Economic and Financial News Reports and Updates

SnoQap and EcoFin have recently partnered together to provide students with opportunities to publish professional articles on the financial markets and global economy. SnoQap Financial is a community of writers that explore topics in economics, political science, and finance, founded and run by college students. Economics & Finance Society has merged operations with SnoQap Financial to provide weekly updates and market reports. Members of EcoFin have the opportunity to intern for SnoQap to strengthen their understanding of finance and economics by originating detailed and quality content.

Below are the most recent analyses of financial and economic current events. This partnership is attributed to Matthew Caputo (VP of EcoFin Society) and Alex Warfel (CEO of SnoQap Financial).

October 19th, 2017
GOING SHORT ON HERBALIFE 
By Zack LaPosta, SnoQap Financial Writer

Do you get one of those phone calls from a complete stranger? But it says Boston, New York or Chicago? You answer it anyway and they say something along the lines of this: “Hello, we think you would be a great candidate for our business opportunity.” You hear them out anyway because you’re a little interested. Turns out they want you to peddle their product to your mother, her friends and any other relative who wants to support your “dreams.” This business opportunity is exactly what William “Bill” Ackman thinks Herbalife sells; in fact, he thinks Herbalife is simply a pyramid scheme.

And he may have never discovered this if it wasn’t for Christine Richard, a research analyst at a firm which specializes in short opportunities. She had approached Ackman’s hedge fund with an extensive report on Herbalife’s business plan, outlining its possibly fraudulent compensation structure.

Bill Ackman is the activist manager of the top-tier hedge fund Pershing Square Capital Management. An activist manager buys substantial ownership of a company in order to control one or more board seats to have a greater impact in the company. Ackman’s most notable activist move was with Wendy’s International, the notable burger chain, he bought a large share of the company and pressured them to sell their doughnut chain Tim Horton’s. Although he may have succeeded with Wendy’s International, he has many failures with Valent Pharmaceutical and J.C. Penny’s leading to billions of dollars of losses for investors. Now he looks to make up for these losses, with Herbalife.

Bill Ackman initiated a $1 billion short position on Herbalife in 2012 when he discovered that Herbalife was a pyramid scheme disguised as a “multi-level marketing firm.” The difference between a pyramid scheme and a multi-level marketing firm is that in a pyramid scheme there is no real product being sold through the large layers of distributors. Instead, there are only more layers of recruitment. The structure of Herbalife is exactly like a pyramid, there is a person on top, more people below them and even more people below them and so on. In order to make money selling Herbalife product, you need to have people in your “downline” or below you. The more people below you, the more money you make. Herbalife’s “product” is nutrition supplements. 

​So Bill Ackman has been borrowing $1 billion of Herbalife shares over the years and selling them to other investors to create this short position, one he has held for 5 years. The person lending these shares must be compensated somehow for their opportunity loss on the shares. This is why Bill Ackman has been paying almost $100 million a year to maintain this short position, an ode to his confidence in this position. In addition to this yearly maintenance fee, Ackman initiated a $50 million campaign to try and spread his view on the fraudulent business structure of Herbalife.

The best way for Ackman to cash out on his Herbalife potion was for the Federal Trade Commission (FTC) to investigate the company’s compensation structure. If this were to happen the way Bill Ackman wanted, then Herbalife share price would plummet or go to zero. It turns out the FTC did investigate Herbalife, and they found that the company would only have to slightly modify its compensation structure and pay a mere $200 million fine. Not exactly what Mr. Ackman was looking for, but a step in the right direction.

While Ackman is trying to convince Wall Street that Herbalife is a pyramid scheme in order to cash in on his short, his arch nemesis is doing the exact opposite. Carl Icahn, of Icahn Enterprises and Icahn Capital Management, and Bill Ackman have a long history of opposing each other and this feud has never been stronger than it is today. In order to spite Bill Ackman, Carl Icahn took a substantial long position in Herbalife, 24% of the company. A long position is an investment with the sentiment that the stock price will increase over time. Icahn may not even be doing this because he thinks Herbalife is a good investment but possibly just to damper Ackman’s short position. This action, of buying a multitude of shares of a company that someone is short on to drive up the share price, is called a short squeeze.

As Ackman is dealing with Icahn’s short squeeze, Herbalife proposed several ideas including a direct buyback of $600 million of shares in the price range of $60-$68 and even returning as a private company. All these scenarios not ideal to Ackman’s cause. As of right now, the odds of Ackman’s $1 billion Herbalife cashing out to potential are slim, he is stuck between a rock and a hard place. But, he is an extremely passionate activist manager who is in dire need of positive returns for his investors and I have no doubt he will do whatever it takes to generate these returns. 

*If you would like to download a PDF version of the article you may do so here.

October 11th, 2017 
ANALYSIS OF EARNINGS: OPERATING VS. NON-OPERATING INCOME
By Nick Coletta, SnoQap Financial Writer

If you follow the stock market with the slightest bit of intensity, you may notice the frenzy that happens every quarter when companies release their earnings.  You may think it is a little ridiculous how certain companies may increase their earnings, but miss analysts’ expectations and their stock price goes down.  There’s also the case where a company beats analysts’ expectations but they do not consider it “healthy” growth and the stock price goes down.  When I first started analyzing the stock market, I thought this was absolutely ridiculous.  However, as I have researched more, it has become obvious that there are really good reasons for the frenzy.  There is a difference between having high earnings and having quality earnings.

The best way to find quality earnings is to dissect the three financial statements: the balance sheet, the income statement, and the statement of cash flows.  As you may have seen, the title of this article is saying we’re going to analyze the difference between operating vs. non-operating income and what this means for the quality of earnings.  To understand the differences between high and quality earnings, and how to properly analyze them for investment purposes, we first need to understand what each one is on a fundamental level.

Operating Income:
To understand the operating income of a company, you need to understand the fundamental purpose of that company.  For example, when you think of Apple, what is the first thing that comes to mind?  If you said a fruit, you’re not wrong; you’re just in the wrong place.  When people hear the word Apple, they mostly likely think of an iPhone or one of their “I” products.  Well, that is exactly where the operating income from Apple comes from.  It is the income that a company gets from the operations of their business. Basically, it’s the income from what the business is in business for.

The place to locate operating income is on the very top of the income statement which will be the line that says “Revenues.”  After revenues, there will be a subtraction of the cost incurred to earn those revenues, most of the time called, “Cost of Goods Sold.”  The line right after that will be the companies “Gross Income.”  The gross income is the profit the company is making from their operations less (minus) what it costs the company to perform their operations.  For Apple, the cost of goods sold would be all the materials that went into their products and the direct labor required to produce them.

After we subtract out the Cost of Goods sold, we then need to subtract out operating expenses, which are all the indirect things the company has to pay in day to day operations.  Operating expenses include (but are not limited to) marketing expenses, administrative expenses, fuel, insurance payments, etc.  Basically, it’s all the operations of the company that does not go directly into making or doing whatever that company does.  After operating expenses are out, then we subtract out depreciation and amortization to arrive at our operating income!  Wasn’t that fun?  Here are the equations since you’re probably having a difficult time visualizing this in an article format!
Gross Income = Revenues – Cost of Goods sold
Operating Income = Gross Income – Operating Expenses – Depreciation – Amortization 

Now, what is non-operating income and how does it affect earnings?
Non-Operating (nonrecurring) Income:
Now that we understand operating income, we can analyze what non-operating income is and why it is important for investment analysis.  Let’s go back to our Apple example.  Apple is clearly in the business of making technology and selling it to a large base of consumers.  This is what goes directly into their revenues.  However, what if Apple sells one of its manufacturing buildings?  Or what if their financial analysts make a killing in the stock market for a year?  If you guessed that this revenue goes into non-operating income, then you’re probably too smart to be reading my articles (just kidding, please stay).  Non-operating income is income (or expenses) that come from transactions that are not related to the day-to-day operations of the company.

This seems easy, right?  Well, nobody said it was difficult!  However, it is often overlooked by the average investor and it can have a huge effect on year-over-year earnings which will indubitably have a large effect on the stock price.  For example, let’s say that a paper company run by a hilarious owner has 1 million outstanding shares of common stock and they earned $5 million last fiscal year.  Therefore, they have earnings of $5 per share.  Somebody comes up to you and says that this company has increased their earnings by 25% over last year (went from $4 to $5) and it needs to be invested in now before the stock price reacts!  What should you do?  Well, first don’t take investing advice from strangers (I see the irony) and second you should do your own research in order to be confident in your decision.  After some research, you realize that the company had a non-operating income of $1.2 million dollars from the sale of one of their buildings.  What does this mean?  This means that this company actually had a year over year loss of $200,000 in operating income.  While your friend is investing their hard earned money, a quick check of the income statement saved you from making a poor investment.

You might be saying, “That’s it?  That’s all I have to do?”  Well, pretty much!  There are times where companies may try to lie and put items that should be nonrecurring/non-operating income into operating income to make their earnings look healthier than they really are.  However, unless you’re an analyst working for an investment company, there’s no reason to pull your hair out trying to find this rarity.  That’s what we have our lovely accountants for, to make sure that the information is in the right spot and is in accordance with GAAP.  The next time you see a company beat their earnings but their stock price goes down, just take a gander right under income from operations and see what nonrecurring/non-operating income says!  Who knows, it might save you from a big mistake one day.

*If you would like to download a PDF version of the article you may do so here. 

