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US Market Report

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US Market Report

Some Headlines to begin with as it's very busy after the close

Apple plans to buy Intel's wireless chip unit for $1 billion

Apple has agreed to buy the majority of Intel’s smartphone modem division, both companies announced on Thursday.

Apple will receive 2,200 Intel employees as well as intellectual property and equipment.

The deal was worth $1 billion, according to the announcement. Apple currently purchases Intel modems for iPhones, which allow it to connect to networks operated by carriers such as Verizon and AT&T.

Apple was Intel’s only modem customer. Apple also buys modem chips from Qualcomm. Earlier this year, as part of a settlement over patent licensing, Apple agreed to buy Qualcomm chipsets for “multiple” years,

leading analysts to believe Qualcomm will provide chips for future iPhones, including future versions that may support 5G networks.

Google Soars To 3-Mo Highs After Top- & Bottom-Line Beat, Moar Buybacks

Share of Google parent Alphabet are up 6% after-hours following a better than expected print in top- and bottom-line.

Cost-per-click fell only 11% on the year, and paid clicks on Google properties (like search and YouTube) were up 28%. Alphabet's Effective Tax Rate fell from 24% to 18%…but

Additionally, Alphabet authorized an additional $25 billion in share buybacks.


Starbucks stock rallies after company tops views, raises guidance

Shares of Starbucks Corp. rose nearly 6% in the extended session Thursday after the company reported fiscal third-quarter profit and sales above Wall Street expectations and raised its guidance for the year.

Adjusted for one-time items, the company earned 78 cents a share in the quarter, compared with 62 cents a share a year ago. Revenue rose to $6.8 billion, from $6.3 billion.

Starbucks said it expects sales growth of about 7%, versus a previous guidance of 5% growth. Global same-store sales are seen increasing 4%, from a previous guidance of 3% to 4% growth.



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Part 2/2

Stocks dropped lower Thursday afternoon, retreating from records for the S&P 500 and Nasdaq, after a series of mostly disappointing earnings reports and fears that the Federal Reserve may be less aggressive than hoped for in cutting interest rates next week after the European Central Bank’s policy decision.

This is not an unhealty thing as it has covered much ground since the start of the year. Initially the futures reacted in a very positive manner but that was most likely a knee-jerk reaction to a news release of basically nothing.

The Index's dropped from the cash open and drifitn steadily sideways. This is now creating a situation where he FRB can say "well we need to see what habbens". I really hope there is no fight next week but it is looking like one is brewing.

The bond complex got what it wanted as yields have improved-see cap#3. This speaks to Allowinig the FRB to "see what habbens" as this is what truly speaks here, the FRB is just the mouthpiece to delvier what the bond markets say.

"Never pick a fight with people who buy ink by the barrel"-Mark TWain. Only this time there will be a fight if the FRB does not do the right thing and lower rates. They also cannot afford to have Dr. Shelton on the FRB board as her positions and arguments are all irrefutable.

Treasurys and European bonds sold off after ECB President Mario Draghi failed to deliver on the dovish expectations heading into its press conference after the July central bank meeting.

Gold sold off on the NYMEX open-bang on it-just as it popped on the ECB inaction news. The continued folly of a paper exchange controlling a physical asset. Silver was better but dropped from it's recent highs but is still in it's recent range-See Cap#4

Equity volumes

In this has to be the system doing this news.

Beyond Volkswagen: BYND Shorts Crucified As Borrow Fee Hit 144%

Sadly, for those shorts hoping that the relentless squeeze higher may soon be ending we have bad news. Not only has deluge of shorts not eased, but according to the latest data, there were 5.5 million shorts, which is a record 47% of the stock float, making it one of the 10 most shorted companies in the US stock market!

And the even greater paradox is that the higher the stock rises, the more investors want to short it, resulting in a borrow fee which at last check was over 144%, more than double the next most shorted stock, Overstock, whose borrow fee is "only" 65.1%.

This means that not only does one have to be ready to suffer continued margin pain as the stock keeps rising, but anyone putting a BYND short on now has to be confident the stock will drop to 0 in less than a year to avoid a theta bleed to death.


this is the cost to acquire shares to short. They 'borrow' against long positions(they really don't-see naked shorting) and because the fundamentals of this one suck they can turn around and charge a premium to you to receive the short shares. When you 'cover' or exit position these shares are supposed to be returned.