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Tricky Tuesday – Weak Bounces Look Like Rallies After Such Big Drops

Don't be fooled.

Yesterday, at 3:25 pm, in our Live Member Chat Room, I said we are very likely on the way to 2,700 on the S&P but, before that happens, we were very likely to get at least a weak bounce:

I think we'll have to wait for 2,700 on /ES.  If 2,850 is halfway down from 3,000 (5%) then we're looking for 30-point weak bounce to 2,880 and strong would be 2,910 but that's not likely if we we're heading lower so look for a failure at 2,880 and then follow-through below 2,850 over the next few days.

As you can see on the chart, we ended up just under 2,850 at 2,844 and this morning the S&P has bounced to 2,856 after falling to 2,775 overnight.  That movement doesn't matter, what matters is how we trade once the volume picks up and our 5% Rule™ tells us that we should expect a 20% retrace of the 150-point drop from 3,000, so that's 30 points (green weak bounce at 2,780) and, if that fails, then it's very likely we are on the way to 2,700, which becomes a 300-point drop and then the bounces we expect double to 60-points (red weak bounce at 2,760).

This morning, the talking heads on the MSM are saying we are bouncing because China didn't devalue the Yuan as much as feared but that's not the real reason we were dropping, that was the White House spin on why we were dropping to deflect the blame away from the President and his idiotic tariffs and yesterday, the US branded China a Currency Manipulator – further escalating trade tensions and making it less likely we'll be coming to an agreement – there's nothing bullish about that.

In addition to the currency move, Beijing said that Chinese companies had suspended purchases of U.S. agricultural products, and that the government has not ruled out putting tariffs on U.S. farm goods purchased after Aug. 3rd.  China’s Central Bank said Monday’s depreciation was “due to the effects of unilateralist and trade-protectionist measures and the expectations for tariffs against China.” People’s Bank of China Governor, Yi Gang, said that China won’t engage in competitive devaluation and that the decline was due to market forces.

“The announcements from Beijing represent a direct shot at the White House and seem designed for maximum political impact,” said Chris Krueger, strategist at Cowen Washington Research Group. “We expect a quick—and possibly intemperate—response from the White House, and consequently expect a more rapid escalation of trade tensions.”

Trump has long complained that China keeps the yuan’s value artificially low to make its goods cheaper on global markets. Traders contend that the Chinese government is merely allowing the currency to respond to market conditions as the trade war fuels concern about the global economy.  “Other emerging markets are also tanking,” said Win Thin, global head of currency strategy at Brown Brothers Harriman. “If China is going to allow market forces to determine the exchange rate, this is what will happen with the Yuan.”

The President, of course, was tweeting about this and a dozen other disturbing things (like "Google is against Trump" and "Why did no one blame Obama for inciting right-wing radicals to commit mass murders when he was President") including this call for the Federal Reserve to act against China's currency move – even though the Dollar went up 2% in the past month and the Yuan only went down 1.9% to reflect the Dollar's move.  

The Federal Reserve, on their part, made the very unusual move of rebuking the President this morning all 4 living Chairmen: Paul Volcker, Alan Greenspan, Ben Bernanke and Janet Yellen wrote in an op-ed published by the Wall Street Journal that the US central bank must be able to make decisions "based on the best interests of the nation, not the interests of a small group of politicians."

"Even the perception that monetary-policy decisions are politically motivated, or influenced by threats that policy makers won't be able to serve out their terms of office, can undermine public confidence that the central bank is acting in the best interest of the economy," they said. "That can lead to unstable financial markets and worse economic outcomes."

On the whole, nothing has really changed since yesterday.  You can spin things as you wish but the trade war has deepened and lenghened and, so far, we've had only a very minor correction in response to this very major issue.  Most likely, we'll have our weak bounce to 2,870 and, failing that, will begin marching back down until we settle at 2,700.  We'd have to cross over the strong bounce line at 2,910 before we'd even consider lightening up on our hedges – which have, so far, saved our portfolios from most of the damage done by this dip.

