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Which Way Wednesday – Beige Book Edition

Image result for the new phone books are hereThe new Beige Book is here! 

Today we get the "anecdotal" information on the current economic conditions from each of the twelve Federal Districts, we find these reports useful as they give us some insight into what the Fed is seeing on the ground level and we'll go over it live, during our Live Trading Webinar at 1pm, EST today.

As noted yesterday, our trade ideas from the last Live Trading Webinar were good for thousands of Dollars worth of quick gains into the weekend and this morning oil (/CL) was kind enough to dip back to our $48.50 buy lone and gasoline (/RB) is back below the $1.60 line at $1.59 and we love it long over the $1.60 line with tight stops below.  See last week's Reports for options trade ideas we had for the Oil (USO) and Gasoline (UGA) ETFs at these levels as well as UVXY, which is still playable.  And the Dollar (/DX) is back at the 97 line, where we like that long as well.

I was over at the Nasdaq yesterday and we discussed 3 different ways to hedge your bubblicious Nasdaq positions like Amazon (AMZN) $1,000 or Tesla (TSLA) $335 or Netflix (NFLX) $165 – all of which are a good 33% over even the most generous interpretations of a fair value and, in a downturn, could drop 20% as fast as Bitcoins – which also seemed like they would never go down.  

I set up a link you can follow right here from our Live Member Chat room which lays out our 3 hedging ideas.  

I was just the 8:30 guest on Benzinga's Pre-Market Prep (35 mins in) and we discussed our oil and gasoline longs as well as the overall economic situation so no need to go over it again here.  At risk of having yet another post censored for political content, I will mention that Trump just pulled the US out of the Paris Climate Accord and that's terrible for humans, animals and our planet as well as alternative energy companies but good for coal (still dead) and other planet-killing fuels.  Now you get to say you voted to end life on Earth – isn't that great?!?

That makes the US one of the World's renegade nations along with Russia and a few African countries and places us against the 198 countries that have signed the accord and, despite the US being responsible for 17% of the World's pollution, they will go on without us and simply sanction us for our pollution with trade sanctions based on our carbon output – only now we have no say in it, but at least we're on Putin's side!  

Image result for climate change cartoonEven Saudi Arabia has ratified the climate accords and now Putin can completely embarrass the US yet again by ratifying the treaty, once again showing how he stands with Europe against the madness of the United States.  Well played Vlad!  

Michael Oppenheimer, professor of geosciences and international affairs at Princeton, and a member of the Intergovernmental Panel on Climate Change, added, “it is now far more likely that we will breach the danger limit of 3.6 degrees,” the average atmospheric temperature increase above which a future of extreme conditions is irrevocable.  “We will see more extreme heat, damaging storms, coastal flooding and risks to food security.” 

That's right folks, you were there the day Donald Trump made a decision that ended humanity!  What an honor!  It's the kind of thing you could tell your great grandchildren about but, well – it's much less likely they'll be alive now…

Even better, as the rest of the World prioritizes investments in clean energy infrastructure and technology, the US will continue to power itself with coal and other fossil fuels – just like we did 100 years ago and that will make our country less and less competitive Globally.  As you can see from this chart, coal is already not as cheap as wind or solar and those technologies are just getting started.  This is the kind of bad decision that will impact us for generations but, fortunately, we don't have many of those left now.

We'll see if this has an immediate effect on the Solar Sector (TAN) or Coal (KOL) but the rest of the world (all but two major countries) is going the other way so it's really no help to the struggling coal sector and solar (and wind) is still a massive growth industry that the rest of the World is turning to in order to be competitive for the rest of our time on this planet – however short that may be now.

"America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves." --  Abraham Lincoln

"Russia is the only country that can destroy America in a half hour or less" -- Vladimir Putin


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  1. Good morning, everyone!

    Join us for our weekly webinar, today at 1pm (Eastern)!

  2. What is the difference between an extreme and a moderate Muslim?

    The extremist wants to cut your head off, the moderate wants the extremist to cut your head off.

  3. mkucs-Apologies from a few weeks back. I travel tons and read past posts on the plane last nite. Thanks for your comments. Appreciate your words. Keep the faith and keep digging and reading. Cheers

  4. ??? Cheers to you too, no worries :)

  5. Good Morning!

  6. Beautiful day! Good morning, I will have tomatoes in a few weeks, growing like weeds with all the rain… strawberries are here! Yum…

  7. Retails Future - MTailor App. Offered a Promo of two free shirts using this App. Download, shoot, choose styles (the only downside-making the choices), etc and send. Shirts fit perfect, quality material and tailoring. Bricks and Mortar and e-line have been moved to a Virtual 4d App Model World. Just a lil FYI!

  8. Indexes dropping a little.. at least FU TSLA is pausing but I switched to shorts on NQU7.

  9. Indexes are just so unpredictable! Frustrating….

  10. Oil???  Did I miss some news?

  11. CTL – FWIW

    This is the last day to buy and capture the .54 dividend which will be paid on June 16.

    I'm thinking QUIK may be bottoming here.  Still long and strong (too much so ).  It's been slow developing, but I still think good things are coming.  (How's that for cutting edge analysis ?)

    They are at the Craig-Hallum 14th Institutional Investment Conference today and tomorrow.

  12. Good morning! 

    That rally didn't last too long.  

    Maybe it was more oil dipping as this Libya story came out:

    • Crude oil prices slide sharply lower on news that Libya is raising production, adding to concerns that OPEC-led cuts are being undermined by producers outside the deal; U.S. crude -2.1% at $48.58/bbl, Brent -2.6% at $50.50/bbl.
    • Libya's oil production is expected to regain a three-year production peak of 800K bbl/day this week, the country's National Oil Corporation says, as output at its largest oil field has recovered from a technical problem and is now at the 794K bbl/day level – 300K bbl/day higher than a month ago.
    • Meanwhile, U.S. output has climbed to more than 9.3M bbl/day, close to top producers Saudi Arabia and Russia.
    • Also weighing on the price is the generally negative tone arising from last week's meeting, where the production cut extension already had been baked into the oil price, disappointing investors and traders who were looking for deeper cuts than the original 1.8M bbl/day.

    As I said on the radio this morning – any one of 100 things can cause these kind of drops when the market is this overbought.

    Tomatoes/Mkucs – My neighbor grows them, brings us over more than we can eat.  

    MTailor/PB – That's cool stuff. 

    Big Chart – Dow failed right at the 20% line and NYSE still failing 11,650 and RUT failed 1,378 yet again (1,351 now – ouch!).  

