Sarhan in CNBC: Dow Races 200 Points Higher As Stocks Extend Post-Brexit Recovery

U.S. stocks traded higher Thursday, amid oil losses, as the major indexes tried to extend a massive rally following the United Kingdom’s vote on EU membership.
“I think it’s a continuation of trying to sort out what Brexit means and what’s important to investors,” said Bruce McCain, chief investment strategist at Key Private Bank. “Whether they decide it means nothing, … were going to have to wait and see.”
The Dow Jones industrial average traded about 200 points higher, with 3M and IBM contributing the most gains. The Dow gained nearly 300 points on Wednesday and had recovered about 80 percent of its post-Brexit losses by Thursday.
“The market is breathing a big sigh of relief that Brexit didn’t trigger the end of the world,” said Adam Sarhan, CEO of Sarhan Capital.
“For now, the British exit is taking a backseat, but that’s going to come back to haunt us,” said Peter Cardillo, chief market economist at First Standard Financial.
The Dow had lost more than 870 points in the two sessions following the U.K.’s shocking vote to leave the European Union, but the blue-chips index completed its best two-day points gain since last August at Wednesday’s close.
“It’s not surprising to see the markets go down as much as they did after the vote,” said Brian Levitt, senior investment strategist at OppenheimerFunds. “The best and worst days are usually grouped together.”
The S&P rose rose more than 1 percent, led higher by consumer staples. Staples gained about 2 percent as Hershey shares surged more than 10 percent amid talks of a possible takeover bid from Mondelez.
However, Hershey’s board unanimously rejected Mondelez’s offer Thursday afternoon. “It would take a very good offer” for the board to approve a takeover bid, said Kim Forrest, senior equity analyst at Fort Pitt Capital. “I don’t see anybody doing that.”

For the quarter, which ends Thursday at the close, energy was the greatest advancer, while information technology lagged.
“The most constructive thing I’ve seen over the past four days has been the rotation,” said Art Hogan, chief market strategist at Wunderlich Securities, noting the S&P was led by financials, health care and energy on Wednesday, while utilities, telecommunications and consumer staples lagged. “We had a rotation … into growth.”
The Nasdaq composite rose 1 percent, as Apple advanced 1 percent.
Investors also eyed the end of the second quarter, with the third quarter kicking off on Friday.
First Standard’s Cardillo said “some traders are probably going to make there final trades today instead of tomorrow,” given the Fourth of July Holiday on Monday.
Oil prices were under pressure Thursday, with U.S. crude settling 3.1 percent lower, at $48.33 a barrel. On Wednesday, WTI gained more than 4 percent amid a larger-than-expected crude stocks drawdown.
Treasurys traded mixed, with short-term two-year notes yielding about 0.59 percent, while the benchmark 10-year note yield held near 1.48 percent.
The dollar traded higher against a basket of currencies, with the euro holding near $1.105 and the yen trading at 103.21. The pound dived more than 1 percent after Bank of England Governor Mark Carney said Brexit uncertainty could weigh on the U.K. economy for some time,while also hinting at more stimulus for the economy.
On the data front, weekly jobless claims came in at 268,000, slightly above the expected 267,000. The Chicago PMI reading for June came in at 56.8, well above a May reading of 49.3.
“US manufacturing remains around the flat line with still challenged global trade but with some relief from the US dollar which has been weakening since early December notwithstanding the bounce this week post UK vote. With also punk capital spending, it is the US consumer that remains the buffer between economic expansion and contraction,” Peter Boockvar, chief market analyst at The Lindsey Group, said in a note to clients.
St. Louis Fed President James Bullard in a speech in London on Thursday repeated the new monetary policy framework, including just a single rate hike for the foreseeable future, detailed in an earlier speech, according to a Reuters report.
Overseas stock markets traded mostly higher, with the pan-European Stoxx 600 index gaining 1 percent. In Asia, the Nikkei 225 posted modest gains overnight, while the Shanghai composite slipped about 0.1 percent.
In corporate news, film studio Lions Gate said it would buy Starz for$4.4 billion in a cash-and-stock deal.
Meanwhile, the Federal Reserve‘s stress test approved the capital plans for 31 of 33 banks, with Deutsche Bank and Banco Santander failing to gain the central bank’s approval.
Symbol
Name
Price
Change
%Change
DJIA Dow Industrials 17904.07 209.39 1.18%
S&P 500 S&P 500 Index 2094.78 24.01 1.16%
NASDAQ NASDAQ 4832.89 53.65 1.12%
The Dow Jones industrial average rose 207 points higher, or 1.17 percent, at 17,901, with General Electric leading advancers and Visa and Nike the only decliners.
The S&P 500 traded about 23 points higher, or 1 percent, at 2,094, with consumer staples leading all 10 sectors higher.
The Nasdaq composite traded 51 points lower, or 1.08 percent, at 4,831.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower, near 16.
About four stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of 607 million and a composite volume of 2.813 billion.
Gold futures for August delivery settled $6.30 lower at $1,320.60 per ounce.

