>>> Baupost Group (Seth Klarman) discloses updated portfolio positi


Baupost Group (Seth Klarman) discloses updated portfolio positions in 13F filing: new CASC position (previously disclosed), new OZM position, closed out GNW position (KERX position approx unchanged)

 Highlights from 2016 Q2 filing as compared to 2016 Q1 filing:

  • New positions in: CASC (~25 mln shares), OZM (~3.4 mln), CAR (~1.8 mln), LVNTA (~2.5 mln)
  • Increased positions in: PRTK (to ~2 mln shares from ~1.5 mln shares)
  • Decreased positions in: NG (to ~9.5 mln shares from ~15 mln shares), AR (to ~14.5 mln from ~21.5 mln)
  • Closed positions in: BXE (from ~8.7 mln shares), SRAQU (from ~3.8 mln), LQ (from ~1.1 mln), GNW (from ~1.7 mln), BITI (from ~1.4 mln)

>>> Appaloosa (David Tepper) discloses updated portfolio positions

Appaloosa (David Tepper) discloses updated portfolio positions in 13F filing:

 Highlights from 2016 Q2 filing as compared to 2016 Q1 filing:
  • New positions in: QHC (~0.8 mln shares), USFD (~0.7 mln), WDC (~1.5 mln)
  • Increased positions in: AGN (to ~1.3 mln shares from ~0.3 mln shares), MHK (to ~0.8 mln from ~0.6 mln)
  • Decreased positions in: AMLP (to ~4.8 mln shares from ~13.9 mln shares), ETP (to ~11.4 mln from ~16.2 mln), GM (to ~1.4 mln from ~2.4 mln), GT (to ~0.7 mln from ~1 mln), HCA (to ~1.2 mln from ~3.2 mln), IR (to ~0.5 mln from ~0.7 mln), KMI (to ~1.5 mln from ~4.5 mln), PPG (to ~0.2 mln from ~0.6 mln), WPZ (to ~9.3 mln from ~13.2 mln), IR (to ~0.5 mln from ~0.7 mln)
  • Closed positions in: THC (from ~0.3 mln shares), BAC (from ~7 mln), COG (from ~1.3 mln), URI (from ~0.6 mln), DAL (from ~8.6 mln), FB (from ~1.6 mln), PFE (from ~2.5 mln), RRC (from ~1.4 mln) SWN (from ~4.4 mln) FB (from ~1.6 mln)

    • >>> Third Point (Dan Loeb) discloses updated portfolio positions in

    Third Point (Dan Loeb) discloses updated portfolio positions in 13F filing: New positions in ATVI, FB, MRO, SUPV, WLL, PGI, LBTY.A, MON, SPGI; closes position in ROP, FOXA, TRGP, WMB, AMGN

    Highlights from 2016 Q2 filing as compared to 2016 Q1 filing:
  • New positions in: ATVI (~3 mln shares), FB (~3.8 mln), MRO (~4 mln), SUPV (~4.5 mln), WLL (~8.2 mln), SPGI (~1.6 mln), LBTY.A (~2 mln) MON (~2 mln) SPGI (~1.6 mln)
  • Decreased positions in: TAP (to ~1 mln shares from ~2.2 mln shares), GOOGL (to ~0.4 mln from ~0.7 mln)
  • Closed positions in: ROP (from ~1.4 mln shares), FOXA (from ~1.5 mln), TRGP (from ~1.8 mln), WMB (from ~2 mln), AMGN (from ~3 mln)

    • >>> US Close Dow-0.20% S&P-0.08% Nasdaq+0.09% Russell+0.06%

    Closing Market Summary: Nasdaq Notches High on Range Bound Friday

    The stock market ended a flat week on a similar note as disappointing readings of July retail sales (0.0%; consensus +0.4%) and July PPI (-0.4%; consensus 0.0%) stalled the major averages in record territory. The S&P 500 (-0.1%; week-to-date: +0.1%) ended the week flat while the tech-heavy Nasdaq Composite (+0.1%; week-to-date: +0.2%) finished slightly ahead of the broader market. 