    2,400 should be bouncy on /ES, of course.  Falling from 16 is 3.2 weak bounce and 6.4 strong so watch the 2,406.50 line.

  13. I don't play commodities but my brother lives in corn country (Indiana) and told me over the week end the farmers are starting to worry about crop damage from too much rain this spring. Soybeans also. 


  14. Albo- CTL- I'll take a piece of that. Covered call July25's plus dividend nets almost 4% in about a month & 1/2. 

  15. Phil – Since FTR is at 1.30. Any new play you suggest?

  16. IMAX - MAX shares fall more than 5% leading film exhibitors down in disappointing summer

    "Although Imax has the benefit of global exposure and more local content than the pure play exhibitors, their business is still focused on major blockbuster films and, with a number of those underperforming as of late, we would not be surprised if incremental concerns over near-term results and negative leverage on the model on weaker box office results is causing the selling pressure," B. Riley analyst Eric Wold said. The summer box office, so far through the season, is down 4.7% compared with last year's gross during the same time frame.

  17. Pstas – CTL is in my long term portfolio.  Have previously sold some OTM puts and calls . Still have some stock uncovered with calls.

    Re: Corn.  I'm hearing the same thing.  Our daughter-in-law's father is a farmer in Kansas.  Has only been able to plant about 1/2 his crop.  There's also an issue about being able to get crop insurance going forward.

  18. TSLA @ $342 … should hit $350 soon enough

  19. ~~
    Wonder Woman/Release date





    Wonder Woman release date

    June 2, 2017

    Batman – Maybe Wonder Woman can save the summer.

  20. Advill / Ripple-  Thanks for the info.  With some of the big banks getting behind it Im wondering if that gives Ripple an advantage in the CC wild west landscape.  But Coinbase getting behind Lightcoin seems like a bigger deal.

  21. Phil – Thoughts on /KC here @ 1.29.  I always want to buy but I always buy to early, and it seems each drop we have lower lows, with the last one being 1.275.  

    Would you buy 1 here @ 1.29, then 1.28, then 1.275? or wait…..

  22. Albo / Imax – Wonder Woman…  we'll see.  70% of max revenue is tied to box office revenue…. but they are taking an equal hit to the movie theaters at the moment… at 24 it looks like a good position.  especially when calls can be sold short term protection.

  23. Phi/CSIQ  Any concern on possible tariffs in the solar market?

  24. Tough day in the market for me today.  Down about 10% for the year (FTR, TSLA, NFLX, CLF, TGT are all hurting).  Grrr.  No more shorting momos for me.  Way too much stress.  

    Phil, are we still expecting the BHI/GE merger to result in an early expiration on our 2019 leaps?  I have the 45/60 spread, and am short the $55 puts.

  25. Did anyone take the morning post signals on /CL, /RB or /DX?  

    /CL is now 47.83, buy was 48.5

    /RB is now 1.5765, buy was 1.60

    /DX is now 96.8, buy was 97

  26. I covered TSLA short puts at 310 and 312.5 for next week that I wrote last week and wrote 325 short puts on the open for next week expiration.  Can't fight the tide.  Hate the company but is a broken slot machine for me.

  27. Kabul – markets off a bit this morning due to bomb? Looks like recording a bit already

  28. *recovering*

  29. Corn/Pstas – Yeah, I don't play ags other than coffee and only there because of long-term macros.  Seasonal stuff is cray-cray.

    FTR/Bulls – They pay an 0.16 dividend, I'd just buy them but you can sell 2019 $1 calls for 0.45 and $1 puts for 0.35 to net in for 0.50/0.75 which means you can buy 2x as many shares to start (since the assignment is 1/2 price).  Still, we're waiting to 0.80 to DD. 

    IMAX/Batman – The analysts are idiots.  It only matters whether IMAX movies performed well.  Baywatch was not IMAX, King Arthur wasn't IMAX, Smurfs were not IMAX.  You know what was IMAX?

    1 Beauty and the Beast (2017) BV $501,014,183 4,210 $174,750,616 4,210 3/17 -
    2 Guardians of the Galaxy Vol. 2 BV $340,505,078 4,347 $146,510,104 4,347 5/5 -
    3 Logan Fox $226,110,895 4,071 $88,411,916 4,071 3/3 -
    4 The Fate of the Furious Uni. $222,942,385 4,329 $98,786,705 4,310 4/14 -
    5 The LEGO Batman Movie WB $175,565,768 4,088 $53,003,468 4,088 2/10 -
    6 Get Out Uni. $175,292,780 3,143 $33,377,060 2,781 2/24 -
    7 The Boss Baby Fox $169,718,129 3,829 $50,198,902 3,773 3/31 -
    8 Kong: Skull Island WB $167,463,052 3,846 $61,025,472 3,846 3/10 -
    9 Split Uni. $138,141,585 3,373 $40,010,975 3,038 1/20 5/4
    10 Fifty Shades Darker Uni. $114,434,010 3,714 $46,607,250 3,710 2/10 3/30
    11 John Wick: Chapter Two LG/S $92,029,184 3,113 $30,436,123 3,113 2/10 4/27
    12 Power Rangers (2017) LGF $85,320,527 3,693 $40,300,288 3,693 3/24 -
    13 Pirates of the Caribbean: Dead Men Tell No Tales BV $78,476,767 4,276 $62,983,253 4,276 5/26 -

    The top 4 movies were IMAX, Kong, and Pirates were IMAX.  Wonder Woman is IMAX – coming so fast Pirates only got 2 weeks to screen.  These analysts with their lazy generalities really piss me off! 

    TSLA no longer cares what the market is doing.

    Nor does the market care what the World is doing:

    At Least 80 Killed in Blast Near Foreign Embassies in Kabul

    A bomb exploded near heavily guarded embassies and military bases in the Afghan capital, killing at least 80 people and wounding more than 300 others, many as they headed to work on foot or in buses. 7926 minutes ago


    /KC/Burr – $1.28 has been the magic number but still painful but I generally start around $1.30 though now /KCU7 is $1.32 so that's where I'd start SLOWLY scaling in.  

    CSIQ/Hanj – Concern yes but no facts means no action.  Apparently, early morning reports were unconfirmed and Trump is still contemplating his position on climate:

    Trump Leans Toward Unwinding Climate Commitment

    President Donald Trump is leaning toward unwinding a commitment to emissions cuts the U.S. made under the 2015 Paris climate accord, but he has yet to make a final decision. 227

    Oil Down on Investor Skepticism Over Production Cuts

    Oil prices tumbled as investors remained skeptical that production cuts by major producers will make a dent in global crude stocks. 24 minutes ago

    Going Out for Lunch Is a Dying Tradition

    Americans made 433 million fewer trips to restaurants at lunchtime last year, resulting in roughly $3.2 billion in lost business for restaurants, according to market-research firm NPD Group Inc. It was the lowest level of lunch traffic in at least four decades.