Weekly Market Reports

May - Week 1
Macro News
Crude oil futures ended the week at an advance, but still have resulted in a monthly loss as signs of further gains in U.S. crude output and OPEC’s extended output cut decision leaves prices anxious. The U.S. Federal Reserve is expected to highlight interest rates at its meeting this week while it hesitates to analyze more economic data. The FED is said to hint at an increase in rates during June.
Industry Specific News
Apple shares (NASDAQ: AAPL) jumped 2% and set a record high this week, supporting the three major Wall Street indexes. Apple Inc. is due to report its earnings results on Tuesday. Major U.S. stock indexes gained on Friday, with the S&P 500 ending at a record high close, as energy stocks rebounded along with oil prices and U.S. job growth. In the corporate sector, IBM shares fell 2.5% after Warren Buffett sold about 33% of Berkshire Hathaway Inc.’s stake in the company. Also during the week, shares of health insurer Cigna and IT services provider Cognizant rose after their earnings were reported.
Global News
Greece and its foreign creditors have reached a deal on Tuesday. This includes a set of bailout modifications. Greek Finance Minister Euclid Tsakalotos said, that this will pave the way for the disbursement of further rescued funds. The deal also entails labor and energy reforms as well as pension cuts and tax rises.
USA News
Late this week, the House voted to repeal major portions of the 2010 Affordable Care Act, or Obamacare, and replace it with a Republican healthcare plan, which was sent to the Senate for review. The bill's passage comes after House Republicans pulled healthcare legislation earlier this year, which resulted in a major setback for the party.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: CNBC, Seeking Alpha, Reuters

​April - Week 4
Macro News
Crude oil futures plunged to a four-week low on Thursday April 27th. On the same day, the euro turned decisively lower, as ECB (European Central Bank) President Mario Draghi stressed that the Eurozone’s economic outlook remains unsure.
Industry Specific News
The six largest U.S.-based corporations summed $2.03 trillion in combined market capital, based on Wednesday’s closing prices. Among these companies are, Alphabet Inc. (NASDAQ: GOOGL), Microsoft Corp. (NASDAQ: MSFT), Amazon.com Inc. (NASDAQ: AMZN), Comcast Corp. (NASDAQ: CMCSA), Intel Corp. (NASDAQ: INTC), and Abbvie Inc. (NYSE: ABBV) In the consumer goods sector, Under Armour Inc. (NYSE: UA) displayed its first quarterly loss as a public company on Thursday. Also, shares of Mattel Inc. (NASDAQ: MAT) fell 13.6% following the release of the company’s first quarter financial results.
Global News
Equities in Asia furthered gains for a third session early Wednesday. Such firms were among the morning’s stars, with Mitsubishi Motors (OTC: MMTOF), -0.70% and Sharp (OTC: SHCAY), -0.47% gaining some 2.5%. Down 30% from its highs, Nikko AM’s Stefan Hansen says iron ore prices will be derived by Chinese reforms. A weaker yen makes it cheaper for Japanese exporters to ship their goods around the globe.
USA News
U.S. national security leaders stressed economic sanctions and diplomacy to influence North Korea to dismantle its nuclear weapons and ballistic missile programs. On Wednesday, White House officials released President Donald Trump’s proposed tax plan. A brief outline of the plan consists of: cutting the number of income tax brackets from seven to three, with a top rate of 35% and lower rates of 25% and 10%. The proposal will chop the corporate tax rate to 15% from 35%. It would eliminate tax deductions, with only a few exceptions, including the mortgage interest and charitable contribution deductions.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: Barron’s, Bloomberg, CNBC, MarketWatch, Yahoo Finance 

April - Week 3
Macro News
The S&P 500 fell 0.3%, with telecommunications weakening more than 1% to top decliners. Energy was also among the decliners, dropping 0.4% as U.S. crude dropped 2.15% to settle at $49.62 per barrel. The Nasdaq composite closed 0.1% lower. The euro rose against the dollar for the second straight week. Exchange-traded fund holdings climbed to its highest since December. Gold rallied this week to a five-month high as silver fell for a third day on the Comex. Platinum rose on the New York Mercantile Exchange while Palladium rose by the most since January.
Industry Specific News
Morgan Stanley (NYSE: MS) said its quarterly earnings rose 70%. Notably, the firm's results were specifically due to fixed-income trading. Goldman Sachs Group Inc. (NYSE: GS) faced a stock decline due to missed first-quarter earnings; the investment banking giant’s share fell 4.7%, or $10.67, from its Monday close of $226.26. International Business Machines Corp. (NYSE: IBM) did not rebound in share price the day after its stock plunged due to poor earnings. The stock fell again the second day after the announcement, down 1.2% to $160.38. Women's clothing retailer Bebe (NASDAQ: BEBE) is closing all of its stores, according to a filing with the Securities and Exchange Commission.
Global News
Financial markets are jittery ahead of the closely watched first round of the French presidential election on Sunday. The CAC 40 fell 1%, while the pan-European STOXX 600 index was down 0.1%. Japanese stocks rose to week highs on Friday as global investors bet that U.S. tax reforms are gaining, but Fujifilm Holdings (TYO: FUJIY) tumbled after postponing the release of its earnings because of an accounting probe. The Nikkei 225 share average gained 1.0% to 18,620.75, its highest closing level since April 11th. For the week, it gained 1.6%, posting its first weekly gain in six weeks.
USA News
U.S. Vice President Mike Pence said on Saturday the United States would honor a controversial refugee deal with Australia, under which the United States would resettle 1,250 asylum seekers. The Trump administration will not grant special permission to U.S. companies, including Exxon Mobil (NYSE: XOM), to carry out oil and gas drilling in Russia while sanctions remain intact. The Trump administration will soon unveil a tax reform plan that is expected to be approved by Congress.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: Bloomberg, CNBC, Marketwatch, Yahoo Finance, Reuters 

April - Week 2
Macro News
Oil futures settled higher on Monday, with prices up a fifth consecutive session. Geopolitical tensions are increasing, following last week's U.S. airstrike on Syria and the recent closure of Libya's largest oil field. This continues to raise concern over disruptions to global crude oil supplies. Also, Saudi Arabia is set to cut oil output to the lowest rates since January. Additionally, Gold and silver prices notched their third straight session climb on Thursday, and were strengthened as the U.S. dollar fell after U.S. President Donald Trump said the currency has been trading at “too strong” a level.
Industry Specific News
Retail job losses are far from over as more store closures emerge. On Monday April 10th, Tesla (NASDAQ: TSLA) passed General Motors to become the most valuable U.S. automaker. Also on Monday, Microsoft (NASDAQ: MSFT), eBay (NASDAQ: EBAY), Tencent (OTC: TCEHY) invested $1.4 Billion in Amazon’s rival, Indian e-commerce startup Flipkart Group. Needham analyst Kerry Rice, projects Amazon’s shares at an $1,100 price target. Samsung (OTC: SSNLF) says its new phone is selling well, presenting signs that consumers are over the Galaxy Note 7 crisis. Tuesday, United Continental Holdings (NYSE: UAL) shares fell as much as 6.3% in pre-market trading, dropping $1.4 billion from the now $21 billion company by market cap. Wal-Mart announced Wednesday, to offer discounts on online sales for collections at stores, while slashing hundreds of corporate jobs.
Global News 
Société Générale (EPA: GLE) sees euro rebounding to as high as $1.11 in December. More than 40 people were killed in two bomb attacks on Coptic Christians celebrating Palm Sunday. The UN condemns the Syrian chemical attacks, while Russia condemns the U.S. airstrike on Syria. Air China (HKSE: 0753) is suspending flights between Beijing and the North Korean capital of Pyongyang, as North Korea is preparing for their 6th Nuclear Test.
USA News 
President Trump declines to endorse top adviser Steve Bannon, and says the U.S. is “not going into Syria.” President Trump says he’s still thinking about repealing the Dodd-Frank law. Trump also says that he has to, “pass a health bill before tackling tax-reform.” Federal Reserve Chair Janet Yellen spoke and participated in a Q&A session at the University of Michigan Ford School of Public Policy on Monday. Yellen said, “the U.S. central bank’s task has shifted from a post-crisis exercise of healing the economy, to one aimed at holding on to the progress made.” The U.S. military dropped America's most powerful non-nuclear bomb on ISIS targets in Afghanistan Thursday, the first time this type of weapon has been used; according to U.S. officials, the bomb killed 94 ISIS members. The U.S. dollar falls short for the week as stocks fell Thursday to close at session lows, completing a three-day losing streak. U.S. Stock Markets are closed on Friday April 14th, in observance of Good Friday.  
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: CNBC, CNN Money, MarketWatch, Reuters, The Wall Street Journal

April - Week 1
Macro News
To wrap up the week, benchmarks finished in the green on which were, boosted primarily by energy shares following a rise in U.S. oil prices. Crude oil prices closed nearly at a one-month high. Gold prices hit a fresh five-month high; a day after U.S. President Donald Trump said he preferred a weak dollar and low interest rates.
Industry Specific News
Early this week, NASDAQ was driven by a continued strong performance from the technology stocks. Apple Inc. (NASDAQ: AAPL) which climbed 24% in the first quarter, continued to lead the tech stocks higher. The Energy Select Sector SPDR (ETF: EXC) rose 0.8%. Some of its key holding, including Halliburton Company (NYSE: HAL) and EOG Resources Inc. (NYSE: EOG) both gained by 0.6% and 0.5% respectively. Sunoco LP (NYSE: SUN) signs a $3.3B Deal with 7-Eleven. Per the deal, Sunoco will sell around 1,100 convenience stores and gas stations in Texas and other states to 7-Eleven. J.P. Morgan (NYSE: JPM), and Citigroup Inc. (NYSE: C) score massive gains, as trading beats lending at the bank giants.
Global News
Greece has been talking to its European lenders this week, trying to reach a compromise on economic reforms in order to unlock the next payment from its latest bailout, agreed in 2015. European Central Bank President Mario Draghi pushed back against suggestions the ECB might raise interest rates soon, warning it was too early to start winding down monetary stimulus. European stock markets opened between 0.3% and 0.5% lower, while Asian markets ended the session mostly lower. The Dow Jones Industrial Average (DJI) gained 0.1% to close at 20,662.95. The S&P 500 (SPX) rose 4.54 points or 0.2% to close at 2,357.49. The tech-laden Nasdaq Composite Index (COMP) closed at 5,878.95, gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) declined 3.9% to settle at 12.39. Advancers outpaced declining stocks on the NYSE. For 73% stocks that advanced, 23% declined. The Dow recently fell by triple digits and the NASDAQ, after hitting an all-time high in the first half-hour of the session, has reversed course significantly. U.S. stock futures are edging lower Friday.
USA News
The U.S. Labor Department released its latest jobs report Friday, showing hiring slowed in March. Employers added only 98,000 jobs, compared to 235,000 jobs added in February. Still, the unemployment rate dropped to 4.5%, the lowest in 10 years. Investor kept a close watch on the outcome of the meeting between President Donald Trump and his Chinese counterpart President Xi Jinping. In the meeting, Trump pressed Xi to do more to curb North Korea's nuclear program and the two agreed to a 100-day plan for trade talks aimed at boosting U.S. exports and reducing the gaping U.S. trade deficit with Beijing. The U.S. launched more than 50 Tomahawk cruise missiles against a Syrian air base Friday, the first U.S. military operation to deliberately target the regime of President Bashar al-Assad, in response to a chemical-weapons attack.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: CNBC, CNN Money, The Wall Street Journal, Yahoo Finance

