • Wells expects Twitter to end Q2 with 267M MAUs, up from 255M at the end of Q1 and in-line with Street expectations.
    • Previous upgrades

  45. BUD having a good day….as is NFLX.  Watchin' movies and drinkin' a beer…..


  46. shld not doing well today


  47. greencoins sent: shadowfax 500, 

    250: roaddogg, JMD__, options_alpha, rj_jarboe


  48. bdc/greencoins: thanks


  49. BDC

    Thanks!


  50. BDC thanks!


  51. Anyone have a clue how to locate a cardiologist. There isn't a single one within 100 miles and the internet is mad mans land.


  52. biodieselchris – Greencoin: We are in.  GSPdej4AETsihV9GVBxyDgm3fQugTVx99p



  53. I need solar producers people! I'll pay greencoin bounties if you find someone for me and they sign up!

     

    Pharm???


  54. BDC  Greencoin   GbFhJgiKsEgn9mp97QTsg9CALN9oiB5xuD


  55. dclark41 / still having trouble with the mac wallet? If so, if you want to post your technical difficulty on the bitcointalk forum here they will get it resolved pretty quickly and others that have the same problem may find your post helpful.


  56. BDC/trouble

    Thank you!


  57. Pharm-  Ever heard of this company?  http://www.metabolon.com/  not yet public but might be doing an ipo 


  58. BDC

    That link you gave me last night was very unclear but I did what you said and it worked. Hope that helps everyone, yesterday chat.


  59. BDC – got a solar guy for you, will send email..


  60. Doctors, anyone

    I have been trying since last night to find a cardiologist, yellow pages none, internet sends me to ID docs, none are cardiologists. I will travel but how do you find one, as referrals here are to a general surgeon. Sorry but I need help and this is a last resort for how to.


  61. TASR up 5%

    (NASDAQ: TASR) announced today that  Bret Taylor  will be joining its Board of Directors.  Mr. Taylor  was the co-creator of Google Maps, CEO of Friendfeed, CTO of Facebook, and is now CEO of Quip. He brings extensive technology experience to the Company as TASER and its business unitEVIDENCE.com, looks to accelerate growth in the wearable camera and cloud computing space for law enforcement.  Mr. Taylor  will be filling a board seat vacated by Dr.  Matthew McBrady , who is retiring from the Board due to a new job in the financial industry which precludes him from serving on the boards of public companies.


  62. Shadowfax 

    Calls the MAYO make an appointment there  507  284 2111

    Call the Mayo ask if there are any Mayo doctors in your area in cardiologist Long shot


  63. VIX back below 11.  Ho ho ho….


  64. Metabolon….interesting company…and almost Star Trek'ie.  Should be interesting to see how it is received if they do go public.


  65. qcmike

    Thanks, went there for my neck, didn't work out, at that time it was treat pain too dangerous. Could call but that took a long time and it is not remotely close to me. Found a U Utah doc comes to Jackson one day a month, requires referral. BP is too high to wait, locals have failed and pain may be most of it? ROCK vs HARD SPOT!


  66. Shadowfax 

    I am not a doctor maybe if your BP is up go to the ER why wait


  67. Shadow,

    Locate the nearest decent size city and find the hospital.  Cardiologist will be nearby.  Kinda like hunting turkey.


  68. Shadowfax/Doctor

    I'm relatively new here…catch me up a bit and maybe I can help

    Where are you?  

    I agree with sibe14, you certainly would be able to find a cardiologist at just about any hospital.  Certainly one in a metropolitan area.  

    Depending on what's going on I wouldn't wait around too long particularly if your BP is high…that can be dealt with at just about any ER and controlled relatively quickly.  Might need more evaluation obviously…  


  69. Cardiologist/Shadow – Usually you get referred by your regular doctor (or, if in hospital, they assign you one).  I know St. John's is out by Jackson Hole because of an old ski injury visit and that's a very nice place and serves tourists – so I'm sure they have a good referral net over there.  

    All these fancy targets gave NFLX a nosebleed – slipping back below $430. 

    TASR/Deano – Thanks, that sounds like a good add.  

    Seems silly not to have our Stock of the Decade in the LTP – especially when it's so cheap.  Let's buy 10 2016 $13/20 bull call spreads for $2 and sell the $13 puts for $2.50 for net .50 credit on the $7 spread.  


  70. Let's put that in the Income Portfolio too (TASR spread)!  


  71. More Gun Violence in Oregon school.  Someday …. someday.

    Didn't NRA geezer say the only thing that keeps away the bad guys with a gun is a good guy with a gun.  Tell that to the person in Vegas who died. 

    OK, done with that one.


  72. Guns/Pharm – Let's not forget, it's the shooter who is the real victim here:


  73. TASR, Income Portfolio/Phil:  I think we already have 10 $15 TASR Puts sold for $3 in the Income Portfolio.


  74. TASR/Income Portfolio, Kinki – Yes we do, so – for the Income Portfolio, we can just add the bull call spread.


  75. Phil/TASR

    While putting in the option order, do you put one order for the bull call spread and one separate order for the put sell. Also while closing out the spread do you put order for each separate leg in the spread. Just trying to understand the best way to put in the option order with multiple legs. Thanks.


  76. TASR/Pat – On that particular order, I start by offering $3.80 for the $13 calls and asking $1.80 for the $20 calls and asking for $2.50 for the short puts.  If TASR goes up, the short calls will fill first and then we have to decide on the other two or, if TASR goes down, the short puts and long calls will fill and then we have to deal with filling the short calls.  Since TASR is up 10% in a week, we can expect it to top out and pull back a bit so most likely first we fill the short calls and then the long calls and short puts on a pullback.  You can also just offer $2 for the spread – as you really don't care what price you fill it at but sometimes they don't fill very well.  In either case, it's not a heavily traded stock, so it can take a few days to fill. 


  77. Oil futures testing $104.50 again (/CL) so it's a DD from the Webinar short with a stop on all at $104.55.  


  78. Phil / AAPL – I hold the presplit 2016 500 put short and 2016 600 call long. With AAPL running at 100 (700 presplit), I was wondering at what time you would consider selling calls to protect the gains made already. I was thinking to sell the 750 presplit call. Wondering what your thoughts are. Thanks  


  79. OPTT stocks 38% down !!! to 1.67


  80. AAPL — The presplit options were converted to the new options 7 for 1 and are the only ones traded, I believe.


  81. AAPL – Correct. Everything was converted 7 to 1. Just making reference to the presplit values to make things easier, at least I was thinking I was ????


  82. they will not let the mkt go down..

    FU invisible hand!!!!!


  83. Thanks all!

    Referral asked and still no return. No cardiologists in Idaho Falls is why I couldn't get the thoracic fixed. Phil, called St Johns they demand referral for the U UT guy. Looked up U Utah hospital and called them asking who comes to Jackson. Have an appointment Thursday in Jackson. Referral problem was they hurt me and 2 weeks ago I had a little repair work that kicked my ass. I am labeled as dangerous may sue us and if I could afford to I would. Just doesn't happen they hurt you tough luck! Lots of nice people in medicine but no responsibility taken if something goes wrong.


