President-Elect Trump Critical Of Drugmakers

Healthcare and drugmaker stocks fell as President-Elect Donald Trump made critical comments about pharmaceutical pricing this morning.

The Indices turned lower after Trump suggested changes to how America pays for its prescription drugs. Mylan N.V. (NASDAQ:MYL), Pfizer Inc. (NYSE:PFE) and Novartis AG (NYSE:NVS) have led the declines.

MarketClub's Mid-day Market Report

Trump's critical comments of drugmakers are the latest salvo from the president-elect to target specific industries that have roiled equities.

Investors were also looking to Trump’s first press conference since July for details on the timing and scope of planned policies from infrastructure spending to trade pacts that will set the tone for financial markets in 2017.

Key levels to watch the rest of the week: Continue reading "President-Elect Trump Critical Of Drugmakers"

Here's Another Fine Mess Obama Will Dump On Trump

George Yacik - Contributor - Fed & Interest Rates

When the financial and general press get around to giving the departing Obama Administration – now just days away from happening – all the credit for the booming economy to be inherited by Donald Trump, let’s hope they don’t neglect to mention some of the messes Obama has left for the next president to clean up. Besides opening up the jails and Guantanamo, Obama will be leaving Trump with a bunch of other fiascos he created that will take years to fix and billions of taxpayer dollars to remedy.
And no, I’m not talking about Obamacare or the federal debt.

I’m referring to the burgeoning student loan crisis that has yet to reach the implosion point but that will likely happen sooner rather than later. And since it hasn’t yet reached the flash point at which time it must be addressed, that means the bubble will continue to grow until it eventually splatters onto other seemingly unrelated areas, spreading the mess farther and wider beyond anyone’s current expectations.

I call your attention to the Consumer Financial Protection Bureau’s most recent report on student loans. Continue reading "Here's Another Fine Mess Obama Will Dump On Trump"

Saudi Arabia Assumes $55 Oil Price in 2017

Robert Boslego - Contributor - Energies

Saudi Arabia's energy minister, Khalid Al-Falih, clarified his position on the cuts and oil price target. After the meeting with non-OPEC producers, there was a press conference, and the media reported that he had implied Saudi Arabia would make deeper cuts than agreed at the OPEC meeting. Also many commentators seem to think Saudi Arabia’s price objective is in the $60s or $70s.

But in conjunction with announcing Saudi Arabia's 2017 budget, Mr. Al-Falih said that the kingdom sees no need for addition production cuts than the ones already pledged by the OPEC and some non-OPEC producers. He said the market intervention is intended only to "nudge along" the re-balancing of an oversupplied global oil market. He said he expects oil prices to rise "tangibly" from the 2016 average, and assumes oil will average $55 in 2017 and $61 in 2018. OPEC's Reference Basket (ORB) was $52.25 on December 21st, so it appears prices are close to where he expects them to average next year.

OPEC Basket Price Crude Oil

Economists have estimated that the new Saudi 2017 budget is based on oil prices in a range of $47 to $55/b. Al-Falih said that the budgeted oil price is a "conservative" scenario. Continue reading "Saudi Arabia Assumes $55 Oil Price in 2017"

So The Fed Raised Rates: Why Is the Market Acting Surprised?

George Yacik - Contributor - Fed & Interest Rates

It never ceases to amaze me how some people still react to and hang on to the words of former authoritative figures long after they’ve ceased to be relevant.

The other day 76-year-old Martin Sheen – Charlie’s father, for those under 40 – led a group of liberal has-beens and C-list “celebrities” urging Republican members of the Electoral College not to authenticate Donald Trump’s election. Does Sheen really believe people still care about what he thinks, if they ever did? Guess so.

While I admit that Janet Yellen and the other members of the Federal Reserve have hardly reached Martin Sheen status as irrelevant, I have to wonder about the market’s reaction to Wednesday’s decision by the Fed to raise interest rates an entire quarter point. Why did anyone care? Continue reading "So The Fed Raised Rates: Why Is the Market Acting Surprised?"

Copper Has Exploded With Trump's Win

Aibek Burabayev - Contributor - Metals

It looks like we can name the top beneficiary of Mr. Trump’s win.

Chart 1. 1-Month Futures Relative Performance: Copper Is Unrivaled As Trump Favors Infrastructure

Copper Futures Performance
Chart courtesy of

It’s amazing that the ultimate gainer during the final election period is the metal, not the stock index or currency. Besides that in the top three, there is another metal – palladium, which is also an industrial metal (used in catalyst for the automotive industry). In the past month, which was hot and dramatic, copper topped the ranking with a +17% gain as the U.S. dollar only scored a +4% gain and the S&P 500 scored even less with a +2% gain.

I think that every shift in the White House gives people hope for positive change. Copper buyers are hoping that the new president will fix the country's aging infrastructure system, which requires an enormous amount of copper and other industrial metals to be procured. "Rebuild the country's infrastructure; nobody can do that like me, believe me," he said. Giant projects require huge expenses; Mr. Trump pledged to spend up to $500bn upgrading roads, railways, airports and bridges across the US. That’s it; it was enough for the speculators, mainly from China, to lift the price of the metal.

Is this euphoria going to continue? Let’s look at the chart below for answers. Continue reading "Copper Has Exploded With Trump's Win"