March - Week 4
Macro News
Oil prices edged lower on skepticism over a delay of an OPEC output cut. Gold ended lower due to a recovering U.S. dollar. As for international currency, the Mexican peso is the biggest winner in the currency markets in March. The Dow Jones Industrial Average notched its longest losing streak in nearly six years, but finished the week ending its eight-session losing streak with its best day since the start of the month. The Nasdaq Composite rose, notching a fourth straight session of gains from biotech stocks. The S&P 500 logged its biggest quarterly gain since 2015, lifted by a brightening economic outlook and rising confidence among businesses and consumers.
Industry Specific News
Citi Research (NYSE: C) lowered its rating on Corning Inc. (NYSE: GLW) to neutral from buy, saying the glass and specialty materials maker is fully valued after a significant increase in its share price. Blackrock (NYSE: BLK) shifts toward a stock-picking machine defining a broader impact of technology within the investment management industry. Shares of BlackBerry (NASDAQ: BBRY) surged nearly 15% on Friday after the company reported sales that topped Wall Street's forecasts. The company also beat estimates with its adjusted profit, a figure that excludes restructuring charges and other expenses. In consumer news, there is optimism over economic growth, although consumer confidence soared to the highest levels since 2000.
Global News
European markets opened in negative territory as global investors eyed a rising dollar overnight and awaited fresh economic data. Prime Minister Theresa May has launched the official process of the United Kingdom’s exit from European Union. South Africa has fired its financial minister, sending the country's currency crashing; the rand crashed nearly 4% against the dollar after President Jacob Zuma expelled Pravin Gordhan, sending the country into a new round of economic uncertainty.
USA News
Stocks fell as prospects dimmed for a health-care bill that many investors say could test the viability of the Trump administration’s agenda. This led to the biggest weekly decline for major stocks indexes in months. U.S. indexes later climbed, due to gains in stocks of financial companies. Trump is set to meet with Chinese President Xi Jinping. China is America’s biggest trading partner, the relationship is worth about $663 billion annually, but the U.S. has a trade deficit with China because it buys a lot more of its goods and services than the other way round.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: CNBC, CNN Money, The Wall Street Journal 

March - Week 3
Macro News
In the European Union, the European Central Bank ends the "Targeted Longer-Term Refinancing Operation" which gave four-year loans at a zero percent interest rate (Zero-Coupon Bond). The "net take-up" was the largest considering potential European Central Bank rate-hikes to scale back on monetary accommodation (aimed at increasing economic activity through lower interest rates making borrowing cheaper and easier for businesses and individuals). Banks were estimated to take from 30-750 billions euros of these long-term loans at zero interest. The economic outlook and monetary policy of he ECB is to tighten monetary policy, increase interest rates, and ease the political and economical unrest of referendums to exit the EU, presidential elections, and the debt crisis.
Industry Specific News
In the retail sector, Sears (SHLD: NASDAQ) faces the possibility of bankruptcy due to the loss of $10 billion. Competitors to Sears, such as. Macy's, Kohl's, J.C. Penney, and other retailers continue to operate in a heavily weighted e-commerce retail environment dominated by Amazon. According to Fortune, Since Eddie Lampert, hedge fund manager and current CEO & majority shareholder of Sears, merged Kmart and Sears in 2005, sales growth has been non-comparable to profitable years. Since 2010, Sears has lost around $10 billion in which it was forced to sell-off many of its profitable stores and properties (real estate). Sears is definitely a company to keep an eye on as the story unfolds.
Global News
In London, on Wednesday, March 22, the European city known for its financial derivatives, suffered a tragic terrorist attack, leaving four dead and 29 severely injured. The United Kingdom is currently working on easing the exit on March 29, 2017, which has created potential risk to the EU and the UK.
USA News
Under pressure, President Donald J. Trump and Administration rush to pass the American Healthcare Act, l to "repeal and replace" current Patient and Affordable Care Act (Obamacare). However, not only does all of Democratic Congress oppose the proposed plan by the Trump Administration, but the Conservative House Freedom Caucus disapproves the bill as well. According to a NBC News report, approximately 28 House Republicans oppose and six of those Representatives must switch to approve for  President Trump's GOP Healthcare bill to survive. Ultimately, if the AHA is approved. the Congressional Budget Office estimates 24 million people will lose their insurance by 2026 if they are currently covered under Obamacare.
Authors: Matthew L. Caputo
Sources: Bloomberg, Fortune, NBC. Seeking Alpha, Wall Street Journal

March - Week 2
Macro News
The Oil Industry continues the dramatic decrease of a price per barrel. Western Texas Intermediate trades at $48 and is estimated to continue its fall. Bloomberg reports that the Federal Reserve is set to have two meetings on Tuesday and Wednesday, in which economist expect three additional rate hikes for the months of March, June, and December.
Industry Specific News 
Intel Corp. (INTC:NASDAQ) announced that it will buy Israeli car-camera pioneer Mobileye NV(MBLY: NYSE) $15.3  billion. 
Global News
The UK Parliament has approved the bill that will allow Britain to enter negotiations to leave the European Union. Additionally, the Wall Street Journal reports that Asian and Latin American countries are pursuing independent trade negotiations without the U.S. in response to President Donald J. Trump's isolation proposed policies and rhetoric. On March 14, 2017, Britian's Parliament passed legislation to leave the European Union allowing Prime Minister Theresa May to enact Article 50 of the Libson Treaty. The British Pound was trading around $1.22 showing no reactions to the announcement of negotiations of an official exit by the end of March.
USA News
According to a U.S. News report,  the proposed healthcare plan by the GOP is estimated to reduced the amount of insured Americans by 24 million. On March 14, Bloomberg states that the "mid-Atlantic and northeastern United States" is estimated with a blizzard of 20 inches of snow to the financial capital (New York City). Airflights and school were cancelled disrupting markets and business. In accordnace with a Bloomberg chart that measures the percentage of respondents, "news heard on government policy getting record positive mentions" has reached an all time high of 28% breaking records in the last 40 years. Although President Trump has a 49.7% dissaproval rating and 44.3% approval rating, the business sentiment, confidence, and optimism of America is surging. Volatility S&P 500 (VIX) and correlation continue to float around 12.30. Are investors overestimating and speculating on how strong President Trump's fiscal stimulus, deregulation, and tax cuts will be for the economy? President Trump's "America First" and protectionist polices are not as feared in developing and emerging economies which is attracting investors to chase higher yields and returns overseas, according to a Bloomberg Makets report. 
Authors: Matthew L. Caputo, William Woo
Sources: Bloomberg, Seeking Alpha, Wall Street Journal

March - Week 1
Macro News
According to Secretary General Mohammad Sanusi Barkindo of OPEC, he is uncertain that OPEC and non-OPEC fossil fuel producers will continue to cut productions post-May, but compliance has been great so far. On March 6, Western Texas Intermediate crude oil was trading around $52.94. Also, Gold continues to rise in price, hitting a high of $1,230.50 per ounce.
Industry Specific News
Both the United States of America and United Kingdom indexes hit record highs on March 1st, leaving many investors bullish and confident on growth speculations announced by new administrations. Snap, Inc. (SNAP:NYSE), had an Initial Public Offering (IPO) on March 2, 2017, which opened off-market at $17, on-market at $24, and peaked at $27.09. Word on the street is to sell Snap, Inc. because it is the next Twitter, not Facebook. Simply, it's too simple of an app, has no true platforms, and loses a lot of money. In the coming months, investors talk about products like Snap's "Spectacles" and a Snap drone that live-stream and record video onto a Snap "Story." According to Bloomberg, Deutsche Bank AG plans to release a Seasonal Offering of approximately 8.5 billion in equity.
Global News
European Inflation has rapidly increased to its fastest rate since January of 2013. Predictions from analysts are that the inflation rate will reach 2% which may cause the European Central Bank to refrain from continuing its "monetary stimulus programs." 
USA News
On March 3, Janet Yellen and Stanley Fischer spoke strongly about rate hikes for March which discussions for a increase continue this week. The Ten-year Treasury Yield reached a high of 2.61% on March 10 as a result of the jobs report release 235,000 new non-farm (construction, private educational services, manufacturing, healthcare, and mining) payroll employees and a slight change of 4.7 percent in unemployment rate. Also, Bloomberg reports that the POTUS Donald Trump will revisit the Travel Ban on a list of six predominantly Muslim-based countries, which no longer includes Iraq. According to Pew Research Center, the six countries banned from travel to the United States of America are Iran, Libya, Somalia, Sudan, Syria, and Yemen.
Authors: Matthew L. Caputo, William Woo
Sources: Bloomberg, New York Times, Pew Research, Seeking Alpha

February - Week 4
Macro News
The Federal Reserve announces a high probability of a March Rate Hike as the health and confidence of the USA Economy and business sentiment continue to rally with a suspected positive jobs report next Friday, March 10, 2017.
Industry Specific News
According to Bloomberg, Deutsche Bank AG has plans to decrease bonuses by a whopping 80% which have affect on a estimated 25,000 employees of the global investment bank.
Global News
In France, the bond market rallies strong with a increase in the 10-year yield of 0.888% due to Francois Bayrou's endorsement of presidential candidate Emmanuel Macron. Bloomberg reported that Emmanuel Macron, leader of the Independent Party, is closing the lead between Marine Le Pen (Right-Wing Populist)  and Francois Fillon (Republican Party Leader). Additionally, Scotland is taking the steps to leave the European Union after the United Kingdom's Brexit attempts have caused uncertainty in the Eurozone. Finally, Asian Markets continue to stagnate with small percentage decreases. In China, the Purchasing Manager's Index (PMI) reports a healthy rise of 51.6 in China's manufacturing sector. Similarly, in the Euro-zone, manufacturing rose to 55.4 indicating a strong increase in "new orders, inventory levels, production, supplier deliveries and the employment environment."
USA News
According to a Bloomberg report, President Donald J. Trump calls for major federal agency budget cuts (i.e. Environmental Protection Agency, Federal Bureau of Investigation, and Central Intelligence Agency). However, he plans to increase the Defense Budget to strengthen the United States Military. On February 28, POTUS Trump addressed Congress for the State of the Union and presented a general "America First Agenda." According to a CNN news televised report, President Trump's address was nonspecific and avoided in-depth analysis of the details for some of the plans he will enact as Commander of the United States of America.
Authors: Matthew L. Caputo, William Woo
Sources: Bloomberg, CNN, Bureau of Labor Statistics , Investopedia, Seeking Alpha

