STOCK MARKET WATCH -- Friday, 19 February 2016

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Friday, 19 February 2016[font color=black][/font]

SMW for 18 February 2016

AT THE CLOSING BELL ON 18 February 2016
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Dow Jones 16,413.43 -40.40 (-0.25%)
S&P 500 1,917.83 -8.99 (-0.47%)
Nasdaq 4,487.54 -46.53 (-1.03%)


[font color=green]10 Year 1.74% -0.08 (-4.40%)
30 Year 2.61% -0.08 (-2.97%) [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.




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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]

[Fuddnik]

1. I guess prayer does work.

Too bad it took 30 years.

[Fuddnik]

2. Yahoo Shuts Down Digital Magazines, Cuts 300 More Jobs

Feb 18 2016, 6:16 am ET
Yahoo Shuts Down Digital Magazines, Cuts 300 More Jobs



Yahoo Inc. announced Wednesday that it would shut down its digital magazines as part of a plan to simplify its business.

The company's digital magazines to be discontinued include those that cover food, parenting, health, travel and real estate, it said in a blog post, noting that it would sharpen its focus on news, sports, finance and lifestyle.

The internet giant also said it would cut more than 300 jobs by April 18, as part of 1,500 layoffs announced earlier. The layoffs cover 128 employees at Yahoo's headquarters in Sunnyvale, California; 46 employees in San Francisco and 60 in Los Angeles, the newspaper reported citing a company's note to state officials.

The company also plans to shut down its Burbank office, affecting 90 employees, according to San Francisco Chronicle.

http://www.nbcnews.com/tech/tech-news/yahoo-shuts-down-digital-magazines-cuts-300-more-jobs-n520586

[Hotler]

3. Follow up to Apple and the FBI. This is sweet.

John McAfee Offers To Hack Terrorist's iPhone For FBI

John McAfee, inventor of one of the most widely used computer anti-virus programs in the U.S., offered in a Business Insider piece published Thursday to help the FBI hack into the encrypted iPhone of one of the suspects in December's mass shooting in San Bernardino, California.

Apple CEO Tim Cook on Tuesday turned down a request from the FBI to develop a "back door" for the phone -- a customized version of iOS software that would let authorities bypass the device's security and access data belonging to one of the two attackers in the shooting that left 14 people dead.
McAfee offered the service of his misfit hackers to defuse the standoff between Apple and the FBI.

http://www.msn.com/en-us/news/technology/john-mcafee-offers-to-hack-terrorists-iphone-for-fbi/ar-BBpG4bq?li=BBnbfcL&ocid=iehp

I'll let you guys read the last paragraph, it is the best.

From looking at pictures of this guy, he looks high.

[Fuddnik]

6. I didn't know he was running for President.

I thought he was under investigation for murder.

[Hotler]

8. WHAT!

I guess I'll have to look that up and have a read. Sounds like a juicy story.

[Hotler]

9. John McAfee escape to Belize, but he couldn/t escape himself

On November 12, 2012, Belizean police announced that they were seeking John McAfee for questioning in connection with the murder of his neighbor. Six months earlier, I began an in-depth investigation into McAfee’s life. This is the chronicle of that investigation.

Twelve weeks before the murder, John McAfee flicks open the cylinder of his Smith & Wesson revolver and empties the bullets, letting them clatter onto the table between us. A few tumble to the floor. McAfee is 66, lean and fit, with veins bulging out of his forearms. His hair is bleached blond in patches, like a cheetah, and tattoos wrap around his arms and shoulders.

More than 25 years ago, he formed McAfee Associates, a maker of antivirus software that went on to become immensely popular and was acquired by Intel in 2010 for $7.68 billion. Now he’s holed up in a bungalow on his island estate, about 15 miles off the coast of mainland Belize. The shades are drawn so I can see only a sliver of the white sand beach and turquoise water outside. The table is piled with boxes of ammunition, fake IDs bearing his photo, Frontiersman bear deterrent, and a single blue baby pacifier.

http://www.wired.com/2012/12/ff-john-mcafees-last-stand/

Juicy story indeed.

[Hotler]

4. Chilling ways the global economy echoes 1930s Great Depression era

This is the famous thesis of Milton Friedman’s and Anna Schwartz’s A Monetary History of the United States, 1867-1960, and it was, more or less, the view of Ben Bernanke when he was chairman of the Federal Reserve.

The global economy today resembles that of the 1930s in several ominous ways.

Financial author Edward Chancellor recently called attention to a paper written by Caludio Borio, head economist at the Bank of International Settlements, that provides a fuller picture of the causes of the Great Depression. The paper also draws parallels between global economic conditions that led to the rise of protectionism in the 1930s and our situation now.

http://www.msn.com/en-us/money/markets/chilling-ways-the-global-economy-echoes-1930s-great-depression-era/ar-BBpH0ne?ocid=iehp

This seems to be a weak read, but I'll post it anyway.