Be careful out there.  



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  1. Good Morning!

  2. Many lines crossed yesterday!

  3. No panic here – Friday's drop actually hurt more than yesterday's as my hedges kicked-in in a meaningful way.  I did get more aggressive with those hedges last week so that helped.  It will be interesting to see if I can stay balanced with the bounce it looks like we might get today.

  4. It's amazing to hear people surprised about a possible correction – we are in a place now where companies growing EPS at 2% annually and paying a 1.5% dividend (because they are so expensive now) trading at 25x earnings. The same companies would trade at 12-25x only 15 years ago. Sure, there is no place to park your money now because 30% of bonds are paying (charging) negative interest so anyone showing positive numbers looks like a great place. But these multiple are really based on a perfect earning path for the next decade it seems and some of us know that it's not going to happen. But there will now be calls for lower rates because it seems that the role of the Fed now is to prop up markets. 

  5. Good morning! 

    VIX still over 20 so don't trust this "rally" – especially if we're below the weak bounce line.  

    Europe is already failing at theirs:

    Oil (/CL) still the best way to go long if the rally is real as $55 is such a good stopping line ($60 on /BZ):

    /KC perking up!

    Big Chart – Would be a shame not to test all the 200 dmas.  S&Ps 50 dma is right around the strong bounce so very bullish if we get back over that.

    Balance/Buckey – Always tricky and, with a lot of options, sometimes the changing VIX does wonky things to your balances.  To some extent you have to have faith in the process.

    Lower Rates/StJ – As noted above, the Fed is pushing back but an optimist would say they are clearly feeling the pressure to bow to Trump and that's what the markets want.  By making a big showing of saying they shouldn't be influenced – they are kind of admitting they are being influenced.  

  6. Phil,  I travel alot and can pay only sporadic attention to my portfolio.  I was dismayed to discover that I still have 100 old series SQQQ 25/100 Jan 8/18 spreads.   They still provide protection but I imagine that they are less liquid than the new series spreads.  What would you do at this point?

  7. Looking For A Sellable Rally

  8. SQQQ/John – I think they are pretty much worthless so not much you can do.  If SQQQ does punch up and they end up with some value, you might want to cash the $25s and cover the $100s with a new spread but it's very, very doubtful they get back in the money.  

    Well, clearly there's trouble right at 2,870 and, when you see the 5% Rule being obeyed on the button – you should take it seriously! 

    Nas 8,000 less 5% is 7,600 so Nas blew right past that and 7,200 is the 10% mark so we'd look for bounces there at 7,360 (weak) and 7,520, (strong) and that's where we're seeing that failure this morning.

    RUT 1,600 less 10% is 1,440 and guess what – BINGO.  So then that's 160 down so 32 up is 1,472 and 32 more is 1,504 and we're kind of in-between weak and strong then but 1,504 was almost perfect.

    Just to be clear, a sharp 10% drop is far more likely to produce a strong bounce – so that's what we're seeing but it should correspond to just a weak bounce on the S&P, which only fell 5% (so far).

    The Dow is the least reliable index but still, we call it 27,000 (12.5% line) and then a 10% drop is 24,300 and we didn't quite get there but that doesn't mean we can't use it and the bounces are 540-points to 24,840 and 25,380 so the Dow is over the strong and we'll watch that to break for a weakness signal.

    Also, since the Dow is glitchy, we can apply the rule to the exact move to see where we are so 27,250 to 25,000 is 2,750 down so 550 from there is 25,550 and 26,100 so I wouldn't call the Dow recovering until we see 26,100 taken back or at least the 26,000 line.

    On the whole though – I'd say we can certainly short /ES below the 2,850 line (tight stops above) as indications do seem to point towards a resumption of the sell-off.

