Monday, August 7, 2017

Markets fluctuate with Dow hovering near its record high

Dow slid back 6, decliners over advancers 4-3 & NAZ went up 12.  The MLP index fell 1+ to 290 & the REIT index was fractionally lower in the 352s.  Junk bond funds inched higher & Treasuries were flat.  Oil drifted lower after its recent run & gold was pretty much even.

Dow Jones Industrials

CL=FCrude Oil49.07

GC=FGold   1,263.50

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China’s foreign-exchange reserves posted a sixth straight monthly increase as the yuan strengthened & economic growth remained robust.  The foreign currency stockpile climbed $23.9B to $3.08T in Jul, the People's Bank of China said.  The level compares with a $3.075T estimate.

German factory production dropped unexpectedly in Jun but economists say there are still good signs for longer-term growth.  The Federal Statistical Office said that Jun industrial output was down 1.1% versus the previous month with drops in the production of capital, consumer & intermediate goods.  Economists had predicted a slight rise, but only energy sector production grew.  The drop followed a 1.2% rise in May, however production this year has been strong overall & there are indications of a turnaround ahead.

German factory production drops unexpectedly in June

Foxconn, the Taiwanese electronics giant known for making Apple (APPL), a Dow stock, iPhones, is reportedly planning to open a 2nd US facility in Mich to develop self-driving cars & other auto technology.  Michigan Gov. Rick Snyder met with the company's CEO, Terry Gou, during a trade mission to China.  After the meeting, Gou told said that Foxconn “will cooperate with Michigan on next generation auto technology, such as Internet of Vehicle (IOV) and self-driving cars.”  “The Michigan investment will be unveiled soon, yet the transaction amount cannot be released,” Gou added.  Gov. Snyder said he had a “very productive dialogue” with Gou about “the importance of talent in manufacturing and the future of autonomous driving.”  “I believe we have a strong future with Foxconn, and while I don't have an announcement to make today, I think there are very exciting things to come in the future,” Gov Snyder said.  Word of a potential investment in Mich comes on the heels of FoxConn's announcement that it will build a $10B factory in Wisc.  The manufacturing facility, which will make LCD screens for computers, televisions & car dashboards, will create 3K jobs.  The Wisc plant was hailed by Gov. Scott Walker & Pres Trump.  Foxconn's total investment could reach $30B.

Foxconn eyes Michigan for second U.S. facility

Not a lot happening.  Foxconn's new investment in the US is the most exciting news, a reminder that Trump is helping to create more jobs in the US economy.  The Dow is essentially at its record high & the bulls would like to take it higher by the close, for its 10th straight gain.

Dow Jones Industrials

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