  84. GOOG wants to own the sky now:

    http://arstechnica.com/business/2014/06/google-buys-satellite-imaging-company-skybox-for-500-million/

    Google has just acquired satellite imaging company Skybox for a cool half-billion dollars.

    According to Inc. magazine, the Mountain View startup launched its first “minibar-sized” satellite into orbit in November 2013 and will launch eight more by the end of 2015. It plans to have 24 satellites in its constellation by 2018. With Google’s backing, though, that timeline could get accelerated.

    Skybox is unique because it’s one of the rare companies to provide high-resolution photography from space. The company wants to use computer analytics to unlock valuable data from satellite images—potentially worth a lot of money to future clients.

    As a 2013 Wired profile outlined, this data could include frequently updated information like “how many parked cars are in all the parking lots of Walmarts across America.”

     I guess Google Now will let you know where there are free parking spaces in real time now! And track your cars, spouse, kids and pets on satellite images.


  85. AAPL/Pfehl – I'm not too keen on selling AAPL calls, that stock can burn you pretty badly.  July $97.14 calls, for example, are just $1.35 vs a $14 spread you are trying to protect but you are $10 in the money already – are you that worried about a 10% drop because a 10% pop will cost you $5+ (about half your profits).  With the VIX this low – strategies like that aren't too much fun.  

    OPTT/Pat – Seems like a bit of an over-reaction but I wouldn't do anything until we get a straight story – maybe the CEO robbed them blind.  Maybe he's starting a new company in the same space…

    The Company does not believe any issues the Special Committee will investigate will affect its previously filed financial statements. The Company does not anticipate restating any of its financial statements, and the Company anticipates it will file its upcoming annual report on time.

    Silver chugging along – $19.21.  Gold $1,261.  Dollar rejected at 81 – no 80.92.

    They are working hard to close us green.  

    Danger/Shadow – Well I can see where that attitude may have doctors avoiding you.


  86. Phil not my attitude. They hurt me, required a surgeon to fix, and they told me not to come back. Shit Phil I was non-stop bleeding. I had to find my own solution, that took a lot or digging also.  Mormons! and they hate Catholics. ASAP out of here nothing seems to come together medically and I have more medical problems on hold. Jen understands it all and is a wonderful person, hope she gets the job in Texas.


  87. Shadow-Try to find  a Doc affiliated with a teaching hospital. I know people have big problems out west, but it seems the University hospitals are knowledgeable & do a good job (Usually). I know the University of Mn is great.


  88. Wow-I have been trying to get these Tasr calls  & as soon as the order goes in they jack the prices so they don't fill! Already have the 13P but I am not casing these trades- got so disgusted I cancelled them.


  89. Attitude/Shadow – I know it's hard in rural areas to find doctors, just keep that in mind if you are going to make waves.  

    Wow, nice pop to close us green – round of applause for the big effort!   S&P right on that 1,950 line and I find it hard to believe the volume I see in Yahoo can be correct because it's 47M, which would be the lowest yet.  


  90. It seems that StockChart has lost their datafeed today… Hopefully that will be back later so I can post the Big Chart!


  91. Phil you have no idea what I put up with. Medical records are shared with everyone and too many doctors love to gossip. They break laws daily and only the people in real need sometimes find out how low they will go and then blame insurance and suing. I wish you all perfect health or go to Germany before it is too late.


  92. shadow – you can try Saddleback Memorial Med. Center in Laguna Hills CA. Very high quality Doctors.


  93. Sometimes I don't think they get sued enough! To many people I know have died because there was no follow through from many so- called specialists. But be sure you keep very detailed records of ALL rx, appts, & ask for written reports to be sent to you so you have a paper trail to back you up. These neatniks that throw everything away have no recourse even when grievous errors are made by Docs& Drugstores. I have had princes of doctors & complete quacks that almost killed me; its not easy I know.


  94. ULTA up over 8% AH… 


  95. As a physician I'll be the first to say that there are idiots and quacks abound that need to be avoided. But, unfortunately like other services, its the consumer's (patient's) job to do some homework before you let someone treat you.  I would imagine none of you would give your entire portfolio to some guy who puts "Financial Advisor" behind his name without doing some serious research first…I'm always astonished at how little time people spend looking into what I do, asking about my experience, for references, or even asking me questions when they have an appointment.  I think most physicians would suggest you keep records handy and be involved in your own healthcare…its actually easier and better for both parties that way.  Ultimately, you need to have a good dialogue with your doctors and they need to understand your expectations, if you don't find that…keep looking.  Well trained, knowledgeable, experienced, and honest doctors are plentiful in this country.  


  96. Looking a bit toppy right now!


  97. Wow, Cantor loses his primary… Ding, dong!


  98. Cantor- amazimg


  99. from Robert Reich on FB today, perhaps a Greencoin ally?

    The single best way to reduce climate change is to put a price on carbon. The big fossil fuel companies say this will hurt the economy, but they said the same when we put a price on sulfur dioxide and nitrogen oxide – the pollutants causing acid rain — in the 1970s. We did it anyway, all but eliminating acid rain, and the economy did fine. As to carbon, we’d start with a low price – say $10 for every ton put into the air – with the price gradually rising over time. This would give energy companies an incentive to save money by reducing carbon pollution – and also spend and invest more in non-carbon energies like solar, wind and hydro power. Our electricity bills might rise, but there’s an easy fix: The money polluters pay would go into a big fund that’s then divided up and sent to every American. So even if your electricity bill goes up $10 a month, you get back at least $10 if not more. Are you with me?


  100. Anyone watching /NKD…..like watching paint dry? Yen stronger from 102.38 to 102.22, /NKD hardly moved, f'ing weird!


  101. yep – i'm on it

    very little volume


  102. Hi wombat,

    Entered at 15070…..short the new contract which expires in Sept 2014


  103. Calling it a night at 15075….small loss, got to get some shuteye…Goodnight 


  104. oh, you're playing spread legs – i'm straight futures
    are you in a spread or just the short ?


  105. aw shucks.. Cantor or Brat? I can't tell the difference.


  106. From Bloomberg, Jun 10, 2014, 9:59:12 PM

    Southwest Cay, part of the Spratly Island chain, is a small island controlled by Vietnam in the hotly contested South China Sea. Southwest Cay was taken by South Vietnam in the 1970s. Vietnam has since built a fortified inlet, an army garrison and a number of support buildings on the island. Source: DigitalGlobe via Getty Images

    Sand, cement, wood and steel are the latest tools in China’s territorial arsenal as it seeks to literally reshape the South China Sea.

    To read the entire article, go to http://bloom.bg/1uTZcex

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  107. From Bloomberg, Jun 10, 2014, 11:29:40 PM

    Customers look at an electronic stock board at a securities firm in Shanghai, China. Photographer: Tomohiro Ohsumi/Bloomberg

    China’s mainland-traded shares won’t be included in MSCI Inc. (MSCI)’s global indexes, while South Korea and Taiwan were removed from consideration for an upgrade to developed market status.

