July 9, 2013 Update

DJIA:15,225 S&P 500:1,640 NASDAQ:3,485 Gold:$1,248 Oil:$102.96 EURO:$1.29 YEN:101.27

Crisis in the Fish Pool

The steady rise in temperatures across the world may, in fact, be responsible for more than the  just the unfortunate surge in your energy bill. Over the past decade temperates have risen so drastically that it has caused an increase in the human death toll and has left much of the Earth’s wildlife to suffer. Putting this devastation aside, climate change also has a direct impact on the commodities market. For the past few months, salmon have been trading in contango on the Fish Pool, the international commodity exchange in Norway that trades salmon futures. The warmer temperatures are heating up both the dry and wet lands, distorting the fish futures and spot markets. As the water gets warmer, the bacteria in the ecosystem intensifies. Salmon are dying from a combination of diseases and parasites from the increase of bacteria, but are also dropping dead from cardiac collapse as a result of the drastic heat waves. The salmon who have been able to survive the heat are not as healthy as the pre-climate change fish and, as such, are not the decent quality and tasty fish omnivores and pescatarians use to enjoy. To put it simply, salmon are having problems adapting to their new environment and, therefore, are not as valuable as they once were. The ecosystem the world once knew is being creatively destructed. The problem  with this, besides the obvious, is that focusing on what is being ruined is much easier than celebrating what is being created. I think that the capitalistic and Darwinistic few who can find the upside to the destruction of the earth’s wildlife will be celebrating for decades to come. 

Domestic News

• Market Update Futures are trading higher as Alcoa’s results boost investor confidence about this earnings season. 
• The National Federation of Independent Business will release its small-business index at 7:30, it is expected to be 94.7 for June vs. May’s 94.4. 
• The Labor Department’s Job Openings and Labor Turnover Survey will be released at 10:00, and is expected to be 3.8M for May vs. April’s 3.757M. 

International Updates

Asia

• Market Update Asians markets were in the green from contagious optimistic investor sentiment thanks to Alcoa, despite downbeat Chinese economic data. 
• Chinese annual consumer inflation rose 2.7% in June, which is slightly higher than estimates. Producer pricer fell 2.7%, which is inline with expectations. 

Europe

• Market Update Stock markets traded higher as investors celebrated the first tranche of aid delivered to Greece and from better-than-expected kickoff to the U.S. earnings season. 
• U.K. output data came in below expectations. Industrial production was flat on month in May vs. April’s -0.1% and the expectation of +0.2%. Output was -2.9% vs. April’s -0.9% and much worse than the consensus of -1.6%. The total deficit widened to £8.491B from £8.43B
• Egypt's EGX stock index is up over 2% after President Adly Mansour announced a better-than-expected timetable for new elections, which was likely only a result from the 51 deaths that came from the political riots.

Corporate

• Tesla Motors Inc. (TSLA) will be added to the Nasdaq 100 index next week, replacing Oracle Corp. (ORCL) which will now be traded at the New York Stock Exchange. 

 Commodities & Forex 

• Gold prices rise, continuing yesterday’s rally.
• Oil prices fell as the DXY eased and tumbled from its three-year high.