    The benchmark index meandered in a narrow seven-point range, pressured by weaker-than-expected economic data. The Retail Sales Report for July offered a disappointing preview of consumer spending for the third-quarter. Recall that consumer spending was a strong point for second-quarter GDP growth. The negative reading also contributed to a downward revision to the Atlanta Fed's GDPNow forecast for the third quarter (to 3.5%; from 3.7%). Separately, the Producer Price Index for July (-0.4%; consensus 0.0%) also came in below consensus, indicating a continued lack of upward pricing pressure.

    Retailers managed to shrug off the weaker-than expected retail sales report, focusing on better-than-expected earnings results from J. C. Penney (JCP 10.55, +0.61) and Nordstrom (JWN 51.38, +3.82). The two department store names beat bottom-line estimates, extending the rally in the broader SPDR S&P Retail ETF (XRT 45.51, +0.25). Today's trade also featured a rally in crude oil futures, softening in the dollar, and the underperformance of the heavily-weighted financial (-0.2%), health care (-0.2%), and industrial (-0.3%) sectors.

    The S&P 500 (-0.1%) settled in the middle of today's trading range as seven sectors ended in the red. The commodity-sensitive energy sector (+0.7%) led amid a 2.2% ($44.46/bbl; +$0.96) gain in crude oil futures. Conversely, industrials (-0.3%), telecom services (-0.4%), and materials (-1.2%) rounded out the leaderboard.

    The Dow Jones Transportation Average (-0.5%) finished behind the benchmark index as airlines weighed. Southwest Air (LUV 36.52, - 0.72) remained pressured after cutting its third-quarter revenue per available seat mile guidance on Wednesday. The stock declined 3.5% this week, which compares to a loss of 0.8% in the broader Transportation Index.

    The heavyweight financial sector (-0.2%) displayed relative weakness as expectations for a rate hike by the end of the year diminished. The fed funds futures market currently estimates the likelihood of an interest rate hike at the December meeting at 38.7%. This compares to yesterday's implied probability of 51.9%. The shift in rate hike expectations also contributed to a bid in Treasuries, which also pressured the economically-sensitive sector. The financial space finished the week lower by 0.6%, returning to negative territory for the year (-0.1%).

    In the health care sector (-0.3%), Dow component Merck (MRK 63.35, -0.28) extended its week-to-date loss to 0.8%, pulling back from last Friday's 10.4% rally. On the flipside, Anthem (ANTM 130.19, +1.99) and Cigna (CI 133.31, +6.69) outperformed. The names rose after reports indicated that settlement offers might be entertained in their antitrust case. The U.S. Department of Justice moved to block their proposed merger on July 21.

    The PHLX Semiconductor Index (+0.5%) outperformed as NVIDIA (NVDA 63.04, +3.34) led the price-weighted index. The company reported above-consensus quarterly results last evening. In the broader technology sector (-0.1%), Microsoft (MSFT 57.94, -0.36) underperformed after CEO Satya Nadella disclosed the sale of 143,000 shares. Separately, Coatue Management reported that it reduced its position in the Dow component, cutting its equity exposure to ~4.9 million shares from ~10.8 million.

    The U.S. Dollar Index (95.74, -0.12) recovered some early losses as the greenback trimmed its decline against the euro and the yen. The euro ended higher by 0.2% against the buck (1.1161) while the dollar/yen pair finished lower by 0.7% (101.29).

    Treasuries ended higher, benefiting from declining rate hike expectations. The yield on the 10-yr note settled lower by five basis points (1.51%). Separately, the yield on the 2-yr note slipped four basis points to 0.71%.

    Today's participation was below the recent average as fewer than 693 million shares changed hands at the NYSE floor.

