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Amazon’s Expanding Fulfillment Network

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There aren’t many decisions in online retail that depend on smart geographic selection and rent negotiation, but determining where to set down fulfillment centers is one of them. Amazon is a world leader at it, though, which is why more warehouses under the Amazon banner shouldn’t come as a complete surprise to anyone.

Amazon announced on Wednesday (May 25) that it would launch three new fulfillment centers. Two of the warehouses will be located in California — in the towns of Tracy and Eastvale, to be exact — with the third landing in Joliet, Illinois. Both the Tracy and Eastvale centers will clock in at about 1 million square feet and will bring upwards of 1,500 jobs, while the Joliet facility should measure around 700,000 square feet and will add 2,000 workers to pick, pack and ship the Midwest’s purchases.

“We are excited to continue our rapid growth in California in order to serve customers with super-fast shipping speeds and vast selection,” Akash Chauhan, vice president of North American operations at Amazon, said in a statement. “Since we first broke ground in California four years ago, we have found a network of support from community leaders to statewide officials, a dedicated workforce and fantastic customers.”

According to Internet Retailer, these three new fulfillment centers bring Amazon’s physical footprint in the U.S. to 76 full-sized facilities. Another 85 smaller warehouses focused on sorting and connecting shipments to other destinations flesh out the company’s corporeal presence, which is growing larger than many brick-and-mortar retailers can claim for themselves.

That’s all in addition to a rumored 19 fulfillment centers that should be up and running in the near future.

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Cheap gas, lower airfares will spike summer travel

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More Americans appear poised to kiss the "staycation" goodbye this summer.

With the coming of the Memorial Day holiday, more vacationers are likely to head out of town to take advantage of cheap gas, falling airfares and strong employment. After vacations being stuck at home, there are bigger incentives to hit the road.

“The 'staycation' is out, the road trip is in – and for good reason,” says analyst Patrick DeHaan of GasBuddy.com, the gasoline-price tracking web site.

AAA is projecting that 35 million people will travel this Memorial Day weekend -- about 700,000 more than last year. And with gasoline prices at their lowest level for this time of year since 2005, cheap gas is fueling the rush.

Americans have already saved more than $18 billion on gas this year, compared to the same period in 2015, AAA spokeswoman Julie Hall said. GasBuddy is projecting a 2.2% increase in road-trippers this summer, with national prices averaging $2.29 per gallon on Memorial Day and $2.15 per gallon from June through August. And a GasBuddy survey says that more than 56% of those driving to their vacation destinations will travel at least 400 miles round trip,

Cheaper fuel is also contributing to lower air fares. Travel booking site Orbitz says the average plane ticket to its top ten destinations costs 10% less this summer than it did last year.

“We’re definitely projecting a strong travel season,” Hall said. “People have extra income in their pocket, so they’re looking to spend that on travel.”

Of the 75% of Americans that Orbitz expects to travel this summer, eight out of 10 will stay stateside.

But while the journey itself might cost a little less, vacationers may have to pay more once they arrive.  Average hotel prices in Orbitz's top ten destinations are up 17% for the summer.

A few vacation spots have spiked considerably. Miami hotel prices leaped 23% to an average of $189 per night. Chicago rose 21% to $234 and New York increased 18% to $297.

“Where people may say ‘Great, these airfares look fantastic,’ they’re going to say, ‘How am I going to save on my hotel room?’” Orbitz spokeswoman Jeanenne Tornatore said.

To save travel cash this year, Orbitz recommends:

•Bargain destinations. Caribbean and Mexico are good deals this year. “Travelers looking for an international getaway are taking advantage (of) this and booking to these destinations,’’ Tornatore said. “And we haven’t seen any effect on our bookings due to Zika,’’ she added, referring to the mosquito-borne virus which can cause severe birth defects.

•Fly the cheapest weeks.  The first weeks of June and July and last week of August tend to be cheapest weeks to fly, according to an analysis of past trends. Travelers wanting to get out of town for Fourth of July weekend, the summer’s most traveled holiday, might want to book the trip in the first week of June to score the best deal.

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Delta adding staff, funding to ease summer security lines

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ATLANTA, May 25, 2016 /PRNewswire/ -- With summer quickly approaching, Delta Air Lines' (NYSE: DAL) 80,000 employees worldwide are helping to ease long security lines and serve both seasoned and first-time travelers.

Earlier this year, Delta and the Transportation Security Administration began collaborating to take steps to improve the security process at the national and airport levels. As a result, the airline is investing up to $4 million in additional staffing at 32 airports across the U.S. to supplement TSA staffing. Delta also invested nearly $1 million in the research, development and implementation of two new checkpoint lanes at Atlanta's Hartsfield-Jackson International Airport. The redesigned lanes, which opened this week, are expected to increase throughput.

In a memo to Delta employees Wednesday, Chief Operating Officer Gil West thanked the team for their efforts to prepare for the busy summer operation as well as their operational performance to date.

"We can't stop pushing forward," West said. "Your work has set Delta apart from the pack. We are delivering unprecedented performance and we need your help to keep it going through the busy summer months. We want our customers to have a seamless experience from check-in to pick-up. To ensure this, we partnered with the TSA months ago to get a plan in place to support the increased customer volume."

Four things the airline is doing to help reduce TSA line wait times include:

  • Staffing up – Providing staffing support at TSA checkpoints for tasks that will free up TSA inspectors to open additional checkpoint lanes at peak where possible or improve throughput. Delta intends to deploy employees or vendors in areas to manage lines, bins and other non-screening tasks. DELTA IS providing nearly $4 million in staffing solutions.
  • Thinking differently – Lending subject matter expertise from industrial engineers and other areas to make recommendations on queue design and how checkpoints could be redesigned for a more optimal flow and ease of movement.
  • Innovating – Redesigned, at Delta's expense, two checkpoint lanes at Atlanta's Hartsfield-Jackson International Airport. These lanes, a nearly $1 million investment for Delta, opened Tuesday and are expected to increase throughput.
  • Giving customers a choice – Partnering with CLEAR to provide complimentary enrollment to Diamond Medallions and preferential pricing to SkyMiles members for expedited document check-in and biometric verification for priority queuing at hubs this year.