    While that loss in traffic is a 2% decline from 2015, it is a significant one-year drop for an industry that has traditionally relied on lunch and has had little or no growth for a decade.

    Yeah, the economy is SOOOOO great, right? 

    BHI/Palotay – Depends what they do with the stock but, in the very least, the premium should wash out.  

    /CL/Burr – I did!  I have 6 /CL at $48.30 and 6 /RB at $1.589 and I already had 2 /DX at 96.93.  Still, that's the way I go into these things – I don't have time to watch for tight stops (because I'm answering questions!) so I just add more if it goes against me to lower my basis.

  30. Thanks Phil.  BTW – I would watch Baywatch in IMAX.

  31. Phil – On /KC why go out a contract?  The July /KC still has 49 days left.  

  32. /KC/Burr – Because I will hold it as long as it takes so why take one I may have to roll?  

    Wheeee – and oil and gas just went positive so now I can set stops down to 2 contracts as super-low entries – BECAUSE I scaled in!  

  33. Phil / GreenCoin – let me know what you want to try to do next?

  34. My other favorite penny stock, LQMT looks like it might break out finally:

    Submitted on 2016/08/30 at 1:50 pm

    LQMT/Craigs – A lot of times, before AAPL earnings, there are rumors they are finally making liquid-metal phone and the stock pops.  One day, hopefully, it will actually be true but usually they announce an extension of their agreement with AAPL by this time of year and they haven't, so that's a bit worrying, actually.  Last year, for her birthday, Maddie took 10,000 shares for her gift (I gave her a choice) – I was very proud of her.  Then, back in Feb, for Jackie's Bday, we bought a bunch more on the dip for both kids (20,000 each).  I told her them may end up worthless, in which case they all they missed is getting some more knick-nacks or, if all goes well and it's $5 a share – it will pay for her to take a year off and travel after college. 

    Submitted on 2016/09/28 at 3:58 pm

    LQMT is fun and speculative, 1% of the portfolio kind of thing that may become 10%.  NAK too.  Mostly, for the kids, I like to have long-term blue-chip stocks they understand like DIS, AAPL, IBM, T – that I expect to do fine over 20 years.  Dividend-payers are nice too because, keep in mind, you're kids may not want to be traders so down the road I want them to be able to simply instruct their broker to sell 1/3 covered calls every quarter, etc.  

    Submitted on 2016/12/06 at 1:58 pm

    401K/Pat – NAK and LQMT are very much gambles.  I just like the story on both and they could be 10-baggers if they hit so good for my kids' accounts since losing a few thousand dollars they don't have anyway won't matter at all but getting $30,000 out of college would be very nice, so a worthwhile GAMBLE from that respect.  

    LQMT having another big day.  Seems to pop to 0.25 every once in a while and then drifts back to 0.20.  Would be good for range play if inclined.  

    Submitted on 2017/04/19 at 10:14 am

    I was just reminded why I like LQMT so much:  

    Working Capital Days History

    My kids have 40,000 shares from when they were 0.15, now 0.26 – I'm hoping for a 10-bagger ($1.50) down the road. One of the very few penny stocks I play but I think the potential is so cool:

    Edited Transcript of LQMT earnings conference call or presentation 10-Mar-17 9:30pm GMT

    Ted Talk

    Liquidmetal® Passes Implant Study:


    In February of 2017, LQMT received long-term implantation results from parts 3, 10, 6 and 11 of the ISO 10993 (Biological Evaluation of Medical Devices) suite of tests, which include evaluation of genotoxicity, sub-chronic systemic toxicity, and pyrogenicity. LQMT alloy LM105 passed all of these tests well within the allowable limits. These results, combined with previously completed tests from ISO 10993 parts 10, 11, 4, and 5 which cover sensitization, irritation, acute systemic toxicity, hemocompatibility and cytotoxicity, indicate that the Liquidmetal process is compatible with a wide range of medical device requirements including long term implants.

    “The results of these tests are very exciting and it positions the Company well to engage medical device customers in a broad range of implantable device applications including, cardiac rhythm, cochlear, spinal, and orthopedic implants among others. The Company will now focus on partnering with medical implant manufacturers to identify specific applications to further explore the use of Liquidmetal,” said Paul Hauck, Executive Vice President of Sales and Marketing at LQMT.

    Submitted on 2017/04/19 at 10:29 am

    LQMT/Jet – Just that they're not going to be running out of cash anytime soon (they have 22,000 days of working capital at current burn rate).  LQMT has a long-standing contract with AAPL and every time a new IPhone comes out, there's rumors that they will be making one out of liquid-metal but I very much doubt LQMT can produce the volume AAPL needs at this stage but, hopefully, one day…

    LQMT/Pat – Keep in mind it's super-risky.  Both my girls chose the stock over birthday presents – hopefully they are good pickers.  

    GreenCoin/BDC – Speaking of 1/1,000th of a penny stocks!  Lets talk over the weekend or maybe Sat AM in case I want to post an update for Members over the weekend.  

  35. Phil – OK I will try calling Satruday

  36. The rolled FXP Jun 24C is now down 40%.  I bought @ 1.97, now mid 1.10.  

  37. Muck – "What is the difference between an extreme and a moderate Muslim? The extremist wants to cut your head off, the moderate wants the extremist to cut your head off."

    Muck, come on now, you know better. That just plays into a broader double standard that Islamophobia is a part of.  It treats Muslims as a race in which all members can be reduced to the same motivations. There is a word for that kind of pernicious generalization.  I'll see your Muslim and raise you a Christian…

    What is the only difference between a Christian gunman and a Muslim terrorist?


    Tit for tat.  Here's an excellent missive re the above and the double standard.  And since we are on the subject of religion… 

    Donald Trump, Vladimir Putin and Kim Jong-Un start a nuclear war and die at the same time. They are greeted at the gates of hell by the Devil, who explains that they can make one final call, but such calls can be VERY expensive. Since they're rich and can't take it with them, all three agree. Putin calls Russia and talks for five minutes; the charge is one million dollars. Jong-Un calls North Korea and talks for ten minutes; the cost is two million dollars. Trump calls his family and talks bigly for hours, but the cost is only five cents. A seething Putin demands to know why Trump got off so cheap. The Devil replies: "Since he became president. the US has gone to hell, so it's a local call!"   Rimshot and Out.

  38. FXP/Burr – China not cooperating.  

    Webinar time!  