  9. how about rb if it breaks back over 1.70

  10. Hi Phil,  Thank you for responding to my question.  However, I think that I confused you.  I have the old series Jan 2020 8/18 spreads.  (If you look at the option chart, the entire old series is listed as 17 Jan 20 "25/100"  because of the reverse split, but that does not change the fact that I am long the 8s and short the 18s).  What would you do at this point?   I am wondering if I should cash the spreads in and convert them into the new series spreads since they are presumeably less liquid than the new series.  If you think that they are less liquid and that I should cash them in, what spread would you chose?  

  11. Right now this is not a bounce but more like a blip! We are up 10% of what we lost yesterday!

  12. Phil / FTR- any adjustments or new position before earnings tonight?  Thanks!

  13. /RB/Tommy – A little dangerous as you have API tonight and not much support on /RB vs /CL neither one is more than a technical play for a bounce off the line with tight stops below.

    SQQQ/John – Yes, I was confused then.  The bid/ask on the Jan $8s is 0.15/4.70 and the last was $1.07, which is silly as, technically, it's a $32 call so it's $5.70 in the money.  Think of it like having 25 of the $32s and you'll get paid on expiration if its in the money.  The $18s are 4×18 = $72s – so not much danger of those going in the money and it would be ridiculous to buy them back but you could offer 0.10 to get rid of them and that would leave you more flexible on your naked longs.  

    If you could close out the short $18s, you could sell 10-15 (about 1/2) of the Sept $45s for $2 ($2,000 – $3,000) since you have them covered with the 100 long $8s – though your broker may not agree….

    FTR/EMike – At this point, our adjustment is to extend our index finger and cross our middle finger over it and hope things are improving though this Q has no reason to improve, actually.  

  14. Zacks note on FTR:

    Frontier Communications Corporation FTR is scheduled to report second-quarter 2019 financial results on Aug 6, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 60%. Markedly, Frontier Communications surpassed the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, the average beat being 19.7%.

    The company is likely to report lower revenues on a year-over-year basis primarily due to decline in voice and video businesses. Nevertheless, it continues to focus on long-term goals of improving revenue and unit trends, while realizing its transformation program targets, driving free cash flow and reducing leverage.

    Let’s find out how things are shaping up prior to the announcement.

    The Zacks Consensus Estimate for revenues from the Customer segment, which accounts for the lion’s share of total revenues, is pegged at $1,978 million. It reported $2,065 million a year ago. Revenues from Subsidy are expected to be $91 million. It reported $97 million in the year-ago quarter.

    Consequently, for the second quarter, the Zacks Consensus Estimate for total revenues stands at $2,065 million. It reported $2,162 million in the year-earlier quarter. Adjusted loss per share is pegged at 34 cents, down from loss of 80 cents reported a year ago.