Link: http://www.cnbc.com/2016/06/30/us-markets.html

Sarhan in Reuters: #WallStreet Rallies For Third Day, Healing Brexit Wounds

Thursday, June 30, 2016

Wall Street posted solid gains for a third straight day on Thursday as Britain’s central bank raised the prospect of stimulus and consumer staples shares gained on news of Mondelez International’s $23 billion bid for Hershey.
The three U.S. indexes were each up at least 1 percent, and have erased the bulk of their losses in the wake of Britain’s shock vote a week ago to leave the European Union that set off the worst two-day decline for Wall Street in 10 months.
In the wake of the referendum, Bank of England Governor Mark Carney said on Thursday that the central bank would probably need to pump more stimulus into Britain’s economy over the summer.
“We’re reversing the ‘Brexit’ as it becomes evident that it was more of a political vote and decision than an economic decision,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
Stocks also might be benefiting as portfolio managers adjust their holdings at the end of the quarter, Hellwig said.
The Dow Jones industrial average was up 218.86 points, or 1.24 percent, at 17,913.54, the S&P 500 gained 24.98 points, or 1.21 percent, at 2,095.75 and the Nasdaq Composite added 50.22 points, or 1.05 percent, at 4,829.47.
All ten S&P sectors were higher, led by consumer staples shares. Hershey shares surged 13.5 percent after news that Mondelez had made a takeover offer, which Hershey rejected, looking to create the world’s largest confectioner. Mondelez gained 4.2 percent.
Investors are still bracing for volatility in coming weeks amid uncertainty about how Britain will pursue its EU exit, with some pointing to more possible downside. The S&P 500, which was within 17 points of its May 2015 record high a week ago, was poised to close out its third straight positive quarter.
In the wake of Carney’s comments, investors turned attention to St. Louis Fed President James Bullard’s speech, scheduled for 3:15 p.m. ET (1915 GMT), on U.S. monetary policy outlook for clues on the U.S. Federal Reserve’s direction.
“Central banks are doing their best to step in and send stocks higher,” said Adam Sarhan, chief executive officer of Sarhan Capital. “I think the Fed is more than ready to follow suit if market conditions worsen.”
Visa and MasterCard shares were both down about 3 percent after a federal appeals court threw out an antitrust settlement the credit card companies had reached with millions of retailers. The stocks were the two biggest drags on the S&P.
Advancing issues outnumbered declining ones on the NYSE by 2,315 to 719, for a 3.22-to-1 ratio on the upside; on the Nasdaq, 1,966 issues rose and 850 fell for a 2.31-to-1 ratio favoring advancers.
The S&P 500 posted 82 new 52-week highs and 1 new low; the Nasdaq recorded 66 new highs and 23 new lows.
(Assitional reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)
Link: http://in.reuters.com/article/usa-stocks-idINKCN0ZG284

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Week In Review: Historic Brexit Vote Crushes Markets

22 SPXWatch Adam on Bloomberg TV –  Here

Brexit Vote Crushes Markets:
Becomes A Bear Stearns Moment, Not Lehman (Yet)