  39. Record the webinar time!

  40. Lunch/Phil – you sure wouldn't know it based on MCD and YUM.  What confidence does anyone have in NDP Group's numbers?

  41. KORS – Michael Kor's luxury retailer shutting 125 stores. Q4 swung from net profit to loss, revenue down 11%; stock clubbed 10%.

    Retail bankruptcies over the last 12 months are near recession levels, said RBC Capital Markets retail analyst Brian Tunick. These include BCBG, Payless, PacSun and department store closures (45 Macy's, 140 JC Penneys and 150 Kmart/Sears stores in fiscal 2017).  

    We warned May 12th: "When PG (tampons and toothpaste) which are essential non discretionary start heading down, anything that requires discretionary spending is going to get its head lopped off in short order.  Just sayin, I've seen this movie too and out."

    I've recently been to some outlet centers in both Europe and the US, albeit during mid week daytime, that looked like ghost malls.  The bored employees were more than glad to share that although the weekend sees some traffic, business has been off for the last year plus, and their ranks had been thinned. Lacking my Woolworth's lunch counter for a BLT with mushroom soup, the experience was an old school outdoor mall, with lower overhead.  However, the prices being asked for "discounted" snob appeal discretionary name brands, were not cheap.  

    In fact, on two of those trips, I bought nothing.  For a moment, I thought it might be the end of the world because something that had never happened before occurred.  I checked my empty handed wife's forehead for a fever and asked everything alright? She quipped, I've never seen such expensive crap being touted as discount, I don't know what they are smoking, but I'd like to have some.

    Look at SKT Tanger Outlet Malls –  they lost 30% in what might be panic selling and $25 seems "low", so value shoppers jump in.  Moving forward if the brick and mortar secular decline is not a temporary malaise, and or the economy continues to dwindle, then rents for discretionary retailers and brands, which constitute SKT's core tenants, might flatline or get softer.  Not good for a leveraged REIT especially when combined with rising cost of loan funds. Funds from operations could take a rapid hit and a "value" could become a falling knife.  TBD, BVD and Out.

  42. RB – Is struggling to break 1.60 at the moment

  43. From the Webinar – GOGO needs to be GoneGone.  We have a nice profit and the potential damage done to them if laptops are banned could wipe it out so not worth the risk.  If they do have a big sell-off, we'll re-evaluate but for now we're completely cashing out in the OOP and the LTP.

  44. Phil/GOGO  thanks!

  45. Lunch/Scott – We heard it in the earnings reports.  MCD and YUM benefit the way the Dollar Stores did in the recession – people are trading down to cheaper lunches but that doesn't negate the broader trend. 

    SKT/Naybob – The point on them is they are a smart operator who will be able to freshen their malls with what consumers do want – maybe more Dollar Stores.

    /RB/Bulls – Have to wait for inventory I think.

    Beige Book/Pstas – Bottom line is, that's not the kind of report you'd expect for a market at record highs.  

  46. Any actionable trade ideas from the Webinar?  I couldn't listen today.

  47. Phil  for whats it worth dept.   I use an app called stocktracker on my phone.  I saw a pop up ad for PSW.  Not a banner, but saw it when I opened the app.

  48. burrben  Close GOGO

  49. Trades/Burr – Nope, just the longs on /CL, /KC and /RB and we discussed how IMAX is back where we like them.

    Ads/Stock – That's good I guess.  As far as I know, we only go through Google AdWords and they then distribute our ads.  That sounds like we're hitting the right target group.

    Wow, they really jammed the close!  

    • Solar stocks (TAN -0.5%) are broadly lower following reports that Pres. Trump has decided to pull out of Paris climate deal, which aimed to cut carbon emissions around the world with a larger focus on renewable forms of energy.
    • With less than an hour of trading left: FSLR -2.5%SPWR -3.3%CSIQ -5.7%JKS -5.9%JASO -3.8%YGE -4.9%SOL -2.9%.
    • But coal companies (KOL -1.2%) also are lower, perhaps reflecting concerns raised by some coal companies that a U.S. exit from the Paris agreement could unleash a global backlash against U.S. coal interests.
    • Peabody Energy (BTU -3.2%) says it would support a decision to withdraw from the Paris accord because the "accord is flawed on a number of levels," but it had argued that Trump should stay in the deal to help protect coal industry interests overseas.
    • Cloud Peak Energy (CLD -1.8%) also had argued to stay in the Paris deal to prevent other nations from an aggressive turn against the global coal industry.
    • Market participants are "too relaxed," and medium-term risks are building – investors should consider taking advantage of cyclical rallies by raising cash that can be put to work when the correction comes.
    • So says the Pimco team of Richard Clarida, Andrew Balls and Dan Ivascyn, in their annual "Secular Outlook." They see a 70% chance of recession in the next five years.
    • "A lot of good news is already priced in," Clarida tells Bloomberg. "All asset classes are 10 or 15 percent more expensive than they were a year ago."
    • Particularly concerning to the trio is that the Fed – already with a massive balance sheet and rates near zero – is "driving without a spare tire."
    • "Policy measures may not be sufficient to counter the next downturn, whenever it materializes."
    • The April Prices Index for agricultural production, up 2% from the Mar. 2017 index and up 4.4% from April 2016
    • The crop production index +6.5% M/M to 93.1 and the livestock index -1.1% to 99.5.
    • Food grains -3.4% M/M and -7.2% Y/Y.
    • Feed grains -2.2% M/M and -3.9% Y/Y.
    • Oilseeds -3.5% M/M and +3.2% Y/Y.
    • Fruits and nuts -5.1% M/M and +0.3% Y/Y.
    • Other crop +2.9% M/M and +5.1% Y/Y.