    To read the entire article, go to http://bloom.bg/1xFtLHe

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  108. From Bloomberg, Jun 10, 2014, 11:15:13 PM

    House Majority Leader Eric Cantor, R-Va., delivers a concession speech in Richmond, Va., Tuesday, June 10, 2014. Cantor lost in the GOP primary to tea party candidate Dave Brat. Photograph: Steve Helber via AP Photo

    U.S. House Majority Leader Eric Cantor lost his re-election bid, falling to Tea Party challenger David Brat in a Virginia Republican primary in one of the biggest upsets in modern congressional history.

    To read the entire article, go to http://bloom.bg/1xFWPOU

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  109. From Bloomberg, Jun 9, 2014, 3:15:17 PM

    Well, Hillary listens to him. Would the Republican base?

    The Republican field for president has one stable center of gravity right now — Senator Ted Cruz of Texas. Cruz doesn’t dominate with ideas or fundraising prowess or his political network. He dominates with orthodoxy. As the most inflexible and unyielding conservative presidential prospect in a party with an inflexible and unyielding base, Cruz represents the pure religion against which the beliefs of other candidates are judged.

    To read the entire article, go to http://bv.ms/1oEzF7o

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  110. From Bloomberg, Jun 10, 2014, 8:00:05 PM

    June 1 (Bloomberg) — U.S. President Barack Obama spoke from the White House Saturday about the release of Army Sergeant Bowe Bergdahl. Bergdahl’s parents also speak.
    Bergdahl, 28, captured in 2009, was delivered to U.S. forces in exchange for five detainees who’d been held at the U.S. military-detention facility at Guantanamo Bay, Cuba. (Source: Bloomberg)

    President Barack Obama’s favorability ratings hit the lowest point of his presidency in a Bloomberg National Poll, with just 44 percent of Americans saying they have positive feelings about him.

    To read the entire article, go to http://bloom.bg/1s454E5

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  111. From Bloomberg, Jun 10, 2014, 8:00:10 PM


    May 31 (Bloomberg) — President Barack Obama, speaking in his weekly address, says curbs on carbon emissions to combat climate change that his administration plans to unveil next week will also help address a growing threat to the nation’s health. (Source: Bloomberg)

    Americans are willing to bear the costs of combating climate change, and most are more likely to support a candidate seeking to address the issue.

    To read the entire article, go to http://bloom.bg/1uUl7T1

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  112. From Bloomberg, Jun 11, 2014, 12:01:00 AM

    An imaging reconnaissance satellite in earth’s orbit. Photographer: Erik Simonsen/Getty Images

    Google Inc. (GOOG) said it’s acquiring satellite company Skybox Imaging Inc. for $500 million as it works to bolster its mapping services and improve Internet access.

    To read the entire article, go to http://bloom.bg/UrnOPb

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  113. From Bloomberg, Jun 10, 2014, 7:01:52 PM

    Solar panels stand at the Ivanpah Solar Electric Generating System in the Mojave Desert near Primm, Nevada, U.S., on Monday, March 10, 2014. The 392-megawatt California Ivanpah plant developed by Google, NRG and Bright Source, which began operating in February, brings utility-scale solar to more than 5.5 gigawatts, up 1,089% since 2010. Photographer: Jacob Kepler/Bloomberg

    Google Inc. (GOOG) plans a deeper push into the $363.7 billion U.S. power-sales market by working on tools that help utilities deliver electricity to homes and businesses more efficiently, people with knowledge of the matter said.

    To read the entire article, go to http://bloom.bg/1xFLbU3

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  114. From Bloomberg, Jun 10, 2014, 9:29:08 PM

    A senior energy technician for Commonwealth Edison holds a standard electricity meter, left, and a new “smart” meter in North Riverside, Ill. on Sept. 6, 2013. Photographer: M. Spencer Green/AP Photo

    Smart meters may be getting too smart for our own good.

    To read the entire article, go to http://bloom.bg/1s4dlI3

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  115. From Bloomberg, Jun 11, 2014, 12:00:01 AM


    June 3 (Bloomberg) — World Bank Managing Director Bertrand Badre talks about the importance of investment in infrastructure in boosting global economic growth.
    He speaks from Singapore with Angie Lau on Bloomberg Television’s “Asia Edge.” (Source: Bloomberg)

    The World Bank cut its global growth forecast amid weaker outlooks for the U.S., Russia and China, while calling on emerging markets to strengthen their economies before the Federal Reserve raises interest rates.

    To read the entire article, go to http://bloom.bg/1xFHEVV

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  116. From Bloomberg, Jun 10, 2014, 7:00:01 PM

    Economic growth in eastern Europe
    will slow “sharply” this year because of dwindling demand from
    Russia, which may face wider sanctions from the U.S. and the
    European Union if it fails to help end violence in Ukraine.

    To read the entire article, go to http://bloom.bg/1xFKH0h

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  117. Watch this video at http://bloom.bg/SIUr9H

    ‘Star Trek’ Tech Aims to Be Google for Matter

    June 10 (Bloomberg) –- The television show “Star Trek” popularised futuristic innovations like ray guns and teleportation. It also brought us the hand-held scanner that could reveal the properties of unknown materials. Israeli startup Consumer Physics has now made this a reality with the Scio. Consumer Physics co-founder and CEO
    Dror Sharon talks to Bloomberg Middle East Editor Elliott Gotkine. (Source: Bloomberg)

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  118. From Bloomberg, Jun 10, 2014, 11:16:52 PM


    Tony West, associate attorney general, has been overseeing the investigations and negotiations. Photographer: Andrew Harrer/Bloomberg

    The U.S. Justice Department is
    seeking about $17 billion from Bank of America Corp. to settle
    probes into its handling of mortgages ahead of the financial
    crisis, the New York Times reported.

    To read the entire article, go to http://bloom.bg/1q2mgI3

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  119. From Bloomberg, Jun 10, 2014, 6:01:00 PM

    Norway’s government said it won’t
    rush any reduction of its $65 billion stake in Statoil ASA (STL), the
    largest company in western Europe’s biggest energy producer.

    To read the entire article, go to http://bloom.bg/1xFyF75

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  120. From Bloomberg, Jun 11, 2014, 1:09:44 AM


    June 11 (Bloomberg) — Manpreet Gill, senior investment strategist at Standard Chartered Bank in Singapore, talks about China, Taiwan and South Korea stocks.
    China’s mainland-traded shares won’t be included in MSCI Inc.’s emerging-markets index, while South Korea and Taiwan were removed from consideration for an upgrade to developed market status. Gill speaks with Angie Lau on Bloomberg Television’s “First Up.” (Source: Bloomberg)

    MSCI Inc. (MSCI)’s decision to exclude
    China’s local shares from its global indexes shows the nation
    must reduce trading restrictions to lure international investors
    to the biggest emerging economy.