[Hotler]

5. The Robber Baron Who Botched the World's First Oil Storage Trade

A century and a half before the current supply glut sent oil prices into contango, one of America’s greatest industrialists tried to make money by storing crude. He failed.

In 1862, Andrew Carnegie and a partner bought several oil wells in western Pennsylvania and dug a giant hole in the ground to hold the crude. That year, oil was worth about $1 a barrel, according to the BP Statistical Review. They thought they could make $1 million when supply ran out and prices jumped to $10. Instead, supply kept coming, the oil began leaking and Carnegie had to abandon the idea.

The storage trade is back in fashion in today’s oil world, and contango is the talk of the market. It’s the term used in commodity trading when the price for prompt delivery falls below the long-term value. Right now, with the contango near a four-year high at about $2.15 a barrel, oil traders are bidding up the cost of leasing tank space, and even looking at renting more-expensive supertankers to hold oil offshore.


While modern financial markets allow traders to minimize the risk of storage trades turning out as poorly as Carnegie’s, his misfortune is still a valuable lesson for anyone waiting around for a rise in crude prices.

“After losing many thousands of barrels waiting for the expected day (which has not yet arrived) we abandoned the reserve,” Carnegie, referred to as a "robber baron" along with fellow industrialists such as Standard Oil Co.’s John D. Rockefeller, for his ruthless pursuit of wealth, wrote in his autobiography. “We did not think then of Nature’s storehouse below which still keeps on yielding many thousands of barrels per day without apparent exhaustion.”

The main difference between traders now and Carnegie is that they have a financial market that lets them sell higher-priced oil futures at the same time that they buy cheaper crude to put in tank. The only trick is to make sure the cost of storage and financing doesn’t eat up all the profits, and to make sure you can deliver the oil where it needs to go when the futures contract expires.
(snip)

There are more than 500 million barrels of crude in commercial storage in the U.S. for the first time since 1930. The price of storing oil in southern Louisiana for a month jumped to $1.43 a barrel last week. Glencore Plc was holding oil on ships off the coast of Singapore and Malaysia in at least four supertankers, people with knowledge of the matter said last month, asking not to be identified because the information is confidential.

http://www.msn.com/en-us/money/markets/the-robber-baron-who-botched-the-worlds-first-oil-storage-trade/ar-BBpGKVy?ocid=iehp

[Hotler]

7. Dozens of biotech stocks are 'free' for the taking

Everyone likes free offers. With the biotechnology stock sector so badly pummeled, that’s exactly what you find there now.

The shares of many biotech companies have fallen so far, their market values are below their net cash. Buy the stock, and the price you paid is more than offset by company cash. In that way, you get the business for “free.”

Amazingly, 50 to 70 biotech companies now trade for less than net cash, depending on how you measure “net cash.” In technical terms, they have a negative enterprise value (EV), which is market value minus cash plus debt.

Those have to be bargains, right?

Well, not so fast. You can flip this logic around and conclude the stock market assigns zero value to these businesses because, well, that’s what they deserve. “When a company is down to its cash, something hasn’t gone right,” says John McCamant of the Medical Technology Stock Letter.

“You can buy one at cash, and it can go to half cash. It’s definitely tricky,” says Mike Tung, a medical doctor and biotech-sector investor at Turner Medical Sciences Long/Short Fund , which has a great track record. It beats competitors by 8% a year annualized over the past three years, according to Morningstar.

http://www.msn.com/en-us/money/topstocks/dozens-of-biotech-stocks-are-free-for-the-taking/ar-BBpyGG8?ocid=iehp

I'm going to have to scratch my head on this and read and analyze this later.

[Hotler]

10. Fed Doves Cry As Core Consumer Prices Jump At Fastest Pace Since August 2011

This must be transitory, right? Core Consumer Prices surged 0.3% MoM - the biggest jump since August 2011 - and is up 2.2% YoY (the most since June 2012).

We assume this will be ignored for a data-dependent Fed that needs to keep the easing dream alive (as long as stocks are off the highs)...

The index for all items less food and energy increased 2.2 percent over the past 12 months. This is its highest 12-month change since the period ending June 2012, and exceeds the 1.9 percent average annualized increase over the last 10 years. The index for shelter has risen 3.2 percent over the span, and the medical care index has increased 3.0 percent. In contrast, the indexes for apparel and for airline fares have declined over the past 12 months.

The index for all items less food and energy rose 0.3 percent in January. The increase was broad-based, with most of the major components rising, but increases in the indexes for shelter and medical care were the largest contributors.

http://www.zerohedge.com/news/2016-02-19/fed-doves-cry-core-consumer-prices-jump-fastest-pace-august-2011

Charts at the link.