    • Boosting the case for a rate hike in two weeks, the Fed's Beige Book says growth in a number of regions is being held back by a growing shortage of both high- and low-skilled workers.
    • Chicago: "The labor market was tight and it was difficult to fill positions at any skill level … A manufacturing firm … reported attracting better applicants and improving retention for its unskilled workforce by raising wages 10%."
    • Overall, most districts reported "modest or moderate" economic expansion, though Boston and Chicago signaled a slowdown in pace, and New York indicated things had "flattened out."
    • The new all-time high printed by Tesla (TSLA +1%) brings Morgan Stanley's Adam Jonas back out into the wild. In an analogy that brings to mind a SpaceX rocket breaking free of the gravitational pull of Earth, the analyst says the self-fulfilling nature of the extended Tesla rally is creating an escape velocity for shares.
    • Key snippets from the note penned by Jonas and the MS team are posted below.
    • "We have long viewed Tesla’s stock as a call option on disrupting a $10 trillion global market for mobility rather than an equity exposed to a $1.5 trillion traditional light vehicle market."
    • "We believe the market is increasingly coming around to the idea of giving Tesla a low chance of success in a far larger addressable market (transport network, data, time) rather than a high chance of success in a smaller addressable market (cars/machines)."
    • "Is the size of the debate taking on a self-fulfilling quality whereby the company can fundamentally achieve an escape velocity that could see it being a self-financing/self-sustaining enterprise?"
    • Source: Business Insider
    • Shares of Tesla printed a new high of $342.89 earlier.
    • Exxon Mobil (XOM -0.5%) shareholders at the company's annual meeting approve a non-binding proposal calling for regular reports on the business impact of compliance with global climate change guidelines.
    • A preliminary tally shows the proposal passed with 62% of ballots cast, a sizeable increase over last year's 38% support for a similar report.
    • The size of the vote indicates at least some institutional investors probably voted in favor; BlackRock and Vanguard reportedly had been strongly considering voting for the climate stress test.
    • Oil demand will continue to grow in the coming decades even as the world strives to reduce greenhouse gas emissions to counter climate change, Exxon Mobil (XOM -0.6%) CEO Darren Woods says at the company's annual shareholder meeting.
    • Population growth and a desire for higher living standards will increase usage of petroleum-based fuels, especially for transportation, Woods says, also noting the untapped energy market among the 1B people who currently have no access to electricity and the 3B who do not use modern cooking fuels.
    • XOM forecasts the need for $11T in oil and gas investment, and the company believes it will come out ahead in a survival of the fittest.
    • Jefferies' Brian Tanquilut says Walgreens Boots Alliance (WBA +0.7%) has ample upside if the FTC blocks the Rite Aid (RAD +1.3%) deal. He says WBA will likely redirect capital to buy back shares, possibly $5B, which would increase EPS by $0.17 this year and $0.46 in fiscal 2018 and 2019.
    • If the FTC blesses the merger, he sees a $1B synergy opportunity that would add $0.47 to EPS in fiscal 2020. Additional EPS accretion, possibly another $0.41, could happen if same-store productivity of Rite Aid were raised to 80% of Walgreens (BUY/$95).
    • Source: StreetInsider
    • Casinos in Nevada reported that gaming win revenue increased 1.19% Y/Y to $886.53M in April
    • Fiscal YTD revenue is up 3.03% to $9.557B through the end of April.
    • Revenue on the Las Vegas Strip fell 3.25% to 475.38M during the month, while downtown LV casino revenue jumped 22.6% to $52.30M.
    • Total slots revenue increased 5.5% to $598M off a win percentage of 6.55%.
    • Games and tables revenue fell 6.8% to $288M off a win percentage of 13.56%.
    • Nevada Gaming Control Board full report (.pdf)
    • Related ETF: BJK.
    • Gogo (NASDAQ:GOGO) is up 1.3% currently after Raymond James launched coverage at Outperform.
    • Analyst Richard Prentiss says the in-flight service provider should move to positive cash flow in 2019 and that it should benefit from factory install programs, like the recent win where it was selected by Airbus for high-bandwidth connectivity.
    • Prentiss has a $15 price target on the stock, implying 17% upside.
    • Shares in global miners and steel producers are under pressure after iron ore prices plunged to their lowest levels in six months, as stockpiles at Chinese ports swell to their largest in 13 years.
    • Iron ore prices fell 6% on the Dalian Commodity Exchange as traders returned form the Dragon Boat Festival holiday; the price of physical iron ore for delivery to China traded at $57.02/metric ton today, down from a YTD peak of $95/ton in February.
    • Imported iron ore at China's ports reached 136.6M metric ton last week, the highest since the SteelHome consultancy began tracking the data in 2004.
    • In early trading: BHP -2%RIO -2.3%VALE -3.8%CLF -7.2%MT -2.7%X -3.4%AKS-3.6%NUE -1.9%STLD -3%.
    • Speaking at an investor conference, Bank of America (BAC -3%) CEO Brian Moynihan says to expect a year-over-year decline in Q2 trading revenue. Holding court at another conference, JPMorgan (JPM -1.8%) CFO Marianne Lake tells listeners that trading revenue is tracking lower by 15% Y/Y in Q2, and she's not expecting that trend to change in June.
    • Other players: Citigroup (C -2.1%), Goldman Sachs (GS -2.4%), Morgan Stanley (MS -1.8%)



  50. Bigger Draw than expected for crude in the private API

  51. RB fly away

  52. Very nice! 

    Crude -1.50M Gasoline -3.15M Distillates -1.85M Cushing -210K

    There had to be an /RB draw somewhere around the holiday.  

  53. By this criteria, we might not be the 90's but tech valuation seems to be over the average of the last 15 years:


    Technology stocks don’t have the outsize valuations they did when they last dominated world markets in the 1990s, according to Pavilion Global Markets. Pavilion cited the ratio of enterprise value, or the total value of equity and debt after subtracting cash, to earnings after interest, taxes, depreciation and amortization in a report Friday. By this barometer, the MSCI World Information Technology Index was 17 percent more expensive than the MSCI World Index of developed markets last week. The premium climbed as high as 202 percent in September 2000, after the peak of an Internet-driven surge in stocks.

    Hard to remember how crazy the 90's were!

  54. President Trump is said to be considering withdrawing the United States from the Paris climate agreement, a landmark accord reached in 2015 between 195 countries that seeks to avoid some of the worst effects of climate change by curbing global greenhouse gas emissions.<p>The White House says it has …

  55. Seeing gains on top of gains increases investor confidence that those gains will last.<p>Bitcoin has been on an unbelievable run. The cryptocurrency is up around 124 percent for 2017. And that’s after it gained 125 percent in 2016. In May alone, it’s up more than 60 percent. It’s hard to know what the …

  56. Three men from New York-based rights group China Labor Watch were looking at conditions at plant where Trump shoes are assembled<p>A labour activist working undercover investigating abuses at a Chinese factory that makes Ivanka Trump shoes has been detained by police and two others are missing, …

  57. Elon Musk says he’ll step down from President Donald Trump’s advisory councils if he decides to withdraw from the Paris climate agreement.<p>The CEO of both Tesla (TSLA) and SpaceX tweeted Wednesday that he’s done everything possible to lobby the president to keep the U.S. in the treaty.<p>”Don’t know …