    Today's economic data included July PPI, July Retail Sales, the preliminary reading of the Michigan Sentiment Index for August, and Business Inventories for June: 

    • The Producer Price Index for July featured a 0.4% decline in the final demand index (consensus 0.0%) following a 0.5% increase in June.
      • The downturn in July was paced by prices for final demand services, which fell 0.3%.
      • The index for final demand goods, meanwhile, decreased 0.4%.
      • On a year-over basis, the final demand index is down 0.2% versus a 0.3% increase seen in June.
      • Excluding food and energy, the final demand index declined 0.3% on the heels of a 0.4% increase in June.
      • That left the index up 0.7% year-over-year, which is a slowdown from the 1.3% growth rate seen in June.
    • The Retail Sales report for July showed no change in total retail sales (consensus +0.4%) after an upwardly revised 0.8% increase (from 0.6%) in June.
      • Excluding autos, retail sales declined 0.3% (consensus +0.2%) following an upwardly revised 0.9% increase (from 0.7%) in June.
      • Gasoline station sales (-2.7%) were the main drag and helped break a string of three consecutive monthly increases in retail sales.
      • Other weak spots included sporting goods, hobby, book and music stores (-2.2%), food and beverage stores (-0.6%), building material and garden equipment and supplies dealers (-0.5%), clothing and accessories (-0.5%), food services and drinking places (-0.2%), general merchandise stores (-0.1%), and electronics and appliance stores (-0.1%).
      • Motor vehicle and parts dealers (+1.1%) provided an influential offset of sorts, but by and large there was a slowdown in sales across most categories following some relatively strong sales performances in June.
    • Core retail sales, which exclude auto, gasoline station, building material, and food services sales, and which factor into the goods component for personal consumption expenditures in the GDP report, were flat.
    • Total business inventories increased 0.2% in June (consensus +0.1%) following an unrevised 0.2% increase in May.
      • The key takeaway from the report is that business inventories continue to remain at an elevated level relative to sales.
      • This points to ongoing difficulties in achieving pricing power and perhaps some more conservative approaches to increasing inventory investment.
      • Manufacturers' inventories (-0.1%) and wholesaler inventories (+0.3%) were already known.
      • The total business inventory-to-sales ratio for June dipped to 1.39 from 1.40 in May, yet that was still above the 1.37 ratio seen in the same period a year ago.
    • The preliminary reading for the University of Michigan Index of Consumer Sentiment for August checked in at 90.4 (consensus 90.2) versus the final reading of 90.0 for July.
      • From our vantage point, the key takeaway from the report is that there wasn't any significant change in consumer sentiment.
      • This comes despite the stock market rally and the stronger-than-expected employment data seen for July and August.
      • The improvement in August was fed by the Index of Consumer Expectations, which jumped to 80.3 from 77.8 in July.
      • The Current Economic Conditions Index, meanwhile, dropped to 106.1 from 109.0.

    Monday's economic data will include Empire Manufacturing for August (consensus 4.0) and the August NAHB Housing Market Index (consensus 59), which will be released at 8:30 ET and 10:00 ET, respectively. The day's data will be capped off with the 16:00 ET release of Net Long-Term TIC Flows for June.

    (ZH) As US Crude Exports Soars, Here Are The Biggest Foreign Buyers Of US Oil

    Strange things are happening in a world continues to find itself with "low-priced" oil and an unprecedented gasoline glut, the latest of which is an unexpected boon for US fuel makers as Latin American refineries quietly go bust.

    As Bloomberg writes, from Brazil’s Petroleo Brasileiro SA to Mexico’s Petroleos Mexicanos, state oil companies have failed to complete nine projects worth at least $36.4 billion that would have supplied 1.2 million barrels of gasoline and diesel daily. U.S. refiners have stepped up to help fill the gap, with exports almost doubling in the past six years, according to the U.S. Energy Information Administration. Falling oil prices, high levels of debt and failure to find partners to help finance the plants are among the reasons cited by Pemex, Costa Rica’s Refinadora Costarricense de Petroleo SA and Colombia’s Ecopetrol SA for postponing their plans. Brazil’s Petrobras has been slowed by the price drop as well as a corruption scandal.