    To read the entire article, go to http://bloom.bg/UsCw8D

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  121. From Bloomberg, Jun 11, 2014, 2:09:10 AM

    Taxis on the streets of Westminster on June 2, 2014 in London. The controversial mobile application “Uber,” which allows users to hail private-hire cars from any location, is opposed by established taxi drivers and currently serves more than 100 cities in 37 countries. Photographer: Oli Scarff/Getty Images

    Uber Technologies Inc., the car-sharing service that’s rankling cabbies across the U.S., is facing its biggest protest yet from European drivers who say the smartphone application threatens their livelihoods.

    To read the entire article, go to http://bloom.bg/1uRaK2a

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  122. From Bloomberg, Jun 11, 2014, 1:44:32 AM

    Vietnam said China again shifted an
    oil rig it has placed in disputed waters, with six warships
    guarding the structure as the two communist countries continue
    their South China Sea stand-off.

    To read the entire article, go to http://bloom.bg/1hNHc3q

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  123. From Bloomberg, Jun 10, 2014, 12:00:26 PM


    OAO Uralkali Chief Executive Officer Dmitry Osipov said, “Education in physics and mathematics disciplines people, develops the logic, critical thinking and analytical skills.” Photographer: Andrey Rudakov/Bloomberg

    OAO Uralkali Chief Executive Officer Dmitry Osipov favors stable potash prices as he considers how to manage output at the world’s biggest producer of the fertilizer.

    To read the entire article, go to http://bloom.bg/UoU1qp

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  124. From Bloomberg, Jun 10, 2014, 3:16:15 PM


    June 10 (Bloomberg) — U.S. Senator Elizabeth Warren, a Democrat from Massachusetts, talks about her proposed legislation on student-loan debt refinancing.
    Warren also discusses Hillary Clinton’s memoir “Hard Choices” with Peter Cook on Bloomberg Television’s “Bottom Line.” Bloomberg’s Mark Crumpton also speaks. (Source: Bloomberg)

    Jennifer Day spends 12 percent of her monthly take-home pay on debt that funded a master’s degree in urban and regional planning, money she’d rather be saving toward a home.

    To read the entire article, go to http://bloom.bg/1mA8K86

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  125. From Bloomberg, Jun 10, 2014, 1:44:33 PM

    Blackstone Group LP, the world’s largest alternative-asset manager, agreed last month to buy the two-tower Cosmopolitan complex on Las Vegas Boulevard, known as the Strip, from Deutsche Bank AG for $1.73 billion. Photographer: Jacob Kepler/Bloomberg

    For almost five years, the desert plot at the western edge of the Las Vegas valley was home to hulking steel skeletons — ghostly ruins of a construction project halted by the recession.

    To read the entire article, go to http://bloom.bg/UpFhHV

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  126. From Bloomberg, Jun 10, 2014, 10:12:06 AM


    June 10 (Bloomberg) — Francesco Garzarelli, co-head of macro and markets research at Goldman Sachs Group Inc., talks about the outlook for inflation in Europe after the European Central Bank announced unprecedented stimulus last week.
    He speaks with Guy Johnson on Bloomberg Television’s “On the Move.” (Source: Bloomberg)

    Mario Draghi is becoming one of
    currency traders’ few friends.

    To read the entire article, go to http://bloom.bg/1ljDwVW

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  127. From Bloomberg, Jun 11, 2014, 1:35:36 AM

    Russia gave Ukraine an extra six
    days to begin payments in a gas-supply deal with the European
    Union as the parties prepare to resume talks today in Brussels.

    To read the entire article, go to http://bloom.bg/1uUbR0Z

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  128. From Bloomberg, Jun 10, 2014, 7:01:00 PM

    As Mario Draghi and Mark Carney
    campaign to revive the asset-backed securities market, Wayne
    Byres
    wants to make sure banks keep their feet on the ground.

    To read the entire article, go to http://bloom.bg/1uU6gYw

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  129. From Bloomberg, Jun 11, 2014, 12:01:00 AM


    The Scotsdale Women’s Center stands in Detroit, Michigan. Photographer: Esme E. Deprez/Bloomberg

    Detroit’s 60-year deterioration has taken a toll not just on business owners, investors and taxpayers. It’s meant misery for its most vulnerable: children and the women who bear them.

    To read the entire article, go to http://bloom.bg/1uVipN4

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  130. From Bloomberg, Jun 10, 2014, 7:01:00 PM


    EU Energy Commissioner Guenther Oettinger said, “We have some open questions and some different positions, but we agreed to continue negotiations.” Photographer: Chris Ratcliffe/Bloomberg

    Russia and Ukraine will resume talks
    with the European Union on a gas-supply deal today after failing
    to reach agreement in discussions earlier this week.

    To read the entire article, go to http://bloom.bg/UpV0GN

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  131. From Bloomberg, Jun 10, 2014, 6:00:00 PM

    With Europe’s lowest birth rate and its oldest population, Germany needs immigrants, and not just any immigrants. It needs Xiaoqun Clever.

    To read the entire article, go to http://bloom.bg/1xFykRH

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  132. From Bloomberg, Jun 10, 2014, 12:00:01 PM

    Cranes operate at a residential construction development near Canton Tower, right, in the Haizhu district of Guangzhou, Guangdong Province, China. Property prices will drop 5 percent this year as developers cut prices to meet sales targets, Standard & Poor’s said this week. Photographer: Brent Lewin/Bloomberg

    China’s interest-rate swaps are
    trading below sovereign bond yields, reflecting expectations
    that this week’s targeted reserve-requirement ratio cuts will be
    followed by broader monetary easing.

    To read the entire article, go to http://bloom.bg/1uU7wuL

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  133. From Bloomberg, Jun 10, 2014, 11:30:23 PM

    Trust me, this time it will work. 

    N/A

    To read the entire article, go to http://www.bloombergview.com/articles/2014-06-10/is-japan-turning-to-voodoo-economics

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  134. From Bloomberg, Jun 10, 2014, 2:50:44 PM

    A pair of glasses outfitted with Google Glass on April 15, 2014. Photographer: Daniel Acker/Bloomberg

    Google Inc. (GOOG), the Internet company that has been a critic of abusive patent litigation, has entered the inner circle of top U.S. patent recipients as it expands into wearable computers, health care and driverless cars.

    To read the entire article, go to http://bloom.bg/1uSNYqC

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  135. From Bloomberg, Jun 10, 2014, 7:00:01 PM

    Intel Corp. (INTC)’s co-founder Gordon Moore reckoned the number of transistors crammed onto a chip
    will double every couple of years.

    To read the entire article, go to http://bloom.bg/1xFKIkH

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  136. From Bloomberg, Jun 10, 2014, 5:51:01 PM

    International Business Machines
    Corp. (IBM)
    , the world’s biggest computer services provider, and Epic
    Systems Corp. will team up to compete for an $11 billion project
    to manage U.S. troops’ electronic health records.

