Dow lost 6, advancers just ahead of decliners & NAZ went up 36. The MLP index was flattish around 261. Junk bond funds rose & Treasuries crawled higher. Oil was about even in the 62s & gold soared 16 to 1336.
AMJ (Alerian MLP Index tracking fund)
Stocks fluctuated as investors weighed the latest in a developing trade spat & disappointing results earnings. The $ weakened after the EU threatened retaliatory tariffs on American goods. The S&P 500 turned lower led by consumer staples producers. Investors remained focused on the potential for severe protectionist policies from the Trump administration, while early optimism from an apparent diplomatic breakthrough on the Korean Peninsula faded. Treasuries were flat after initially dropping when CVS Health (CVS) kicked off what’s likely to be one of the largest corp-debt financings ever. Emerging-market stocks rose after 5 days of declines & Europe's peripheral bonds advanced. Italian stocks rose alongside the country's bonds as the potentially lengthy process of forming a new gov got under way. Bank of Japan Governor Haruhiko Kuroda appeared to dial back some of his recent perceived hawkishness, giving further impetus to the risk-on mood.
Pres Trump signaled that he's open to talks with North Korea after Kim Jong Un's regime told South Korean envoys that he's willing to consider giving up his nuclear weapons, a possible breakthrough after months of bellicose threats from both leaders. “Possible progress being made in talks with North Korea. For the first time in many years, a serious effort is being made by all parties concerned,” Trump tweeted. “The World is watching and waiting! May be false hope, but the U.S. is ready to go hard in either direction!” Trump commented after envoys from Seoul said that Kim told them he was ready to suspend weapons tests & hold candid talks with the US to normalize relations, if the safety of his regime was guaranteed, the South Korean gov said. In response, South Korean President Moon Jae-in agreed to meet Kim for a summit along their shared border late next month. “We will see what happens,” Trump tweeted earlier that linked to a story on North Korea. The National Security Council & State Dept didn't immediately comment. A South Korean delegation plans to visit DC soon to brief the administration on the meeting with Kim. US officials are likely to press them for details in light of Moon's continued optimism about the prospects for a diplomatic solution compared with the US's more skeptical approach. Director of National Intelligence Dan Coats said at a Senate hearing today that “hope springs eternal” but the US needed to learn “a lot more” about the potential talks. A Trump administration official said the US is willing to engage with North Korea but would emphasize that the demand for the complete & verifiable elimination of nuclear weapons is non-negotiable. The official said there’s a long way to go. While Trump has said that North Korea must be willing to denuclearize before talks can begin, tensions on the Korean Peninsula have eased recently as North Korea participated in the Winter Olympics. Trump has warned of possible military action to stop Kim from acquiring the capability to strike the US homeland with a nuclear weapon.
Trump Says North Korea Progress Possible, He’s Ready to Go Hard
Target's (TGT), a Dividend Aristocrat, bid to revamp the company & be a stronger competitor is taking a toll on profits. The retailer posted Q4 earnings that fell short of estimates, sending the shares lower. One key expense: TGT is spending more to deliver online orders, part of its push to catch up in e-commerce. The results threaten to renew the debate over whether a $7B turnaround plan by CEO Brian Cornell is coming at too high a price. While new brands & store remodels have helped revive the retailer's “Tar-zhay” cachet, the investments are squeezing profits. And the company has been further constrained in recent months by a wage hike in Oct, with plans for another one by 2020. While TGT said it was able to offset the impact of holiday deals with cost cuts, its Q4 gross margins still fell to their lowest level in 20 years. The good news is that sales are improving, helped by stronger traffic in stores & online. On a comparable basis, they grew 3.6%, better than the 3.4% estimate. EPS came in at $1.37, during the period, excluding some items, a cent shy of projections. TGT expects adjusted EPS of $5.15-$5.45 this year, reiterating a forecast it delivered in Jan. The stock dropped 2.46 (3%).
