News You Can Use From Phil’s Stock World

Financial Markets and Economy

US Weekly Economic Data Review and Next Week’s Schedule (Bespoke)

Below we show a summary of US economic data released this week. Despite beats on some big components, GDP disappointed, as did Durable Goods earlier this week.

Euro-Area Economy Is Finally Back to Its Pre-Crisis Size (Bloomberg)

The euro-area economy is finally back from the crisis — at least in regard to economic output.

U.S. Corporate Profits on Pace for Third Straight Decline (Wall Street Journal)

U.S. corporate profits, weighed down by the energy slump and slowing global growth, are set to decline for the third straight quarter in the longest slide in earnings since the financial crisis.

Valeant's Overdue SEC Filing Answers Some Big Questions, But Raises New Concerns (Forbes)

Valeant Pharmaceuticals capped a busy week by filing its long overdue 2015 financial results on Friday morning, a move the company expects will cure default risks related to its over $30 billion in outstanding debt. The delayed financial filing may help Valeant begin a process of recovery after months of turmoil, but it also gives new insight into extent of the drugmaker’s woes stemming from operational weaknesses, poor disclosure, and regulatory investigations.

Gold Closing in on 15-Month High on Safe-Haven Demand, Technical Buying (Forbes)

Gold prices are sharply higher and are very close to setting a 15-month high in mid-morning trading Friday. Safe-haven buying is featured amid nervous world stock markets heading into the weekend. 

Recession Signs Rise in America (EconMatters)

GDP growth in the United States fell significantly, growing just 0.5% in the first quarter of 2016.  Despite economists’ predictions of continued economic strength, real GDP growth was just 0.5% in the first three months of this year after rising 1.4% in the fourth quarter of 2015. Economists had expected 0.7% growth after downgraded estimates throughout the quarter, largely due to weak data from the housing, manufacturing, and export sectors.

Forget Justin Trudeau, It's Oil That's Driving This Loonie Rally (Bloomberg)

It’s giddy times in Canada, with newly installed Prime Minister Justin Trudeau winning rave reviews at home and abroad, the nation’s economy generating some of the best positive surprises in the world and the domestic stock market soaring again.

Negative Interest Rates Claim More Victims. Today It’s Deutsche Bank, Tomorrow German Insurers? (Dollar Collapse)

These are shockingly bad times for big banks, especially when you consider that the overall economy is supposed to be fairly healthy.

Fed's Kaplan Says He Will Advocate for Raising Interest Rates Gradually (Fox Business)

Dallas Federal Reserve President, Robert Kaplan, on Friday pledged to push for gradual increases in the U.S. benchmark interest rate, as long as inflation continues to rise and the U.S. economy remains near full employment.

Why Is Productivity So Weak? Three Theories (NY Times)

More than 151 million Americans count themselves employed, a number that has risen sharply in the last few years. The question is this: What are they doing all day?

Apple’s Worst Week in Three Years (Bespoke)

To say that it has been a bad week for Apple (AAPL) would be an understatement. 

China's housing bubble is starting to look a lot like the US before the crash (Business Insider)

China's property market is staging a major turnaround as property prices in tier 1 cities have heated up quickly over the past few months.

Smart Beta Investing Awaits Its Advocate (Bloomberg Gadfly)

Smart beta is going through some growing pains, and Rob Arnott, co-founder of smart beta shop Research Affiliates LLC and one of smart beta’s pioneers, is a natural candidate to help lead it past these early hurdles. 

Valeant Holder Sequoia Fund Reopens to New Investors (Wall Street Journal)

Sequoia Fund Inc., a mutual fund hurt by a large bet on drugmaker Valeant Pharmaceuticals International Inc., is reopening to new investors, according to a new filing.

Warren Buffett is not at all excited about the US economy right now (Business Insider)

Warren Buffett isn't that excited about the US economy right now.

Groupon tumbles after weak revenue guidance (Business Insider)

Groupon shares fell by as much as 17% on Friday after the company released revenue projections that were weaker than analysts expected. 

Is the World Getting Crazier, But We No Longer Notice? (Of Two Minds)

If we step back and look at what's happened since the Global Financial Crisis of 2008-09, it's easy to see that the global leadership has chosen to do more of what's failed spectacularly.

