STOCK MARKET WATCH -- Wednesday,11 May 2016

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Wednesday, 11 May 2016[font color=black][/font]

SMW for 10 May 2016

AT THE CLOSING BELL ON 10 May 2016
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Dow Jones 17,928.35 +222.44 (1.26%)
S&P 500 2,084.39 +25.70 (1.25%)
Nasdaq 4,809.88 +59.67 (1.26%)


[font color=red]10 Year 1.76% +0.01 (0.57%)
30 Year 2.61% +0.01 (0.38%) [font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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(click on link for latest updates)
Market Updates
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
Wall Street on Parade
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[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
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Matt Taibi: Secret and Lies of the Bailout


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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
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[font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
02/14/13 Gilbert Lopez, former chief accounting officer of Stanford Financial Group, and former controller Mark Kuhrt sentenced to 20 yrs in prison for their roles in Allen Sanford's $7.2 billion Ponzi scheme.
03/29/13 Michael Sternberg, portfolio mgr at SAC Capital, arrested in NYC, charged with conspiracy and securities fraud. Pled not guilty and freed on $3m bail.
04/04/13 Matthew Marshall Taylor,fmr Goldman Sachs trader arrested, charged by CFTC w/defrauding his employer on $8BN futures bet "by intentionally concealing the true huge size, as well as the risk and potential profits or losses associated."
04/04/13 Matthew Taylor admits guilt, makes plea bargain. Sentencing set for 26 June; faces up to 20 years in prison but will likely only see 3-4 years. Says, "I am truly sorry."
04/11/13 Ex-KPMG LLP partner Scott London charged by federal prosecutors w/passing inside tips to a friend in exchange for cash, jewelry, and concert tickets; expected to plead guilty in May.
08/01/13 Fabrice Tourré convicted on six counts of security fraud, including "aiding and abetting" his former employer, Goldman Sachs
08/14/13 Javier Martin-Artajo and Julien Grout charged with wire fraud, falsifying records, and conspiracy in connection with JP Morgan's "London Whale" trade.
08/19/13 Phillip A. Falcone, manager of hedge fund Harbinger Capital Partners, agrees to admit to "wrongdoing" in market manipulation. Will banned from securities industry for 5 years and pay $18MM in disgorgement and fines.
09/16/13 Javier Martin-Artajo and Julien Grout officially indicted on charges associated with "London Whale" trade.
02/06/14 Matthew Martoma convicted of insider trading while at hedge fund SAC (Stephen A. Cohen) Capital Advisors. Expected sentence 7-10 years.
03/24/14 Annette Bongiorno, Bernard Madoff's secretary; Daniel Bonventre, director of operations for investments; JoAnn Crupi, an account manager; and Jerome O'Hara and George Perez, both computer programmers convicted of conspiracy to defraud clients, securities fraud, and falsifying the books and records.
05/19/14 Credit Suisse, which has an investment bank branch in NYC, agrees to plead guilty and pay appx. $2.6 billion penalties for helping wealthy Americans hide wealth and avoid taxes.
09/08/14 Matthew Martoma, convicted SAC trader, sentenced to 9 years in prison plus forfeiture of $9.3 million, including home and bank accounts
08/03/15 Former City (London) trader Tom Hayes found guilty of rigging global Libor interest rates. Each fo eight counts carries up to 10 yr. sentence.
08/21/15 Charles Antonucci Sr, former pres. Park Ave. Bank sentenced to 2.5 years in prison for bribery, fraud, embezzlement, and attempt to steal $11MM in TARP bailout funds, as well as $37.5MM fraud on OK insurance company. To pay $54MM in restitution and give up additional $11MM.
09/21/15 Volkswagen CEO Martin Winterkorn apologizes for VW cheating on air quality standards with emission testing avoidance device. Stock drops 20%, fines may total $18B.
09/22/15 Stewart Parnell, CEO Peanut Corp. of America, sentenced to 28 years in prison for selling salmonella-tainted peanut butter that killed nine.
12/17/15 Martin Shkreli, former CEO Turing Pharmaceuticals and notorious price gouger, arrested on securities fraud charges. Posted $5M bail, resigned as CEO.
2/25/16 Jason Keryc sentenced to 9 years in prison, 3 years supervised release and to pay back $180MM to investors he bilked in a Ponzi scheme while an acct. mgr at Agape World.
03/24/16 Three TierOne Bank (Omaha) execs sentenced on criminal charges related to covering up losses on mortgages. CEO Gilbert Lundstrom -- 11 years federal prison, $1.2 million fine; James Laphen, 34 months; Don Langford, 21 months. SO FAR THE ONLY CRIMINAL CONVICTIONS OBTAINED BY DOJ related to 2008 financial collapse.
04/05/16 Prime Minister of Iceland, Sigmundur David Gunnlaugsson, forced to resign (at least temporarily) following release of "Panama papers"
04/27/16 Former Speaker of the House Dennis Hastert sentenced to 15 months in prison. Judge describes Hastert as a "serial child molester."

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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]

[Hotler]

1. Three More Signs Smartphone Downturn Going From Bad to Worse.

For investors contemplating prospects for the smartphone market after a shaky earnings report from Apple Inc., Asian suppliers just provided a few hints: It’s going to get worse before it gets better.

Three suppliers that seldom command much attention, working behind the scenes to make devices sold under the brands of better-known customers, put out back-to-back earnings reports Tuesday. They spell trouble ahead for smartphone makers and other companies that once thrived on mobile mania.