  58. Iowa’s GOP senators cast doubt on health care law repeal

    ALTOONA, Iowa (AP) — Lowering expectations, Iowa’s two Republican senators say the long-promised repeal of “Obamacare” is unlikely, and any final agreement with the Republican-controlled House is uncertain.<p>The comments Tuesday by Sens. Chuck Grassley and Joni Ernst come as the Republican-controlled …

  59. The direction of a stock’s 200-day moving average (DMA) is a good way to gauge its long-term directional trend. If the 200-day moving average is …

  60. What are the world’s most valuable private technology companies?<p>A new map released by CB Insights identifies the 197 companies globally that are considered “unicorns,” meaning that they have a valuation of at least $1 billion.<p>Collectively, these companies are valued at approximately $679 billion …

  61. Here’s what we know about robots: Robots have taken jobs. Robots are taking jobs. Robots will take jobs.<p>The question remains, though: How many jobs? Hard to say.<p>Analysts, futurists, and academics vary in their assessment of just how many jobs (and perhaps more importantly which jobs) are at risk, …

  62. Just after dawn in the Salinas Valley south of San Francisco, a raucous robot rolls through a field spitting clouds of vapor. It’s cutting lettuce …

  63. The Kitty Hawk Flyer is a sort of a flying car except it’s not a car at all – it’s much more like a flying ATV, which is probably more legitimately all-terrain than most. Linguistics aside, it’s a very cool piece of tech that’s backed by Google co-founder Larry Page, and it’s already in the …

  64. Need to charge your phone urgently to make an important call? Need a bike quickly? Forget to bring your umbrella on a rainy day? If you’re in a Chinese city then the chances are there’s no need to worry. That’s because there are now dozens of smartphone-based apps offering to rent almost anything …

  65. For every buyer, there’s a seller; for every winner, a loser.<p>At least, that’s how it usually goes. Yet that hasn’t borne out in the U.S. stock and …

  66. Maybe you should do a little research before you go popping off on television?<p>There is just one king in the Amazon jungle.<p>by GoldCore – May 31, 2017 …

  67. <i>Every day, Wall Street analysts upgrade some stocks, downgrade others, and “initiate coverage” on a few more. But do these analysts even know what they’re talking about? Today, we’re taking one high-profile Wall Street pick and putting it under the microscope…</i><p>Up 69% since the year began, and up …

  68. Bitcoin could make up 10 percent of the $5 trillion average daily volume in the foreign exchange market in 10 years, according to Saxo Bank analyst …

  69. Cracks widen in US-Europe alliance

    <b>Washington (CNN) —</b> Next week marks the anniversaries of twin American tours de force that liberated and rebuilt Europe, enshrining an unprecedented era of peace and freedom.<p>So it’s ironic and disturbing to proponents of the transatlantic alliance that remembrances of the D-Day landings and the …

  70. Investors should be on guard for a recession in the next five years by stockpiling cash for the day when stocks and bonds — as they always do — go on sale.<p>So says Pacific Management Investment Co., the bond mutual fund giant known as Pimco.<p>“Investors should use cyclical rallies to build cash to …

  71. Net effective retail rents in Manhattan have fallen 20 to 30 percent from their 2014 peak, according to a report from brokerage CBRE.<p>The estimate accounts for concessions, which have been on the rise across Manhattan as landlords try to keep face rents up. “Investors have expectations of returns, …

  72. So, yeah, it looks like <i>Pirates of the Caribbean: Dead Men Tell No Tales</i> is a hit. Well, actually, <i>Pirates of the Caribbean: Dead Men Tell No Tales</i> may be a modest underperformer. But <i>Pirates of the Caribbean: Salazar’s Revenge</i>? Yeah, that’s a monster hit. The fifth <i>Pirates</i> movie set sail this past …

  73. Scott Masterton/Getty ImagesIt’s the American summertime real estate fantasy.When the mercury starts rising again from coast to coast, we start …

  74. A conservative watchdog group says Rachel Maddow peddles conspiracy theories and wants advertisers to dump her show<p>After Bill O’Reilly was fired in the wake of a boycott — and a similar boycott effort has targeted Sean Hannity — one conservative group is going after the best-rated liberal …

  75. The network has parted ways with the now embattled comedian<p>Following the public outcry against an image showing the comedian holding what could be seen as the bloody, severed head of President Donald Trump, CNN has announced that it will not be working with Kathy Griffin any longer.<p>The statement …

  76. WASHINGTON — President Trump is considering reversing major pieces of the Obama administration’s opening with Cuba and reinstating limits on travel and commerce, citing human rights abuses by the Castro government as justification for a more punitive approach.<p>Mr. Trump wants to announce the changes …

  77. DONGGUAN, China — The Chinese factory workers who make shoes for Ivanka Trump and other designers gather at 7:40 every morning to sing songs.<p>Sometimes, they extol worker solidarity. Usually, they trumpet ties between China and Africa, the theme of their employer’s corporate anthem.<p>That’s no …

  78. Uber has spent billions to upend the transportation industry. Now, at least for the moment, it is burning slightly less cash in that effort.<p>The company said Wednesday that it lost $708 million over the first three months of the year on revenue of $3.4 billion, not counting expenses like employee …

  79. Photo: Greg/ AFP/ Getty Images.<p>Scepticism over the accuracy of Chinese economic data has just gone up notch following the release of the Caixin-IHS …

  80. There have been 68 new cancer treatments approved in the past five years.<p>That surge in treatments is coming with a higher cost. In 2016, global spending on cancer treatments hit $113 billion — up from $107 billion in 2015, according to a report released Thursday by the QuintilesIMS Institute. Those …

  81. Morgan Stanley Chief Executive Officer James Gorman indicated his firm is seeing similar trading declines as competitors JPMorgan Chase & Co. and …

  82. The White House on Wednesday disclosed a group of former lobbyists working in President Donald Trump’s administration who have been issued ethics waivers, following a request from the US government’s ethics agency.<p>The list of at least 11 waivers include White House adviser Kellyanne Conway and …

  83. watch full episode<p>The Daily Show with Trevor Noah<p>The Art of Bulls**t in the Trump White House<p>Clip5/31/2017<p>Even though President Trump received harsh …

  84. Ozge Akinci, Marco Del Negro, Abhi Gupta, Pearl Li, and Erica Moszkowski<p>This post presents our quarterly update of the economic forecasts generated …

  85. United Airlines is facing a fine of $435,000 from the Federal Aviation Administration, which said Tuesday that the airline flew a Boeing 787 passenger airplane that was potentially unsafe nearly two dozen times on domestic and international flights in 2014.<p>A statement from the federal agency said …

  86. <b>Brian Scheid and Meghan Gordon</b><p>The Trump administration has reopened a review of 2022-2025 fuel economy standards, which have a major impact on the …

