Today's Headlines

Bloomberg:

• US Marines Missing After Aircraft Crashes Off Australia. Search and rescue operations were underway for three U.S. Marines who were missing after their Osprey aircraft crashed into the sea off the east coast of Australia on Saturday while trying to land. Twenty-three of 26 personnel aboard the aircraft have been rescued, the Marine base Camp Butler in Japan said in a statement.

• Surface Calm in the S&P 500 Masks a Spate of Blowups. (video) On the surface, it was another up week for the S&P 500 Index. Underneath, things were a little more complicated. Consider a version of the S&P 500 that strips out market-value biases -- the “equal-weight S&P,” in which Apple Inc. matters as much as relative pipsqueaks like Garmin Ltd. and Macy’s. Analysts normally like to see the two indexes moving together, a sign the rising market is lifting all boats. That didn’t happen in the past five days. In fact, the equal-weighted version just posted its biggest weekly drop since May, and its worst week versus the regular S&P 500 all year. The reason: while enough megacap stocks rose to keep the S&P 500 afloat, single-stock blowups were far more common than single-stock rallies.

• Toshiba to Cut Off Western Digital's(WDC) Future Supply of Chips. Toshiba Corp. took another stab at its U.S. joint venture partner, Western Digital Corp., saying it has no rights to new chip production that’s vital to the future of both companies. The latest escalation of the fight between the two centers on a new factory called Fab 6. Toshiba said it will build the plant without any participation from its U.S. partner, thereby cutting off Western Digital from chips made with the factory’s new technology. Western Digital inherited its stake in the joint venture when it bought SanDisk Corp.

• United Technologies(UTX) Weighs Deal for Rockwell Collins(COL). Jet-engine manufacturer United Technologies Corp. is weighing an acquisition of aviation-equipment supplier Rockwell Collins Inc., according to people familiar with the matter, in a deal that would potentially rank among the largest ever in the aerospace industry.

• Why ‘Pharma Bro’ Martin Shkreli Is Swaggering Into Jail.

• Citadel's Flagship Funds Gain Almost 7% This Year.

Wall Street Journal:

• The Market Really Is Different This Time. Small-time investors are moving away from stock-market euphoria, not toward it.

• Kelly’s Rules for Trump’s West Wing: Stop Bickering, Get in Early, Make an Appointment. New Chief of Staff John Kelly moves quickly to bring order and discipline to a West Wing riven by conflict.

• Warren Buffett’s Berkshire Hathaway Reports 15% Profit Drop. Results hurt by lower investment gains and a loss in its insurance underwriting segment.

• Venezuela’s New Assembly Fires Attorney General. Venezuela Constituent Assembly removes Attorney General Luisa Ortega from office in first session.

MarketWatch.com:

• Trump is right about record earnings — and these companies are getting even more profitable.

• Apple(AAPL) planning a cellular-capable Watch that cuts reliance on iPhone: report.

Fox News:

• McMaster: Threat of North Korean nuclear weapon strike "impossible to overstate". (video)

CNBC:

• North Korea's 'No. 2' official on 10-day visit to Iran that may signal wider military ties.

• Teens are more depressed and isolated than ever because of smartphones, researcher claims.

• While big bills have failed, Wall Street sees opportunity in Trump's massive deregulation movement.

• Rouhani, embarking on second term in Iran, asks Europe not to side with Trump.

• Doctors say this start-up could revolutionize how we fight infectious diseases. (video)

Zero Hedge:

• Former Facebook Exec Warns Society Will Collapse Within 30 Years As Robots Steal Half Of All Jobs.

• FOIA Dump Reveals Collusion Between Lynch, FBI And Media To Bury Bill Clinton Meeting.

• Loretta Lynch Communicated With DOJ Officials Using Grandmother's Name As Alias.

• Bitcoin Explodes Above $3000 To Record Highs.

• This Time, It's A Bubble In Rentals.

• Only Ten Years After The Last Financial Crisis the Banks Are At It Again.

• In First Formal Request, Mueller Asks White House For Flynn Documents.

• In Epic Letter, Elliott's Singer Rages Against Everything From Passive Investing To "Safe Spaces". (graph)

• Vending Machines Are The Latest Threat To US Retailers.

• Retired Green Beret Warns: "North Korea Can Deliver An EMP Weapon Dead Center Over America".

• Bookies Now See Facebook CEO Zuckerberg More Likely To Be President In 2020 Than Hillary, Harris, & Biden. (graph)

• Weekend Reading - Are Stocks Really The Great "Wealth" Equalizer?

• Dow Gains 600 Points In 9 Days; S&P, Bonds, Gold & Dollar Unchanged. (graph)

Business Insider:

• North Korea's ICBM tests may be a deception tactic to hide a much more capable threat.

• GOLDMAN SACHS(GS): There's an overlooked way to make a fortune this earnings season.

• The retail apocalypse is heading straight for Kroger, Whole Foods, and Aldi.