​February - Week 3
Macro News |Written Stephen LoCastro|Edited by Matthew L. Caputo|Source Used Bloomberg Economics, U.S Bureau of Economic Analysis (BEA)|
Unemployment is hovering around 4.8%, compared to a high of 10.0% percent during September 2009 according to the U.S. Bureau of Labor Statistics. The BEA states that Real GDP has increased 1.9%. These major macroeconomic indicators corroborate and reflect the facts that there have been intermittent surges in consumer spending, private inventory investment, and state and local government spending as well. Existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops closed out 2016 as the best year in a decade. 5.45 million sales were recorded. Low mortgage rates and creation have contributed to the extremely bullish housing market, even amidst lower inventory levels and affordability tensions. Many chief economists would argue affordability tensions are at an all time high specifically for first-time buyers in certain census tracts due to sweeping gentrification among inner-city. Still, 30-year, conventional, fixed-rate mortgage commitment rates have swelled from 3.77% to 4.20%. Even though the U.S. Government contends that the macro-economy is experiencing a major upswing, many would argue that the citizens’ consumer confidence and optimism is still reeling from the Great Recession in a “bear-market” state. People are arguably more careful to invest and spend. According to the Conference Board Consumer Confidence (CPI) Index, based on probability-design random sample, retreated to 111.8 so far in 2017 compared to 113.3 in December. All of these macroeconomic variables definitely reflect economic climate as a whole.
Industry Specific News
The Dow Jones completed its seventh consecutive record close at 20,624.05, pushing major U.S. indexes and corporate earnings to new heights. Goldman Sachs (GS) closed at a bullish 250.38 a share. The materials sector is poised to outperform itself in 2017 because of the new Trump administration. Concurrent with Keynesian economic thought, one of expansionary fiscal policy, the POTUS has proposed begin widespread U.S. infrastructure spending. Stocks including VMC (Vulcan Materials Co., MLM (Martin Marietta Materials), and ABX (Barrick Gold Corp) look very promising, all substantially outperforming the S&P 500 as a benchmark.
Global News
Global arms sales over the last five years reached their highest level since with India as the world’s largest defense importer, alongside Saudi Arabia, United Arab Emirates, China, and Algeria. Due to serious geopolitical threats countries endure from nuclear-armed from Parliamentary republics and sovereign states, deepening their defenses is required.
USA News
Along with Ex-United States Attorney General Sally Yates, President Trump senior National Security Council staffer Craig Deare of his duties over remarks about the Administration’s Latin American policies. He reportedly criticized President Trump’s relations with Mexico, in the midst of ICE enforcement operations, which produced 700 arrests around the United States, targeting convicted criminals who re-entered the country after being deported.
Author: Stephen LoCastro
Editor: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha, Wall Street Journal

February - Week 2
Global News |Written by - Thomas Miller|Edited by - Matthew L. Caputo|Source used - Wall Street Journal|
With the election of Donald Trump, the United States has quickly seen a rise in activity to reform policies dealing with imports and tariffs. For example, the proposition repealing TPP and NAFTA potentially put major international trade links at risk. One of the more recent targets of the proposed trade tariff is on China. The Trump Administration has proposed a 45% tariff on Chinese imports poses a major risk to the entire country. The U.S is a country that heavily relies on Chinese imports and will undoubtedly see a surge in prices for these goods. As a result, this could impact global markets because a hypothetical decrease in foreign demand for U.S. exports. USA based firms that are globally connected may have to cut labor due to higher costs and a decrease in sales from foreign nations. Theoretically, there is cause for concern, but military action by North Korea this weekend could possibly alleviate some of the economical trade issues. Trump decided to stand with Japan in the wake of North Korea’s missile testing executed in the Sea of Japan. This alliance could be seen as a positive stepping stone for US - Asia relations, which could potentially lead to a change of trade policy towards Asian markets by the Trump administration. Over the next few weeks, we will most likely see if this change of tone will occur between the trade and tariff relations of Asia and the Trump Administration.
Author: Thomas Miller
Editor: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha, Wall Street Journal

February - Week 1
Macro News
Gold hit a whopping $1226.90 per ounce, which is a high since November around the United States Presidential Election Day. Crude oil is listed at $53.96 per barrel of Western Texas Intermediate. 
Industry Specific News
Rewinding the clock back to yesterday, in the Super Bowl LI, the New England Patriots attracted 111.9M viewers. The cost of advertising and marketing during the Super Bowl averaged $5M per 30-second commercial. Fox Sports (NASDAQ: FOX, FOXA), who has the right to broadcast the Super Bowl, had positive market price increases after a historic comeback and first-ever overtime performance between the New England Patriots and Atlanta Falcons. Final score was New England Patriots 32 - Atlanta Falcons 28.
Global News
In the French Presidential race, Marine Le Pen publically released her policy to end the independence of the Bank of France, return to a native currency (deserting the euro), and launch radical measures to change the "banking and monetary system, European union membership, trade, industry, taxes, immigration, foreigners, national identity, security, terrorism, labor laws, retirement, liberties, and the electoral system." Marine Le Pen is seen as a "far-right" candidate which will be interesting to see how the French election race plays out. In Germany, factory orders increased by 5.2 percent which is a healthy indication of economic progress.
USA News
U.S. District Judge James Robart ruled against President Donald Trump's immigration ban. It is likely that the Supreme Court will review the case. According to Bloomberg, around 97 companies filed a voluntary brief to the Ninth Circuit Court of Appeals. The summary from the group of firms stressed how important the role immigrants play in the United States economic and societal environment. On the economic calendar for today is US Consumer Spending Measure, Labor Market Condition Index, and the Investors Movement Index (IMX).
Author: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha

January - Week 4
Macro News
The OPEC deal that cut oil production has given rise to a bullish position on Western Texas Intermediate. According to the  U.S. Commodity Futures Trading Commission, hedge funds have increased their "net-long position" on oil to the an all time high since ten years ago. A single barrel of Western Texas Intermediate is trading around $53.36.
Industry Specific News
Wall Street Journal Stock Market Data & Financial Analysis
Global News
Germany's inflation rate (CPI or Consumer Price Index) exceeds 2%. Meanwhile, in France, Benoit Hamon is declared victor over the Socialist primary in which he will face the favored candidate Francois Fillon, Emmanuel Macron (independent), and Marine Le Pen (right wing conservative). German and French 10-year treasuries spread has expanded by 4 basis points.
USA News
President Trump has taken steps to continue the construction of the Keystone and Dakota Pipelines. What to look out for this week in economic data releases: personal income and spending data on January 30, 2017, First annual Federal Reserve Open Markets Committee meeting on January 31, 2017, and non-farm payrolls data released on February 3, 2017. Something to think about, which sums up what the economy and business will consist of under Republican President Donald Trump, "Trump is most motivated by trade deals and immigration. Investors say they're excited about deregulation and fiscal stimulus." -Bloomberg.
Author: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha, Wall Street Journal
​
January - Week 3
Macro News
​A hard Brexit has given rise to corporate concerns regarding obstacles the United Kingdom will have by exiting the European Union. Even with strong performance of the UK economy post-Brexit vote, the challenges expose Britain to many risks. New Zealand is becoming the "safe haven" for wealthy individuals during times of "market turbulence and economic weaknesses." With the political uncertainty of trade agreements affecting the financial markets, New Zealand's currency has increased from .69 to .73 and surging closer to 1.
Industry Specific News
​Trump meets with the "Big Three" automakers GM, Ford, and Fiat Chrysler for breakfast, on Tuesday, January 24, 2017, to discuss boosting U.S. employment by bringing manufacturing plants back to America.
Global News
Real Estate is becoming more of a common investment in New Zealand due to global "political turmoils in the U.S. Europe, and Middle East." In Germany, business sentiment has fallen spontaneously, according to Germany's leading economic indicator (Munich-based Ifo business climate index).
USA News
President Donald J. Trump has cut ties with the Trans-Pacific Partnership (TPP) and reinstated the Mexico City Policy. The POTUS plans to renegotiate NAFTA (North Atlantic Free Trade Agreement), to cut business regulations by 75%, stop seizure of South China Sea islands. Trump has enacted steps to continue construction of the Keystone XL and Dakota Access Oil pipelines. The Dow Jones reached a record high of 20,000 on Wednesday January 25, 2017.
Author: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha

January - Week 2
Macro News
The Ten Year Treasury Yield has been fluctuating at a high of 2.65 to a low of 2.35 since the rate hike in December by the Federal Reserve. JP Morgan, Wells Fargo, BlackRock, and many other financial institutions release earnings reports today. Wells Fargo is well below the estimates of earnings, which could be attributed to the public scrutiny they faced this fall of 2016. The S&P financials sector has increased 17% since November 8 on Election Day.
Industry Specific News
OPEC attempts at cutting production 50% to 1.2 million barrels a day, but understand the reality that it is not fully possible, even with the strong regulation on compliance. The deal to cut crude oil production was officially set to be enforced on January 1, 2017.
Global News
The global economy is beating expectations according to the Citi Economic Surprise Indexes for the world. Here is a following quote by Bloomberg Markets Forward Guidance, "Citi Economic Surprise Indexes for the U.S., Japan, the U.K., the euro area, China, and emerging markets. A surprise index measures not the absolute performance of the economy, but the performance of the economy relative to economists' expectations. Not only is every line positive (meaning the data is beating expectations), but they've all been positive since the beginning of December."
USA News
According to Fed Chair Janet Yellen, the economy is doing well and there are no short term threats insight. However, she mentions that the risk of repealing the Dodd Frank Act by the Trump Administration, widening gap of income inequality, and slow production in labor are all long term issues we certainly face.
Author: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha

December - Week 2
Macro News
Despite the reject of PM Renzi's constitutional reform and his supposed resignation, the euro and other Italian assets had a speedy recovery.-Milano Italia Borsa (FTSE MIB) remained unchanged. Euro is trading around $1.0639. Van der Bellen who is pro-European beat right-wing Norbert Hofer in Austria's Presidential Election Britain Supreme Court hearing of the government's case regarding Parliament's vote to exit the European Union.
Industry Specific News
The oil market is trading below expectations as it approaches maturity. Italy's 10-Year Bond Yield is up 11 basis points at 2.0167.
Global News
​Matteo Renzi, the Prime Minister of Italy, steps down in reaction to the referendum defeat which may set the stage for a major risk of economic and political chaos.
USA News
Donald Trump discusses major policies via Twitter such as deregulation and tax reductions which gave the Dow a boost closer to 20K.
Author: Matthew L. Caputo
Source: Bloomberg
Sponsored By: Barclays​

December - Week 1
Macro News
OPEC made a deal to cut crude oil production in Vienna, Austria, which will have a major effect on prices and demand. OPEC deal to cut oil production resulted in an 8% rally increase in oil. Barrel of West Texas Intermediate was selling around $49.85 foreign markets​.
Industry Specific News ​ 
Is the rally in the bond market over? Bloomberg Barclays Global Aggregate Total Return Index hit hard with a loss of $1.7 trillion. 
Global News
China factory gauge grew to 51.7 while non-manufacturing increased to 54.7. Healthy economic data helped Chinese shares trading in Hong Kong rise to a high. European unemployment rate decreased to 9.8%. United Kingdom manufacturing underperformed forecasts.
USA News
Continuous rally in U.S. stock market post-election. Increase in sell off in the bond market U.S. 10 Year Treasuries yields rose from 1.8% to 2.4%, as of December 1, 2016. Auto Sales (prediction: 17.7 million) Added Jobs (expected: 
Author: Matthew L. Caputo
Source: BloombergSnoQap and EcoFin have recently partnered together to provide students with opportunities to publish professional articles on the financial markets and global economy. SnoQap Financial is a community of writers that explore topics in economics, political science, and finance, founded and run by college students. Economics & Finance Society has merged operations with SnoQap Financial to provide weekly updates and market reports. Members of EcoFin have the opportunity to intern for SnoQap to strengthen their understanding of finance and economics by originating detailed and quality content.

Below are the most recent analyses of financial and economic current events. This partnership is attributed to Matthew Caputo (VP of EcoFin Society) and Alex Warfel (CEO of SnoQap Financial).

October 11th, 2017 
ANALYSIS OF EARNINGS: OPERATING VS. NON-OPERATING INCOME
If you follow the stock market with the slightest bit of intensity, you may notice the frenzy that happens every quarter when companies release their earnings.  You may think it is a little ridiculous how certain companies may increase their earnings, but miss analysts’ expectations and their stock price goes down.  There’s also the case where a company beats analysts’ expectations but they do not consider it “healthy” growth and the stock price goes down.  When I first started analyzing the stock market, I thought this was absolutely ridiculous.  However, as I have researched more, it has become obvious that there are really good reasons for the frenzy.  There is a difference between having high earnings and having quality earnings.
The best way to find quality earnings is to dissect the three financial statements: the balance sheet, the income statement, and the statement of cash flows.  As you may have seen, the title of this article is saying we’re going to analyze the difference between operating vs. non-operating income and what this means for the quality of earnings.  To understand the differences between high and quality earnings, and how to properly analyze them for investment purposes, we first need to understand what each one is on a fundamental level.
Operating Income:
To understand the operating income of a company, you need to understand the fundamental purpose of that company.  For example, when you think of Apple, what is the first thing that comes to mind?  If you said a fruit, you’re not wrong; you’re just in the wrong place.  When people hear the word Apple, they mostly likely think of an iPhone or one of their “I” products.  Well, that is exactly where the operating income from Apple comes from.  It is the income that a company gets from the operations of their business. Basically, it’s the income from what the business is in business for.
The place to locate operating income is on the very top of the income statement which will be the line that says “Revenues.”  After revenues, there will be a subtraction of the cost incurred to earn those revenues, most of the time called, “Cost of Goods Sold.”  The line right after that will be the companies “Gross Income.”  The gross income is the profit the company is making from their operations less (minus) what it costs the company to perform their operations.  For Apple, the cost of goods sold would be all the materials that went into their products and the direct labor required to produce them.
After we subtract out the Cost of Goods sold, we then need to subtract out operating expenses, which are all the indirect things the company has to pay in day to day operations.  Operating expenses include (but are not limited to) marketing expenses, administrative expenses, fuel, insurance payments, etc.  Basically, it’s all the operations of the company that does not go directly into making or doing whatever that company does.  After operating expenses are out, then we subtract out depreciation and amortization to arrive at our operating income!  Wasn’t that fun?  Here are the equations since you’re probably having a difficult time visualizing this in an article format!
Gross Income = Revenues – Cost of Goods sold
Operating Income = Gross Income – Operating Expenses – Depreciation – Amortization 
Now, what is non-operating income and how does it affect earnings?
Non-Operating (nonrecurring) Income:
Now that we understand operating income, we can analyze what non-operating income is and why it is important for investment analysis.  Let’s go back to our Apple example.  Apple is clearly in the business of making technology and selling it to a large base of consumers.  This is what goes directly into their revenues.  However, what if Apple sells one of its manufacturing buildings?  Or what if their financial analysts make a killing in the stock market for a year?  If you guessed that this revenue goes into non-operating income, then you’re probably too smart to be reading my articles (just kidding, please stay).  Non-operating income is income (or expenses) that come from transactions that are not related to the day-to-day operations of the company.
This seems easy, right?  Well, nobody said it was difficult!  However, it is often overlooked by the average investor and it can have a huge effect on year-over-year earnings which will indubitably have a large effect on the stock price.  For example, let’s say that a paper company run by a hilarious owner has 1 million outstanding shares of common stock and they earned $5 million last fiscal year.  Therefore, they have earnings of $5 per share.  Somebody comes up to you and says that this company has increased their earnings by 25% over last year (went from $4 to $5) and it needs to be invested in now before the stock price reacts!  What should you do?  Well, first don’t take investing advice from strangers (I see the irony) and second you should do your own research in order to be confident in your decision.  After some research, you realize that the company had a non-operating income of $1.2 million dollars from the sale of one of their buildings.  What does this mean?  This means that this company actually had a year over year loss of $200,000 in operating income.  While your friend is investing their hard earned money, a quick check of the income statement saved you from making a poor investment.
You might be saying, “That’s it?  That’s all I have to do?”  Well, pretty much!  There are times where companies may try to lie and put items that should be nonrecurring/non-operating income into operating income to make their earnings look healthier than they really are.  However, unless you’re an analyst working for an investment company, there’s no reason to pull your hair out trying to find this rarity.  That’s what we have our lovely accountants for, to make sure that the information is in the right spot and is in accordance with GAAP.  The next time you see a company beat their earnings but their stock price goes down, just take a gander right under income from operations and see what nonrecurring/non-operating income says!  Who knows, it might save you from a big mistake one day.



Weekly Market Reports

May - Week 1
Macro News
Crude oil futures ended the week at an advance, but still have resulted in a monthly loss as signs of further gains in U.S. crude output and OPEC’s extended output cut decision leaves prices anxious. The U.S. Federal Reserve is expected to highlight interest rates at its meeting this week while it hesitates to analyze more economic data. The FED is said to hint at an increase in rates during June.
Industry Specific News
Apple shares (NASDAQ: AAPL) jumped 2% and set a record high this week, supporting the three major Wall Street indexes. Apple Inc. is due to report its earnings results on Tuesday. Major U.S. stock indexes gained on Friday, with the S&P 500 ending at a record high close, as energy stocks rebounded along with oil prices and U.S. job growth. In the corporate sector, IBM shares fell 2.5% after Warren Buffett sold about 33% of Berkshire Hathaway Inc.’s stake in the company. Also during the week, shares of health insurer Cigna and IT services provider Cognizant rose after their earnings were reported.
Global News
Greece and its foreign creditors have reached a deal on Tuesday. This includes a set of bailout modifications. Greek Finance Minister Euclid Tsakalotos said, that this will pave the way for the disbursement of further rescued funds. The deal also entails labor and energy reforms as well as pension cuts and tax rises.
USA News
Late this week, the House voted to repeal major portions of the 2010 Affordable Care Act, or Obamacare, and replace it with a Republican healthcare plan, which was sent to the Senate for review. The bill's passage comes after House Republicans pulled healthcare legislation earlier this year, which resulted in a major setback for the party.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: CNBC, Seeking Alpha, Reuters

​April - Week 4
Macro News
Crude oil futures plunged to a four-week low on Thursday April 27th. On the same day, the euro turned decisively lower, as ECB (European Central Bank) President Mario Draghi stressed that the Eurozone’s economic outlook remains unsure.
Industry Specific News
The six largest U.S.-based corporations summed $2.03 trillion in combined market capital, based on Wednesday’s closing prices. Among these companies are, Alphabet Inc. (NASDAQ: GOOGL), Microsoft Corp. (NASDAQ: MSFT), Amazon.com Inc. (NASDAQ: AMZN), Comcast Corp. (NASDAQ: CMCSA), Intel Corp. (NASDAQ: INTC), and Abbvie Inc. (NYSE: ABBV) In the consumer goods sector, Under Armour Inc. (NYSE: UA) displayed its first quarterly loss as a public company on Thursday. Also, shares of Mattel Inc. (NASDAQ: MAT) fell 13.6% following the release of the company’s first quarter financial results.
Global News
Equities in Asia furthered gains for a third session early Wednesday. Such firms were among the morning’s stars, with Mitsubishi Motors (OTC: MMTOF), -0.70% and Sharp (OTC: SHCAY), -0.47% gaining some 2.5%. Down 30% from its highs, Nikko AM’s Stefan Hansen says iron ore prices will be derived by Chinese reforms. A weaker yen makes it cheaper for Japanese exporters to ship their goods around the globe.
USA News
U.S. national security leaders stressed economic sanctions and diplomacy to influence North Korea to dismantle its nuclear weapons and ballistic missile programs. On Wednesday, White House officials released President Donald Trump’s proposed tax plan. A brief outline of the plan consists of: cutting the number of income tax brackets from seven to three, with a top rate of 35% and lower rates of 25% and 10%. The proposal will chop the corporate tax rate to 15% from 35%. It would eliminate tax deductions, with only a few exceptions, including the mortgage interest and charitable contribution deductions.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: Barron’s, Bloomberg, CNBC, MarketWatch, Yahoo Finance 