  15. FTR- LOL understood, adjustment has been made :)

  16. I'm heading off to the radio show at 2pm, show is at 2:30.

    • Jefferies downgrades several miners and reduces its commodity price forecasts, seeing the U.S.-China trade war having a "significant impact" on the global demand for metals and further delaying a cyclical recovery.
    • The firm cuts Rio Tinto (RIO -1%), BHP (BHP -0.8%), Arch Coal (ARCH -2.4%), Peabody Energy (BTU -2.5%), Fortescue Metals (OTCQX:FSUMF +6.3%) and Warrior Met Coal (HCC-4.4%) to Hold from Buy, citing the emergence of a number of negative catalysts including the escalation of trade wars, devaluation of the yuan and tightening measures in the Chinese property market.
    • Any measures to tighten lending for the real estate sector could have a major impact, as Chinese property markets account for ~15% of global demand for metals, Jefferies says.
    • "A slowdown in construction and a decline in Chinese manufacturing and exports due to trade wars would be significant negatives for metals' demand, even if fiscal/monetary stimulus leads to some recovery in the broader Chinese economy," the brokerage writes.
    • Retail investors, sometimes referred to as "weak hands" or "dumb money," in the case of passive funds, have put cash into the market every month since Donald Trump was elected president in November 2016, ignoring trade spats, the Mueller investigation, and the like, writes Bloomberg Intelligence's Eric Balchunas in an opinion piece.
    • Retail investors tend to flock to low-cost ETFs, whereas traders and institutions tend to prioritize liquidity over cost.
    • To illustrate the difference, Bloomberg Intellligence created two indexes to track flows for each group, comprised of ETFs focused on "risk-on" asset classes, such as U.S. and foreign stocks, non-defensive sectors, and junk bonds.
    • It appears that during the Trump administration the "dumb money" is winning out by ignoring the drama and continuing to invest, Balchunas writes.
    • The flows into ETFs used by traders have been volatile during the Trump era, while the flows into ETFs used by allocators — i.e. retail investors — have been steady and consistent.
    • It may be time to retire the "dumb money" and "smart money" labels, or perhaps switch them around, Balchunas concludes.
    • Drug distributors McKesson (MCK -4.9%), Cardinal Health (CAH -5.4%) and AmerisourceBergen (ABC -4.7%) are under pressure in apparent response to a Bloomberg report that they have proposed paying a total of $10B to settle all claims related their respective roles in the opioid epidemic.
    • The wholesalers have been subject to intense criticism (and potential charges) for looking the other way when shipping millions of painkillers to certain small town pharmacies that clearly could not service enough legitimate patients to support the volume of drugs received.
    • Update: The companies proposed the settlement to a group of state attorneys general that would be paid out over decades. The National Association of Attorneys General, representing more than 35 states in the matter, have countered with $45B. The distributors face almost 2,000 additional lawsuits from city and county authorities.
    • Drug wholesalers (including the three majors) shipped 76B pain pills over a six-year period beginning in 2006.
    • Related tickers: Teva Pharmaceutical Industries (TEVA -10.9%), Endo International (ENDP-18.8%), Mylan (MYL -7.8%), Mallinckrodt (MNK -18.7%), Perrigo (PRGO -3.2%), Alkermes (ALKS -4%), Assertio Therapeutics (ASRT -5.3%), Nektar Therapeutics (NKTR -1.2%)

    Sounds to me like Teva is getting off lucky if they are shielded from civil suits for just a share of $10Bn:

    • Kraft Heinz (KHC -2.5%) is being watched closely with earnings tentatively scheduled for August 8.
    • UBS analyst Steven Strycula reiterates a Neutral rating on Kraft and $35 price target into the expected report that will cover six months worth of earnings. Strycula thinks investors will be "keen" to learn how the new CEO plans to reverse market share losses, evolve Kraft's portfolio and allocate capital.
    • Seeking Alpha authors are generally bullish on Kraft.
    • Shares of Kraft are down 50% over the last 52 weeks.
    • President Donald Trump bashes Google (GOOG +1.2%)(GOOGL +1.1%) in a series of tweets, alleging the tech giant of "very illegal" action ahead of the next presidential election.
    • Trump didn't offer evidence of that claim or his statement that the company worked against his 2016 campaign.
    • Trump warns he will be watching the company "very closely."
    • Google's statement: "Distorting results for political purposes would harm our business and go against our mission of providing helpful content to all of our users."
    • Amazon (AMZN -0.6%) cuts the student price of Amazon Music Unlimited to $0.99/month from $4.99/month.
    • The service requires a Prime Student membership, which at $6.49/month offers a 50% discount to a standard Prime account.
    • Rivals Apple and Spotify offer student plans at the $4.99 price point.
    • Apple (AAPL +0.9%) and Goldman Sachs (NYSE:GS) have started issuing Apple Cards to consumers.
    • Announced earlier this year, Apple Cards offer 2% cash back on Apple Pay purchases, no fees, and includes a finance-managing app.
    • The cards are soft launching with invites going out to a limited number of consumers who had expressed interest in the Apple Card.
    • Apple software subsidiary FileMaker rebrands as Claris International and announces acquiring Stamplay, an Italian startup that helps app developers integrate cloud-based program data into their applications.
    • General Electric (NYSE:GE) is down another 1.2% this morning, putting the stock on track to stretch its post-Q2 report losing streak to five sessions.
    • Traders last Wednesday initially sought comfort in better-than-expected earnings, as well as a 2019 guidance raise, but then seemed to focus on $1.4B in potential costs from Boeing's grounded 737 MAX .
    • GE shares have shed nearly 10% since the conglomerate reported the results.