We received a record number of emails since Friday thanking us for our cautious stance. Stocks fell for a third straight week and was crushed on Friday after the U.K. decided to leave the E.U. Thankfully, our defensive stance has served us very well as this environment is outright ugly for most participants. The Brexit vote was a pivotal moment in modern history. It questions the legitimacy of the entire E.U. and could lead to more people wanting to leave, which threatens the existence of the E.U. The ramifications of this vote instantly spread across the globe as markets went wild. The selling began late Thursday night and spilled into Friday when the vote was finalized. We saw huge moves in currencies, stocks, commodities, and bond markets in every corner of the developed world. It is still very early and the situation is fluid so anything can change at any time. The vote also echoes what we are seeing in U.S. politics – a huge surge for the anti-establishment movement. The brexit vote reminds us of early 2008 when Bear Stearns failed and is not a Lehman moment, just yet. Going forward, the key now is to understand that the game has changed considerably and there is a huge question mark with respect to what lies ahead for the economy, markets, and politics. The rest of the fundamental story remains bleak as the global (and U.S.) economy was barely growing, so threatening the Brexit could easily spark a global recession. 
The technicals are deteriorating and do not look “good” either. Stepping back, the bull market is 7.5 years old which is considered an aging bull by any normal measure. There is a very high possibility that last the Brexit could be the straw that breaks the bulls back. More time and price are need to know for sure but if Feb’s lows are breached (1810 in the S& P500), odds favor we are headed much lower. Technicians also do not like the fact that last week was both an outside and negative reversal in the S&P 500 on a weekly basis, both have bearish ramifications. Filtering out all the noise, the market is still range bound with major resistance near 2134 and major support near 1810. Until either level is breached, we have to expect this sloppy action to continue. Looking forward, we have elections coming up in Spain, then the Jobs report and then we enter earnings season. It’s a never a dull moment on Wall Street. 
Monday-Wednesday’s Action:
Stocks opened higher on Monday after the latest Brexit poll came out over the weekend and hinted they will stay. But sellers showed up by the close and stocks ended well off their highs. The British Pound (FXB) gapped up on the news. JD.Com ($JD) rallied after Wal-Mart ($WMT) said it would sell its online business to the Chinese e-commerce company. Elsewhere, Boeing ($BA) opened higher after news broke that Iran had reached a deal to buy 100 planes. On Tuesday and Wednesday, Fed Chair Janet Yellen is going to testify in front of Congress and the actual Brexit vote is on Thursday.
On Tuesday, stocks edged higher after Yellen began her two day testimony on Capitol Hill. Yellen made it clear that she is confused and is not confident that the economy will improve at a fast enough pace in the near future to warrant more rate hikes. Stocks popped higher when her prepared statement was released but then began to drift lower. Almost immediately, Mr. Draghi, the head of the European Central Bank, began talking and stocks bounced again on his dovish comments. The fact that these central banks are so vocal is crazy. But that is 2016 for you.
Stocks fell on Wednesday as Yellen wrapped up her testimony on Capitol Hill and investors waited for Thursday’s Brexit vote. Stocks were mostly quiet with a little bounce in health care stocks early in the day on a favorable court ruling. But sellers showed up by the close and erased some of the gains by the close. After Tuesday’s close, Tesla (TSLA) made a bid to acquire Solar City (SCTY) and Tesla gapped down on the news.
Thursday & Friday’s Action:
Before Thursday’s open, stock futures were up nicely as the much anticipated Brexit vote officially began. Polls closed at 5pm EST, one hour after the market closed. Stocks rallied nicely on Thursday because the latest polls suggest the “remain” camp has a slight edge. Investors shrugged off the latest round of economic data. The government said weekly jobless claims slid to 259,000, not far from a 43-year low touched in March. Elsewhere, the flash Markit manufacturing PMI rose to 51.4 in June, up from 50.7 in May. Finally, new home sales slid 6.0% in May to a seasonally adjusted annual rate of 551,000 units. Overnight, the U.K. voted to leave the EU which shocked markets. Almost instantly, the British Pound crashed and stock markets around the globe suffered huge losses. Markets around the globe crashed which clearly reiterates our cautious stance.
Market Outlook: Stocks Hit Hard
The market remains range-bound as it failed to breakout above stubborn resistance (recent highs) again. Economic and earnings data remain less than stellar which does not bode well, especially after the Brexit vote. As always, keep your losses small and never argue with the tape. 