April - Week 3
Macro News
The S&P 500 fell 0.3%, with telecommunications weakening more than 1% to top decliners. Energy was also among the decliners, dropping 0.4% as U.S. crude dropped 2.15% to settle at $49.62 per barrel. The Nasdaq composite closed 0.1% lower. The euro rose against the dollar for the second straight week. Exchange-traded fund holdings climbed to its highest since December. Gold rallied this week to a five-month high as silver fell for a third day on the Comex. Platinum rose on the New York Mercantile Exchange while Palladium rose by the most since January.
Industry Specific News
Morgan Stanley (NYSE: MS) said its quarterly earnings rose 70%. Notably, the firm's results were specifically due to fixed-income trading. Goldman Sachs Group Inc. (NYSE: GS) faced a stock decline due to missed first-quarter earnings; the investment banking giant’s share fell 4.7%, or $10.67, from its Monday close of $226.26. International Business Machines Corp. (NYSE: IBM) did not rebound in share price the day after its stock plunged due to poor earnings. The stock fell again the second day after the announcement, down 1.2% to $160.38. Women's clothing retailer Bebe (NASDAQ: BEBE) is closing all of its stores, according to a filing with the Securities and Exchange Commission.
Global News
Financial markets are jittery ahead of the closely watched first round of the French presidential election on Sunday. The CAC 40 fell 1%, while the pan-European STOXX 600 index was down 0.1%. Japanese stocks rose to week highs on Friday as global investors bet that U.S. tax reforms are gaining, but Fujifilm Holdings (TYO: FUJIY) tumbled after postponing the release of its earnings because of an accounting probe. The Nikkei 225 share average gained 1.0% to 18,620.75, its highest closing level since April 11th. For the week, it gained 1.6%, posting its first weekly gain in six weeks.
USA News
U.S. Vice President Mike Pence said on Saturday the United States would honor a controversial refugee deal with Australia, under which the United States would resettle 1,250 asylum seekers. The Trump administration will not grant special permission to U.S. companies, including Exxon Mobil (NYSE: XOM), to carry out oil and gas drilling in Russia while sanctions remain intact. The Trump administration will soon unveil a tax reform plan that is expected to be approved by Congress.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: Bloomberg, CNBC, Marketwatch, Yahoo Finance, Reuters 

April - Week 2
Macro News
Oil futures settled higher on Monday, with prices up a fifth consecutive session. Geopolitical tensions are increasing, following last week's U.S. airstrike on Syria and the recent closure of Libya's largest oil field. This continues to raise concern over disruptions to global crude oil supplies. Also, Saudi Arabia is set to cut oil output to the lowest rates since January. Additionally, Gold and silver prices notched their third straight session climb on Thursday, and were strengthened as the U.S. dollar fell after U.S. President Donald Trump said the currency has been trading at “too strong” a level.
Industry Specific News
Retail job losses are far from over as more store closures emerge. On Monday April 10th, Tesla (NASDAQ: TSLA) passed General Motors to become the most valuable U.S. automaker. Also on Monday, Microsoft (NASDAQ: MSFT), eBay (NASDAQ: EBAY), Tencent (OTC: TCEHY) invested $1.4 Billion in Amazon’s rival, Indian e-commerce startup Flipkart Group. Needham analyst Kerry Rice, projects Amazon’s shares at an $1,100 price target. Samsung (OTC: SSNLF) says its new phone is selling well, presenting signs that consumers are over the Galaxy Note 7 crisis. Tuesday, United Continental Holdings (NYSE: UAL) shares fell as much as 6.3% in pre-market trading, dropping $1.4 billion from the now $21 billion company by market cap. Wal-Mart announced Wednesday, to offer discounts on online sales for collections at stores, while slashing hundreds of corporate jobs.
Global News 
Société Générale (EPA: GLE) sees euro rebounding to as high as $1.11 in December. More than 40 people were killed in two bomb attacks on Coptic Christians celebrating Palm Sunday. The UN condemns the Syrian chemical attacks, while Russia condemns the U.S. airstrike on Syria. Air China (HKSE: 0753) is suspending flights between Beijing and the North Korean capital of Pyongyang, as North Korea is preparing for their 6th Nuclear Test.
USA News 
President Trump declines to endorse top adviser Steve Bannon, and says the U.S. is “not going into Syria.” President Trump says he’s still thinking about repealing the Dodd-Frank law. Trump also says that he has to, “pass a health bill before tackling tax-reform.” Federal Reserve Chair Janet Yellen spoke and participated in a Q&A session at the University of Michigan Ford School of Public Policy on Monday. Yellen said, “the U.S. central bank’s task has shifted from a post-crisis exercise of healing the economy, to one aimed at holding on to the progress made.” The U.S. military dropped America's most powerful non-nuclear bomb on ISIS targets in Afghanistan Thursday, the first time this type of weapon has been used; according to U.S. officials, the bomb killed 94 ISIS members. The U.S. dollar falls short for the week as stocks fell Thursday to close at session lows, completing a three-day losing streak. U.S. Stock Markets are closed on Friday April 14th, in observance of Good Friday.  
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: CNBC, CNN Money, MarketWatch, Reuters, The Wall Street Journal

April - Week 1
Macro News
To wrap up the week, benchmarks finished in the green on which were, boosted primarily by energy shares following a rise in U.S. oil prices. Crude oil prices closed nearly at a one-month high. Gold prices hit a fresh five-month high; a day after U.S. President Donald Trump said he preferred a weak dollar and low interest rates.
Industry Specific News
Early this week, NASDAQ was driven by a continued strong performance from the technology stocks. Apple Inc. (NASDAQ: AAPL) which climbed 24% in the first quarter, continued to lead the tech stocks higher. The Energy Select Sector SPDR (ETF: EXC) rose 0.8%. Some of its key holding, including Halliburton Company (NYSE: HAL) and EOG Resources Inc. (NYSE: EOG) both gained by 0.6% and 0.5% respectively. Sunoco LP (NYSE: SUN) signs a $3.3B Deal with 7-Eleven. Per the deal, Sunoco will sell around 1,100 convenience stores and gas stations in Texas and other states to 7-Eleven. J.P. Morgan (NYSE: JPM), and Citigroup Inc. (NYSE: C) score massive gains, as trading beats lending at the bank giants.
Global News
Greece has been talking to its European lenders this week, trying to reach a compromise on economic reforms in order to unlock the next payment from its latest bailout, agreed in 2015. European Central Bank President Mario Draghi pushed back against suggestions the ECB might raise interest rates soon, warning it was too early to start winding down monetary stimulus. European stock markets opened between 0.3% and 0.5% lower, while Asian markets ended the session mostly lower. The Dow Jones Industrial Average (DJI) gained 0.1% to close at 20,662.95. The S&P 500 (SPX) rose 4.54 points or 0.2% to close at 2,357.49. The tech-laden Nasdaq Composite Index (COMP) closed at 5,878.95, gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) declined 3.9% to settle at 12.39. Advancers outpaced declining stocks on the NYSE. For 73% stocks that advanced, 23% declined. The Dow recently fell by triple digits and the NASDAQ, after hitting an all-time high in the first half-hour of the session, has reversed course significantly. U.S. stock futures are edging lower Friday.
USA News
The U.S. Labor Department released its latest jobs report Friday, showing hiring slowed in March. Employers added only 98,000 jobs, compared to 235,000 jobs added in February. Still, the unemployment rate dropped to 4.5%, the lowest in 10 years. Investor kept a close watch on the outcome of the meeting between President Donald Trump and his Chinese counterpart President Xi Jinping. In the meeting, Trump pressed Xi to do more to curb North Korea's nuclear program and the two agreed to a 100-day plan for trade talks aimed at boosting U.S. exports and reducing the gaping U.S. trade deficit with Beijing. The U.S. launched more than 50 Tomahawk cruise missiles against a Syrian air base Friday, the first U.S. military operation to deliberately target the regime of President Bashar al-Assad, in response to a chemical-weapons attack.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: CNBC, CNN Money, The Wall Street Journal, Yahoo Finance

March - Week 4
Macro News
Oil prices edged lower on skepticism over a delay of an OPEC output cut. Gold ended lower due to a recovering U.S. dollar. As for international currency, the Mexican peso is the biggest winner in the currency markets in March. The Dow Jones Industrial Average notched its longest losing streak in nearly six years, but finished the week ending its eight-session losing streak with its best day since the start of the month. The Nasdaq Composite rose, notching a fourth straight session of gains from biotech stocks. The S&P 500 logged its biggest quarterly gain since 2015, lifted by a brightening economic outlook and rising confidence among businesses and consumers.
Industry Specific News
Citi Research (NYSE: C) lowered its rating on Corning Inc. (NYSE: GLW) to neutral from buy, saying the glass and specialty materials maker is fully valued after a significant increase in its share price. Blackrock (NYSE: BLK) shifts toward a stock-picking machine defining a broader impact of technology within the investment management industry. Shares of BlackBerry (NASDAQ: BBRY) surged nearly 15% on Friday after the company reported sales that topped Wall Street's forecasts. The company also beat estimates with its adjusted profit, a figure that excludes restructuring charges and other expenses. In consumer news, there is optimism over economic growth, although consumer confidence soared to the highest levels since 2000.
Global News
European markets opened in negative territory as global investors eyed a rising dollar overnight and awaited fresh economic data. Prime Minister Theresa May has launched the official process of the United Kingdom’s exit from European Union. South Africa has fired its financial minister, sending the country's currency crashing; the rand crashed nearly 4% against the dollar after President Jacob Zuma expelled Pravin Gordhan, sending the country into a new round of economic uncertainty.
USA News
Stocks fell as prospects dimmed for a health-care bill that many investors say could test the viability of the Trump administration’s agenda. This led to the biggest weekly decline for major stocks indexes in months. U.S. indexes later climbed, due to gains in stocks of financial companies. Trump is set to meet with Chinese President Xi Jinping. China is America’s biggest trading partner, the relationship is worth about $663 billion annually, but the U.S. has a trade deficit with China because it buys a lot more of its goods and services than the other way round.
Author: Jonathan Brown
Editor: Matthew L. Caputo
Sources: CNBC, CNN Money, The Wall Street Journal 

