Archives for April 2015

One Bubble at a Time: 3D-Printing Stocks Implode

By Wolf Richter at Testosteronepit (see also 3D printing popped on the scene a few years ago, and soon it was everywhere. The media were raving about it. Companies were formed and attracted VC money, and the hype bloomed, and soon IPOs of even the tiniest outfits flew off the shelf in the US and Europe. Valuations […]

LinkedIn Mania Over? Shares Plunge 21% After Hours on Earnings Miss

Courtesy of Mish. It's tough predicting the end to manias. Tonight I ponder a 21% plunge in extended hours trading in LinkedIn. Is the mania over? Please consider LinkedIn Plunges as Second-Quarter Forecast Misses Estimates. LinkedIn Corp.’s shares plunged as much as 27 percent after the company delivered quarterly revenue that missed analysts’ estimates for […]

Do You Want to Know a Secret?

Courtesy of Tim Knight from Slope of Hope I hate tech bubbles. No, that's not the secret. Everyone knows that. The secret I am referring to is a company named, literally, Secret. And the existence of this company, as well as the easy $6 million its co-founders pocketed when they shuttered the place, is absolutely symptomatic […]

The New New New Normal – US wages rising

The New New New Normal – US wages rising Courtesy of Joshua Brown, the Reformed Broker This morning the markets are shocked thanks to a year-over-year gain in US salaries and wages of 2.6%. The ten-year Treasury yield is now up almost 10% over the last four days. I was at a BlackRock iShares conference […]

Employment Compensation Costs (Wages and Benefits) Jump in First Quarter

Courtesy of Mish. A BLS report out today shows Compensation Costs up 0.7% December 2014-March 2015 and 2.6% over the year ending March. Civilian Workers Compensation costs for civilian workers increased 0.7 percent, seasonally adjusted, for the 3-month period ending March 2015, the U.S. Bureau of Labor Statistics reported today. Wages and salaries (which make […]

The Street loses faith in Twitter

Due to an accidental early post on the company's website on Monday, picked up by a company called Selerity, Twitter started tanking before officially announcing its earnings miss (Nasdaq Takes Blame for Twitter’s Earnings Leak).  The Street loses faith in Twitter Courtesy of Joshua M Brown Twitter’s the ultimate “belief” story – you either think it will be […]

Punk Q1 GDP Wasn’t Surprising: It Extends A 60-Year Trend Of Exploding Money And Imploding Growth

Courtesy of David Stockman of Contra Corner  During the heyday of post-war prosperity between 1953 and 1971, real final sales – a better measure of economic growth than GDP because it filters out inventory fluctuations – grew at a 3.6%  annual rate. That is exactly double the 1.8% CAGR recorded for 2000-2014. And after yesterday’s punk GDP report in which […]

Initial Unemployment Claims Plunge to 262,000 – Lowest Since April 2000; What’s Going On?

Courtesy of Mish. Initial unemployment claims plunged to 262,000 today bettering the Bloomberg Consensus. The Fed is ready now to pull the trigger at anytime and today’s jobless claims data may have their finger a little itchy. Initial claims, not skewed by special factors, plunged 34,000 in the April 25 week to 262,000 which is […]

SA Headline Initial Claims Data Finally Catches Up to Long String of Record Lows in Actual Data

Courtesy of Lee Adler of the Wall Street Examiner The headline, fictional, seasonally adjusted (SA) number of initial unemployment claims for last week came in at 262,000, smashing the Wall Street conomist crowd consensus guess of 290,000. This finally called attention to the fact that claims have been at or near record lows for the past […]

What’s Really Behind the Flash Crash Trader Prosecution?

Courtesy of Pam Martens. Loretta Lynch Is Sworn In on Monday, April 27, 2015 as U.S. Attorney General; She’ll Now Be Responsible for the Flash Crash Case The Justice Department’s case against the 36 year old lone bedroom trader in the U.K., Navinder Singh Sarao, has now been thoroughly discredited by every Wall Street veteran […]

When The Herd Turns

Courtesy of Charles Hugh-Smith of OfTwoMinds A funny thing happens when the stock market herd turns–all the usual central bank tricks no longer push the markets higher.   Though the mainstream financial media reports on central bank policy as if the policies move the markets, the actual mechanism is not policies per se but their effect […]

Daily News

European Markets Are Having a Bad Day (Bloomberg) U.S. GDP disappointed this morning, adding fuel to a European market sell-off that had already been underway for much of the day. German 10-year bonds have tanked. 'Hawkish' Hilsenrath Confirms Fed Not Worried About Q1 Growth, Rate Hikes Coming (ZeroHedge) At a stunning pace of 608 words in just 4 minutes, The […]

Fed Cites Weather, “Transitory” Factors in FOMC Statement; No Hat Tricks; What About Consumer Sentiment?