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Sarhan In Reuters: US STOCKS-S&P 500 futures fall as 'remain' barely leads in early UK vote count

Markets | Thu Jun 23, 2016 10:07pm EDT
* Sterling weakens against the dollar
* Opinion poll put “remain” campaign in lead
* Banks climb after Fed gives passing grade in stress tests
* Indexes up: Dow 1.3 pct, S&P 1.3 pct, Nasdaq 1.6 pct (Adds detail on market reaction, comment)
By Noel Randewich
June 23 U.S. stock index futures dropped late on Thursday as early voting returns suggested Britain was on the verge of leaving the European Union, a move that investors fear could hurt the global economy.
S&P E-mini futures fell as much as 2 percent in after-hours trading before paring losses to trade down 1.2 percent.
Early results from the referendum showed margins were nail-bitingly tight, with the “remain” camp leading by less than 1 percentage point with about a quarter of voting areas counted.
Sterling fell as low as $1.4351 against the dollar, more than wiping out its earlier gains, which had lifted the pound above $1.50 for the first time this year on the back of a YouGov opinion poll that suggested Britons had voted 52-48 percent to stay in the EU.
Reflecting nervousness among investors, futures on the VIX volatility index rose 1.3 points to 17.9.
“Big institutions were clearly caught off guard. This has a panic type of feel to it,” said Adam Sarhan, chief executive of Sarhan Capital.
Earlier on Thursday, U.S. stocks rose as investors bet the United Kingdom would remain part of the European Union, potentially avoiding damage to European trade and its consequences for the global economy.
In extended trade, Goldman Sachs Group added 1.17 percent and Bank of America climbed 1.5 percent after the Federal Reserve said all 33 stress-tested U.S. banks met minimal capital requirements.
In regular trade earlier, the Dow Jones Industrial Average rallied 1.29 percent to end at 18,011.07 points, its highest level since late April. The S&P 500 surged 1.34 percent to 2,113.32, just 0.8 percent short of its record closing high hit in May last year. The Nasdaq Composite added 1.59 percent to 4,910.04.
The financial sector led the S&P 500 stock index with a 2.1 percent gain.
With investors optimistic about a victory for Britain’s “Remain” campaign, the CBOE Volatility index fell 18.5 percent, its largest daily percentage decline since October 2013.
Software maker Twilio Inc nearly doubled in its market debut, rising as high as $29.60 after pricing at $15. It closed up 91.9 percent at $28.79.
About 6.4 billion shares changed hands in U.S. exchanges, below the 6.8 billion average over the past 20 sessions.
Advancing issues outnumbered declining ones on the NYSE by a ratio of 4.98-to-1, and on the Nasdaq, a 3.57-to-1 ratio favored advancers.
The S&P 500 posted 52 new 52-week highs and two new lows; the Nasdaq recorded 88 new highs and 26 new lows. (Additional reporting by Richard Leong and Rodrigo Campos; Editing by Cynthia Osterman and Leslie Adler)
Link: http://www.reuters.com/article/usa-stocks-idUSL1N19G03D

Sarhan in CNBC: Dow tops 18K as stocks surge more than 1% ahead of Brexit vote results

