Market Moving News

Financial Markets and Economy

Oversold: Oil traders punish OPEC for promising too much (Reuters)

VIENNA As OPEC's latest meeting wrapped up in Vienna on Thursday night, ministers congratulated each other on its rare spirit of amity and consensus. The talks were, without a doubt, a success.

Here’s what Trump’s head of the FDA wants to do about high drug prices (Business Insider)

Food and Drug Administration commissioner Dr. Scott Gottlieb has a plan to tackle high drug prices. 

"Simply put, too many patients are priced out of the medicines they need," Gottlieb said Thursday at the FDA's budget hearing.

HENRY BLODGET: Bitcoin could go to $1 million (or fall to $0) (Business Insider)

Henry Blodget discusses this week's bitcoin rally, and how the virtual currency could just as easily go to $1 million as it could fall to $0. Blodget has been covering bitcoin for several years, and has maintained the view that ultimately, it has no intrinsic value.

Atlanta Fed pares U.S. second-quarter GDP growth estimate to 3.7 percent (Reuters)

The U.S. economy is expected to expand at a 3.7 percent annualized pace in the second quarter based on reports released earlier this week that showed decreases in new and existing home sales in April, the Atlanta Federal Reserve's GDP Now forecast model showed on Friday.

Big auto lender only checked 8% of applicants' incomes (CNN)

Alarm bells are ringing because one of the largest subprime auto lenders in the nation — Santander Consumer USA — only checked the incomes of 8% of its applicants, according to a new report from Moody's Investors Service. Subprime refers to loans made to people with poor credit.

The SEC's Credibility GAAP (Bloomberg)

The Securities and Exchange Commission is letting a number of large companies get away with questionable accounting based on some pretty lame excuses.

Trump's ignorance of the auto industry is terrifying (Business Insider)

Donald Trump sold himself as a presidential candidate who understood business, but since his victory he has demonstrated a frighteningly narrow grasp of modern, globalized industries.

The latest example? His comments on Germany's automakers.

1 Stock That Was Pivotal in Billionaire Warren Buffett's Career (The Motley Fool)

Warren Buffett wasn't always a long-term, buy-and-hold investor. In fact, many of his earliest investments were of the activist variety, with Buffett taking large stakes and using his weight as a shareholder to demand change.

Solar Energy’s Potential $2.8 Trillion Prize (The Motley Fool)

We are just beginning to scratch the surface of the potential for solar energy, both in the U.S. and around the world. And a recent presentation on the industry's outlook by Shayle Kann of GTM Research described a path to $2.8 trillion in solar power investments globally between now and  2035.

The Chart You Must See To Understand The Widespread Risk In The S&P 500 Today (Superinvestor Bulletin, Seeking Alpha)

I know, I know. Warren Buffett said that stocks today are actually on the cheap side.

I should note that he did qualify that remark that stocks are on the cheap side with interest rates at current levels. At higher interest rates he agrees that stocks are more expensive.

Shortened third Heathrow runway could save £3bn (Supply Management)

The main proposal for expanding Heathrow includes a new 3.5km runway that would mean diverting the M25 through an underpass.

Short-Term VIX Crashes From 6-Month High To Record Low In 1 Week (Zero Hedge)

Well that de-escalated quickly…

While The Democrats, NYT, CNN, WaPo, and MSNBC would dearly love last week's Trump turmoil to be a 'thing' and impeachment to be imminent, it appears the market has settled on the fact that it's over.

Bitcoin Has Come Roaring Back—But So Have the Risks (Wired)

The Bitcoin Boom is back. This week, the digital currency leapt to record heights, peaking at nearly $2,800 before tumbling back down to around $2,400—by far the most dramatic run in its history.

UMich Confidence Shows Partisan Divide Widest Ever But All Agree It's Time To Sell Your House (Zero Hedge)

UMich confidence is stable at its post-Trump plateau for now, but the partisan divide between Republicans (robust economic growth ahead) and Democrats (recession looms) has never been wider.

These Are The Most Overbought And Oversold Assets In The World Right Now (Zero Hedge)

There were several highlights worth noting in the latest Flow Show report from BofA's Michael Hartnett, first and foremost that despite hitting daily all time highs, US equities have experienced outflows on 8 of the last 10 weeks, with $3.3 billion redeemed in the last week, while US value stocks have suffered outflows on 9 of the past 10 weeks while small cap stocks have seen outflows in 8 of the past 9 weeks.