Pegatron Corp., which assembles iPhones, missed profit expectations and said April sales dived 16 percent. Minebea Co., which makes LED lights for mobiles, lagged its own forecasts for revenue and earnings. Japan Display Inc., which supplies screens to Apple and others, said profit has deteriorated so rapidly it will lose money for the fiscal year and suspend a promised dividend. Adding to the gloom, Lenovo Group Ltd. tumbled to a four-year low as analysts warned of rising competition.
<snip>
"The smartphone industry will continue to slow down this year,” said Richard Ko, a Taipei-based analyst at KGI Securities Co. “Competition will worsen and prices will likely continue to fall."

Pegatron and its peers are merely the latest in a string of ill omens for a market facing its worst pace of expansion since Apple introduced the iPhone in 2007. Much of the gloom centers on China, the phenomenal growth engine that’s now headed for an epic shakeout. Smartphones are no longer a novelty and most domestic brands target the mid- and low-price ranges, where buyers don’t upgrade as frequently as those for high-end Apple and Samsung phones.

http://www.bloomberg.com/news/articles/2016-05-11/three-more-signs-smartphone-downturn-is-going-from-bad-to-worse

"Much of the gloom centers on China, the phenomenal growth engine that’s now headed for an epic shakeout." Will it happen before this year is up? There is a correction coming in the global economy that is for sure.

[Hotler]

2. My hunch and suggestion is to...

stash some cash away at home, a months worth of living expenses if you can. Oh! and stock up on TP.

[Hotler]

3. How to Tell Facts About the Debt From Political Hype.

Recent remarks by Donald Trump, the presumptive Republican presidential nominee, have turned the spotlight back to the U.S.'s $18 trillion federal government debt. The attention follows a period of substantial decline in the budget deficit that countered claims the country was heading rapidly toward debt Armageddon.

Here are key facts to remember as you assess what is likely to be a loud and contentious political conversation on debt:

1.There are five major ways to reduce the burden of debt: by growing faster, thus generating incremental resources for debt servicing while maintaining and enhancing living standards; by raising more tax revenue and earmarking it for debt repayment; by cutting government spending and diverting the funds to higher debt servicing, including prepayments; by defaulting on contractual debt terms; and through financial engineering that captures interest-rate arbitrage opportunities, buys back debt cheaply, improves the mix of issued securities and delivers greater financial efficiency.
2.There are practical limitations to the ability of these approaches to deliver big results in the short run. As a result, there is no realistic, orderly manner to eliminate the stock of national debt within just a few years. Default is extremely costly, disrupting both public and private capital flows while sharply increasing borrowing costs. There is a limit to what financial engineering -- a strategy that is gradual and opportunistic -- can achieve. Significant fiscal adjustment, be it via sharply higher tax rates for almost everyone or draconian expenditure cuts, risks devastating growth and rendering the overall debt burden even harder to sustain. And it is not easy to generate an immediate growth spurt, especially when the world economy is fighting structural headwinds.

http://www.bloomberg.com/view/articles/2016-05-11/how-to-tell-facts-about-the-debt-from-political-hype

More at the link. Written by Mohamed El-Erian chief economic adviser to Allianz SE. Assess his remarks for yourself and remember he is a banker. What he says my not be the whole truth either.

[Hotler]

4. Shots Fired: "OPEC Has Practically Stopped Existing" - Rosneft CEO Mocks Defunct Oil Cartel

Russia is moving full steam ahead with its plan to kill the petro-dollar, and is burying OPEC's influence along with it.

As we reported earlier, Russia has taken its next step toward de-dollarization by launching its own benchmark oil futures contract that will price oil in rubles instead of USD. Now, it appears as though Russia has deemed it is time to start chipping away at OPEC and its power within the oil space.

According to Reuters, Rosneft CEO and close Putin ally Igor Sechin had some harsh words to say about the oil cartel, and effectively announced its demise.

"At the moment a number of objective factors exclude the possibility for any cartels to dictate their will to the market. As for OPEC, it has practically stopped existing as a united organization."

As a reminder, Russia was seemingly willing to agree to a deal in Doha earlier this year that would have frozen production at certain levels among the participating countries, however last minute changes by Saudi Arabia and other OPEC countries (namely that OPEC wanted Iran to be a part of the deal) blew the deal up and pissed Russia off.

http://www.zerohedge.com/news/2016-05-10/shots-fired-opec-has-practically-stopped-existing-rosneft-ceo-mocks-defunct-oil-cart

More at the link. As a reminder, the U.S. has waged war on countries for threatening to sell oil outside of the U.S. dollar.

[Punx]

5. My thoughts exactly...

"As a reminder, the U.S. has waged war on countries for threatening to sell oil outside of the U.S. dollar."

It won't be so easy going against Russia or Iran. And China will sit on the sidelines quietly laughing and getting stronger.

Hopefully we won't look like Nazi Germany in 1945 when the Neocons are done with their foolhardy attempts at empire. Or worse, radioactive ash.

[tclambert]

6. Crude oil daily candles:

[Warpy]

7. Yes, the speculators are having a lot of fun these days

Pump price here is $1.88 and I live in a cheap neighborhood in a cheap city in a cheap state. I can't imagine what it's doing elsewhere.

Looks like the Koch boys are up to their old tricks with help from their oil baron buddies.