    “Refinery investment plans in the region have really fizzled out over the past year or so,” Mara Roberts, a BMI Research analyst based in New York, said in an e-mail. “Latin America is keen to take in growing U.S. supplies.” As a result, US exports to the region have been rising steadily and reached a record 1.88 million barrels a day this year. Latin America now accounts for 42 percent of America’s fuel exports, up from 38 percent a decade ago. U.S. fuel output increased 4.1 percent over two years to a record 19.9 million barrels a day in 2015, EIA data show.

    US gasoline exporters aren't the only ones benefiting from current conditions. As the EIA writes in its most recent blog post, since the removal of restrictions on exporting U.S. crude oil in December 2015, the number of countries receiving exported U.S. crude has risen sharply. These exports have occurred despite a sustained narrow price premium of international crude oil prices over U.S. domestic crude oil prices, the many costs associated with arranging cargoes for export, and falling U.S. crude production.

    In the first five months of 2016, U.S. crude oil exports averaged 501,000 barrels per day (b/d), 43,000 b/d (9%) more than the full-year 2015 average. This rate of growth is significantly slower than before the restrictions were lifted, when year-over-year growth from 2012 to 2013 was 100%, and then 162% from 2013 to 2014 (Figure 1). However, after the lifting of restrictions, the number and variety of destinations for U.S. crude oil exports has changed. So far in 2016, crude oil was exported to 16 different nations, six more than 2015 and double the number of destinations in 2014.
    Before the removal of export restrictions, most U.S. crude oil shipments were to Canada. In recent years, crude exports to destinations other than Canada were re-exported volumes of foreign crude or an occasional cargo of Alaskan crude, which was exempt from export restrictions.
    In March 2016, total crude oil exports to countries other than Canada exceeded those to Canada for the first time since April 2000, 259,000 b/d versus 249,000 b/d. In May 2016, when total U.S. crude oil exports reached 662,000 b/d; exports to countries other than Canada exceeded exports to Canada by 46,000 b/d (Figure 2).