Thursday 6.23.16 4pm EST

U.S. stocks closed higher Thursday as pound sterling held near year-to-date highs against the greenback, following increased expectations that the U.K. will vote to remain in the European Union.
Stocks neared session highs with about 10 minutes to the close.
The Dow Jones industrial average added more than 200 points.Goldman Sachs rose more than 2.5 percent for the greatest positive impact on the index as almost all constituents advanced The U.S. Federal Reserve is set to release the first results from the annual bank stress tests after the close.
Financials, which are also sensitive to the results of the EU referendum, rose more than 1.5 percent to lead most S&P 500 sectors higher. TheBank (KBE) and Regional Bank (KRE) ETFs traded more than 2.5 percent higher, on pace for their best day in about a month.
The S&P 500 attempted to hold above the psychologically key 2,100 level and was trading about 1.5 percent below its all-time intraday high hit in May 2015.
Britons are voting Thursday on whether to leave the European Union. Polls are set to close at 5 p.m. ET and the highly anticipated results are expected well after Thursday’s U.S. market close.
“I think the market’s already voted. … It looks like they’re looking for the stay vote to prevail,” said Adam Sarhan, CEO of Sarhan Capital.
“This could be a classic case of ‘buy the rumor, sell the fact,'” he said.
The pound traded near $1.480 after earlier hitting $1.4946 against the dollar, its highest since late December. The U.S. dollar index traded about 0.24 percent lower, with the euro near $1.135 after earlier hitting its highest in more than a month. The yen was near 105.8 yen versus the greenback, near its highest in a week.

The Dow transports traded more than 1 percent higher, while the Russell 2000 outperformed with gains of more than 1.5 percent
As of midday trade Thursday, the three major U.S. stock indexes traded more than 1 percent higher and were on pace for weekly gains of more than 1.5 percent. Traders also attributed some of the gains to short covering.
European stocks closed higher, with the German DAX up more than 1.5 percent for its first five-day win streak since late May. The STOXX Europe 600 about 1.5 percent higher.
The STOXX 600 Europe Banks index gained more than 2.5 percent for its first five-day win streak since April. The index is tracking for its best week since late 2011.
In Asia, the Nikkei 225 closed more than 1 percent higher while the Shanghai composite closed about half a percent lower.
U.S. stocks closed lower Wednesday, as declines in energy stocks weighed, and investors remained on edge ahead of the Brexit vote after a poll indicated a slight edge for leave over remain. Separate polls released after the close indicated more support for remain.
“Since we had a fairly low conviction as to how the vote would go, we were reluctant to make a bet in a general direction,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
App developer tool firm Twilio (TWLO) opened at $23.99 a share after pricing its initial public offering at $15 a share, above the expected $12 to $13 a share range.
Macy’s announced Thursday its CEO Terry Lundgren will step downfrom that position next year.
In economic news, weekly jobless claims fell to 259,000, not far from a 43-year low touched in March.
The flash Markit manufacturing PMI for June was 51.4, up from 50.7 in May.
New home sales declined 6.0 percent in May to a seasonally adjusted annual rate of 551,000 units.
Treasury yields held higher, with the 2-year yield near 0.77 percent and the 10-year yield around 1.73 percent as of 1:04 p.m. ET.
Symbol
Name
Price
 
Change
%Change
DJIA Dow Industrials 18011.07
 
230.24 1.29%
S&P 500 S&P 500 Index 2113.32
 
27.87 1.34%
NASDAQ NASDAQ 4910.04
 
76.72 1.59%
In afternoon trade, the Dow Jones industrial average traded up 160 points, or 0.90 percent, at 17,940, with Goldman Sachs leading advancers and Nike and Disney the only decliners.
The S&P 500 gained 19 points, or 0.92 percent, to 2,104, with financials leading nine sectors higher and utilities the only decliner.
The Nasdaq composite gained 55 points, or 1.14 percent, to 4,888.
About five stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of 435 million and a composite volume of nearly 2.1 billion in afternoon trade.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower near 18.6.
U.S. crude oil futures for August delivery settled up 98 cents, or 1.99 percent, at $50.11 a barrel.
Gold futures for August settled down $6.90 at $1,263.10 an ounce.
On tap this week:
Thursday
Earnings: Commercial Metals, Sonic
Friday
Earnings: Finish Line
8:30 a.m. Durable goods
10 a.m. Consumer sentiment
*Planner subject to change.