If you would like to learn more about TGT, click on this link:
club.ino.com/trend/analysis/stock/TGT?a_aid=CD3289&a_bid=6ae5b6f7
After yesterday's gain, stocks are taking it easy today. Confusion over US tariffs has not gone away & traders are taking a 2nd look at the situation. The ups & downs in North Korean tensions are another disturbing factor. Trading in the PM will likely remain choppy in the absence of significant new news. After recent strength in REITs, profits are being taken.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 62.50 | -0.07 | -0.11% |
| GC=F | Gold | 1,335.30 | +15.40 | +1.17% |
Stocks fluctuated as investors weighed the latest in a developing trade spat & disappointing results earnings. The $ weakened after the EU threatened retaliatory tariffs on American goods. The S&P 500 turned lower led by consumer staples producers. Investors remained focused on the potential for severe protectionist policies from the Trump administration, while early optimism from an apparent diplomatic breakthrough on the Korean Peninsula faded. Treasuries were flat after initially dropping when CVS Health (CVS) kicked off what’s likely to be one of the largest corp-debt financings ever. Emerging-market stocks rose after 5 days of declines & Europe's peripheral bonds advanced. Italian stocks rose alongside the country's bonds as the potentially lengthy process of forming a new gov got under way. Bank of Japan Governor Haruhiko Kuroda appeared to dial back some of his recent perceived hawkishness, giving further impetus to the risk-on mood.
U.S. Stocks Mixed on Trade Concern as Dollar Slips: Markets Wrap
Pres Trump signaled that he's open to talks with North Korea after Kim Jong Un's regime told South Korean envoys that he's willing to consider giving up his nuclear weapons, a possible breakthrough after months of bellicose threats from both leaders. “Possible progress being made in talks with North Korea. For the first time in many years, a serious effort is being made by all parties concerned,” Trump tweeted. “The World is watching and waiting! May be false hope, but the U.S. is ready to go hard in either direction!” Trump commented after envoys from Seoul said that Kim told them he was ready to suspend weapons tests & hold candid talks with the US to normalize relations, if the safety of his regime was guaranteed, the South Korean gov said. In response, South Korean President Moon Jae-in agreed to meet Kim for a summit along their shared border late next month. “We will see what happens,” Trump tweeted earlier that linked to a story on North Korea. The National Security Council & State Dept didn't immediately comment. A South Korean delegation plans to visit DC soon to brief the administration on the meeting with Kim. US officials are likely to press them for details in light of Moon's continued optimism about the prospects for a diplomatic solution compared with the US's more skeptical approach. Director of National Intelligence Dan Coats said at a Senate hearing today that “hope springs eternal” but the US needed to learn “a lot more” about the potential talks. A Trump administration official said the US is willing to engage with North Korea but would emphasize that the demand for the complete & verifiable elimination of nuclear weapons is non-negotiable. The official said there’s a long way to go. While Trump has said that North Korea must be willing to denuclearize before talks can begin, tensions on the Korean Peninsula have eased recently as North Korea participated in the Winter Olympics. Trump has warned of possible military action to stop Kim from acquiring the capability to strike the US homeland with a nuclear weapon.
Trump Says North Korea Progress Possible, He’s Ready to Go Hard
Target's (TGT), a Dividend Aristocrat, bid to revamp the company & be a stronger competitor is taking a toll on profits. The retailer posted Q4 earnings that fell short of estimates, sending the shares lower. One key expense: TGT is spending more to deliver online orders, part of its push to catch up in e-commerce. The results threaten to renew the debate over whether a $7B turnaround plan by CEO Brian Cornell is coming at too high a price. While new brands & store remodels have helped revive the retailer's “Tar-zhay” cachet, the investments are squeezing profits. And the company has been further constrained in recent months by a wage hike in Oct, with plans for another one by 2020. While TGT said it was able to offset the impact of holiday deals with cost cuts, its Q4 gross margins still fell to their lowest level in 20 years. The good news is that sales are improving, helped by stronger traffic in stores & online. On a comparable basis, they grew 3.6%, better than the 3.4% estimate. EPS came in at $1.37, during the period, excluding some items, a cent shy of projections. TGT expects adjusted EPS of $5.15-$5.45 this year, reiterating a forecast it delivered in Jan. The stock dropped 2.46 (3%).
If you would like to learn more about TGT, click on this link:
club.ino.com/trend/analysis/stock/TGT?a_aid=CD3289&a_bid=6ae5b6f7
Target’s Turnaround Plan Takes a Toll on Profit
After yesterday's gain, stocks are taking it easy today. Confusion over US tariffs has not gone away & traders are taking a 2nd look at the situation. The ups & downs in North Korean tensions are another disturbing factor. Trading in the PM will likely remain choppy in the absence of significant new news. After recent strength in REITs, profits are being taken.
Dow Jones Industrials
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