    Getting interesting.

    • L Brands (NYSE:LB) is down 1.01% on day that a large majority of apparel store stocks are in positive territory.
    • Investors may be reacting to the departure of the retailer's chief marketing officer from the company. CMO Ed Razek has been with L Brands longer than anyone except CEO/founder Leslie Wexner.
    • Shares of L Brands are down 8.50% YTD.

    • Retail favorites Nike (NKE +1.8%) and Lululemon (LULU +1.7%) are outperforming the broad market as analysts note the companies' exposure to China may be less than feared.
    • Both Nike and Lululemon source some production out of Vietnam, a nation that saw its trade surplus with the U.S. rise 39% for the first six months of the year.
    • Also in the mix, an extended trade war would add to the risk of consumer backlash against Nike and Lululemon in China.
    • The Fed's plan to develop a real-time payments system, which is "functionally similar" to debit payments, may present some "very long-term" risks to Visa (V +1.6%) and Mastercard (MA+2.4%), for which U.S. debit accounts for ~15%-20% of their credit volumes, writes Bernstein's Harshita Rawat in a note.
    • Risks are at least five to seven years out, Rawat writes.
    • The new system may also pose risks for Square's (SQ -1%) instant deposits revenue and, to a "much smaller extent", PayPal (PYPL +1.6%); instant deposit likely make up more than 15% of Square's adjusted revenue and 0.5%-2% of PayPal's revenue.
    1. Also very long-term risk of RTP (real-time payments) "commoditizing person-to-person (P2P) payments.
    • Chesapeake Energy (CHK -7.7%) shares reverse sharply lower soon after the open, erasing an initial 6% gain, in the wake of its wider than expected Q2 loss.
    • Early volume of 31M made the stock the most actively traded on major U.S. exchanges.
    • SunTrust Robinson Humphrey analyst Neal Dingmann says he remains worried about CHK's $10B-plus debt and continued cash flow outspend, despite the company's "solid" 2019 guidance and reduced liquidity concerns following a refinancing.
    • If shares close at current levels, it would mark the lowest closing price in 20 years.

  17. GLUU recovering from sharp Friday sell off.

  18. Phil,  do you have any comments about the volume yesterday and today?  TIA.

  19. Volume/Robert – Well, going by SPY, we had heavy (for this market) selling on a down day and today is strong but not like yesterday.  Meanwhile, I look at it as having had about 550M down volume since the 31st and today is 67M up volume so really meaningless vs what's been sold.  

    Date Open High Low Close* Adj Close** Volume
    Aug 06, 2019 285.91 286.93 284.28 286.40 286.40 67,737,388
    Aug 05, 2019 288.09 288.21 281.72 283.82 283.82 173,845,700
    Aug 02, 2019 293.85 294.12 290.90 292.62 292.62 116,749,700
    Aug 01, 2019 297.60 300.87 293.96 294.84 294.84 142,646,600
    Jul 31, 2019 300.99 301.20 295.20 297.43 297.43 104,245,200

    Once we have about half the selling volume going back up – it's reasonable to assume we're done going down but, so far, this is just a textbook bounce you can't read into.

    /ES is challenging 2,870 again though.