Link: http://www.cnbc.com/2016/06/23/us-markets.html
 

Week-In-Review: Stocks Fell Last Week Ahead Of Brexit Vote

11 SPXStocks Fell Last Week Ahead of The Brexit Vote

It was another tough week for the bulls as the major indices fell 5 of the past 6 sessions and are in ‘pullback’ mode. On June 9th, the market looked strong as the S&P 500 jumped above two important areas of resistance (2111 and 2116) but the ‘breakout’ immediately failed on June 10th and stocks have been under pressure since. We also want to note that Central Banks are slowly losing control over stocks. Last week stocks fell even though every major central bank in the world reiterated their dovish stance (and the U.S. Fed pivoted and became even more dovish). Going forward, this could become a problem for the market because the primary driver of this entire 7.5 year bull market has been easy money from global central banks. Our longstanding readers know, we think this will end (very) badly but until it does, we have to remain in sync with what is actually happening on Wall Street, not what we think may happen at some point in the future. On the downside, we are watching support near 2,050 in the S&P 500 and then May’s low near 2026. The “big” level of support remains 1810. On the upside, the “big” level of resistance to watch remains last year’s record high of 2,134. By definition, until either level is breached, we have to expect this sloppy action to continue. The brexit vote is scheduled for June 23, and then we have a few elections in Europe, then we enter earnings season (and you thought it would be a quiet summer).
Monday-Wednesday’s Action:
Stocks fell on Monday, adding to Friday’s losses as the market continues pulling back after encountering (and failing) near stubborn resistance last week. The S&P 500 continues pulling back into its 50 day moving average. In tech news, Microsoft (MSFT) fell over 2% after the tech-giant said it would buy online networking giant LinkedIn (LNKD) for $26.2 billion in its biggest-ever deal. LinkedIn shares surged +46.6%. In other news, shares of Apple Inc. (AAPL) fell after the company held its latest developers conference and failed to impress..
Stocks fell on Tuesday as the Fed began their two-day meeting and government bond yields continued to fall across the globe. Before Tuesday’s open, the German 10-year bund yield slid into negative territory for the first time in history. Would you lend money to Germany for 10 years and pay them? The world of negative interest rates is worrisome and the outcome can not be healthy. The US dollar rallied after retail sales rose a more-than-expected +0.5% in May, beating estimates for 0.3%. Elsewhere, import and export prices rose +1.4%, beating estimates for 0.8% which signals inflation may be rising. Stocks opened higher on Wednesday but turned lower after the Fed meeting and press conference. The Fed held rates steady and turned more “dovish” as they reduced the likelihood of more rate hikes in the future. Economic data was mixed. The producer price index (PPI) rose by 0.4% in May, beating estimates for 0.3%. Industrial production fell to -0.4%, missing estimates for -0.1%. The June Empire State Manufacturing Survey rose to 6.0, beating estimates for -3.5%.
Thursday & Friday’s Action:
On Thursday, stocks enjoyed a big positive reversal (opened lower and closed higher) after several major global central banks concluded their latest meetings. The Bank of Japan (BOJ), Bank of England (BOE) and The Swiss National Bank (SNB) did not announce any changes to monetary policy and that spooked investors and sparked a rally into so-called “safe-heaven” asset classes. Japan’s Nikkei plunged 485 points and the Yen soared after the BOJ ended its meeting. Initially, gold soared before reversing by the end of the day after becoming very extended. The USD was higher but gave back the gains in the afternoon. Stocks fell on Friday as investors could not add to Thursday’s big positive reversal. The market was dragged lower all day by Apple (AAPL) after China banned sales of the iPhone 6 and 6 Plus due because the phone looked similar to an existing Chinese phone. Intellectual property regulators in Beijing said Apple can’t sell the phones because it looked similar to an existing Chinese phone (so much for free markets).
Market Outlook: Stocks Fail At Key Resistance
The market remains range-bound and leadership remains lackluster at best. Economic and earnings data remains less than stellar but all that matters now- is the easy money from global central banks. As always, keep your losses small and never argue with the tape.