    To read the entire article, go to http://bloom.bg/UrvNfg

    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  137. May stats of Pimco’s Total Return Fund

    02:19 AM ET · BOND

    • U.S. government-related holdings in the Pimco Total Return Fund (ETF: BOND) were raised to 50% in May, up from 41% in April. Mortgage holdings were increased to 22%, from 19% the previous month.
    • U.S. credit holdings for the fund were lowered to 11% in May from 12% in April, while the ETF displayed -9% money market and net cash exposure, from 5% the previous month.


  138. EU to probe corporate tax rates in Ireland, Luxembourg, Netherlands

    01:57 AM ET · AMZN

    • The European Commission is preparing an investigation into the corporate tax codes in Ireland, Luxembourg and the Netherlands. The probe is examining the low tax rates global companies pay in the three countries, and will make known if their tax deals are allowed under EU law, or amount to illegal state aid.
    • If the investigation reveals that multinational corporations received the state aid, the commission could obligate them to pay it back, even though such requirements are uncommon.
    • The probe comes after yesterdays news that Apple used Irish tax laws to allow it to pay just a 3.7% tax rate on non-U.S. income during its last fiscal year. Other companies that will be investigated include Amazon (AMZN), Google (GOOG, GOOGL) and Starbucks (SBUX).


  139. Wednesday’s economic calendar

    12:00 AM ET


  140. Reports: Apple facing EU tax probe, building huge ad team

    Yesterday, 07:18 PM ET · AAPL

    • Irish broadcaster RTE reports the EU will launch a formal investigation of Apple’s (AAPL +0.6%) Irish tax arrangements.
    • Apple’s use of favorable Irish tax laws allowed it to pay just a 3.7% tax rate on non-U.S. income during its last fiscal year. That, in turn, is a big reason $132.2B of Apple’s $150.6B cash balance at the end of FQ2 was offshore.
    • Tim Cook was grilled by Congress last year over Apple’s offshore tax payments; Cook responded in part by calling for an overhaul of the oft-criticized U.S. corporate tax code.
    • Meanwhile, AdAge reports Apple is “madly building an internal [ad] agency that it’s telling recruits will eventually number 1,000 [employees],” and by doing so is set to move projects away from historical agency partner TBWA/MAL.
    • Apple has also reportedly invited other agencies to collaborate on big projects, as it tries to overhaul its marketing after recent campaigns failed to meet expectations.
    • In e-mails unearthed during the latest Samsung trial, marketing chief Phil Schiller voiced concerns about Samsung’s ad campaigns, and also asked Cook if Apple should replace TBWA/MAL.
    • Earlier: Morgan Stanley forecasts strong FQ3 iPhone sales


  141. Oracle launches in-memory database, hopes to keep SAP at bay

    Yesterday, 06:42 PM ET · ORCL

    • The in-memory version of Oracle’s (ORCL) flagship 12c database, first detailed last September, has officially launched. Oracle continues to promise major gains in query speeds and transaction-processing rates relative to a standard database, as well as easy integration with both regular Oracle databases and 3rd-party apps.
    • The launch is aimed squarely at SAP‘s Hana in-memory database, which saw its sales rise 61% last year to €633M ($855M) and has developed a strong ecosystem.
    • As one might expect, Oracle argues integration with standard 12cand mature database feature set give it an edge – Larry Ellison claims data can be moved in-memory “within minutes.” Ellison adds 12c in-memory is only meant to handle active data; all other data is left on cheaper flash memory or hard drives.
    • In April, Microsoft updated its SQL Server database (has gained share against Oracle in recent years) to include in-memory features.


  142. GM developing financial fallout estimate, Barra tells shareholders

    Yesterday, 06:22 PM ET · GM

    • GM CEO Mary Barra told shareholders today the company likely would provide an estimate of the financial fallout from the ignition switch recall by early next month.
    • Barra said GM would have a better sense of the cost after the compensation expert hired to advise the company provides measures of how accident victims or their families will be compensated.
    • Barra did not say if GM would increase charges over the $1.7B already taken for recalling and repairing 2.6M vehicles equipped with potentially defective ignition switches along with other vehicles for other potential safety problems.
    • GM will begin accepting claims from victims on Aug. 1; estimates for the potential amount paid to compensate victims, legal fees and any settlements or judgments have ranged from less than $5B to as much as $7B.


  143. Priceline buys hotel marketing startup Buuteeq

    Yesterday, 06:01 PM ET · PCLN

    • Priceline (PCLN) has bought oddly-spelled Buuteeq, provider of a cloud-based platform that provides hotels with tools for managing/optimizing their sites, analyzing user activity, and interacting with current/potential customers. Terms are undisclosed.
    • Naturally, Priceline plans to offer Buuteeq’s services to its hotel clients, with the presumable goal of growing their Priceline-driven bookings.


  144. Ulta Salon +8.5% AH on FQ1 beat, strong top-line guidance

    Yesterday, 05:33 PM ET · ULTA

    • Ulta Salon (ULTA) expects FQ2 revenue of $706M-$717M and EPS of $0.78-$0.82 vs. a consensus of $704M and $0.82. Comparable store sales are expected to rise 5%-7% Y/Y.
    • FY14 (ends Jan. ’15) guidance for 4%-6% comp growth, mid-teens EPS growth, and $100M+ in free cash flow is being reiterated.
    • Comparable store sales rose 8.7% in FQ1 (down slightly from FQ4′s 9.2%), aided by a 72.3% increase in e-commerce comps.
    • 21 stores were opened during the quarter, raising total store count to 696. 100 net new openings are expected in FY14.
    • Gross margin was 34.5%, +70 bps Q/Q and -50 bps Y/Y. SG&A spend was 22.8% of revenue, same as a year ago.
    • Expectations were depressed going into earnings.
    • FQ1 results, PR


  145. Gundlach’s outlook: Housing to be weaker than most hope

    Yesterday, 05:09 PM ET · XHB

    • One of the more remarkable charts in his slide deck, says Jeff Gundlach in a presentation titled “Penny For Your Thoughts, is a graph (slide 36) of the homebuilding stocks vs. the price of lumber. The homebuilders are hanging in there even as the lumber tumbles sharply.
    • While making it clear, he’s not expecting any sort of housing collapse, Gundlach expects home prices to stop going up and the demand for homes to be quite a bit less than what many are expecting.
    • Webcast
    • ETFs: XHB, ITB, PKB


  146. Cliffs sees two Casablanca nominees joining its board

    Yesterday, 04:58 PM ET · CLF

    • Cliffs Natural Resources (CLF) says it expects at least two nominees proposed by Casablanca Capital will be appointed to the company’s board at its annual meeting set for July 29.
    • CLF says that based on discussions with various shareholders, its board believes it is in shareholders’ best interests for a slate of nine directors to be nominated for its 11-person board.
    • Tensions between CLF and Casablanca have been high since the beginning of the year, as the 5% shareholder has issued proposals to enhance value for CLF shareholders and sought to seek control of CLF’s board.