Courtesy of Mish. Don't worry. The First Quarter GDP Disaster, released this morning is transitory. How do I know? The Fed says so. Here is the FOMC Statement from today. Emphasis mine. Information received since the Federal Open Market Committee met in March suggests that economic growth slowed during the winter months, in part reflecting […]

Apple Warns Of “Material Financial Damage” If Its $171 Billion In Offshore Cash Is Jeopardized

Courtesy of ZeroHedge. View original post here. Despite the fact that Apple beat on both the top and bottom line on Monday on the back of better-than-expected iPhone sales (thank you China), and despite a near $20 billion increase in the company's massive cash pile which now stands at around $193 billion, shares have languised […]

The Real Financial Crisis That Is Looming

Courtesy of Lance Roberts via STA Wealth Management There is a financial crisis on the horizon. It is a crisis that all the Central Bank interventions in the world cannot cure. It is a financial crisis that will continue to change the economic landscape of America for decades to come. No, I am not talking about […]

When Exactly Will The Fed Launch QE4?

Courtesy of Bill Bonner via Acting-Man Money From Nowhere On Friday, the S&P 500 and the Nasdaq closed at record highs. It’s the first time both indexes have done so since December 31, 1999. Why such optimism? High profits, you say. But where do profits come from? Households have less money to spend than they did […]

Government Stats Both Hide and Reveal Situation Fraught With Peril

Courtesy of Lee Adler of the Wall Street Examiner Don’t ask me how they come up with this stuff. Like GDP growth of 0.2%. Here we go again with the usual headline seasonally adjusted (SA) nonsense. They take a couple dozen fictional seasonally adjusted components for quarterly change, from an admittedly limited sample that they warn […]

Real Q1 GDP 0.2% vs. Consensus 1.0%; Disaster in the Details

Courtesy of Mish. The first quarter real GDP estimate of 0.2% was released today. In spite of all the extremely week economic reports lately, economists still could not figure out GDP was going to be near zero. The Bloomberg Consensus estimate was for 1.0%. Note the lowest estimate was 0.2%. No one predicted negative. Who […]

Welcome To The Currency War, Part 19: GDP Flat-Lines, Fed Rate Hike Evaporates

Courtesy of John Rubino. As pretty much everyone is now aware, US Q1 growth was way below expectations. And the only reason it was even marginally positive was because businesses expanded their inventories at a record rate. Here’s a chart from Zero Hedge comparing the economy’s growth with that of inventories: In other words, if […]

The Financial Markets Now Control Everything

Courtesy of Charles Hugh-Smith of OfTwoMinds The financial markets don't just dominate the economy–they now control everything. In 1999, the BBC broadcast a 4-part documentary by Adam Curtis, The Mayfair Set ( Episode 1: "Who Pays Wins" 58 minutes), that explored the way financial markets have come to dominate not just the economy but the political process and society.   In […]

Daily News

Rand Paul Blames the Baltimore Riots on Absentee Fathers (MotherJones) As one of a growing number of GOP 2016 wannabes, Sen. Rand Paul has tried to sell himself as the best Republican candidate to reach out to African-American voters. He's talked about the need for criminal justice reform. During the protests in Ferguson, Missouri, he […]

The Flash Crash Trader Has Strong Defense Witnesses

Courtesy of Pam Martens. CME Group Executive Chairman Terry Duffy Disputes the Government’s Case Against the Flash Crash Trader in an Interview with Maria Bartiromo Prosecutors from the U.S. Justice Department have already lost their case in the court of public opinion against Navinder Singh Sarao, the man they allege fueled the Flash Crash in […]

Biggest Inventory Build In History Prevents Total Collapse Of The US Economy

Courtesy of ZeroHedge. View original post here. While we already observed that in Q1, US GDP rose by an appalling 0.2%, far, far below the consensus Wall Street estimate (in case you missed it, here again is the one thing every Wall Street economist desperately needs) and precisely in line with the Atlanta Fed forecast […]

Costco vs. Walmart and Reader Responses Over Minimum Wage

Courtesy of Mish. I received lots of emails and blog comments to my article Reader Question: Is the Minimum Wage Really a Maximum Wage? In regards to living wage Tesla responded … “You clearly have never run a business. if your employees are not able to live , or more importantly , just having living […]