Goldman Sachs Stopped Out Of "Short Gold" Recommendation (Zero Hedge)

With the Yen and Yuan surging, it appears money is greatly rotating out of US dollars and into an 'alternative' currency as Gold soars over $1290.

Activists Have Declared War on Hedge Funds — and They Might Be Winning (NY Mag)

When Henry Garrido, the executive director of the largest municipal employees union in New York City, learned a year ago what a raw deal investing in hedge funds had been for his union’s pensioners, he couldn’t restrain himself. In a fit of pique, Garrido suggested it wouldn't be wrong for his members to conclude that “the system is rigged” after a report by the New York City comptroller concluded that the pension fund had been lining the pockets of hedge-fund managers while the retirees were getting what Garrido termed “lousy” returns. 

Draghi Challenge Highlighted as Inflation Rate Back Below Zero (Bloomberg)

Mario Draghi’s policy challenge was highlighted once again on Friday, with the fastest economic growth in a year overshadowed by a renewed drop in consumer prices.

Cloud Unit Pushes Amazon to Record Profit (Wall Street Journal)

Amazon.com Inc. on Thursday delivered its most profitable quarter ever, topping last year’s record holiday period, thanks to surging sales from its lucrative cloud-computing business.

According To The NY Fed, US Has To Grow At 3.8% In Second Half To Hit The Fed's GDP Forecast (Zero Hedge)

Earlier today we reported that in its inaugural Q2 GDP nowcast, the Atlanta Fed expects 1.8% for Q2 GDP, a substantial rebound from the first official Q1 GDP print of only Q1.

Politics

Kasich Is Still Trump's Best Weapon (Bloomberg View)

It is simply astonishing how destructive John Kasich’s campaign has been to the Republican Party.

Right now, the evidence is on full view in Indiana. As part of a deal with the Ted Cruz campaign, Kasich isn't campaigning in the Hoosier State, which votes on Tuesday. But he and his supporters are stilltelling people to vote for him — even though a vote for the Ohio governor is basically a vote for Donald Trump. If Kasich's supporters in Indiana want him to have any chance at the nomination, they will vote for Cruz.

Indiana Governor Mike Pence Endorses Ted Cruz (The Atlantic)

Ted Cruz is just one of a few “good men” in the Republican primary race.

That was Indiana Governor Mike Pence’s subdued endorsement message Friday when he announced his support for the Texas senator on WIBC in Indianapolis. 

Technology

This robot ‘mermaid’ grabs shipwreck treasures (Futurity)

A robot called OceanOne with artificial intelligence and haptic feedback systems gives human pilots an unprecedented ability to explore the depths of the oceans.

Oussama Khatib held his breath as he swam through the wreck of La Lune, over 300 feet below the Mediterranean. The flagship of King Louis XIV sank here in 1664, 20 miles off the southern coast of France, and no human had touched the ruins—or the countless treasures and artifacts the ship once carried—in the centuries since.

Will We Soon No Longer Need Data Scientists? (Forbes)

The job of data scientist — the quintessential big data job, and the job that was just voted the best job in America for 2016 — is at risk.

Data scientists have been called “unicorns” because finding the right person with the right set of skills — including coding, statistics, machine learning, database management, visualization techniques, and industry-specific knowledge — could be practically impossible.  But machine learning and big data itself may be making those unicorns as obsolete as they are mythical.

Health and Life Sciences

Worsening depression 'may predict dementia risk' (BBC)

Symptoms of depression that steadily increase over time in older age could indicate early signs of dementia, scientists have said.

Other patterns of symptoms, such as chronic depression, appear not to be linked, a study found.

Is it time to rethink post-surgery painkillers? (Futurity)

Experts recommend surgeons consider cutting back on the number of take-home opioid pills prescribed to patients post surgery. The suggestion bolsters federal guidelines that advise primary care doctors to carefully consider how they prescribe opioid painkillers.

“There is a massive quantity of unused opioids in the community,” says Evan D. Kharasch, professor of anesthesiology and professor of biochemistry and molecular biophysics at Washington University in St. Louis School of Medicine.

Life on the Home Planet

The World's Highest Waterfall Is So Majestic (Gizmodo)

Breathtaking. This drone footage of Angel Falls in Venezuela is exactly that. Angel Falls is the world’s highest uninterrupted waterfall at 3,212 feet tall and it is totally stunning to see the water makes its way down the side of the mountain and disappear into the mystery below.