Additionally, Delta has created a video for customers noting travel tips provided by an Atlanta-based Airport Customer Service Employee.

Since Delta implemented supplemental staffing in early May, the airline has seen a 10 percent increase in throughput at TSA security lanes. Further shortening wait times, Delta's staffing support at 32 airports has allowed TSA to open nearly 30 additional lanes across the U.S. that would have gone unstaffed.

About Delta

Delta Air Lines serves nearly 180 million customers each year. In 2016, Delta was named to Fortune's top 50 Most Admired Companies in addition to being named the most admired airline for the fifth time in six years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented five consecutive years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 330 destinations in 61 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading transatlantic joint venture with Air France-KLM and Alitalia as well as a joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St. Paul, New York-JFK and LaGuardia, London-Heathrow, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products and services, and technology to enhance the customer experience in the air and on the ground. Additional information is available on the Delta News Hub, as well as delta.com, Twitter @DeltaNewsHub, Google.com/+Delta, Facebook.com/delta and Delta's blog takingoff.delta.com.

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Why Uber Wanted to Make a Deal With Toyota

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Toyota Lexus Highway Teammate

A prototype self-driving Lexus underwent testing on a Tokyo highway last fall. Might Toyota agree to build a fleet of self-driving Lexuses for Uber? That's one question following the two companies' announcement of a new partnership. Image source: Toyota

More details are emerging about the surprising deal between Toyota (NYSE:TM) and Uber. The two companies announced a partnership on Tuesday that included a Toyota leasing program for Uber drivers and an investment by Toyota in the Silicon Valley ride-hailing giant.

The announcement was short on specifics, including the size of Toyota's investment. But new reports on Wednesday have shed more light on that question, as well as on Uber's motivations for seeking a partnership with a global automaker.

How much did Toyota invest in Uber?

Citing "a person knowledgable about the matter," The Wall Street Journal reported on Wednesday that Toyota's investment in Uber is less than $100 million. That's well below the $300 million that Volkswagen (NASDAQOTH:VLKAY) invested in European ride-hailing firm Gett, or the $500 million that General Motors (NYSE:GM) invested in Uber's main U.S. rival, Lyft, not to mention the $1 billion that Apple invested in Uber's global arch-rival, Chinese ride-hailing giant Didi Chuxing.

What does Toyota get out of the deal?

In the near term, Toyota gets to lease vehicles to Uber drivers under a new program that will be operated by the automaker's financial arm. The program will be offered in the U.S. and some overseas markets -- but not in Japan, according to the Journal report. It will launch sometime in the second half of 2016.

The leasing program will give Toyota added business in urban markets. Toyota is fairly strong in urban markets in the U.S. -- but GM isn't, and part of Toyota's motivation for making the deal may have been to block GM from taking on the business of leasing to Uber drivers. GM is setting up a similar program with Lyft, but Uber has many more drivers in U.S. cities.

Toyota also gets a foot in the door of the fast-growing ride-hailing industry. While it isn't expected to get a representative on Uber's board, nor any say in its management, the company is expected to use the partnership to learn more about the market for ride-hailing and the operational aspects of the service.

What does Uber get out of the deal?

Probably not as much as it wanted, at least right now.

A Recode report on Wednesday added some perspective on Uber's view of the deal. Over the last year, according to the article, Uber approached a number of automakers and self-driving technology companies about potential partnerships, including both GM and self-driving start-up Cruise Automation, which was recently acquired by GM.

It's well known that Uber CEO Travis Kalanick has long sought to develop self-driving cars in hopes of eventually automating much of Uber's service. The company has been developing its own self-driving system, and recently showed off its first self-driving test car.

Uber

Uber's first self-driving test car is a Ford Fusion. Will the next one be a Toyota? Don't bet against it. Image source: Uber

Uber has also been looking for a partner to help it advance its self-driving efforts for at least a year, holding talks with Ford (NYSE:F), GM, and possibly other automakers. But according to the report, most potential partners weren't interested: Apparently, Kalanick was seeking a partner that would be willing to manufacture self-driving cars for Uber that carried its branding instead of the automaker's.

Kalanick's talks may have extended well outside of Detroit. In March, Germany's Manager Magazin reported that Uber had approached Daimler's (NASDAQOTH:DDAIF) Mercedes-Benz unit in hopes of ordering a huge fleet (a "six-digit number") of Mercedes-Benz S-Class sedans equipped with self-driving technology for delivery around 2020. Reuters subsequently reported that Uber had approached several automakers, not just Mercedes-Benz, about a potential order for a huge fleet of self-driving cars.

So will Toyota build Uber a fleet of self-driving taxis?

The press release announcing Uber's new partnership with Toyota made no mention of joining forces on self-driving research beyond a general statement about "sharing knowledge and accelerating their respective research efforts." It certainly didn't hint at any potential arrangements to produce an Uber-branded self-driving vehicle. Indeed, from what we know about it now, it's a very Toyota-style deal: a small investment in return for a learning opportunity.

It's possible that the partnership will expand later. It's also possible that Toyota, like its Detroit competitors, isn't interested in folding its latest self-driving technology into Uber-branded cars. If that's the case, Uber's quest for an automaking partner might not be over.

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Private investigator claims ethical breaches by Casey Anthony lawyer

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New court papers suggest discord between a private investigator and the attorney representing Casey Anthony, the Florida woman acquitted in 2011 of her daughter's murder, according to media reports.

The investigator, Dominic Casey, said in court deposition documents related to Casey Anthony's Chapter 7 bankruptcy filing in Florida that Jose Baez, the attorney who represented Anthony, told him that Anthony admitted to killing her daughter, according to reports in the Orlando Sentinel, Fox News, and PeopleMagazine. The documents are filed with U.S. Bankruptcy Court, Middle District of Florida, Tampa Division, and are dated April 25, 2016.

