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MARKET CURRENTS

  • 8:31 AM Ray Dalio explains the concept of a beautiful deleveraging and why the U.S. is in one, but the EU, not so much. He expects the ECB will ultimately print money and produce another big rally, "but this is a tougher time to be very confident about that scenario." An "uncivilized" man, Dalio remains a fan of gold, recommending most have 10% of their assets in the metal. 16 Comments
  • 7:50 AM Production in the Eagle Ford could hit 1M bbl/day by 2016, ITG Research says, but some problems must be solved: ~1,400 wells are waiting to be completed or tied into pipelines, and there are shortages of crews and water. But once the problems of getting the oil and gas to market are fixed, Eagle Ford could become the second-largest U.S. producing area behind Bakken. Comment! [U.S. Economy, Energy]
  • 7:30 AM Facebook (FB) faces a $15B class-action lawsuit alleging the company "improperly tracked the Internet use of its members even after they logged out of their accounts." The complaint, filed in federal court in California, represents the consolidation of 21 related cases filed across the country over the past year. 8 Comments [Tech]
  • 7:05 AM American Eagle Outfitters (AEO) says it will exit its 77kids children's apparel business, which posted a $24M loss in the latest fiscal year. The teenage apparel retailer says it is "exploring options," including a full or partial sale of assets. Comment! [Consumer]
  • 18 May, 8:08 PM Spain says it may have to once again revise its 2011 budget deficit upward. Spending by the four regional Spanish governments exceeded forecasts, driving up the national deficit for a second time. The government now projects a possible deficit that is equal to 8.9% of GDP, nearly three times the recommended maximum for nations using the euro. 26 Comments [Global & FX]
  • 18 May, 8:01 PM Thousands of demonstrators are taking advantage of the upcoming NATO summit in Chicago to stage a protest today, chanting mostly about economic issues that have little to do with the summit's topic: The war in Afghanistan and other security issues. President Barack Obama and representatives from some 60 countries are due to arrive soon for the two-day meeting over the weekend. 3 Comments [U.S. Economy]
  • 18 May, 7:40 PM Stocks are as oversold today as they were since the doom-and-gloom days of the financial crisis, says Bespoke's Paul Hickey. In total, 5 out of 10 S&P 500 sectors are now three standard deviations from their 50-day moving average. "This is as oversold as they have been at the lowest points," Hickey says. "We simply haven't gotten more oversold than this versus the 50-day." 17 Comments [U.S. Economy]
  • 18 May, 7:08 PM Helix BioPharma says its received approval from German regulatory authorities to conduct its European Phase III efficacy trial of Topical Interferon Alpha-2b in patients with low-grade cervical lesions. The company says before it can proceed, it will to secure a strategic partner to obtain funding. Comment! [Healthcare, Global & FX]
  • 18 May, 6:52 PM As Microsoft (MSFT) and PC OEMs hope the fall release of Windows 8 systems featuring ARM-based (ARMH) processors will give their PC/tablet sales a lift, the OEMs are reportedly struggling to reach tablet price points they consider necessary to compete with the iPad (AAPL) and Kindle Fire (AMZN), due to Microsoft's insistence on a $90-$100 Windows license fee. Concerns also exist about the software compatibility issues facing ARM-based hardware. 9 Comments [Tech]
  • 18 May, 6:40 PM One of the reasons for Facebook's (FB) less-than-stellar performance today may be due to the fact that the system became so clogged that traders backed away, says CNBC's David Faber. The big mid-day drop - from $40 to $38 - apparently happened because the Nasdaq temporarily stopped taking orders at one point, which created enough uncertainty that traders on many desks stopped trading the shares altogether. The SEC has launched an investigation into the issue. (video) 28 Comments
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