  147. Prudential with new $1B buyback plan

    Yesterday, 04:23 PM ET · PRU

    • Its $1B buyback from one year ago set to expire at the end of the month, Prudential Financial (PRU) authorizes another $1B plan to start on July 1.
    • Through the end of Q1, Prudential has repurchased $750M worth of common stock under the previous plan.
    • Shares +0.5% AH
    • Source: Press Release
    • Earlier today: Wait is over: MetLife announces $1B buyback


  148. Stocks finish flat in light volume, but Dow notches another record

    Yesterday, 04:20 PM ET

    • Stocks trimmed losses late to end little changed, with the Dow pushing back into positive territory at the final bell to notch yet another record close and extend its winning streak to five sessions.
    • A slowly but steadily improving economy, low interest rates and market friendly Fed policies are providing a positive backdrop for stocks, but trading activity remains muted, as volume fell short of the YTD daily average of 6.45B shares for the 17th straight session.
    • Internet stocks were winners in an otherwise drab day, with LinkedIn +4.6%, Facebook +4.6% and Twitter +2.6%; smallcaps were relatively weak, as the Russell 2000 slipped 0.2%
    • The weakness in stocks had little impact on the performance of the Treasury market, which retreated into the afternoon; the 10-year note settled just above its low, with the yield up 3 bps at 2.64%.


  149. Morgan Stanley presents at its own conference

    Yesterday, 04:02 PM ET · MS

    • We are now in a stage of “performance and growth,” says Morgan Stanley (MS +0.3%) CEO James Gorman, presenting at the Morgan Financials conference. While 2008-09 was “crisis,” 2010-11 “fragility,” and 2012-13 “healing,” 2014 and beyond is about about growing the business.
    • Webcast and presentation slides
    • Noting the headwinds in fixed income and commodities and the right-sizing of those businesses to be more inline with the new economic and regulatory environment, Gorman says Wealth Management – with $382B in AUM (up 50% since 2010) is on its way to being a legitimate 3rd leg of the firm.


  150. SouFun, E-House, Leju drop on downbeat land sales data

    Yesterday, 04:00 PM ET · SFUN

    • Chinese land sales volume fell 24% Y/Y in May in tier-1 cities, 20% in tier-2, and 37% in tier-3, says research firm CREIS. The data comes two weeks after CREIS reported Chinese home prices fell M/M for the first time since June ’12.
    • Also: 1) A SouFun (SFUN -5.1%) survey indicates a 19% M/M and 45% Y/Y May drop in land sale transactions across 300 Chinese cities, even though May is a seasonally strong month. 2) A survey of 2014 Chinese home buyers (involved 28K households) suggests only 20% are first-time buyers, down from 48% in 2012.
    • Prof. Gan Li, who handled the latter survey: “The era of Chinese real estate industry being driven by first-time homebuyer demand is over … The market is going to be driven by investment and improvement in demand that is sensitive to price.”
    • E-House (EJ -4.2%) and subsidiary Leju (LEJU -4.5%) have joined SouFun in selling off.


  151. Repsol given rules for oil drilling off Canary Islands

    Yesterday, 03:57 PM ET · REPYY

    • Spain’s government set rules for Repsol (REPYY, REPYF) to explore for oil off the Canary Islands, noting that the $10B project drew opposition from nearly 12K people and institutions over its environmental risks.
    • The project, frozen for 12 years in court challenges and administrative reviews, finally is moving ahead under a government that’s trying to revive fossil fuels development in a country highly dependent on imports of oil and gas.
    • The government said on May 29 that it would clear the exploration plans, but challenges to the project continue; Spain’s Supreme Court today began to hear cases contesting the exploration permit, and final approval is still needed by Spain’s Industry Ministry.


  152. McDonald’s looks to break same-store sales losing streak

    Yesterday, 03:56 PM ET · MCD


  153. There’s a shortage of debt … Now they tell us?

    Yesterday, 03:47 PM ET · AGG

    • It may not be the top for fixed-income, but “Bond Market Shortfall of $460B Seen Boosting Debt Markets” is the sort of headline you won’t see at the bottom. The article from Bloomberg takes note of a JPMorgan analysis expecting debt issued this year to fall $600M from 2013 to $1.8T, while demand increases to $2.26T.
    • Globally, bonds have returned 3.7% YTD, their best start to the year since 2003, according to the BAML Global Broad Market Index.
    • “Everybody was expecting supply to come down, but maybe it’s coming down sooner” than anticipated, says SEI Investment’s Sean Simko. “There’s a shift in sentiment from the beginning of the year when everyone expected rates to move higher.”
    • ETFs: AGG, BOND, BND, SCHZ, LAG, SAGG, DI, GBF, RIGS, LDUR, FWDB


  154. Pioneer Natural, EOG are Cramer’s favorites for the Permian Basin boom

    Yesterday, 03:45 PM ET · PXD

    • Aubrey McClendon would seem to be overpaying in his $2.5B purchase of 63K acres in the Permian Basin “unless he knows more than we do,” Jim Cramer says while acknowledging that McClendon – a “genius” a buying energy-rich land – probably does.
    • Some companies have figured out the “code” to drilling in the Permian Basin, and McClendon is unlikely to have overpaid in the long run, Cramer says.
    • McClendon’s American Energy Partners is not publicly traded, but investors can benefit from the Permian Basin boom by buying stocks such as Pioneer Natural Resources (PXD), EOG Resources (EOG) and Cimarex Energy (XEC), Cramer believes.


  155. B/E Aerospace -4.5% as investors had hoped for a sale, not a split-up

    Yesterday, 03:29 PM ET · BEAV

    • Investors react negatively to plans by B/E Aerospace (BEAV -4.5%) to split its operations into two independent publicly traded companies, just a month after saying it was considering selling itself, sending shares down nearly 5%.
    • Separating the businesses may allow each to “benefit from increased management focus and operational flexibility,” as co-CEO Amin Khoury said, but it also could result in a smaller sale in the future.
    • “As two standalone entities, it could theoretically make it easier for a potential acquirer to make a bid without having to worry about the other half of the business,” RBC analyst Robert Stallard says, adding that comments in a post-announcement call point to a “a multi-part transaction, that invariably means that it will take some time to come together.”