Casey also claimed in the deposition that Baez had a sexual relationship with Anthony, a claim that Baez vehemently denies.

"I unequivocally and categorically deny exchanging sex for legal services with Ms. Anthony," Baez wrote to People. "I further unequivocally and categorically deny having any sexual relationship with Ms. Anthony whatsoever."

Casey worked with Baez in 2008 after Casey Anthony was arrested for child neglect following the disappearance of her 2-year-old daughter, Caylee Anthony, on July 5, 2011. Dominic Casey's affidavit is dated Dec. 15, 2015.

On July 26, 2008, the investigator claimed, Baez told him that Anthony murdered her daughter and "dumped the body somewhere and he needed all the help he could get to find the body before anyone else did."

Dominic Casey also wrote of an incident in which he arrived unexpectedly at Baez's office and found Casey Anthony there, naked. Anthony ran out of Baez's private office through a conference room and into a hallway, Dominic Casey wrote. It was not an isolated incident, he wrote.

Casey "told (Anthony) that she cannot allow (Baez) to continue engaging in this behavior," the investigator wrote in the affidavit. "Casey told me she had to do what Jose said because she had no money for her defense."

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ES Morning Update May 26th 2016

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Might have topped yesterday for the wave 3 up and now in some ABC pattern for the wave 4 down.  Support still at the 2080 area.

Overbought on all the time frames.  This 60 minute chart is trying to reset but it should only make a lower high on any move back up.

Looking at the charts today and adding in the fact that we are going into a 3 day holiday weekend, with Monday being closed for Memorial day, I say we'll just chop around between the 2080 support and the current high today and Friday.  I'm not sure if the wave 3 up topped yesterday or not but if we make another higher high today I think that will be it for that wave 3 up.  Then the wave 4 down will likely be some kind of ABC pattern I'd guess.  Whatever pattern it takes I don't see a lot of downside on it.  By the close Friday the new rising trendline that's at 2067 right now will probably be up around 2077, or just a hair under the 2080 horizontal support.  The wave 4 down might end there and put off the wave 5 up until next week.

If we don't make an higher high today then we are likely already in the wave 4 pullback.  Again, it might last until Friday I just don't see them allowing the market to tank in front of a holiday weekend.  Also, we know we haven't topped yet as the FP on Apple hasn't be hit... which might not hit until early next week if we pullback a little today and tomorrow.  Pay close attention to it as when it's hit I think the market will be topped.  So if that happens today then the small pullback in the ES Futures last night and the run back up this morning could be the wave 4 down and 5 up?  Seems pretty short in time for that to be the case but it's possible.  If that happens then we should be starting the next big down move tomorrow, but I still don't expect that 2080 area to break... maybe pierce it small, but nothing big on the downside in front of this weekend.

Also do note that we close at 2pm Friday instead of 4pm for the holiday.  And Janet Yellen speaks at 1:15pm, which "could" mean something?  I could see them announcing bad news right before the close, going into a 3 day weekend, so they can spin it as nothing over that long period with their propaganda media machine.  I still don't plan on shorting over this weekend but this could be something important that spells the top for the market this week and the start of the 12% correction next week.

ES Morning Update May 25th 2016

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Pierced through the 2080 horizontal resistance overnight, and now that level will act as support.

The MACD's on the 2, 4, and 6 hour charts are all overbought now and this 60 minute chart is trying to reset to turn back up.

Ok, we've reached the first hard spot for the bulls and they pushed through it.  I speculated yesterday that this we'd make the whole move up to the 2080 level inside a wave 3 and not have the pullback before it's hit.  That turned out to be accurate as clearly you can see we haven't had any decent 10 or more point move down yet.  The wave 2 pullback was from the 2056 high on 5/23 to the 2041 low on 5/24, and that's where this wave 3 up started.  It should end today I think and have a wave 4 pullback.  But, I doubt if we pullback 10 points or more like the wave 2 did.  I think this time it will be a sideways move so they can hold the 2080 level as it's now support.

My guess is that they will try to push up a little more early in the day (not much) and then tire out and float sideways to down the rest of the day, but holding the 2080 level.  So today could be another boring day.  After the wave 4 is done we have the wave 5 up to finish this series of waves from the 2022 low.  That might take is right into Friday from the looks things.  Then the 3 day weekend to keep everyone guessing about next week.  If all goes well then everyone will be massively bullish and the bears will be asleep again.  Then you'll have your answer as to what's coming...

ES Morning Update May 24th 2016

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Breaking out of the triangle now, but could backtest it and then continue back up.

MACD's on this 60 minute chart pointing up and the 2, 4, and 6 hour charts are also pointing up, suggesting a nice rally could start today.

Yesterday near the closed I posted another chart suggesting we might drop out of the triangle overnight (which we did) but I expected it to recapture it by the open (which it did).  So far, all is going as expected.  It doesn't always work like that of course last week was tricky but we survived it.  This week is behaving nicely as the bulls are "usually" easier to predict then the bears.  Assuming we breakout of this triangle we could briefly backtest it with a small pullback but after that (if it happens) I'd say we are on our way up as many short term charts are aligning together to support a nice strong move.

There's horizontal resistance at 2067.50 from a prior top, then 2072.50 and finally the 2080.00 top.  I don't think we'll take it out today but we might test the first or second horizontal resistance levels.  The 2080 level though might not be broken until later in the week.  If we get up to it in one straight long move up (either today or tomorrow) without any real pullback (10 points would be enough) then I'd have to think the move up was some kind of wave 3 with the wave 1 up from the 2022.00 low to the 2055.50 high, and the wave 2 down from there to the 2041.25 low.  This suggests a wave 4 down and a wave 5 up through the 2080 level would follow (again, only if we have no real pullback from here until we hit 2080).