Sarhan in Reuters: #WallStreet set to open higher as focus shifts to Fed

Wednesday 6.15.16 8:55am EST
Wall Street was set to snap a four-day losing streak on Wednesday as lower chances of an interest rate hike offered solace to investors amid jitters of Britain’s possible exit from the European Union.
The Federal Open Market Committee (FOMC) will release its policy statement at 2:00 p.m. ET after a two-day meeting. Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30 p.m. ET.
Yellen had hinted at higher chances of a rate hike than the markets had priced in, but weak May jobs data and economic repercussions of a possible Brexit forced her to take a dovish stance last week.
Traders see a less than 40 percent chance of an interest rate increase until December, according to CME Group’s FedWatch tool, but will focus on the course of future hikes.
In March, policymakers dialed back the number of rate hikes this year to two from four, citing weak global growth and financial market volatility.
The Fed raised its key overnight lending rate in December for the first time in nearly a decade.
“At this point all eyes are on the Fed. The markets have been over-sold in the short-term … and this would be a good place for them to rise, but the key is will the markets be able to hold on to their gains after the Fed meeting and the conference,” said Adam Sarhan, chief executive at Sarhan Capital.
“If the markets can’t bounce then that’s an indication of how weak they actually are.”
Dow e-minis 1YMc2 were up 45 points, or 0.26 percent at 8:12 a.m. ET, with 27,393 contracts changing hands.
S&P 500 e-minis ESc2 were up 4.75 points, or 0.23 percent, with 305,987 contracts traded.
Nasdaq 100 e-minis NQc2 were up 10.75 points, or 0.24 percent, on volume of 27,631 contracts.
May producer price index rose by a better-than-expected 0.4 percent, compared with the 0.3 percent rise analysts had expected.
Freeport (FCX.N) rose 3.5 percent to $10.57 premarket after entering a funding agreement with Quaterra Resources. Freeport was the biggest gainer among S&P components.
Whole Foods (WFM.O) fell 0.7 percent after the U.S. FDA warned the grocer over unsanitary conditions in its kitchens.
Exact Sciences (EXAS.O) jumped 15.3 percent to $10.83 after Canaccord raised its price target.
Link: 
http://www.reuters.com/article/us-usa-stocks-idUSKCN0Z118O