  156. The Orphaned Bull Market

    Yesterday, 03:19 PM ET · VUG

    • “Relative to the past 50 years, this stock market has been abandoned and orphaned even as it had made participants wealthy,” writes Bill Smead, drawing on a Howard Gold report showing only 37.7% of global investable assets were in equity at the end of 2012, the lowest since 1959 when records first began being kept.
    • Why? The mass movement to fixed income, the trendy move towards wide-asset allocation at the expense of plain-vanilla large-cap U.S. equities, the rise of alternative investing, and the echo-boomers – born between 1977 and 1996 – have been much slower to get married, have kids, buy houses, and invest in stocks than previous generations.
    • Smead’s prediction: As rates rise over the next 10 years, fixed-income will sour and equity dividend payout ratios will normalize. Further returns from commodities and other esoteric asset classes won’t match their once-in-a-lifetime moves from 1999-2012 and investors will lose interest. Rising rates will make LBOs less economic and private equity returns will decline.
    • “The lack of affection for US large cap equities will mute declines and reward patient long-duration owners of quality common stocks.”
    • ETFs: VUG, VTV, VV, SCHX, SCHG, SCHV, PWV, FEX, JKD, EQL, JKE, IWY, PWB, EZY, IWX, FTC, EEH, JKF, IWL, SFK, RWG, ERW, IELG, FWDD, GVT, SYG, SYE, SYV


  157. Keurig Green Mountain perks up after Subway deal

    Yesterday, 03:04 PM ET · GMCR

    • Shares of Keurig Green Mountain (GMCR +1.4%) trade higher after the company announces a new deal to bring its products to Subway outlets.
    • Keurig says half of the Subway restaurants in the U.S. and Canada have adopted a Keurig system.


  158. Boost holdings of Europe and Japan says BlackRock’s Koesterich

    Yesterday, 02:58 PM ET · UUP

    • As last week made clear, central banks in Europe and Japan are getting more aggressive while the Fed moves in the opposite direction, says the chief investment strategist for BlackRock.
    • Implications: 1) Global interest rates are likely to stay low even as the Fed pulls back; 2) The dollar (UUP, UDN) is likely to strengthen; 3) ECB and BOJ liquidity, while maybe providing a boost to U.S. stocks, is almost certainly going to add a big lift to European and Japanese equities, and U.S. investors should consider boosting holdings of both.
    • Japan equity ETFs: DXJ, EWJ, NKY, DBJP, EZJ, EWV, JPNL, ITF, JPP, JPNS, HEWJ, FJP
    • Broad European equity ETFs: VGK, FEZ, IEV, EPV, HEDJ, EZU, FEU, FEP, UPV, ADRU, FEEU, EURL, EURZ, FIEU, DBEU


  159. Notes from MetLife investor day

    Yesterday, 02:38 PM ET · MET

    • Key commitments to deliver on by 2016: 1) Shift from market-sensitive products (variable annuities) to improve risk profile; 2) Grow emerging markets to 20% of operating earnings; 3) $1B in gross expense savings; 4) Increase operating ROE to 12-14%.
    • Going through these, MetLife (MET +0.5%) CEO Kandarian notes VA sales were just $10.6B in 2013 vs. $28.4B in 2011, while GVWB sales rose to $1.3B from $1B; operating earnings growth from EM has been 11% compounded since 2011 and hit $894M last year; $1B in savings by year-end 2015 have been identified; and operating earnings have gained 16% annually since 2011. with operating ROE rising to 11.9% from 10%.
    • Webcast and presentation slides
    • Previously: Wait is over: MetLife announces $1B buyback


  160. Angie’s List -4.3%; Amazon reportedly launching rival marketplace

    Yesterday, 02:36 PM ET · AMZN

    • Reuters reports Amazon (AMZN) is set to launch a local services marketplace later in 2014. Angie’s List (ANGI) has fallen in response.
    • Angie’s already faces competition from eBay’s Hire local services marketplace, and has long had to contend with Yelp’s free reviews.
    • Previous: Angie’s List gains on BofA/Merrill upgrade


  161. AMD gains amid coverage launch, ARM server enthusiasm

    Yesterday, 02:14 PM ET · AMD

    • Imperial Capital’s Ashok Kumar (formerly at Raymond James at Piper, among other places) has launched coverage of AMD (AMD +2.9%) with an Outperform and $5 PT.
    • Like other bulls, Kumar is a fan of AMD’s diversification efforts, and sees them yielding “more consistent margins and cash flows.”
    • Meanwhile, Canaccord has launched coverage on two ARM server CPU peers – AppliedMicro and Cavium – with bullish ratings, and predicts the market will be worth $3.8B in 2018 (based on a 20% share).
    • AMD plans to ship its Seattle ARM server CPUs in Q4. Last month, the company said it would enable (starting in 2015) “ambidextrous” hardware platforms that can use both ARM and x86 CPUs, and also build a custom ARM core (codenamed K12, due in 2016).
    • In a talk with Barron’s, VP Saeid Moshkelani suggests K12, under the purview of ex-Apple CPU chief Jim Keller, will have a major performance/power efficiency edge of other custom ARM cores. He also says AMD’s custom CPU partnerships (such as the ones for the PS4/Xbox One) only make sense for projects producing $100M+/year in revenue.


  162. FT: BHP looking to sell nearly all pre-merger Billiton assets

    Yesterday, 02:09 PM ET · BHP

    • BHP Billiton (BHP -0.3%) is considering a sale of almost all of the businesses Billiton brought to the merger with BHP 13 years ago, in an attempt to refocus the company on BHP’s core operations from before the 2001 tie-up, FT reports.
    • New CEO Andrew Mackenzie is narrowing the company’s focus to a set of long-life mines and major oil and gas fields in a few locations; by contrast, former Billiton assets such as African manganese mines and aluminum production facilities contribute only ~10% to overall earnings.
    • “Merging with Billiton has not been a bad deal,” says RBC analyst Tim Huff. “It just happens that some of the assets they bought are now those that they do not view as having potential for the next two to three decades.”


  163. Encouraging preliminary results for MEI’s cancer drug

    Yesterday, 02:03 PM ET · MEIP

    • Preliminary results from a Phase 2a clinical trial of MEI Pharmaceuticals’ (MEIP +16.4%) histone deacetylase (HDAC) inhibitor Pracinostat in combination with Vidaza (azacitidine) as a treatment for acute myeloid leukemia in elderly patients unsuitable for intensive chemotherapy suggest some patients would benefit greatly from the regimen. Of the first nine participants, two achieved a complete response and one achieved a complete response with incomplete blood count recovery after one or two treatment cycles. Three additional patients achieved either a partial response or partial response with incomplete blood count recovery.
    • The results met the pre-specified response rate allowing investigators to proceed to the Phase 2b stage.


  164. Report: eBay plans to shut down same-day service

    Yesterday, 01:30 PM ET · EBAY

    • A source tells VentureBeat eBay (EBAY -2.3%) plans to shutter its once-hyped Now local/same-day delivery service.
    • The site observes Now has already seen a string of setbacks: eBay’s local commerce chief and East Coast operations head have both departed, and some early retail partners such as Best Buy are gone.
    • CEO John Donahoe downplayed eBay’s same-day efforts in February. The company was more upbeat in 2013, promising to bring Now to 25 cities by the end of 2014 with the help of U.K. acquisition Shutl.
    • Today, eBay only says it’s “focused on supporting” Now in its 5 current markets, and isn’t “announcing any new market expansions at this time.”
    • Amazon (AMZN +1.9%) must be happy to see the report. Unlike eBay and Google (just expanded local delivery to the whole of NorCal), Amazon is relying on its own fulfillment infrastructure (replete with AmazonFresh vans) instead of 3rd-party retailers for same-day. Its strategy has higher up-front costs, but could also allow for more efficient delivery.
    • eBay continues to trade lower following news of PayPal chief David Marcus’ departure.
    • Update: eBay denies having plans to shutter Now, but also suggests it’s not currently looking to expand beyond Now’s existing markets.


