News that Sprint Corp. would buy rival T-Mobile Inc. in a stock and cash deal that could be valued at as much as $50 billion had Sprint’s shares jumping more than 3.5 percent in pre-market trading on Thursday, while T-Mobile’s shares rose more than 1 percent in. (1) A new unconventional day trading strategy is having truly uncommon results in helping consistently losing traders obtain mind-boggling returns – read the full story here. The U.S. trade deficit climbed 6.9 percent in April to a 2-year high of $47.2 billion, as imports jumped 1.2 percent to a record $240.6 billion and exports remained flat at $193.3 billion. Economists had called for a considerably smaller $41 billion deficit. (2)
After initially reporting that its U.S. manufacturing index unexpectedly fell from 54.9 to a 3-month low of 53.2 versus forecasts of 55.5, the Institute for Supply Management corrected the data just a few hours later to show an increase to 55.4. (3) The mix-up had indices swinging from a downward slide back to record territory. (4) U.S. factory orders climbed by a better-than-expected 0.7 percent in April – exceeding forecasts of 0.5 percent – as demand for defense products rose sharply. March orders were also upwardly revised from 0.9 percent advance to 1.5 percent. (5) U.S. construction spending rose 0.2 percent in April to hit a 5-year high of $953.5 billion, after residential and public construction expanded. Although the advance missed estimates for an increase of 0.6 percent, March was upwardly revised from a growth of 0.2 percent to 0.6 percent. (6) Manufacturing in China grew at its fastest pace in a year – rising from 50.4 to 50.8 in May – indicating that the government’s recent “pro-growth policies” have helped to stabilize the economy. The advance beats forecasts, which called for a reading of 50.7. (7) Eurozone inflation fell from 0.7 percent to an annualized 0.5 percent in May – adding to deflation concerns that could pressure the European Central Bank to set up measures that would support prices and increase growth. Economists had anticipated a smaller decline to 0.6 percent. (8)
Hillshire Brands’ shares jumped 9 percent on Tuesday to an all-time high of $58.50 after Pilgrim’s Pride raised it buyout offer to from $45 a share to $55– topping Tyson Food’s counter bid of $50. (9) A technique recently released by a top U.S. trading school is allowing traders to make money even in bear markets, while trading almost any stock they want – read the full story here. After reporting preliminary financial results that missed expectations, Rite Aid’s shares plunged 14 percent on Thursday. The drugstore chain expects to earn between $35 million and $45 million with adjusted earnings of $0.04 a share during the first quarter. Analysts’ projections were nearly double that at $76 million in net income with an EPS of $0.08. (10) AT&T raised its full-year revenue estimate again – up from a previous forecast of 4 percent to 5 percent – as they anticipate the addition of more than 800,000 monthly customers during the second quarter. Analysts had been projecting a growth 3.6 percent. (11)
The U.S. dollar fell against most of its major counterparts on Friday after a U.S. jobs report failed to increase bets that the Fed Reserve will speed up the timeline for a rate increase. (12) Trader reveals how in one week or less and in any market conditions traders are making a profit of up to 15 percent every week – read the full story here. In an unprecedented move, the European Central Bank cut its interest rate on deposits to minus 0.1 percent, while cutting its main interest rate from 0.25 percent to a record-low 0.10 percent in an attempt to fight off the risk of deflation. The news sent the euro tumbling to a 4-month low of $1.3575 against the U.S. dollar. (13) Despite rising house prices and strong economic growth, the Bank of England held its key rate at a record-low of 0.5 percent. (14) The Reserve Bank of Australia kept its key interest rate unchanged and in line with forecasts at a record-low 2.5 percent. (15) As anticipated, the Bank of Canada followed suit – leaving its rate unchanged 1 percent as weak growth offset a slight rise in inflation. (16)
According to Wednesday’s EIA report, the nation’s crude oil supplies fell more than anticipated last week – dropping 3.4 million barrels compared to forecasts for a draw of 100,000 barrels. Supplies now stand at 389.5 million barrels. Gasoline supplies increased less than expected – advancing 210,000 barrels to 211.8 million versus forecasts for a build of 2 million barrels. Distillates unexpected climbed by 2 million barrels to reach 118.1 million barrels compared to forecasts for a draw of 1 million barrels. (17)
Natural gas storage rose by 119 billion cubic feet to 1.499 trillion cubic feet last week – exceeding forecasts for a build of 116 billion cubic feet. Supplies are 33 percent lower year-on-year and 37 percnet below the 5-year average. (18)
Global soybean production is expected to jump 6.1 percent year-on-year to a record 301.2 million metric tons during the 2014/15 season, as harvest area climbs 4 percent to an all-time high of 292.8 million acres. (19) Corn fell to a 16-week low of $4.47 a bushel this week, as forecasts called for a record domestic crop at 13.939 million bushels and farmers boosted plantings to 95 percent of the harvest as of June 1 with 76 percent of plants in good or excellent condition. (20) After experiencing its longest slump in 15 years – finally hitting a 3-month low of $6.1075 a bushel – wheat prices were able to rebound midweek on speculation that the downturn in prices could fuel demand as more opportunistic buyers enter the market. (21)
Gold dropped to a 4-month low of $1,241.11 an ounce this week, as the S&P 500 closed at a record-high 1,923.57 and “hedge funds pared bets on a rally in the metal at the fastest pace this year as haven demand waned.” (22) According to Bloomberg, China and India consume more gold than the world’s mines produce, with China consuming an estimated 5.15 million ounces a month and India 2.85 million, while world gold mines produce just 7.44 million ounces – resulting in a 0.56 million ounce deficit per month. (23)
According to Mercon Group, Brazil’s coffee harvest will come in at 50.5 million bags this year – up from the USDA’s May estimate of 49.5 million and Brazil’s crop forecasting agency Conab’s projection of 44.6 million – as recent rains alleviate damage brought on by one of the worst droughts in 50 years. The new forecast had Arabica prices falling 0.7 percent to $1.7115 a pound – bringing prices to stand 22 percent below the 2-year high reached in April. (24) Ghana announced plans to regain its place as the world’s largest cocoa producer within the next 3 years, as industry regulators assist farmers in increasing yields from 450 kilograms per hectare to 1,000 kilograms. Ghana also raised its projection for the current season to an output of 900,000 metric tons. (25)
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