Companies

Amazon Nears $1,000 Mark but Approaches Overbought Levels (AMZN, MSFT) (Investopedia)

Amazon.com, Inc. (AMZN) is rapidly approaching the $1,000.00 per share milestone that would put its market capitalization at close to half a trillion dollars.

Sharp Sees Salvation in Appliances (The Wall Street Journal)

Sharp Corp.’s recovery plan: Become a major home-appliance maker under the wing of its Taiwanese parent, Foxconn Technology Group.

The tech industry is dominated by 5 big companies — here’s how each makes its money (Business Insider)

More and more, everything crucial about the present and future of consumer tech runs through at least one of five companies: Alphabet, Apple, Facebook, Amazon, and Microsoft.

Technology

Nielsen: over 92% of viewing among U.S. adults still happens on the TV screen (Tech Crunch)

U.S. consumers may be cutting the cord with pay TV, but that doesn’t mean they’ve stopped watching the big screen, according to new data released by Nielsen this morning. In a report detailing the viewing habits of U.S. adults, the measurement firm found that 92 percent of all viewing among U.S. adults (those 18 and older) still takes place on the TV screen.

Virtual Reality Isn’t a Hit at Home, So Imax Tries Arcades (Bloomberg)

When Nic Wehmeyer, an associate creative director from Brooklyn, visited Los Angeles recently, he was determined to check out the future of entertainment. But rather than tour one of the big movie studios, he headed to a nondescript building with blacked-out windows across the street from trendy L.A. mall the Grove.

BMW’s new bike produces zero emissions, and is absolutely gorgeous (BGR)

BMW has been showing off its vision for the future of mobility for a while now, revealing numerous concept vehicles that are both extremely futuristic and somewhat insane. The company’s newest reveal, called the BMW Motorrad Concept Link, is an all-electric two-wheeler that looks like it would be more at home in Akira than on today’s city streets.

AI: The Next Big Thing Is Here, and Everywhere (T.RowePrice)

Artificial intelligence is quickly moving into the mainstream of everyday life. It is already disrupting some industries and companies—and forcing investors to become more nimble about how they evaluate new investment opportunities.

Note-taking app Bear is rapidly improving with new features (The Verge)

Bear is a note-taking app from Italian design firm Shiny Frog that’s seen a recent spate of popularity as a replacement for apps like the bloated Evernote, primarily due to its simple design and quick speed.

Watch a working concept of a holographic Cortana assistant (The Verge)

When Microsoft unveiled its digital assistant in 2014, it looked to the Halo franchise for inspiration, naming its system Cortana, after Master Chief’s AI companion. One ambitious fan has gone a step further and created his own holographic version of the assistant for his home.

Politics

Trump’s infrastructure plan is just a windfall for Wall Street (Think Progress)

In adjusting to the next four years of a Donald Trump presidency, some Democratic lawmakers are looking for places where they might be able to work with him on issues they already care about.

Trump calls Germany “very bad” for selling cars in America: report (Salon)

European Commission President Jean-Claude Juncker, who was present when Trump made these comments, told reporters in Sicily that the reports were being exaggerated.

People Are Bailing on Chris Christie’s New Jersey. How Is Your State Holding Up? (Bloomberg)

New Jersey Governor Chris Christie had an awful 2016, what with Bridgegate and a presidential election bid that flamed out early. This year isn’t off to such a great start either.

Fossil fuel groups try to flee landmark climate lawsuit before it goes to trial (Think Progress)

Three fossil fuel industry groups are seeking to withdraw from a landmark climate change lawsuit?—?brought against the federal government by a group of youth plaintiffs?—?filing motions to withdraw on the same day that crucial discovery was required in the case.

Steny Hoyer sums up Democrats’ thoughts on Russia saga: A “continuing pattern of cover up” (Salon)

Rep. Steny Hoyer D-Md., said that he believes he’s seen a “continuing pattern of cover up” in President Trump’s actions to thwart the federal investigation into his campaigns alleged ties to the Russian Government, in an interview with CNN on Thursday.