    • Citigroup chief U.S. equity strategist Tobias Levkovich cut his earnings forecast for S&P 500 companies by $3.80 to $166.20 a share for this year.
    • For 2020, he trimmed his forecast by $4.25 per share, putting his target for next year's annual growth at 4.8%, less than half the Wall Street average.
    • The prolonged uncertainty of the U.S.-China trade battle that's likely to persist until the U.S. presidential elections next year will cloud the profit outlook that was already dimmed by a global slowdown.
    • "The overhang of a sluggish economy, trade war threats, and potential currency devaluation is likely to take a toll on 2H19 profits," he wrote in a note late Monday.
    • He's keeping his year-end target of 2,850 for the S&P 500.
    • “U.S. monetary policy cannot reasonably react to the day-to-day give-and-take of trade negotiations," St. Louis Fed President James Bullard said at an event in Washington, DC, today.
    • Instead, the actions already taken need time to take effect, he explained.
    • “While additional policy action may be desirable, the long and variable lags in the effects of monetary policy suggest that the effects of previous actions are only now beginning to impact macroeconomic outcomes,” he said.
    • Bullard noted that the two-year Treasury was trading to yield 2.98% on Nov. 8 and 1.72% on Aug. 2, a decline of about 126 basis. “This is a very large change over this time frame,” he said, noting the outlook for shorter-term interest rates dropped because of FOMC actions.
    • FOMC actions have "changed the outlook for shorter-term interest rates considerably over the last nine months, ultimately providing more accommodation to the economy,” Bullard concludes.
    • The investment bank no longer expects a trade deal with China before next year's presidential election and says the Fed has become increasingly responsive to trade tensions, global growth concerns, and bond market shifts.
    • Boosts expected total number of rate cuts this year to three from two previously, according to a revised outlook from economists led by Jan Hatzius at Goldman Sachs.
    • "In light of growing trade policy risks, market expectations for much deeper rate cuts, and in increase in global risk related to the possibility of a no-deal Brexit, we now expect a third 25-basis-point rate cut in October, for a total of 75 basis points of cuts," the economists wrote in a note.
    • The probablity of a 25-bp cut at the Fed's September meeting stands at 83.5%, according to the CME FedWatch Tool, which is based on trading of federal funds rate futures; that increased from 70.8% yesterday and 54.2% a week ago.
    • The CME gauge puts the probability of another 25-bp cut in October at 63.8%, up from 29.0% a week ago.
    • Morgan Stanley lifts Ford (NYSE:F) to an Overweight rating after having the automaker slotted at Equal-weight.
    • "We view the reset of FY19 expectations following 2Q results and a 3-month low in the shares as a buying opportunity," updates the MS analyst team.
    • The firm sees Ford's restructuring efforts as a positive and points to strategic actions like the Volkswagen partnership and EV commitment. Ford is also seen benefiting from a new product mix with new utilities and the updated F-150. Morgan Stanley's price target of $12 on Ford is above the average sell-side PT of $10.73.
    • Shares of Ford are up 1.84% premarket to $9.40.

