News that AT&T was in advanced talks to buyout DirecTV for $50 billion had DirecTV’s shares surging this week – climbing 3.89 percent to $90.59. (1) During a tell-all event, Trader Kirt Christensen reveals a new weekly options system that is allowing him to trade only optimal, high probability trades – read the full story here. J.C. Penney Co’s shares soared more than 25 percent after the company reported Q1 results that beat expectations. The department-store chain lost $1.14 a share versus analysts’ $1.24 a share projection, while also announcing that revenue grew for the first time in 3 years – advancing 6.3 percent advance. (2)
U.S. retail sales rose just 0.1 percent in April – missing forecasts for a gain of 0.4 percent – as consumers spent less on furniture, electronics, and eating out in addition to cutting back on online shopping. (3) U.S. producer prices rose at their fastest pace in 1-½ years in April – climbing 0.6 percent versus forecasts for a gain of 0.2 percent – as an 8.4 percent increase in meat prices had food prices jumping 2.7 percent. The Advance sent the annual rate up to a 2-year high of 2.1 percent. (4) U.S. industrial production unexpectedly fell 0.6 percent in April compared to forecasts for an unchanged reading, as warmer weather had utilities dropping 5.3 percent. (5) Investor confidence in Germany fell from 43.2 to a Jan. 2013 low of 33.1 in April “in a sign of growing concern that threats from low inflation to a strong euro may undermine the recovery.” Economists had called for a smaller decline to 40. (6) Retail sales in the U.K. surged 4.2 percent in April – exceeding forecasts for an increase of 1.8 percent – as rising home values had consumers spending more on home improvements over Easter weekend. (7) Japan’s current account surplus tumbled 90.9 percent year-on-year to an all-time low of 116.4 billion yen (1.14 billion dollars) in March versus forecasts of 305 billion yen, as imports climbed 23.2 percent on an annual basis compared to an exports increase of just 6.2 percent. (8)
Despite reporting that revenue increased 23 percent to $19 billion and global sales rose 10 percent to 621,000 units, Chrysler recorded a Q1 net loss of $690 million after accounting for $1.2 billion in charges. Excluding charges, Chrysler would have earned $486 million, up from $166 million. (9) The head educator and mentor at one of the world’s largest schools for traders is making one of their top trading techniques available to our readers for free – get the download here. Airbus’ Q1 profit soared 93 percent to €439 million ($604 million), as overall sales rose 5 percent and the aerospace group benefited from a favorable exchange rate. On an adjusted basis, Airbus earned €700 million ($963 million) – beating forecasts of €658.7 million. (10) Although Cisco Systems reported that fiscal Q3 earnings fell year-on-year, the company’s shares jumped 8 percent on Thursday after an adjusted earnings of $0.51 a share topped forecasts of $0.48. (11) Deere & Co.’s Q2 profit fell 9.5 percent to $980.7 million or $2.65 a share, as equipment sales declined 10 percent to $9.25 billion. However, the results still exceeded Wall Street’s $2.47 a share projection. (12)
In a surprise move top trader releases proof of how he is assisting some of his students in netting over $100,000 a month – read the full story here. The euro fell from a 2 ½-year high of $1.3995 to an 11-week low of $1.36505 against the dollar this week after economic growth in the euro zone missed expectations – expanding just 0.2 percent versus forecasts of 0.4 percent. (13) The yen climbed to a 3-month high of 138.78 against the euro this week, as “signs of fragility in some of the world’s biggest economies and declines in stocks spurred demand for the Japanese currency as a haven.” (14) With inflation reaching a 5-year high and economic growth falling to a nearly 5-year low, Chile’s central bank decided to keep its key interest rate unchanged and in line with forecasts at 4 percent. (15)
According to Wednesday’s EIA report, the nation’s crude oil supplies unexpectedly rose by 0.95 million barrels, or 0.2 percent, to 397.6 million barrels last week. Analysts had called for a draw of 1.5 million barrels. Gasoline supplies fell by 0.77 million barrels, or 0.4 percent, to 212.4 million barrels compared to forecasts for a draw of 1 million barrels. Distillates unexpectedly fell 1.1 million barrels, or 1 percent, to 112.9 million versus forecasts for a build of 1 million barrels. (16)
Natural gas storage rose by 105 billion cubic feet to 1.16 trillion cubic feet last week – exceeding forecasts for a build of between 97 billion cubic feet and 101 billion. Supplies are 40 percent lower year-on-year and 45 percent below the 5-year average. The news sent prices climbing 2.4 percent to $4.50 per million BTUs. (17)
Not including 2 million metric tons of grain from the recently added Crimea Peninsula, Russia’s grain harvest is expected to rise 0.5 percent year-on-year to 93 million tons. The wheat harvest is projected to fall 0.2 percent to 52 million tons, as an increase spring wheat planting area offsets a decline in winter wheat. (18) South African white corn futures dropped to a more than 2-year low of 1,952 rand ($189) a metric ton this week, after analysts called for supplies to outpace demand and farmers continue to face harvesting pressure. (19) Wheat extended its longest slump in 5 months this week – dropping for the sixth straight session to bring prices down 7.6 percent to $6.9025 a bushel from a 14-month high of $7.44 – as the USDA sees global stockpiles rising 0.5 percent to 187.4 million metric tons. (20)
Gold imports in India plunged 74 percent on an annual basis to $1.75 billion in April, as government restrictions weigh on imports – sending gold smuggling soaring to an all-time high. (21) In an attempt to break a 16-week strike in South Africa’s platinum belt, Lonmin Plc reopened its mines on Wednesday despite having not come to a wage agreement with Association of Mineworkers and Construction Union (AMCU). (22) The move came after the mines sent SMS communications directly to workers asking them to break the strike, which AMCU is now taking legal action over. (23) Lonmin claims that through the communication “they received ‘overwhelming support’ from employees for a return to work.” (24)
For the first time since 1994, Brazil’s coffee production is expected to decline during an on-year – with the USDA projecting a decline of 4.2 million bags to 49.5 million. However, the estimate sits well above other forecasts of between 44 million bags and 45 million, as the agency foresees the arabica harvest, which is estimated to decline 6.3 million bags to 33.1 million, to be partially offset by a record 16.4 million bag robusta harvest. (25) Orange production in Brazil is expected to rise 6.5 percent to 308.8 million boxes during the 2014/15 season, as orchard productivity advances 9.4 percent. (26) A report showing that sugar production at Brazil mills has fallen 13 percent year-on-year to 1.47 million tonnes had prices rising to a 6-week high of 18.28 cents a pound this week. Forecasts currently call for output to fall from 597 million tonnes to 575 million during the 2014/15 season. (27)
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