  87. There can be no gain without pain and that may be especially true when it comes to taxes. As about 160 countries overhauled their indirect tax …

  88. Someday urban planners and retail executives may want to debrief Robert Sietsema. As someone who has lived at the corner of Bleecker and Perry Streets for 27 years, he has witnessed the rise and fall of a luxury shopping district that grew out of workaday surroundings in the 1990s and has left …

  89. The nation once built things fast and cheaply. Now experts are puzzled why costs are higher and projects take longer than in other countries.<p>As Vox’s Matthew Yglesias points out, the problem with high infrastructure costs is that they force us to debate the wrong things. If costs were reasonable, …

  90. Hillary has snapped.<p>There’s more than enough…<p>by GoldCore – May 31, 2017 7:48 AM<p>Jim Rickards discussed China’s role in the Golden Conspiracy<p>May 31, …

  91. The White House is keeping America guessing about the meaning—if there is any—of President Donald Trump’s enigmatic overnight tweet about “covfefe” that immediately shot to meme stardom.<p>Reporters asked White House press secretary Sean Spicer on Wednesday about the meaning of the president’s tweet. …

  92. If only the Senator from Arizona had a job where he could do something about climate change.<p>The Great Barrier Reef, which in 2016 experienced the …

  93. Hillary has snapped.<p>There’s more than enough…<p>by GoldCore – May 31, 2017 7:48 AM<p>Jim Rickards discussed China’s role in the Golden Conspiracy<p>May 31, …

  94. KIC 8462852 has spurred theories of an “alien megastructure” — now its recent behavior is baffling astronomers<p>It’s a news story 1,280 years in the making. That’s about how many light years from Earth sits KIC 8462852, also known as Tabby’s Star, whose bizarre pattern of dimming and brightening is …

  95. That’s ominous.<p>On its surface, the Greenland ice sheet is a vast expanse of seemingly immovable ice. But beneath the monotonous stretch of white, scientists have discovered evidence of waves rippling through one of its outlet glaciers and roiling its innards.<p>The waves, observed during the two most …

  96. When it comes to innovation, HP Inc. is no laggard. And according to President and CEO Doug Weisler, it was a high school intern that prompted his …

  97. White House Office of Management Director Mick Mulvaney on Wednesday opened fire on the Congressional Budget Office, asserting in an interview with …

  98. SEOUL (Reuters) – San Francisco Federal Reserve Bank President John C. Williams said on Thursday he sees a total of three interest rate increases for this year as his baseline scenario, but views four hikes as also being appropriate if the U.S. economy gets an unexpected boost.<p>”There is potential …

  99. Brooklyn startup LO3 Energy is revolutionizing the way homeowners buy and sell electricity<p>In Brooklyn, you can buy honey collected from an urban bee hive. You can buy lettuce grown atop an old bowling alley.<p>And now, you can purchase free range, gluten-free, fresh, organic solar power right off your …

  100. A private gauge of China’s manufacturing fell back into contractionary territory in May, adding to recent evidence that the economy’s strong start to …

  101. Scholars have long debated the role knowledge about and understanding of science plays in shaping people’s views on science issues. The common …

  102. The once-humble hamburger has become too fancy for its own good.<p>As the number of outlets serving “better” burgers—featuring nontraditional toppings and artisan buns—has skyrocketed over the past decade, so has the average burger tab, turning some customers off.<p>Brian Cockerline, a 20-year-old …

  103. The 25 Cheapest Places To Travel This Summer

    There’s nothing like a summer vacation, but it can also be one of the most expensive times to take a trip. Depending on where you want to go, airfares are sky high and hotels are at a premium.<p>I interviewed a handful of travel experts and got their favorite picks for the most affordable destinations …

  104. The Trump administration is moving toward handing back to Russia two diplomatic compounds, near New York City and on Maryland’s Eastern Shore, that its officials were ejected from in late December as punishment for Moscow’s interference in the 2016 presidential election.<p>President Barack Obama said …

  105. Australian retailers enjoyed the quickest pace of growth in just over two-and-a-half years in April, shaking off a weather-affected start to the year …

  106. Hillary has snapped.<p>There’s more than enough…<p>by GoldCore – May 31, 2017 7:48 AM<p>Jim Rickards discussed China’s role in the Golden Conspiracy<p>May 31, …

  107. <i>This is a syndicated repost courtesy of Economy and Markets. To view original, click here.</i> Reposted with permission.<p>Share!<p>This is what I predicted …

  108. Administrator Scott Pruitt wants more “review.”<p>The Environmental Protection Agency would like to delay an Obama-era rule that limits the amount of …

  109. Is China Headed for a Recession?

    Not exactly, but that raises another problem.<p>For the first time ever, China is facing a dreaded prospect: the inverted bond yield curve. The phenomenon, in which long-term interest rates sink below short-term interest rates, has caused some consternation among market-watchers, who know it’s …

  110. Former national security adviser Michael Flynn and one of President Donald Trump’s personal lawyers, Michael Cohen, were subpoenaed Wednesday by the …

  111. It’s all too easy to become consumed with endless, effortless happiness, so take a huge wrong turn for a change, and maximize your misery with these …

  112. First on CNN: Sources: Congress investigating another possible Sessions-Kislyak meeting

    <b>Washington (CNN) —</b> Congressional investigators are examining whether Attorney General Jeff Sessions had an additional private meeting with Russia’s ambassador during the presidential campaign, according to Republican and Democratic Hill sources and intelligence officials briefed on the …

  113. Wind farms, with their rapid geographic spread and technological advances, are reshaping the electric system, defying skepticism that they are steady or reliable enough to displace conventional power plants.<p>“The fuel of choice right now, certainly for us, is wind,” said Ben Fowke, the chief …

  114. Former FBI Director James Comey is expected to testify as early as next week before a Senate committee that President Donald Trump asked him to back off the investigation of former national security adviser Mike Flynn, according to a person familiar with the matter.<p>The testimony before the Senate …

  115. Clapper’s previous employers have connections to corruption, owned by holding company affiliated with terror groups, dictators<p>There’s more than …

  116. This Is What the Demise of Oil Looks Like<p>By Jessica ShanklemanJessica Shankleman and Hayley WarrenHayley Warren<p>From giant companies like Exxon Mobil …

  117. High borrowing costs underline auto rental group’s challenges to service debt load<p>Hertz, one of the largest US car rental groups, was forced to pay a …

  118. America’s time as leader of the free world is over. Now we’re the villain, thwarting the global effort to save humanity.<p>President Donald Trump’s …