  165. Morgan Stanley expects strong FQ3 iPhone sales

    Yesterday, 12:59 PM ET · AAPL

    • 39M iPhones (AAPL +0.1%) will be sold in the June quarter, better than a 35M consensus, according to Morgan Stanley’s AlphaWise tracker.
    • The MS forecast implies 25% Y/Y unit growth, better than FQ2′s 17%. Analyst Katy Huberty thinks strong promotional activity for cheaper iPhones (pressuring ASPs, but boosting units) is helping.
    • Though AlphaWise’s methodology lends itself to criticism – per MS, it “compiles sell-through data using Web search analysis” – its track record is solid. It forecast 40.6M FQ2 iPhone sales vs. actual sales of 43.7M and a 38M consensus, and 50.5M FQ1 iPhone sales vs. actual sales of 51M and a 53M consensus.
    • The MS report comes shortly after BlueFin Research reported checks point to healthy iPhone/iPad build activity ahead of fall refreshes.
    • Previous: iPhone 6 to reportedly support wireless charging, NFC


  166. Citi sees iron ore price back to $100/ton in Q4

    Yesterday, 12:49 PM ET · VALE

    • Iron ore prices have plunged by a third this year, hovering at ~$94/ton this week, thanks to the rapid growth in supply from Australia and other exporting nations, but Citi believes the supply surge is peaking in Q2 and that H2 of this year should see a leveling off in supply.
    • While UBS is cautious, Citi says iron ore can find price support at $90/ton and that it sees prices back to $100/ton in Q4; if iron ore were trading at $90, China – a high-cost market – would have to cut 25% of its production, and other producers would have to curtail as well, Citi says.
    • Iron ore miners are lower today: VALE -0.6%, RIO -1.1%, BHP -0.5%, CLF -0.7%.


  167. Argentina may extend oil investment incentives

    Yesterday, 12:21 PM ET · CVX

    • Argentina is said to be considering extending tax incentives put in place last year to attract investment in the energy industry, as the government begins to discuss a new oil law with provinces.
    • The proposal reportedly would offer energy companies that invest $250M over a five-year period the ability to sell 20% of production in international markets without paying export taxes and the ability to keep some export revenue outside the country; the bill would lower the target for the incentives from $1B.
    • The new law would seek to end political tensions derived from unclear rules and lure more investors to Vaca Muerta, where Chevron (CVX) signed a final joint venture agreement with state-run energy company YPF earlier this year; Exxon Mobil (XOM) also has a strong presence at the giant shale formation.


  168. Suncor upgraded to Buy at Stifel, but shares stagnant

    Yesterday, 02:43 PM ET · SU

    • Suncor Energy (SU +0.2%) is upgraded to Buy from Hold with a $48 price target at Stifel, citing combined expectations for improving H2 2014 operating results, 2015 cash flow/share consensus numbers moving higher with guidance, and for increasing positive free cash flow ($1B in 2014, growing to $1.5B in 2015) likely to be returned to shareholders through buybacks and dividend growth.
    • Also considering the strength in crude oil, narrowed heavy oil differentials and the company’s 99% oil weighting, Stifel sees the stock poised to move higher by year-end 2014 as the drivers materialize.


  169. Might Apple split benefit online brokers?

    Yesterday, 12:20 PM ET · AMTD

    • While single stock activity for Apple “lagged relevant averages” in its first day of trading post-split, notes Nomura’s Steven Chubak, about 1.2M options contracts traded, a 270% increase to the 12-month daily average.
    • Should that upsurge be sustained, says Chubak, it would add 2% to consensus 2015 earnings for TD Ameritrade (AMTD -1.1%), and 1% to E*Trade (ETFC -2.4%).
    • These aren’t game-changing numbers, Chubak admits, but the benefit is not yet reflected in Street estimates. “Any sustained increase in AAPL options activity is ‘gravy’ from our point of view, and should provide some additional revenue/earnings support.”
    • Previously: Trading activity slowdown at Ameritrade


  170. Good morning!

    Finally a nice little dip to get us started – glad I kept those Dow (/YM) shorts from the Webinar (replay here). 

    Oil still $104.55 – held up by this news:

    Oil climbs above US$110 on Iraq supply disruption fears

    The Malaysian Insider-37 minutes agoShare
    Oil futures rose above US$110 (RM353) a barrel today as violence in Iraq … Data from the American Petroleum Institute showed US gasoline stocks fell by ..

    Fundamentally, though, they don't have a leg to stand on:

    After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 1.5 million barrels in the week ended June 6, compared to expectations for a decline of 1.2 million barrels.

    The report also showed that distillate stocks decreased by 0.3 million barrels, while gasoline stockpiles declined by 0.5 million barrels.

    And check out how thin their premise is:

    Militants from an al Qaeda splinter group who seized Iraq's second-biggest city of Mosul this week have advanced into the oil refinery town of Baiji, setting the court house and police station on fire, security sources said.

    The United States said it would support a strong, coordinated response to the aggression.

    Iraq's Oil Minister Abdul Kareem Luaibi said key southern oilfield export facilities were "very, very safe", with shipments running at around 2.6 million barrels per day (bpd).

    Although the fighting is not close to oil-producing areas, it has prompted fears that the situation could deteriorate further and ultimately hit production.

    "It warrants support of the oil price. We already have Libya out, Iran's exports are low, and there is no prospect of an immediate return for either of them," said Bjarne Schieldrop, analyst at SEB in Oslo.

    Also:

    * OPEC meeting outcome awaited, 30 mln bpd output target seen unchanged

    So I still like /CL short below the $104.50 line – going to be tricky into inventories – maybe we get another shot at $105.

    Records/Pirate, Jeffdoc – Great point but that idea to digitize medical records seems to have died.  Made sense to me.

    ULTA/StJ – Good call on a big mover.  

    Cantor replaced because he wasn't Conservative enough?  Holy cow!!! 

    Great Nikkei call Jasu – you nailed it!  

    Oops, looks like you didn't stick with it…


  171. Phil,

    Damn it, I've got to believe in my conviction/analysis, especially when it was the beginning of a new contract…..well, Phil, keep beating it in …repeat after you: gotta have conviction boy, if you're going to play it right! 


  172. Phil/E-records

    Agree, not a hot topic any longer but it is being done…just poorly with bad integration across institutions. In many ways it's worse than paper. In my opinion we need Google/Apple to get involved and create one standard system for institutions and patients. Google tried a stab with Google Health but I don't think they had their heart in it…prob too annoying and restrictive. Enough about all this I guess….