March - Week 3
Macro News
In the European Union, the European Central Bank ends the "Targeted Longer-Term Refinancing Operation" which gave four-year loans at a zero percent interest rate (Zero-Coupon Bond). The "net take-up" was the largest considering potential European Central Bank rate-hikes to scale back on monetary accommodation (aimed at increasing economic activity through lower interest rates making borrowing cheaper and easier for businesses and individuals). Banks were estimated to take from 30-750 billions euros of these long-term loans at zero interest. The economic outlook and monetary policy of he ECB is to tighten monetary policy, increase interest rates, and ease the political and economical unrest of referendums to exit the EU, presidential elections, and the debt crisis.
Industry Specific News
In the retail sector, Sears (SHLD: NASDAQ) faces the possibility of bankruptcy due to the loss of $10 billion. Competitors to Sears, such as. Macy's, Kohl's, J.C. Penney, and other retailers continue to operate in a heavily weighted e-commerce retail environment dominated by Amazon. According to Fortune, Since Eddie Lampert, hedge fund manager and current CEO & majority shareholder of Sears, merged Kmart and Sears in 2005, sales growth has been non-comparable to profitable years. Since 2010, Sears has lost around $10 billion in which it was forced to sell-off many of its profitable stores and properties (real estate). Sears is definitely a company to keep an eye on as the story unfolds.
Global News
In London, on Wednesday, March 22, the European city known for its financial derivatives, suffered a tragic terrorist attack, leaving four dead and 29 severely injured. The United Kingdom is currently working on easing the exit on March 29, 2017, which has created potential risk to the EU and the UK.
USA News
Under pressure, President Donald J. Trump and Administration rush to pass the American Healthcare Act, l to "repeal and replace" current Patient and Affordable Care Act (Obamacare). However, not only does all of Democratic Congress oppose the proposed plan by the Trump Administration, but the Conservative House Freedom Caucus disapproves the bill as well. According to a NBC News report, approximately 28 House Republicans oppose and six of those Representatives must switch to approve for  President Trump's GOP Healthcare bill to survive. Ultimately, if the AHA is approved. the Congressional Budget Office estimates 24 million people will lose their insurance by 2026 if they are currently covered under Obamacare.
Authors: Matthew L. Caputo
Sources: Bloomberg, Fortune, NBC. Seeking Alpha, Wall Street Journal

March - Week 2
Macro News
The Oil Industry continues the dramatic decrease of a price per barrel. Western Texas Intermediate trades at $48 and is estimated to continue its fall. Bloomberg reports that the Federal Reserve is set to have two meetings on Tuesday and Wednesday, in which economist expect three additional rate hikes for the months of March, June, and December.
Industry Specific News 
Intel Corp. (INTC:NASDAQ) announced that it will buy Israeli car-camera pioneer Mobileye NV(MBLY: NYSE) $15.3  billion. 
Global News
The UK Parliament has approved the bill that will allow Britain to enter negotiations to leave the European Union. Additionally, the Wall Street Journal reports that Asian and Latin American countries are pursuing independent trade negotiations without the U.S. in response to President Donald J. Trump's isolation proposed policies and rhetoric. On March 14, 2017, Britian's Parliament passed legislation to leave the European Union allowing Prime Minister Theresa May to enact Article 50 of the Libson Treaty. The British Pound was trading around $1.22 showing no reactions to the announcement of negotiations of an official exit by the end of March.
USA News
According to a U.S. News report,  the proposed healthcare plan by the GOP is estimated to reduced the amount of insured Americans by 24 million. On March 14, Bloomberg states that the "mid-Atlantic and northeastern United States" is estimated with a blizzard of 20 inches of snow to the financial capital (New York City). Airflights and school were cancelled disrupting markets and business. In accordnace with a Bloomberg chart that measures the percentage of respondents, "news heard on government policy getting record positive mentions" has reached an all time high of 28% breaking records in the last 40 years. Although President Trump has a 49.7% dissaproval rating and 44.3% approval rating, the business sentiment, confidence, and optimism of America is surging. Volatility S&P 500 (VIX) and correlation continue to float around 12.30. Are investors overestimating and speculating on how strong President Trump's fiscal stimulus, deregulation, and tax cuts will be for the economy? President Trump's "America First" and protectionist polices are not as feared in developing and emerging economies which is attracting investors to chase higher yields and returns overseas, according to a Bloomberg Makets report. 
Authors: Matthew L. Caputo, William Woo
Sources: Bloomberg, Seeking Alpha, Wall Street Journal

March - Week 1
Macro News
According to Secretary General Mohammad Sanusi Barkindo of OPEC, he is uncertain that OPEC and non-OPEC fossil fuel producers will continue to cut productions post-May, but compliance has been great so far. On March 6, Western Texas Intermediate crude oil was trading around $52.94. Also, Gold continues to rise in price, hitting a high of $1,230.50 per ounce.
Industry Specific News
Both the United States of America and United Kingdom indexes hit record highs on March 1st, leaving many investors bullish and confident on growth speculations announced by new administrations. Snap, Inc. (SNAP:NYSE), had an Initial Public Offering (IPO) on March 2, 2017, which opened off-market at $17, on-market at $24, and peaked at $27.09. Word on the street is to sell Snap, Inc. because it is the next Twitter, not Facebook. Simply, it's too simple of an app, has no true platforms, and loses a lot of money. In the coming months, investors talk about products like Snap's "Spectacles" and a Snap drone that live-stream and record video onto a Snap "Story." According to Bloomberg, Deutsche Bank AG plans to release a Seasonal Offering of approximately 8.5 billion in equity.
Global News
European Inflation has rapidly increased to its fastest rate since January of 2013. Predictions from analysts are that the inflation rate will reach 2% which may cause the European Central Bank to refrain from continuing its "monetary stimulus programs." 
USA News
On March 3, Janet Yellen and Stanley Fischer spoke strongly about rate hikes for March which discussions for a increase continue this week. The Ten-year Treasury Yield reached a high of 2.61% on March 10 as a result of the jobs report release 235,000 new non-farm (construction, private educational services, manufacturing, healthcare, and mining) payroll employees and a slight change of 4.7 percent in unemployment rate. Also, Bloomberg reports that the POTUS Donald Trump will revisit the Travel Ban on a list of six predominantly Muslim-based countries, which no longer includes Iraq. According to Pew Research Center, the six countries banned from travel to the United States of America are Iran, Libya, Somalia, Sudan, Syria, and Yemen.
Authors: Matthew L. Caputo, William Woo
Sources: Bloomberg, New York Times, Pew Research, Seeking Alpha

February - Week 4
Macro News
The Federal Reserve announces a high probability of a March Rate Hike as the health and confidence of the USA Economy and business sentiment continue to rally with a suspected positive jobs report next Friday, March 10, 2017.
Industry Specific News
According to Bloomberg, Deutsche Bank AG has plans to decrease bonuses by a whopping 80% which have affect on a estimated 25,000 employees of the global investment bank.
Global News
In France, the bond market rallies strong with a increase in the 10-year yield of 0.888% due to Francois Bayrou's endorsement of presidential candidate Emmanuel Macron. Bloomberg reported that Emmanuel Macron, leader of the Independent Party, is closing the lead between Marine Le Pen (Right-Wing Populist)  and Francois Fillon (Republican Party Leader). Additionally, Scotland is taking the steps to leave the European Union after the United Kingdom's Brexit attempts have caused uncertainty in the Eurozone. Finally, Asian Markets continue to stagnate with small percentage decreases. In China, the Purchasing Manager's Index (PMI) reports a healthy rise of 51.6 in China's manufacturing sector. Similarly, in the Euro-zone, manufacturing rose to 55.4 indicating a strong increase in "new orders, inventory levels, production, supplier deliveries and the employment environment."
USA News
According to a Bloomberg report, President Donald J. Trump calls for major federal agency budget cuts (i.e. Environmental Protection Agency, Federal Bureau of Investigation, and Central Intelligence Agency). However, he plans to increase the Defense Budget to strengthen the United States Military. On February 28, POTUS Trump addressed Congress for the State of the Union and presented a general "America First Agenda." According to a CNN news televised report, President Trump's address was nonspecific and avoided in-depth analysis of the details for some of the plans he will enact as Commander of the United States of America.
Authors: Matthew L. Caputo, William Woo
Sources: Bloomberg, CNN, Bureau of Labor Statistics , Investopedia, Seeking Alpha

​February - Week 3
Macro News |Written Stephen LoCastro|Edited by Matthew L. Caputo|Source Used Bloomberg Economics, U.S Bureau of Economic Analysis (BEA)|
Unemployment is hovering around 4.8%, compared to a high of 10.0% percent during September 2009 according to the U.S. Bureau of Labor Statistics. The BEA states that Real GDP has increased 1.9%. These major macroeconomic indicators corroborate and reflect the facts that there have been intermittent surges in consumer spending, private inventory investment, and state and local government spending as well. Existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops closed out 2016 as the best year in a decade. 5.45 million sales were recorded. Low mortgage rates and creation have contributed to the extremely bullish housing market, even amidst lower inventory levels and affordability tensions. Many chief economists would argue affordability tensions are at an all time high specifically for first-time buyers in certain census tracts due to sweeping gentrification among inner-city. Still, 30-year, conventional, fixed-rate mortgage commitment rates have swelled from 3.77% to 4.20%. Even though the U.S. Government contends that the macro-economy is experiencing a major upswing, many would argue that the citizens’ consumer confidence and optimism is still reeling from the Great Recession in a “bear-market” state. People are arguably more careful to invest and spend. According to the Conference Board Consumer Confidence (CPI) Index, based on probability-design random sample, retreated to 111.8 so far in 2017 compared to 113.3 in December. All of these macroeconomic variables definitely reflect economic climate as a whole.
Industry Specific News
The Dow Jones completed its seventh consecutive record close at 20,624.05, pushing major U.S. indexes and corporate earnings to new heights. Goldman Sachs (GS) closed at a bullish 250.38 a share. The materials sector is poised to outperform itself in 2017 because of the new Trump administration. Concurrent with Keynesian economic thought, one of expansionary fiscal policy, the POTUS has proposed begin widespread U.S. infrastructure spending. Stocks including VMC (Vulcan Materials Co., MLM (Martin Marietta Materials), and ABX (Barrick Gold Corp) look very promising, all substantially outperforming the S&P 500 as a benchmark.
Global News
Global arms sales over the last five years reached their highest level since with India as the world’s largest defense importer, alongside Saudi Arabia, United Arab Emirates, China, and Algeria. Due to serious geopolitical threats countries endure from nuclear-armed from Parliamentary republics and sovereign states, deepening their defenses is required.
USA News
Along with Ex-United States Attorney General Sally Yates, President Trump senior National Security Council staffer Craig Deare of his duties over remarks about the Administration’s Latin American policies. He reportedly criticized President Trump’s relations with Mexico, in the midst of ICE enforcement operations, which produced 700 arrests around the United States, targeting convicted criminals who re-entered the country after being deported.
Author: Stephen LoCastro
Editor: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha, Wall Street Journal