To sum it up, I expect the move up to start today with a final top to be above the 2080 level and most likely below the 2095 level.  This might take until the end of this week, but today looks to be the day of the wave 3, which "should" end around the 2080 level if my forecast of breaking through it is accurate?  Then a 10 or point pullback for the wave 4 down and a nice push up through 2080 to clear out the bears' stops' and complete the 5th wave... which then should have all the sheep calling for new highs and the bears back in their caves asleep.  Only then will you know the top is in...

Sports Authority strikes out

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135636330545497.bMzn9uiEYomgRRRZkzVq_height640Sports Authority has officially struck out. After filing for bankruptcy protection 3 months ago, the sporting goods retailer will be shuttering all 460 of its stores, according to a court document obtained by The Associated Press.

Sports Authority had initially planned to close about 30% of its stores in a restructuring, but now plans to shut them all down. The court filing says going-out-of-business sales will start around Wednesday of this week and may continue through August.

The company reportedly intends to sell its store leases in an upcoming auction.

Online shopping presents tough competition

Sports Authority has struggled to stay afloat as more athletic-minded shoppers head to the internet for convenience, deals and discounts. In March, when the  company filed for bankruptcy and initially said it would close 140 of its brick-and-mortar stores, CEO Michael Foss blamed an increase in online shopping.

“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” Foss said at the time. “We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations.”

Sports Authority is far from the only retailer grappling with fierce competition from online shopping. Earlier this month, department store giants including Macy’s, J.C. Penney’s and Nordstrom reported dismal first quarter earnings, and sporting goods chain City Sports filed for bankruptcy last year.

Here come the closeout sales

Shoppers looking to stock up on athletic shoes, workout gear or sporting equipment should make plans to take advantage of Sports Authority's upcoming closeout sales. Currently, the retailer’s website is littered with deals advertising the chain's "biggest BOGO sale of the season" and "50% off Memorial Day deals."

But consumers should hold out a few days to take advantage of the best sales.

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Lyft is testing a way to schedule rides in advance, but right now it’s only for employees

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lyft

Lyft is going where Uber has not gone before: letting users schedule rides in advance.

But there are still lots of questions to be worked out before this is introduced to actual Lyft passengers.

The experiment will let Lyft employees schedule a ride up to 24 hours in advance. In the app, there will be an option to hail a Lyft now — the way the service is currently used — or schedule one for at least 30 minutes later.

But, the drivers themselves won't be booked in advanced. Instead, when a rider sets a ride for 1:30 p.m. for example, a normal request for a ride will go out a few minutes before.

It's a feature that many riders would love to have, but companies like Uber and Lyft have been hesitant to offer advanced-scheduling because of how it would affect surge pricing.

Lyft employs its own version of surge pricing, called Prime Time. Normally, if the demand is too high, riders are charged a multiple if they want to request and drivers are incentivized to come online.

This system could become a problem if you're trying to book in advance. Lyft wouldn't say whether it will charge its employees the higher Prime Time price when they request or when they're picked up. It's testing multiple scenarios for the best interest for its riders and drivers, a spokesperson said.

Deciding on Prime Time will matter a lot to riders in the future if they request a $20 ride only to find that the Prime Time triples it to $60. The same goes for drivers: They may not be incentivized to pick up a scheduled rider if they're paying a cheaper price because the surge pricing doesn't apply.

For now, scheduled rides is just a limited test to the company's San Francisco employees, but Lyft will have to work out the logistics of ensuring fair pay and pricing before it rolls it out to everyone else.
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Germans accuse Fiat Chrysler of cheating emissions test

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Fiat Chrysler Automobiles NV is reportedly being accused of cheating emissions testing by Germany’s Federal Motor Transport Authority.

German newspaper Bild am Sonntag on Sunday reported that testing of a Fiat model showed the emission control system shut down after 22 minutes — two minutes after the end of a standard test. Without the system, the vehicle, according to the report, released more than 10 times the permitted level of nitrogen oxide.

A Fiat Chrysler spokesman referred questions to a Feb. 2 statement that all of the company’s vehicles “do not have a mechanism to either detect that they are undergoing a bench test in a laboratory or to activate a function to operate emission controls only under laboratory testing.”

Fiat Chrysler shares on the New York Stock Exchange at about 1 p.m. were trading down 4.7 percent at $6.71 per share.

The report out of Germany follows a report from Bloomberg on Friday that the dispute between Fiat Chrysler and German regulators came to a forefront when the company “refused to meet with German Transport Minister Alexander Dobrindt to discuss findings of an emissions probe.”

Italian Minister of Infrastructure and Transport Graziano Delrio, according to a recent statement on the organization’s website, sent a letter to Dobrindt saying there would be “full and complete availability on the part of the manufacturer FCA, whose vehicles are homologated in Italy, to provide all necessary information on its emission control strategies to the competent authority.”

The Italian ministry confirmed that the dialog has to take place between the two countries, but not involve Fiat Chrysler. Under European Union rules, Italy is responsible for testing Fiat cars because the automaker’s regional operations are centered in the country.

The claims about Fiat Chrysler follow Volkswagen AG’s admission in September that it rigged software on diesel engines to pass emissions tests. U.S. regulators found the German automaker had installed the defeat devices on more than 550,000 diesel vehicles.

Mitsubishi Motors Corp. last month also acknowledged last month that it had intentionally lied about fuel economy data for some of its models since 1991, following an internal investigation.

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Schlumberger (SLB) Stock Gains, Goldman: Secular Winner, Adds to ‘Conviction Buy’ List

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NEW YORK (TheStreet) -- Schlumberger  (SLB)  shares are advancing 0.89% to $75.63 on Monday morning after Goldman Sachs issued a bullish note earlier today, saying the company is a secular winner with numerous advantages.

The firm added the oilfield services company to its "Conviction Buy" list with a price target of $94, a 29% upside.

Analysts believe Schlumberger is best positioned in the current oil market, given its exposure to regions forecasted to be incremental sources of oil supply, its technological advantage and its balance sheet.

In addition, when oil prices go up, the company usually outperforms the S&P 500. Given these catalysts, analysts have increased confidence in its future.

Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.

Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and premium valuation.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

You can view the full analysis from the report here: SLB

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Atlanta gas prices rising for Memorial Day (as usual)

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Just as you’re nearly done loading the car, here it comes again: that Memorial Day hike in the price of gasoline.

The fill-up cost hit a nine-month high a few days ago and the experts say you can expect the price to slide up a few more cents by Memorial Day.

Atlanta prices of late have tracked the national averages, and U.S. gas prices will average nearly $2.40 a gallon for Memorial Day, said Brian Milne, an energy analyst for Schneider Electric, a French company with U.S. headquarters in Boston.Atlanta gas prices rising for Memorial Day (as usual) photo

As the holiday and summer driving approach, look for higher gas prices (but lower than in years past).

Ah, but the good news: This will be the cheapest summer gasoline since 2005, said Patrick DeHaan, senior petroleum analyst for GasBuddy. “As we kick off driving season, gas prices will be nearly a dollar per gallon lower than the ten-year Memorial Day average of $3.15 per gallon.”

Gasoline in metro Atlanta is about 45 cents a gallon cheaper than it was a year ago, according to GasBuddy.

The average price in metro Atlanta [on Friday] was $2.26 a gallon, up 61 cents from the ebb of the winter, although there was at least one station still selling below $2 a gallon, according to GasBuddy.

One in four motorists are more inclined to drive somewhere this summer because of the low prices, according to a GasBuddy survey. (Last year, just 17 percent of drivers said so.)

Three out of four drivers are planning a road trip this summer, up slightly from a year ago. And more than half – 56 percent – said they will be driving at least 400 miles round trip.

Pollsters say gas prices often predict consumer moods: perhaps because gas prices are the common piece of economic information – visible to virtually all consumers every day. Rising prices can send consumer confidence into the gutter.

Moreover, because gasoline is a huge, regular – and for many, an unavoidable – expense, it is an important factor in the nation’s economic equation. Most recessions since World War II have come after gas price spikes.

Conversely, a drop in prices gives American more disposable income.

Five years ago, gas prices were their highest for the start of the summer, DeHaan said. “Nationally, we’ll be saving $2.6 billion over the long weekend this year versus the highest-priced Memorial Day weekend in 2011.”

Behind the prices along the highway, far up the distribution chain, the forces of supply and demand are pulling in various directions.

Americans have generally been driving ever-more efficient vehicles, which use less gasoline. Meanwhile, overall production – especially in the United States – has been strong, so supplies are above normal, said energy economist Wally Tyner of Purdue University.

That should push prices down. Yet the price of crude oil has nearly doubled in the past five months.

That is because production is down elsewhere: Nigeria is struggling with civil war, Venezuela with political unrest and Kuwait with labor-related stoppages.

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GE says to double Saudi workforce as economy reforms

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The logo of Dow Jones Industrial Average stock market index listed company General Electric is shown at their subsidiary company GE Aviation in Santa Ana, California April 13, 2016. REUTERS/Mike Blake Thomson ReutersThe logo of Dow Jones Industrial Average stock market index listed company General Electric DUBAI (Reuters) - Saudi Arabia won support for its economic reform plan from one of the world's biggest companies on Monday as General Electric Co (GE) said it would double its workforce in the kingdom to 4,000 people by 2020.

GE will cooperate with the government's Saudi Arabian Industrial Investments Co (SAIIC) to develop joint ventures that boost Saudi industrial capacity, chief executive Jeffrey Immelt said in a statement during a visit to the kingdom.

SAIIC was established in 2014 with capital of 2 billion riyals ($533 million) as a venture between some of the country's most powerful institutions: the Public Investment Fund (PIF), national oil firm Saudi Aramco and government-controlled Saudi Basic Industries Corp .

Under reforms announced by Deputy Crown Prince Mohammed bin Salman last month, the PIF is to be developed into a $2 trillion sovereign fund that creates jobs and jump-starts new industries with strategic investments that reduce Saudi Arabia's reliance on oil exports.

Immelt said GE was working on several new projects in Saudi Arabia as part of the reform drive, including a $400 million forging and casting venture with Aramco that would supply materials to the marine and energy industries. The facility will be operating by 2020, creating over 2,000 jobs, he said.

GE is also developing a maintenance facility for military aviation engines and a manufacturing facility for light-emitting diode (LED) lighting products, as well as training, biotechnology and radiology operations, he added.

The projects will help increase the number of Saudi suppliers to GE to 300 from 150, as the company aims eventually to export more than $100 million of products and services annually from Saudi Arabia, it said.

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Uber Uses This Vital Information Against You To Force You To Accept Surge Pricing

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Uber users are more likely to accept surge pricing if their phone is low on battery, according to a recent company study.

In an interview with NPR's Hidden Brain podcast, Uber's head of economic research, Keith Chen, revealed that riders with a smartphone that is almost running out of juice is willing to pay more for the trip than someone with an amply charged phone.

The ride-sharing app service can tell when your device is running low on battery because its app is collecting information so it can switch into power-saving mode. However, Chen assures that Uber would never use the personal data of customers to raise fees.

"We absolutely don't use that to kind of like push you a higher surge price, but it's an interesting kind of psychological fact of human behavior," Chen, a behavioral economist at UCLA, told NPR.

The app's surge pricing uses a complex algorithm that determines how many users are requesting Uber rides in an area at any given time, Mashable noted. Customers are less likely to believe that when the multiplier is a round number, such as 2.0 or 3.0.

"One of the strongest predictors of whether or not you are going to be sensitive to surge-in other words, whether or not you are going to kind of say, oh, [fares are] 2.2, 2.3 [times higher than usual], I'll give it 10 to 15 minutes to see if surge goes away-is how much battery you have left on your cell phone," Chen explained.

Surge price increases as much as 9.9 times the company's normal price.

"This basic question of how psychologically painful the experience of paying a price is something I worry about every day," Chen said.

