Random Market News, 14
"Stocks Rally as North Korea Fear Abates; Yen Drops: Markets Wrap."
"With Next Recession Looming, Central Banks Better Make Peace With Negative Rates.
With U.S. economy due for pullback, analysts ponder stimulus.
Supply of debt with negative yields surged in the past month."
"Since the middle of 2016, economic growth across the globe has started to pick up speed, with the global manufacturing PMI hovering near a six-year high. The U.S. economy is still moving along, but the greatest acceleration in growth is happening in other developed and emerging countries. Some investors wonder whether the best way to access this improving global growth story is via U.S. companies with a large percentage of revenues coming from abroad, rather than by taking direct equity exposure outside the U.S."
"S&P 500 Companies with More Global Exposure Reported Higher Earnings Growth in Q2."
"The Employment Impact of Autonomous Vehicles.
In 2015, 15.5 million U.S. workers were employed in occupations that could be affected (to varying degrees) by the introduction of automated vehicles. This represents about one in nine workers."
Truck driver is the most common job in most US states.
"Nvidia tightens grip on the autonomous-car brain.
Perhaps little known outside Silicon Valley, Nvidia's sharp growth in graphics processing units (GPUs) -- supported by rising demand for artificial intelligence -- has catapulted the company into a serious challenger to the chip industry leader Intel."
"Commentary: Wall Street analyst behavior: A source of alpha.
After one positive behavioral event, there is a tendency for more positive forecast changes to follow as individual analysts researching the same security exhibit classical herding characteristics and the group's estimates gravitate in the same direction. Investors appear to view each following revision as an uncorrelated event, however, driving the stock higher (or lower) each time another positive (or negative) revision takes place."
"S&P 500 Companies See Worst Price Reaction to Positive EPS Surprises since Q2 2011.
As of Friday, more than 90% of the companies in the S&P 500 have reported earnings for the second quarter. Of these companies, 73% have reported actual EPS above the mean EPS estimate, which is above the five-year average of 68%. In aggregate, earnings have exceeded expectations by 6.1%, which is also above the five-year average of 4.1%. Due to these upside surprises, the earnings growth rate for the S&P 500 has improved to 10.2% today from 6.4% on June 30.
Companies in the S&P 500 that reported positive earnings surprises for Q2 have seen a decrease in price of 0.3% on average from two days before the company reported actual results through two days after the company reported actual results. Over the past five years, companies in the S&P 500 that have reported positive earnings surprises have witnessed a 1.4% increase in price on average during this four-day window."
"Dataroma tracks portfolios of value oriented Superinvestors by meticulously extracting data from financial filings. The data is consolidated, categorized and presented in an easily accessible form. Many of the Superinvestors on this site are legendary value investors such as Warren Buffett, Seth Klarman, Bill Nygren, Bruce Berkowitz, and the Tweedy Browne team."
Excellent compilation of public holdings data. And great random quotes.
Implied Fed rate hike/cut probability for September 20th is ~1.4%/0.0%, November 1st is ~5.4%/0.0%.
VIX ~12.33. 10-yr treasury volatility (TYVIX) ~4.19.
"US Stocks Surge On Monday
Wall Street closed deeply in the green on Monday, as geopolitical fears waned over the weekend and economic data in Japan and the Eurozone boosted confidence in global economic growth. The Dow Jones gained 135 points or 0.6% to 21994. The S&P 500 jumped 25 points or 1.0% to 2467. The Nasdaq climbed 84 points or 1.3% to 6340.
Eurozone Industrial Output Rises Less Than Expected
Industrial production in the Euro Area increased by 2.6 percent year-on-year in June 2017, following a downwardly revised 3.9 percent gain in May and missing market expectations of 2.8 percent. Output rose at a slower pace for consumer, capital and intermediate goods. Among Eurozone's largest economies, output grew in Germany (2.1 percent), France (2.5 percent), Spain (3.2 percent) and Italy (5.3 percent). On a monthly basis, industrial production fell 0.6 percent, worse than market consensus of a 0.5 percent drop.
Stocks in Nigeria Hit 33-month High
NSE-All Share increased to a 33-month high of 38229.
India Inflation Rate Rises to 2.36% in July
India's consumer prices increased 2.36 percent year-on-year in July 2017, beating market expectations of 1.87 percent and following a 1.54 percent gain in the previous month. Cost of housing, energy and clothing rose further and food prices fell at a softer pace.
China Bourses Join Recovery In Asia Equities
Shanghai's SSE Composite climbed 29 points, or 0.9 percent, to 3237 on Monday 14th of August as investors brush off softer China data that was released early on in the session. Most Asian benchmark indexes staged a minor recovery this session following a firmer Wall Street last Friday. Investors were also cautious ahead of further potential geopolitical upheaval in the near term such as Liberation Day in Korea on Tuesday and joint US-South Korea military exercises late August. Meanwhile, Shenzhen's Component Index surged 228 points, or 2.2 percent, to 10,520.
