|U.S. stocks are likely to try to add to Monday's gains on Tuesday. A negative close would be a negative. |
- ICSC-Goldman Store Sales 7:45 AM ET
- Redbook 8:55 AM ET
- Existing Home Sales 10:00 AM ET
- Richmond Fed Manufacturing Index 10:00 AM ET
- 4-Week Bill Auction 11:30 AM ET
- 2-Yr Note Auction 1:00 PM ET
News For Thought:
Chief anti-money laundering operative to leave U.S. Treasury post. According to The Wall Street Journal: "The Treasury Department has dismissed the country's top anti-money-laundering regulator from his post, people familiar with the matter said, a rare move that the Obama administration isn't explaining. James Freis, who has run the Treasury Department's Financial Crimes Enforcement Network since 2007, is leaving the agency once his successor has been found, according to a memo sent to department employees by David Cohen, Treasury's undersecretary for terrorism and financial intelligence, Thursday. Mr. Freis held a mostly apolitical post and was responsible for helping coordinate the government's anti-money-laundering policies and sifting through bank data to identify potential violations of the Bank Secrecy Act or other laws and regulations."
China: Preferred path to U.S. Treasuries. According to Reuters: "China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters."
The report added: "The other central banks, including the Bank of Japan, which has a large appetite for Treasurys, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions. China, which holds $1.17 trillion in U.S. Treasurys, still buys some Treasurys through primary dealers, but since June 2011, that route hasn't been necessary. The documents viewed by Reuters show the U.S. Treasury Department has given the People's Bank of China a direct computer link to its auction system, which the Chinese first used to buy two-year notes in late June 2011."
Wonder if they'll get preferred status at obtaining U.S. military secrets next. On the other hand, maybe the U.S. government is looking to cut Wall Street out altogether, just like they seem to be ready to cut out all private enterprise and Capitalism in general.
Intrade fall for Obama continues. About three weeks ago we started looking at the Intrade.com odds of President Obama being re-elected. When we started the President was ahead with a solid 60% expectation of winning the election. When we checked at 8:14 Central Time on Monday night, the president was at 56.3% while Mitt Romney's chances were at 40.5%. This is the lowest odds we've seen for the president and the highest we've seen for Romney.
Other polls have returned to what have been "normal" numbers so far, with Rasmussen having Obama up by a 47 to 44% margin. Real Clear Politics.com has Mr. Obama up by an average of 2.3% in its survey of polls from 4-28 to 5-20.
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