    Aside from Canada, the largest and most consistent U.S. crude export destination for the first five months of 2016 has been Curacao, located in the Caribbean Sea north of Venezuela; exports averaged 54,000 b/d through May (Figure 3). Petróleos de Venezuela (PDVSA), the state-owned oil company of Venezuela, operates the 330,000 b/d Isla refinery on Curacao, as well as crude and petroleum product storage facilities on the island. Trade press reports indicate that U.S. crude exports to Curacao are likely being used as diluent, blending a light U.S. crude with a heavy Venezuelan crude, for either processing at the Isla refinery or for re-export to PDVSA customers.
    Exports to the Netherlands, the second-largest non-Canadian destination for U.S. crude oil, averaged 39,000 b/d through the first five months of this year. Two of the three cities that collectively are the large refining and petroleum product trading hub of Amsterdam, Rotterdam, and Antwerp, known as the ARA, are located in the Netherlands. Other Western European nations, including Italy, France, and the United Kingdom, also rank high on the list of U.S. crude oil export destinations.
    The Marshall Islands, a group of islands in the Pacific Ocean, is the fifth-largest non-Canadian destination for U.S. crude oil exports in 2016, averaging 14,000 b/d through May. With no refineries, the Marshall Islands are unlikely the final destination, but rather may be the location of ship-to-ship transfers for delivery to destinations in Asia, or a point at which a cargo of crude oil would await a buyer in Asia. U.S. Customs and Border Protection documentation requires the final destination of an export, if known. Therefore, cargoes that will undergo ship-to-ship transfer or that do not have a buyer prior to loading will cite the jurisdiction of the transfer, not the cargo's actual final destination.
    The costs involved in exporting a cargo of crude oil can vary significantly. Transporting crude to a port, storage, loading, shipping, and other costs typically require large price spreads to make a transaction economic. Recent exports are occurring during a period when the price of Brent crude oil (the benchmark for global seaborne crude) has held a narrow premium to West Texas Intermediate (WTI, the U.S. benchmark), limiting the positive economic options for exporting U.S. crude. Through early August 2016, WTI averaged about $0.31 per barrel (b) less than Brent, despite a recent widening to $1.08/b for the week ending July 1 (Figure 4).
    Available shipping options can provide opportunities for crude exports despite a narrow price spread. For example, the recent cost of booking a tanker for a spot shipment of crude oil has been the lowest since 2009. Also, if either a buyer or a seller of exported crude oil has a tanker on time charter (meaning the vessel’s time has already been paid for a set period, fixing its cost), the vessel may operate independently of tanker rates. Another shipping option is to book a back-haul voyage, the trip a tanker would normally make empty while returning to a port to load its next cargo. Back-haul voyages can be significantly discounted from regular tanker rates. Refineries in the ARA and in the rest of Western Europe actively trade with markets and refineries in the United States, using both clean (refined cargoes) and dirty (less refined or unrefined cargoes) tankers. Trade flows between Europe and the U.S. Gulf Coast, which primarily use dirty tankers for transporting crude and less refined products such as residual fuel oil, provide opportunities for back-haul cargoes of U.S. crude oil.
    In addition, sellers of U.S. crude can use several methods to entice buyers despite unfavorable price spreads. A particular cargo or grade of crude oil can be discounted from a benchmark based on quality variations, such as API gravity, sulfur content, or other specifications. With the hope of continued purchases in the future, marketers of U.S. crude for export may offer buyers price discounts on sample or test cargoes, so that refiners may become more familiar with the crude and its compatibility with their refinery and desired product yield. This may explain some of the sporadic, typically small-volume crude oil export patterns to some countries in Asia, Europe, and elsewhere.

    >>> Coatue Management discloses updated portfolio positions in 13F filing:

    Coatue Management discloses updated portfolio positions in 13F filing:
    Highlights from 2016 Q2 filing as compared to 2016 Q1 filing:
    • New positions in: CBS (~0.3 mln shares), TREE (~0.6 mln), LNKD (~0.1 mln),LILA (~0.8 mln), LILA.K (~0.8 mln), MTCH (~0.8 mln), MTCH (~0.8 mln)
    • Increased positions in: CMCM (to ~1 mln shares from ~0.5 mln shares), FIT (to ~2.5 mln from ~1.4 mln), EXPE (to ~2 mln from ~1.5 mln), LBTY.A (to ~6.4 mln from ~5.1 mln), LBTY.K (to ~6.5 mln from ~4.9 mln), PYPL (to ~9 mln from ~4.3 mln), PYPL (to ~9 mln from ~4.3 mln)
    • Decreased positions in: ADBE (to ~1.7 mln shares from ~3.8 mln shares),GOOG (to ~0.5 mln from ~0.7 mln), AMZN (to ~0.3 mln from ~0.6 mln), FB (to ~4.2 mln from ~5.7 mln), EQIX (to ~0.9 mln from ~1.3 mln), MSFT (to ~4.9 mln from ~10.8 mln), NTRI (to ~0.4 mln from ~0.7 mln), SPLK (to ~1.3 mln from ~2.2 mln), SQ (to ~0.6 mln from ~1.2 mln), MSFT (to ~4.9 mln from ~10.8 mln)
    • Closed positions in: DDD (from ~1.1 mln shares), CAR (from ~1.8 mln), BRFS(from ~0.9 mln), CHTR (from ~1.9 mln), CTRP (from ~0.1 mln), GPRO (from ~0 mln), HRI (from ~5.2 mln), GPRO (from ~0 mln)