Trump Returns to Crisis Over Kushner as White House Tries to Contain It (NY Times)

President Trump returned home on Saturday to confront a growing political and legal threat, as his top aides tried to contain the fallout from reports that his son-in-law, Jared Kushner, is a focus of investigations into possible collusion between Russia and the president’s campaign and transition teams.

Trump staffer hints he may be open to softening Russia sanctions (Salon)

The topic of sanctions against Russia — more specifically, whether President Donald Trump will strengthen, weaken or leave in place both the sanctions imposed by President Barack Obama after Russia’s 2014 invasion of Ukraine and the ones imposed as a result of their alleged meddling in the 2016 presidential election — has now returned to the fore.

Why people are rich and poor: Republicans and Democrats have very different views (Pew Research Center)

Beyond partisan differences over economic policies, there are stark divisions on a fundamental question: What makes someone rich or poor? Most Republicans link a person’s financial standing to their own hard work – or the lack of it.

Homeland secretary: People would 'never leave the house' if they knew what I knew (CNN)

Department of Homeland Security Secretary John Kelly said Friday that the American public would "never leave the house" if they knew what he knew about terrorist threats.

Their Government in Chaos, Brazilians Fear the Joke Is on Them (NY Times)

Cartoonish depictions of Brazil’s president are so popular that his office is trying to restrict access to his pictures — so they don’t get turned into lampoons on social media.

Trump Said to Seek More Time to Decide on Paris Climate Accords (NY Times)

President Trump declined to endorse the Paris climate accords on Saturday, ending his first foreign trip much as he began it: at odds with several of the nation’s allies and under a cloud of questions back home about his ties to Russia.

An appalling week from an appalling president (PM Carpenter's Commentary)

Again, we're only about four months in to this appalling administration, so Trump has plenty of time to appall us even more. But I must say that the past week has been the most appalling yet.

Life on the Home Planet

Germany wants kids to inform authorities if their parents can't prove they vaccinated them (Associated Press)

The German government wants kindergartens to inform authorities if parents fail to prove they have attended a doctors' consultation on child vaccinations.

The Assault on Colleges — and the American Dream (NY Times)

The country’s most powerful engine of upward mobility is under assault. Public colleges have an unmatched record of lofting their students into the middle class and beyond.

A First Look Inside Disney’s New Theme Park Area, Pandora-The World of Avatar (The Wall Street Journal)

“Subtle” isn’t a word normally associated with Disney theme parks or James Cameron movies.

But if anything is likely to surprise visitors to Pandora—The World of Avatar, the theme-park area opening here Saturday at Disney’s Animal Kingdom park, it is the absence of loud music, bright lights and attention-grabbing.

Milwaukee Sheriff David Clarke got police to detain passenger who questioned him on flight (Salon)

An incident on an airplane in which Milwaukee County Sheriff David Clarke had a passenger detained and interviewed after the flight without having committed a crime has raised further concerns about Clarke’s alleged abuses of power, despite possibly being selected for a job with the Department of Homeland Security.

Solar power breaks UK records thanks to sunny weather (The Guardian)

Solar power has broken new records in the UK by providing nearly a quarter of the country’s electricity needs, thanks to sunny skies and relatively low summer demand.

What I Wish I Knew When I Graduated College (Fool.com)

Congratulations to the class of 2017. To paraphrase Elle Woods from the Legally Blonde movie, you did it! Graduating from college is a tremendous milestone in life.

Experts: The Great Barrier Reef cannot be saved (Vox)

The prognosis comes from the Australian government’s Reef 2050 advisory committee, made up of experts and scientists responsible for managing the reef’s future.

Nobody wants to buy this Connecticut ghost town that's on sale for $1.95 million (Business Insider)

Johnsonville, Connecticut, looks straight out of an episode of "Twin Peaks" — old mill included. But unlike the small town on TV, Johnsonville has been abandoned for nearly 20 years.

Hurricane season is about to start, and NOAA predicts it will be busier than usual (Los Angeles Times)

The National Oceanic and Atmospheric Administration is predicting an above-normal 2017 Hurricane Season, with five to nine hurricanes — two to four of them Category 3 (winds at least 111 mph) or stronger. The forecast calls for 11 to 17 tropical systems (winds a least 39 mph).