Uber's infamous surge pricing feature has been the subject of scrutiny in the past for increasing prices during mass emergencies. In 2014, the company apologized for gouging people who were trying to escape during the hostage crisis in Sydney, Australia.

"The only way to get everyone who lives in a dense part of a city a car within five minutes was to do that through dynamic pricing," Chen asserted.

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Corporate governance crisis at Viacom: Redstone v. Dauman

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Sumner Redstone has officially broken with his protege and friend of 30 years, Viacom CEO Phillippe Dauman.

In a blistering statement on Sunday night, a self-described spokesman for Redstone detailed the split between the two men and accused Viacom -- the company Redstone controls -- of saying "false and unfair" things about him.

The spokesman, Mike Lawrence, said Redstone removed Dauman and another confidant, George Abrams, from his trust because Redstone believes it's in "the best interests of beneficiaries and shareholders."

The lengthy statement also seemed to confirm news reports that Redstone is opposed to Dauman's plan to sell a minority stake in Viacom's Paramount Pictures movie studio.

"Unless Viacom's board presents a concrete plan that convinces him otherwise, Mr. Redstone continues to believe that it is in the best interest of Viacom that Paramount Pictures should remain wholly owned by the parent company," Lawrence said.

The Sunday night statement heightened the stakes in a corporate governance crisis at Viacom, one of the biggest media companies in the world.

Viacom owns MTV, Nickelodeon, Comedy Central, Paramount, and a long list of other television and movie assets.

And right now Redstone, the controlling shareholder, is publicly at war with the CEO.

Many observers suspect that Redstone, who is in very poor health, is being influenced by his daughter Shari. But both father and daughter -- once estranged, now back in each other's lives -- have rejected those assertions via statements from representatives.

Clearly something cataclysmic is going on. Redstone and Dauman have been exceedingly close since the late 1980s, but no more.

On Friday evening, lawyers for Redstone said the ailing 92-year-old mogul had decided to remove Dauman and Abrams from the trust that will control both Viacom and CBS after his death. The move appeared to give Shari Redstone more control over the sprawling media empire.

Viacom, speaking for Dauman, called the moves "invalid and illegal" and alleged that Redstone is "being manipulated and used by his daughter."

As statements flew back and forth, Shari said, "I fully support my father's decisions and respect his authority to make them."

Redstone is barely able to speak. A recent court case involving an ex-girlfriend raised questions about Redstone's competency to make decisions, but the judge sided with Redstone.

During the court proceedings, Dauman was on Redstone's side, testifying that Redstone was "engaged" and "attentive" despite his difficulty communicating.

Now, however, Dauman is challenging Redstone's competency and blaming Shari for the rupture.

Earlier this year, when Redstone gave up his Viacom chairman position, Shari was the sole board member to vote against Dauman's ascension to the chair.

Sunday night's statement by Lawrence ticked through all the weekend's claims by Dauman's camp.

Lawrence, a Boston-based public relations executive, has not previously represented Redstone. But he said Redstone's lawyers have been meeting with him "frequently, including today. They are quite clear about his wishes and the strength of his feelings, from those meetings."

Lawrence began by saying that, "Viacom's claim that members of the board have been 'denied access' to Sumner Redstone is untrue."

He asserted that Redstone "asked to briefed" about Viacom's business by Abrams and another board member, Fred Salerno, last Monday, "but the board leadership did not respond."

Viacom responded on Sunday night by noting that Redstone listened in to board meetings for the next two days, last Tuesday and Wednesday.

"Despite numerous requests," Salerno and a "fellow board member, who represent all shareholders, have still been unable to meet with Mr. Redstone," the company's statement said.

The Viacom statement added, "The Sumner Redstone we knew would never refuse a meeting about his businesses and he certainly would not want advisors to stand in for him."

Those board meetings would still like to meet with Redstone, Viacom said.

But Lawrence said earlier in the evening that "Viacom's false and unfair statements to the media, as well as Mr. Dauman's opportunistic claims of incapacity, now make it problematic to move forward with any direct meeting and briefing as Mr. Redstone had previously requested."

"However," Lawrence added, "Mr. Redstone remains intent on receiving the briefing through his advisers -- a request that still has not been responded to despite Mr. Redstone's rights as a director."

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Whether Clinton or Trump, Baby Boomers will reclaim White House next year

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Ten years ago, a writer named Barack Obama recalled his fatigue with Baby Boomer politics, as epitomized by the battles in the 1990s between President Bill Clinton and House Speaker Newt Gingrich, and the 2000 and 2004 presidential elections:

"I sometimes felt,’’ he wrote in The Audacity of Hope, “as if I were watching the psychodrama of the Baby Boom generation — a tale rooted in old grudges and revenge plots hatched on a handful of college campuses long ago — played out on the national stage."

Two years later, Obama personally ended a 16-year Boomer lock on the presidency. His campaign emphasis on consensus, dialogue and pragmatism seemed to rebuke the Boomer tendencies personified by his predecessors, Clinton and George W. Bush.

TheSan Jose Mercury News declared “the end of the baby boomer presidency." Andrew Sullivan, a columnist two years Obama’s junior, voiced hope that the new president would move “past the debilitating, self-perpetuating family quarrel of the Baby Boom generation that has long engulfed us."

Next January, however, Obama will almost certainly turn the White House back to Donald Trump (b. 1946) or Hillary Clinton (1947), two very different members of the very same generation.

When it comes to political “psychodrama," Boomers just won’t get off the stage.

“It’s endless," says Morley Winograd, co-author of Millennial Momentum: How a New Generation Is Remaking America. “Everybody wants to see the curtain come down." Amen, says Jayne Clarkson, a 26-year-old New York City production assistant: “I feel like it’s time for someone else to have a chance."

Even Boomers are sick of Boomers. Eight years ago, says veteran St. Louis Post-Dispatch columnist Bill McClellan, “it seemed the country was done with us. ... Why can’t we just go away?"