    Royal Dutch Shell: Best Buying Opportunity Of The Year 

    • Net loss of ($0.08) per diluted share vs. a net loss of ($0.12) in the same quarter a year ago.
    • The company deployed over 2,000 GenDrive units, up approximately 70% Y/Y, and reported gross billings of $58.6M, up 50% Y/Y.
    • At a quarterly gross billing run rate of about $60M, the firm is break-even at its current cost structure.
    • Plug Power reiterated full year 2019 gross billing guidance of $235M-$245M and expects positive adjusted EBITDA for FY2019 (when excluding non-cash charges for customer warrant charges).
    • PLUG +7.5% premarket
    • Q2 results
    • Bausch Health Companies (BHCQ2 results: Revenues: $2,152M (+1.1%); Product sales: $2,122M (+1.0%); Other revenues: $30M (7.1%).
    • Segment Sales: Bausch + Lomb/International: $1,208M (-0.1%); Salix: $509M (+15%); Ortho Dermatologics: $122M (-13%); Diversified Products: $313M (-7%).
    • Net Loss: ($171M) (+80.4%); Loss Per Share: ($0.49) (+80.3%); Non-GAAP Net Income: $372M (+13.8%); Non-GAAP EPS: $1.04; CF Ops: $339M (+52.7%).
    • 2019 Guidance: Revenues: $8.40B – 8.60B from $8.35B – 8.55B; non-GAAP EBITDA: $3.425B – 3.575B from $3.40B – 3.55B.
    • Shares are up 3% premarket.
    • Previously: Bausch Health Companies EPS misses by $0.02, revenue in-line (Aug. 6)
    • The Trump administration has imposed a total economic embargo against the government of Venezuela, sharply escalating an economic and diplomatic pressure campaign aimed at removing socialist President Nicolas Maduro from power.
    • "All property and interests in property of the Government of Venezuela that are in the United States… are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in."
    • The executive order goes well beyond the sanctions imposed in recent months against Venezuela's state-run oil company PDVSA and the country's financial sector, as well as measures against dozens of Venezuelan officials and entities.
    • Barneys, a nearly century-old icon of New York retail, has filed for bankruptcy protection and secured a $75M financing package to support a sale process that will see the company close 15 of its 22 locations.
    • It's just one of many department stores that's struggling as shoppers buy online or from brands directly.
    • Nordstrom (NYSE:JWN) is trading nearly $20 a share lower than a $50/share buyout offer it rejected two years ago as too low, Saks-owner Hudson's Bay (OTCPK:HBAYF) is considering going private after its stock fell nearly 50% in the year through June, while shares of Macy's (NYSE:M) are down 34% YTD
    • Walmart (NYSE:WMT) says it has made no change in its policy on gun sales and has not issued a directive to any stores following this weekend's shooting at an El Paso, Tex., Walmart store that left 22 people dead.
    • "Our focus has always been on being a responsible seller of firearms," a WMT spokesperson tells Reuters. "We go beyond federal law, requiring all customers to pass a background check before purchasing any firearm."
    • Walmart ended assault rifle sales in 2015 and in 2018 raised the minimum age for gun purchases to 21, but some gun control activists are now stepping up the pressure on the retailer to drop sales of guns and ammunition altogether.
    • Walmart is the largest arms retailer in the U.S., but at least some analysts believe ending gun sales could be a smart business decision for the company.
    • "It's not a high-margin business," says Burt Flickinger III, managing director of retail consultant Strategic Resources Group. "The number of people hunting and fishing has been declining significantly," while toy sales have been one of WMT's fastest growing segments following the closure of Toys R Us last year.
    • But it can prove difficult for a retailer to drop a segment of its business, no matter the reason; CVS took a hit to sales when it stopped selling tobacco products, and Dick's Sporting Goods lost sales when it took a public stand against gun violence by pulling assault style weapons and stopping the sales of all weapons to customers under age 21.

    Off to do the radio – don't let the market collapse without me.

  20. 2,881 officially so a bit over the weak bounce means we have to now wait and see if we get over strong tomorrow.  

    Up 1.5% across the board is a nice bounce day.

  21. FTR – Another Stellar Quarter

    Frontier Communications Reports Second Quarter 2019 Results


    Total second quarter revenue of $2.07 billion

    Net loss of $5.32 billion, includes a goodwill impairment of $5.45 billion

    Second quarter Adjusted EBITDA1 of $882 million

    Net broadband unit losses of 71,000

    Realized a $160 million annualized transformation program EBITDA benefit in second quarter; expecting a $200 million annualized exit-rate transformation EBITDA benefit at year-end 2019

    Reducing 2019 Adjusted EBITDA guidance range to $3.35 billion to $3.42 billion; reducing 2020 transformation benefit target

    Company maintains liquidity of $786 million as of June 30, 2019

  22. After years of waiting, medical marijuana sold in Louisiana

  23. Walgreens to close 200 US stores