China Industrial Output Rises the Least in 6 Months
China's industrial production increased 6.4 percent year-on-year in July of 2017, following a 7.6 percent rise in the prior month and missing market expectations of 7.2 percent. It was the weakest gain in industrial production since January, as manufacturing production went up at a slower pace (6.7 percent from 8.0 percent in June) while mining output fell further (-1.3 percent from -0.1 percent). Meantime, output of electricity, gas and water production increased by 9.8 percent, following a 7.3 percent rise in June. On a monthly basis, industrial production rose 0.41 percent.
Stocks in New Zealand Hit All-time High
NZX 50 increased to an all-time high of 7808.
Corn Hits 32-week Low
Corn decreased to a 32-week low of 350 ¢USD/bu."
"Wabash says acquisition helps prepare for logistics transformation.
Trailer maker said the acquisition of Supreme Industries will help it deal with the “Amazon effect.”
In detailing these criteria, he explained that Wabash entered the final mile segment in 2015 with its truck body initiative and has been on track to meet its revenue goals—but Supreme will greatly accelerate the final mile push with additional distribution opportunities and “greater customer reach.”"
"Newly public Schneider, Werner bright spots in dull Q2 TL earnings picture.
Truckload executives said it was not a profitable environment in the second quarter as shippers are pressing carriers for rate reductions on contract renewals. Fuel surcharge revenue also is declining."
"A helping hand when things go wrong on the road.
This charity aids truck drivers and their families when medical emergencies occur far from home.
How many truckers die away from home? The Federal Motor Carrier Safety Administration (FMCSA) says that almost 850 truckers are killed annually in crashes. "They do not account for the heart attacks, strokes, and suicides, murders, things like that in their statistics," says Palm. He estimates the number of deaths and medical emergencies on the road could be three to four thousand annually. Obviously, he says, that's because most drivers are one the road most of their lives."
A case for better sensors in a difficult profession.
"US West Coast port sees record July volumes.
The port, a leading US West Coast gateway for imports, handled 720,312 TEU last month, up 13.1% compared to a year earlier.
The July total was the highest in the port’s 106-year history surpassing the previous high mark set in August 2015. Imports handled at piers in Long Beach jumped 16.3% to 378,820 TEUs last month, also an all-time record."
"From Healthcare To Payments: Supposedly ‘Amazon-Proof’ Industries Are Turning Out To Be Vulnerable.
Following the release of some questionable speculation about which industries could survive an Amazon takeover, we investigated a selection of recent analyst claims to spotlight the strategic moves some aren't seeing."
"Amazon looking to sell sports, music tickets and encroach on Ticketmaster.
Amazon, which two years ago began selling tickets in the U.K., has approached U.S. venue owners about partnering to sell tickets here, too..."
"Apple reportedly in talks with Aetna to bring the Apple Watch to millions of customers.
Aetna could roll out the plan as early as next year, according to a CNBC source.
This is not the first time Apple has joined up with the health insurance company. Aetna already offers the Apple Watch to its 50,000 employees. Aetna also announced last September it would be offering the Apple Watch to select large employers and these talks could be an extension of that announcement."
"Target acquires transportation company Grand Junction to expand same-day delivery services.
Target has acquired San Francisco-based transportation technology company Grand Junction, in order to help it move more quickly into the business of same-day delivery. The company had already been working with Target on a same-day delivery pilot program in New York’s Tribeca neighborhood, prior to this deal."
"Mashup of @Google Search trends for #bitcoin & the price of $BTC."
"US-based video streaming dating app Whispers Live is looking to raise around $30-45 million through an initial coin offering (ICO)."
"Trophic coherence explains why networks have few feedback loops and high stability.
"Our crucial insight was that given its trophic coherence, we could associate the expected number of cycles in a network, with the probability that a particular kind of random walker on a line would return to its starting point."
The researchers found that higher incoherence was associated with a higher probability of the walker returning to its origin as well as a higher prevalence of loops in the associated network."
Startup/SME of the Day.
"Edenspace offers a wide variety of environmental phytotechnology services and products for projects involving these practices:
Phytoremediation of arsenic, lead, uranium, chromium, and other metals, metalloids and organic compounds
Soil and groundwater assessment, abatement and bioremediation
Biological detection and biomonitoring of environmental contaminants"
"Aqueduct of Padre Tembleque Hydraulic System.
This 16th century aqueduct is located between the states of Mexico and Hidalgo, on the Central Mexican Plateau. This heritage canal system encompasses a water catchment area, springs, canals, distribution tanks and arcaded aqueduct bridges. The site incorporates the highest single-level arcade ever built in an aqueduct. Initiated by the Franciscan friar, Padre Tembleque, and built with support from the local indigenous communities, this hydraulic system is an example of the exchange of influences between the European tradition of Roman hydraulics and traditional Mesoamerican construction techniques, including the use of adobe."
DE: GDP Flash, 2:00 AM ET
CH: Producer and Import Price Index, 3:15 AM ET
GB: CPI, 4:30 AM ET
GB: Producer Price Index, 4:30 AM ET
US: Retail Sales, 8:30 AM ET
US: Empire State Mfg Survey, 8:30 AM ET
US: Import and Export Prices, 8:30 AM ET
US: Redbook, 8:55 AM ET
US: Business Inventories, 10:00 AM ET
US: Housing Market Index, 10:00 AM ET
US: Treasury International Capital, 4:00 PM ET
https://tradingeconomics.com/calendar (More complete listing, including consensus)