The Baby Boom, which officially began Jan. 1, 1946, was "the single greatest demographic event in U.S. history,'' according to Steven Gillon, the historian who wrote Boomer Nation. The generation’s 77 million members "wrapped our culture around itself like no generation before or since."

The Boomers were followed by Generation X, generally defined as those born from the early 1960s to the early 1980s, and the Millennials, born between the early ‘80s and around 2000.

Resentment of Boomers spans these successor generations. John Della Volpe is polling director at Harvard’s Institute of Politics: “Half of Millennials believe the American dream is dead. And who killed it? Their parents" — Boomers, whose stewardship of Congress, Wall Street and the news media is also blamed for the decline in trust in those institutions.

Unless Bernie Sanders — born before Pearl Harbor as part of the “Silent Generation” (one that has yet to produce a president) — upsets Clinton, a Boomer will be president. If he/she wins a second term, it would end 32 years after Bill Clinton became the first Boomer president.

Whether this represents a continuation of Boomer hegemony or a return to it depends on whether you view Obama (b. 1961) as Boomer or Xer.

Demographers, who note birth rates rose to 1964, tend to view ‘61 babies as Boomers; historians and sociologists, focused on culture, generally call them Xers. They say if you can’t remember the Kennedy assassination, you’re at most a “shadow boomer’’ or “cusper.’’

Obama is clearly an Xer in spirit, if nothing else. In his 2008 race against Clinton, for example, he accused her of “fighting some of the same fights since the ‘60s."

A generation 'at war with itself'

Does the candidates’ generation suggest traits that could shape a presidency?

Possibly the Boomer generation’s most striking characteristic is its own internal division. “It was always at war with itself," says Gillon, “and the cultural civil war of the ‘60s is still playing out in the presidential election."

That means more talk about social issues, which tend to defy compromise and make people mad. The irony is that Boomers, about 10,000 of whom turn 70 each day, are affected by other issues — the shortfall in retirement savings, the rising incidence of Alzheimer’s — that could get lost in the shuffle, says Ken Dychtwald, an expert on generational change.

He sees in Trump’s promise not to touch Social Security the candidate’s attention to the sensitivities of fellow Boomers, and one reason why Trump prevailed over those who touted generational change but also promoted entitlement reform. For most voters, a candidate’s generation is secondary or tertiary.

Every generation has all sorts of different traits and tendencies. But those who look at the two leading presidential candidates through a generational lens see classic boomer characteristics, even though neither fought in Vietnam or attended Woodstock.

Clinton personifies female Boomers, whom Dychtwald calls “the most educated, powerful, accomplished, complex, outspoken and demanding women in history.’’ A 1964 GOP “Goldwater girl" who became a Vietnam protester and feminist, Clinton also epitomizes the generation’s extreme shifts.

Trump represents boomer egocentrism, says Dychtwald: “He makes his own rules. He wants to impress." He’s materialistic, brash and confident – classic boomer traits, despite the popular image of Boomers as all about peace and love.

Neil Howe, a prominent generational theorist, agrees: “Trump’s ego strength — ‘I can fill a stadium!’ — that’s all Boomer."

Howe, co-author of The Fourth Turning, says Boomers have always been better at tearing things down than building them up, and this year the Republican primary electorate “wanted a wrecking ball. Trump is perfect if you believe the system is so bad it shouldn’t tweaked or patched.’’

'This is our time'

For Gen X, the election cycle started out hopefully. Although Boomers Clinton and Jeb Bush (b. 1953) were the early Democratic and Republican front runners, the GOP field included six candidates born after Obama. Four were unquestionably Xers — Scott Walker (b. 1967), Ted Cruz (1970) and Bobby Jindal and Marco Rubio (1971).

Rubio, who would have been the third youngest president, played the generation card. He released a web ad, This Election is a Generational Choice; derided opponents’ ideas as not just wrong but “outdated;" and used the phrase “21st century’’ at every turn – seven times in the Nov. 10 debate in Milwaukee.

Cruz also boarded the bandwagon, saying, ''Gen-Xers, this is our time!''

(The boomers have not talked much about their generational affiliations, although Clinton admitted in one debate that "I come from the '60s, a long time ago.")

In the end, though, the young Republicans — including Chris Christie (b. 1962) and Rand Paul (1963) — lost to a man who was born less than six months after the boomer era began; who was the only major GOP candidate born before 1950; and who talked not so much about creating the future as recapturing past greatness.

“My generation just keeps dropping the ball," says Michael A. Smith, a Gen Xer who teaches at Emporia State University in Kansas.

Xer candidates looked to Millennials, because this is the first presidential election in which people 18 to 29 account for roughly the same share of eligible voters as Baby Boomers. But Boomers vote. In the last presidential election, 72% of people 65 and older cast ballots, compared to 45% of those 18 to 29.

Now, the survivors are Trump, 69, who’d be the oldest person to be first elected president; Clinton, 68, who’d be second oldest (behind Ronald Reagan); and Sanders, 74, who with his talk of revolution is, Dychtwald observes, “behaving most like a Boomer’’ and enjoys the biggest following among the youngest voters.

And it’s possible the Boomers’ reign is nowhere near over. Given their vast numbers, increased longevity and boundless self-confidence, Dychtwald says, “Boomers could conceivably be running for president for years to come."

If Sanders’ age is the standard, Boomers Rick Perry (b. 1950), Ben Carson (1951) and John Kasich (1952) could still run eight years from now, in 2024 (Elizabeth Warren will be 75). Carly Fiorina (1954), Mike Huckabee (1955) and Andrew Cuomo (1957) could run in 2028.

The Xer-in-chief might ruefully describe it as the audacity of hope.

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ES Morning Update May 23rd 2016

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A lot of chop over the weekend inside this range that looks like a triangle.

MACD's suggest we turn back up but they might be just for a lower high then the prior 2.5 area high.

If I had to guess on what the market will do today (and let's face, that what I always do... "guess", but based on a lot of technical analysis, wave counts, FP's, numerology codes, historical patterns, and bullish/bearish sentiment out there in the public) I'd say today will be choppy inside that triangle from about 2047.50 to 2057.50 (meaning it's likely to be a consolation day before another move up tomorrow).