February - Week 2
Global News |Written by - Thomas Miller|Edited by - Matthew L. Caputo|Source used - Wall Street Journal|
With the election of Donald Trump, the United States has quickly seen a rise in activity to reform policies dealing with imports and tariffs. For example, the proposition repealing TPP and NAFTA potentially put major international trade links at risk. One of the more recent targets of the proposed trade tariff is on China. The Trump Administration has proposed a 45% tariff on Chinese imports poses a major risk to the entire country. The U.S is a country that heavily relies on Chinese imports and will undoubtedly see a surge in prices for these goods. As a result, this could impact global markets because a hypothetical decrease in foreign demand for U.S. exports. USA based firms that are globally connected may have to cut labor due to higher costs and a decrease in sales from foreign nations. Theoretically, there is cause for concern, but military action by North Korea this weekend could possibly alleviate some of the economical trade issues. Trump decided to stand with Japan in the wake of North Korea’s missile testing executed in the Sea of Japan. This alliance could be seen as a positive stepping stone for US - Asia relations, which could potentially lead to a change of trade policy towards Asian markets by the Trump administration. Over the next few weeks, we will most likely see if this change of tone will occur between the trade and tariff relations of Asia and the Trump Administration.
Author: Thomas Miller
Editor: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha, Wall Street Journal

February - Week 1
Macro News
Gold hit a whopping $1226.90 per ounce, which is a high since November around the United States Presidential Election Day. Crude oil is listed at $53.96 per barrel of Western Texas Intermediate. 
Industry Specific News
Rewinding the clock back to yesterday, in the Super Bowl LI, the New England Patriots attracted 111.9M viewers. The cost of advertising and marketing during the Super Bowl averaged $5M per 30-second commercial. Fox Sports (NASDAQ: FOX, FOXA), who has the right to broadcast the Super Bowl, had positive market price increases after a historic comeback and first-ever overtime performance between the New England Patriots and Atlanta Falcons. Final score was New England Patriots 32 - Atlanta Falcons 28.
Global News
In the French Presidential race, Marine Le Pen publically released her policy to end the independence of the Bank of France, return to a native currency (deserting the euro), and launch radical measures to change the "banking and monetary system, European union membership, trade, industry, taxes, immigration, foreigners, national identity, security, terrorism, labor laws, retirement, liberties, and the electoral system." Marine Le Pen is seen as a "far-right" candidate which will be interesting to see how the French election race plays out. In Germany, factory orders increased by 5.2 percent which is a healthy indication of economic progress.
USA News
U.S. District Judge James Robart ruled against President Donald Trump's immigration ban. It is likely that the Supreme Court will review the case. According to Bloomberg, around 97 companies filed a voluntary brief to the Ninth Circuit Court of Appeals. The summary from the group of firms stressed how important the role immigrants play in the United States economic and societal environment. On the economic calendar for today is US Consumer Spending Measure, Labor Market Condition Index, and the Investors Movement Index (IMX).
Author: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha

January - Week 4
Macro News
The OPEC deal that cut oil production has given rise to a bullish position on Western Texas Intermediate. According to the  U.S. Commodity Futures Trading Commission, hedge funds have increased their "net-long position" on oil to the an all time high since ten years ago. A single barrel of Western Texas Intermediate is trading around $53.36.
Industry Specific News
Wall Street Journal Stock Market Data & Financial Analysis
Global News
Germany's inflation rate (CPI or Consumer Price Index) exceeds 2%. Meanwhile, in France, Benoit Hamon is declared victor over the Socialist primary in which he will face the favored candidate Francois Fillon, Emmanuel Macron (independent), and Marine Le Pen (right wing conservative). German and French 10-year treasuries spread has expanded by 4 basis points.
USA News
President Trump has taken steps to continue the construction of the Keystone and Dakota Pipelines. What to look out for this week in economic data releases: personal income and spending data on January 30, 2017, First annual Federal Reserve Open Markets Committee meeting on January 31, 2017, and non-farm payrolls data released on February 3, 2017. Something to think about, which sums up what the economy and business will consist of under Republican President Donald Trump, "Trump is most motivated by trade deals and immigration. Investors say they're excited about deregulation and fiscal stimulus." -Bloomberg.
Author: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha, Wall Street Journal
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January - Week 3
Macro News
​A hard Brexit has given rise to corporate concerns regarding obstacles the United Kingdom will have by exiting the European Union. Even with strong performance of the UK economy post-Brexit vote, the challenges expose Britain to many risks. New Zealand is becoming the "safe haven" for wealthy individuals during times of "market turbulence and economic weaknesses." With the political uncertainty of trade agreements affecting the financial markets, New Zealand's currency has increased from .69 to .73 and surging closer to 1.
Industry Specific News
​Trump meets with the "Big Three" automakers GM, Ford, and Fiat Chrysler for breakfast, on Tuesday, January 24, 2017, to discuss boosting U.S. employment by bringing manufacturing plants back to America.
Global News
Real Estate is becoming more of a common investment in New Zealand due to global "political turmoils in the U.S. Europe, and Middle East." In Germany, business sentiment has fallen spontaneously, according to Germany's leading economic indicator (Munich-based Ifo business climate index).
USA News
President Donald J. Trump has cut ties with the Trans-Pacific Partnership (TPP) and reinstated the Mexico City Policy. The POTUS plans to renegotiate NAFTA (North Atlantic Free Trade Agreement), to cut business regulations by 75%, stop seizure of South China Sea islands. Trump has enacted steps to continue construction of the Keystone XL and Dakota Access Oil pipelines. The Dow Jones reached a record high of 20,000 on Wednesday January 25, 2017.
Author: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha

January - Week 2
Macro News
The Ten Year Treasury Yield has been fluctuating at a high of 2.65 to a low of 2.35 since the rate hike in December by the Federal Reserve. JP Morgan, Wells Fargo, BlackRock, and many other financial institutions release earnings reports today. Wells Fargo is well below the estimates of earnings, which could be attributed to the public scrutiny they faced this fall of 2016. The S&P financials sector has increased 17% since November 8 on Election Day.
Industry Specific News
OPEC attempts at cutting production 50% to 1.2 million barrels a day, but understand the reality that it is not fully possible, even with the strong regulation on compliance. The deal to cut crude oil production was officially set to be enforced on January 1, 2017.
Global News
The global economy is beating expectations according to the Citi Economic Surprise Indexes for the world. Here is a following quote by Bloomberg Markets Forward Guidance, "Citi Economic Surprise Indexes for the U.S., Japan, the U.K., the euro area, China, and emerging markets. A surprise index measures not the absolute performance of the economy, but the performance of the economy relative to economists' expectations. Not only is every line positive (meaning the data is beating expectations), but they've all been positive since the beginning of December."
USA News
According to Fed Chair Janet Yellen, the economy is doing well and there are no short term threats insight. However, she mentions that the risk of repealing the Dodd Frank Act by the Trump Administration, widening gap of income inequality, and slow production in labor are all long term issues we certainly face.
Author: Matthew L. Caputo
Sources: Bloomberg, Seeking Alpha

December - Week 2
Macro News
Despite the reject of PM Renzi's constitutional reform and his supposed resignation, the euro and other Italian assets had a speedy recovery.-Milano Italia Borsa (FTSE MIB) remained unchanged. Euro is trading around $1.0639. Van der Bellen who is pro-European beat right-wing Norbert Hofer in Austria's Presidential Election Britain Supreme Court hearing of the government's case regarding Parliament's vote to exit the European Union.
Industry Specific News
The oil market is trading below expectations as it approaches maturity. Italy's 10-Year Bond Yield is up 11 basis points at 2.0167.
Global News
​Matteo Renzi, the Prime Minister of Italy, steps down in reaction to the referendum defeat which may set the stage for a major risk of economic and political chaos.
USA News
Donald Trump discusses major policies via Twitter such as deregulation and tax reductions which gave the Dow a boost closer to 20K.
Author: Matthew L. Caputo
Source: Bloomberg
Sponsored By: Barclays​

December - Week 1
Macro News
OPEC made a deal to cut crude oil production in Vienna, Austria, which will have a major effect on prices and demand. OPEC deal to cut oil production resulted in an 8% rally increase in oil. Barrel of West Texas Intermediate was selling around $49.85 foreign markets​.
Industry Specific News ​ 
Is the rally in the bond market over? Bloomberg Barclays Global Aggregate Total Return Index hit hard with a loss of $1.7 trillion. 
Global News
China factory gauge grew to 51.7 while non-manufacturing increased to 54.7. Healthy economic data helped Chinese shares trading in Hong Kong rise to a high. European unemployment rate decreased to 9.8%. United Kingdom manufacturing underperformed forecasts.
USA News
Continuous rally in U.S. stock market post-election. Increase in sell off in the bond market U.S. 10 Year Treasuries yields rose from 1.8% to 2.4%, as of December 1, 2016. Auto Sales (prediction: 17.7 million) Added Jobs (expected: 
Author: Matthew L. Caputo
Source: Bloomberg