Sarhan In CNBC: Stocks close lower; financials fall more than 1%

Tuesday 6.14.16 4pm EST
U.S. stocks closed lower Tuesday, amid declines in oil prices, as investors looked ahead to the conclusion of the Fed meeting and the U.K. vote on whether to leave the European Union.
The major averages ended well off session lows, with the S&P 500 just a touch below its 50-day moving average of 2,076.63 for the first time since May 23.
“I think short-term it was just oversold but right now we’re flirting with the 50-day moving average, an easy point for it to bounce,” said Adam Sarhan, CEO of Sarhan Capital.
Financials closed 1.45 percent lower as the greatest S&P 500 decliner. Credit card stocks traded sharply lower after a Tuesday 8K filing fromSynchrony Financial forecast an increase in net charge-offs and higher reserve builds in the coming months. In a note, Deutsche Bank called the announcement a “huge negative surprise” and was concerned the rising rate of reserve coverage indicated poorer credit quality. Shares of Synchrony closed 13 percent lower, negative for the year so far.
The Dow Jones industrial average closed about 57 points lower after earlier falling 136 points. American Express, Home Depot and Goldman Sachs contributed the most to declines.
Treasury yields turned higher in late trade, with the 10-year yield near 1.62 percent and the 2-year yield near 0.72 percent. Earlier, both yields touched their lowest since mid-February.
“The 10-year (Treasury yield) is now changing for the market from every pullback to be short-lived in scope to be potentially more damaging,” Sarhan said.
Early morning in London, the German 10-year bund yield fell into negative territory for the first time to hit a low of minus 0.034 percent. The U.K. 10-year gilt yield hit a fresh record low of 1.115 percent. The Japanese 10-year yield hit a record low of negative 0.168 percent.
Peter Boockvar, chief market analyst at The Lindsey Group, said the decline in the bund yield into negative territory was due to “momentum and speculating.” There’s a sentiment of “I don’t care if I’m buying something with negative yield, if I can flip it and buy something with more negative yield,” he said.
U.S. crude oil futures settled down 39 cents, or 0.80 percent, at $48.49 a barrel.
We’re “following crude,” said Jeremy Klein, chief market strategist at FBN Securities. “You’ve got the Fed tomorrow. Everyday you have seemingly a disappointing poll on Brexit. People are just not putting on a lot of risk right now.”
“Everyone’s waiting for tomorrow and almost more importantly, next Thursday,” he said.
The U.K. is set to vote June 23 on whether to leave the European Union. The latest Brexit poll showed a gain in the “leave” camp, according to a Reuters report of a TNS online poll published Tuesday. Late Monday,The Sun newspaper endorsed Brexit.
Sterling was near $1.4109 after hitting its lowest against the dollar since mid-April. The U.S. dollar index was up 0.6 percent, with the euro around $1.121 and the yen around 106.1 yen against the greenback.
The Federal Open Market Committee kicked off its two-day meeting Tuesday and Fed Chair Janet Yellen is scheduled to hold a press conference at the meeting’s conclusion Wednesday afternoon. The central bank is also set to release its statement and summary of economic projections.
All 41 respondents to CNBC’s Fed Survey expected Fed policymakers to keep rates unchanged at the meeting this week.
The Nasdaq composite closed mildly lower. Earlier, the index attempted gains, helped by gains in shares of Apple and Yahoo. The iPhone maker’s stock gained 0.12 percent for the day, while Yahoo closed 2.55 percent higher.
“I think people are sort of going ahead of Yellen because they rightly assume Yellen is going to be dovish,” said Peter Boockvar, chief market analyst at The Lindsey Group. He said he is also watching U.S. market action after the European market close and that markets were likely too complacent about the possibility of Brexit.
European stocks were lower, with the German DAX off about 1.4 percent and the STOXX Europe 600 falling 1.9 percent.
In U.S. economic news, retail sales rose a more-than-expected 0.5 percent in May. Ex-autos, gasoline, building materials and food services, retail sales rose 0.4 percent.
“I though it was a pretty solid report given we’re seeing deflation out there for a lot of prices,” said Steve Rick, chief economist at CUNA Mutual Group. “Basically seeing consumers didn’t roll over in the month of May even though we didn’t see much job growth.”
Import prices rose 1.4 percent, their largest gain in more than four years, while export prices jumped 1.1 percent in May. Business inventories rose 0.1 percent in April.
In other economic news, the NFIB (National Federation of Independent Business) survey said its small business optimism index rose 0.2 points to a reading of 93.8 last month, remaining below the 42-year average of 98.

Asian stocks closed mixed, with the Nikkei 225 down 1 percent and the Shanghai composite up 0.3 percent, ahead of the MSCI decision on whether it will add China’s A shares to its emerging market index. The announcement is expected shortly after 5 p.m. ET.
The Dow Jones industrial average closed down 57.66 points, or 0.33 percent, at 17,674.82, with American Express leading decliners andGeneral Electric the top advancer.
The S&P 500 closed down 3.74 points, or 0.18 percent, at 2,075.32, with financials leading four sectors lower and telecommunications the top advancer.
The Nasdaq composite closed down 4.89 points, or 0.10 percent, at 4,843.55.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, turned lower to trade near 20.5 after earlier topping 22 for the first time since Feb. 24.
About two stocks declined for every advancer on the New York Stock Exchange, with an exchange volume of 891 million and a composite volume of nearly 3.7 billion in the close.
Gold futures for August delivery settled $1.20 higher at $1,288.10 an ounce.
On tap this week:
Wednesday
8:30 a.m. May PPI
8:30 a.m. Empire State survey
9:15 a.m. Industrial production
2 p.m. FOMC statement and projections
2:30 p.m. Fed Chair Janet Yellen press briefing
4 p.m. TIC data
Thursday
8:30 a.m. Initial claims
8:30 a.m. CPI
8:30 a.m. Philadelphia Fed survey
8:30 a.m. Current account
10 a.m. NAHB survey
Friday
8:30 a.m. Housing starts
8:30 a.m. Building permits
*Planner subject to change.

LINK: http://www.cnbc.com/2016/06/14/us-markets.html