So I'm not going to type another chapter here today like I do most of the time.  Just a summery that tells me that today will be a choppy day that's not worth trading.  I'm looking for a slow grind up over the next few days into that 2080 zone where I expect it to pierce above it or fall short of it and then we should rollover again for the next move down.

ES Morning Update May 20th 2016

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Futures are at the shorter falling trendline of resistance and if they breakthrough it they should go to the upper falling trendline around 2057.50

The MACD's on the 60 minute and 2 hour charts are overbought, but the 4 and 6 hour MACD's have more room to go on the upside.

Yesterday I thought we'd only make a slightly lower low and then rally.  I was wrong as we went deeper then I thought breaking my 2030-2035 zone of support and hit a low of 2022 before staging a late day rally back into the support zone.  However, I still stick by my forecast that over the next 4-6 trading days (estimate on time) we pierce above the 2080 prior high on 5/10 (2084 SPX).  I believe the plan in motion here is the resemble a previous pattern last year.  I've expanded my "possible patterns" to include the August 2015 period too, so here's that thinking.

As an alternate to yesterday's comparison of the 12/18/2015 date, and final run up into 12/29/2015 before the big January drop... we'll study the August 2015 period too.  Ok, from the looks of yesterday's long bottoming tail on the daily chart we could either be at the 8/7/2015 date or the 8/12/2015 date.  On 8/7 we had a bottoming tail close followed by a very powerful rally the next day.  It closed near the highs and rolled back over the next day.  When I look at this months' charts I see that we've had two similar days, on 5/10/2016 and 5/17/2016.  The one on 5/10 was actually a 3 day rally and could be similar to 7/27/2015-7/31/2015, whereas the 5/17 recent rally looks more like the 8/10/2015 move.  This suggests yesterday was like 8/7/2015 and today should rally hard like 8/10/2015.

Now let's examine the 8/12/2015 low and compare it to yesterday.  It too had a long bottoming tail and closed green instead of red, but the next day it rallied up, went back down into negative territory and closed the day slightly red.  If that were to repeat today we'd see rally near the open, a pullback below the open, and then a slightly green close... which is similar to 8/12, just flip-flopped a little.  After that we'd see a 2 day strong rally into the prior top on 5/10/2016, with a top next Wednesday 5/25/2016.  That top might be slightly lower/higher the 5/25, but it should be close.  If that happens then our big drop should start right after that and continue into mid-late June, with the next FOMC meeting being the likely low.  If the prior happens then we might not top until June 1st-3rd, and then drop hard.

On the short term today we are right into a necktie of resistance from a falling trendline and a rising one.  This 60 minute chart of the futures shows a lot of sideways chop in that area from the close yesterday, which makes a bull flag.  Considering how oversold we are on the short term there's a good chance it will breakout to the upside by the close today.  If so, I'd look for the next resistance at the upper falling trendline coming in around 2057.50 on this chart.  I doubt if we see much downside but if we do the obvious support now is the 2022.00 low from yesterday.  My thoughts are that we either chop sideways all day holding this level of support now, or bust up through this area and make a run for the next resistance level.

ES Morning Update May 19th 2016

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Futures are still holding the important support zone from 2030-2035 and also seem to be in a falling wedge

MACD's on this 2 hour chart are oversold and are trying to turn back up.  The same thing is forming on the other time frames too.

The market is at a critical point right now as everyone now see's the larger Head and Shoulders pattern on the daily chart of the SPX Cash and the ES Futures... as well as many other indexes.  One has to wonder when everyone else see's the same thing as to whether it will be allowed to happen or not?  My answer to that is of course... No!  At least it won't happen when everyone is watching, but it will still happen.  It's just that everyone needs to stop focusing on that pattern and turn bullish thinking the pattern failed... and then it will happen.

What am I talking about you ask?  Late in the day yesterday I got the feeling that this was just too easy.  The all important neckline on that H&S pattern for the SPX cash is around 2040 and it's looking ready to break, and Janet Yellen speaks on possible negative interest rates on the same day we are testing that support.  The wave structure looks like we are setting up for a big drop, like a wave 3 down or C wave.  Everything is perfect... but everyone else see's it too.  That bugged me!  The market rarely lets the retail sheep on-board the bear train when it leaves the station.  In fact I can't recall anytime where everyone was so bearish that the market started the big move down.  In every case I can remember the bears are late to the party chasing the move down after it's half way over with.  So I went back to my charts and here's what I think is going to happen...

First, when I look at the various charts it looks like we are short term oversold.  The slow move down over the last month has put the daily chart in an area where it should have a multi-day rally before rolling back down again.  In fact, I think we are about to go up into next week to get everyone bullish again thinking the head and shoulders pattern failed.  Today I think we'll find a bottom and hold the 2040 SPX level by the close, (the 2030-2035 zone on the ES Futures).  Then over the next several days into next week I think we are going to repeat the pattern that played out back in December of 2015.

Basically, I think we are going to take out all the bears that are short from the 2080 high (2084.87 on the SPX) back on 5/10 just like we did on 12/29/2015.  However, I don't think we'll take out the 2111 SPX high (2105 on the futures) from 4/20, but stop somewhere in-between those levels.  That means we are kinda where the market was on 12/18/2015 just before a squeeze higher to take out those that shorted on 12/16/2015.  I know this is a bold call but everything I look at tells me everyone is too bearish right now... therefore I have to think the opposite will happen of what all those sheep think will happen.  If I'm wrong and we lose the support zone today by the close then we should drop hard over the coming few days to the 1970-1990 zone.  I'm not perfect on my forecasts.... no one is.  So do your own analysis as well please.  We are still very bearish on the big picture as I'm expecting a mid-late June low in the 1850 SPX area, meaning this is just a counter trend forecast and one I won't be playing on the long side as I'd rather wait for the short.

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