  119. 12-year-old Darci Lynne had better overcome her shy streak quick, because, thanks to her stellar singing ventriloquist performance, the world now …

  120. A new analysis offers a counter narrative to existing propaganda<p>The California Senate Appropriations Committee has vastly overstated the new costs of creating a single-payer health system for the Golden State, according to a national authority on healthcare spending.<p>Last week, the Committee …

  121. The Trump administration ordered a review of oil reserves and production on Alaska’s vast public lands, an early step in potentially opening more areas of the state to drilling—including the now-protected Arctic National Wildlife Refuge.<p>Interior Secretary Ryan Zinke signed the order Wednesday in …

  122. Many of the <b>Investment Masters</b> focus on businesses with <b>longevity</b> and which are likely to be doing the same thing in <b>ten years’</b> time as they are doing …

  123. By EconMatters<p>We discuss the Oil Market in this market video, there may be too much pessimism in the oil market right now. Everyone seems to be very …

  124. Trials of Embryonic Stem Cells to Launch in China

    In the next few months, surgeons in the Chinese city of Zhengzhou will carefully drill through the skulls of people with Parkinson’s disease and …

  125. Climeworks carbon capture device will take the gas from the air and sell it or store it in the ground. Now we just need a few hundred thousand more–as quickly as possible.<p>Sitting on top of a waste incineration facility near Zurich, a new carbon capture plant is now sucking CO2 out of the air to …

  126. Economy lost momentum on weaker manufacturing and construction<p>NEW DELHI—India said its economy grew 6.1% in the first quarter from a year earlier, the weakest expansion the country has reported in more than two years.<p>The surprise slowdown suggested that Prime Minister Narendra Modi’s move late last …

  127. It took less than a day for China’s financial markets to recover from the credit rating downgrade by Moody’s Investors Service on 24 May, the country’s first sovereign rating downgrade from the rating agency since 1989.<p>However, the downgrade is far from a non-event in China: The warning shot from …

  128. “They’ve really opened the door to countless numbers of women having birth control exempted from their insurance coverage.”<p>The Trump administration …

  129. Higher taxes on tobacco products reduce tobacco consumption and improve public health, while also increasing government revenues that can be used to …

  130. It’s relatively inexpensive and easy, if not always comfortable, to fly to most big U.S. cities. But try to fly from, say, Burlington, Vt., to …

  131. Bitcoin’s astronomical rally has cryptocurrency bulls feeling vindicated. Not so fast, skeptics say.<p>The digital currency’s more than 100 percent …

  132. I guess we can still be happy we're not the worst? 

    U.S. Scores Biggest Fall in World Peace Study, Asia Advances

  133. Good morning!

    Looking kind of flat into the open so far.  Oil topped out at $49 and /RB $1.62 but both pulled back since as the Dollar came back over 97.

    • Sterling retreated overnight after a YouGov poll showed Theresa May could be well short of the number of seats needed to form a government, raising the prospect of political turmoil just as formal Brexit talks begin.
    • A lot could still happen before the June 8 election as other polls display her winning a big majority and a Kantar poll showed her lead widening.
    • Sterling -0.3% to $1.2858
    • Speaking in South Korea, San Francisco Fed President John Williams said he views three rate hikes in 2017 as his baseline scenario and even sees a fourth increase if growth surprised to the upside.
    • Today's calendar: Fed Governor Jerome Powell, a permanent voter on monetary policy who may succeed Chair Janet Yellen next year, is scheduled to speak before the Economic Club of New York.

    • "We don't consider that bitcoin can be considered as a virtual currency. It's more digital assets with the regulation of assets," said Elvira Nabiullina, governor of the Russian Central Bank.
    • Japan recently passed a law to legalize payments in bitcoin which helped boost its price, with major trading volumes now coming from the country.

    • "I will be announcing my decision on Paris Accord, Thursday at 3:00 P.M. The White House Rose Garden. MAKE AMERICA GREAT AGAIN!" President Trump wrote on Twitter.
    • During his 2016 presidential campaign, Trump blasted the accord, and called global warming a hoax aimed at weakening U.S. industry.
    • The landmark agreement asks the nearly 200 participating countries to reduce greenhouse-gas emissions in an effort to combat climate change.
    • Previously: Solar, coal companies both fall on reports Trump may dump Paris climate deal (May. 31 2017)
    • U.S. Commerce Secretary Wilbur Ross said the best window to complete the renegotiation of NAFTA is by early January, well before Mexico's general elections and U.S. congressional elections in 2018.
    • Unfair trade? Canada just reported its economy expanded at an annual pace of 3.7% in Q1, more than three times the growth seen in the U.S., while Mexico's GDP grew 2.8% in the same period.
    • China's foreign ministry has again called for THAAD to be removed from South Korea after the U.S. missile defense system was installed in the country.
    • It's also making waves since South Korea's new leader was not told about THAAD's latest deployment.
    • China's foreign ministry said it will also stick to the Paris agreement and has been in close touch with the U.S. on many matters including climate change

    • A private gauge of China's manufacturing slipped into contractionary territory in May, contrasting with yesterday's government's PMI reading, which showed steady manufacturing activity last month.
    • The Caixin/Markit Manufacturing PMI fell to 49.6 from 50.3, marking the lowest reading since June 2016.
    • Output fell to 50.2 vs. 51.0, reflecting a relatively muted increase in total new orders during May.

    • Teekay Tankers (NYSE:TNK+10.1% AH after agreeing to acquire the remaining shares of Oslo-listed Tanker Investments in share-for-share merger resulting in combined total assets of $2.4B; TNK already owned 11.3% of Tanker Investments.
    • TNK says Tanker Investments' fleet consists of 10 Suezmax tankers, six Aframax tankers and two LR2 Product tankers with an average age of 7.3 years; following the deal, its fleet will consist of 62 conventional tankers, including three in-chartered conventional tankers.
    • TNK expects the deal to be immediately accretive to earnings.

    • Investors will be watching for further signs of erosion in the car market today as automakers report new car sales for May.
    • is predicting a flat month, with U.S. sales of about 1.53M cars and light trucks, but notes that manufacturers have been pumping out incentives.
    • Sales had been on the rise since 2010, but declined in the first four months of this year.
    • Related tickers: GMFCAUFTMHMC
    • Netflix (NASDAQ:NFLX) plans to spend $6B on original content in 2017, with that number substantially increasing in the coming years.
    • "As we grow the membership base, we want to grow the current budget," CEO Reed Hastings said at the Code Conference. "There are so many great shows we don't have yet."
    • He also commented on what he sees as the greatest competition, citing Amazon as one of the biggest threats to his business.