The Dow inched up 2, decliners over advancers 4-3 & NAZ gave back 25. The MLP index fluctuated around 261 & the REIT index was fractionally lower in the 329s. Junk bond funds retreated & Treasuries were sold again. Oil climbed to the 69s & gold was off 2 to 1350.
AMJ (Alerian MLP Index tracking fund)
Stocks fell for the first time in 4 days as trade tensions resurfaced amid mixed earnings reports. Treasuries slipped & the $ gained. The S&P 500 dropped as Chinese regulators ratcheted up their scrutiny of a Qualcomm (QCOM) acquisition, increasing trade concerns & helping to pull down chipmakers. Treasury yields reached 2.90%, the highest in 8 weeks, while the greenback rose for a 3rd day. The boost from earnings faltered after a strong start to the reporting season, as traders have sold even after companies meet high expectations. In Europe, stocks struggled for traction following 2 days rising & in the wake of a mixed bag of corp earnings, even after shares across Asia built on gains from a day earlier. Elsewhere, the Australian $ fluctuated after employment in the country rose less than forecast in Mar. The ¥ slipped as Pres Trump & Japanese Prime Minister Abe agreed to work closely on bilateral trade.
QCOM reapplied for approval from China's Ministry of Commerce for its purchase of NXP Semiconductors & set a new deadline for closing the deal as regulators demanded additional concessions to win approval. The 2 companies have extended their agreement until Jul 25, QCOM said. If they haven't obtained Chinese sign off by then, QCOM will pay NXP the previously agreed termination fee of $2B, ending the more than $40B deal. China's Mofcom said the proposed acquisition would have a substantial impact on the technology industry & may have negative affects on the market. In Mar, Mofcom wanted more protection for local companies, which are concerned the combined entity would extend QCOM's patent licensing business into areas like mobile payments and autonomous driving. “The authority has talked with Qualcomm about how to reduce the negative impact on the market and has conducted market tests using the remedy plan from Qualcomm,” said a Mofcom spokesman. “An initial investigation shows Qualcomm’s plan can hardly solve relevant problems.” The US chipmaker, which needs to complete its largest-ever deal to deliver on promises made to shareholders during its fight to fend off a hostile takeover by Broadcom (AVGO), didn't explain why it was forced to withdraw & reapply for approval. The company has said it may use cash reserves set aside for the acquisition for a share repurchase if the transaction founders. The deal could turn into a bargaining chip in the increasingly tense trade negotiations between the world's 2 largest economies. Pres Trump has threatened tariffs on $150B in Chinese imports for alleged violations of intellectual property rights, while Beijing vowed to retaliate on everything from American soybeans to planes. QCOM stock declined 2.09.
If you would like to learn more aout QCOM, click on this link:
club.ino.com/trend/analysis/stock/QCOM?a_aid=CD3289&a_bid=6ae5b6f7
Qualcomm Sets New Date for NXP Deal as China Seeks Concessions
club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
Stocks are digesting gains made this week. Earnings have been generally good, but dark clouds on trade issues between the US & China are making investors nervous. Gold, thought of as a safe haven investment, continues to do well close to its recent highs. As pointed out previously, trade negotiations will last months based on how they are going presently.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 68.89 | +0.42 | +0.6% |
| GC=F | Gold | 1,350.30 | -3.20 | -0.2% |
Stocks fell for the first time in 4 days as trade tensions resurfaced amid mixed earnings reports. Treasuries slipped & the $ gained. The S&P 500 dropped as Chinese regulators ratcheted up their scrutiny of a Qualcomm (QCOM) acquisition, increasing trade concerns & helping to pull down chipmakers. Treasury yields reached 2.90%, the highest in 8 weeks, while the greenback rose for a 3rd day. The boost from earnings faltered after a strong start to the reporting season, as traders have sold even after companies meet high expectations. In Europe, stocks struggled for traction following 2 days rising & in the wake of a mixed bag of corp earnings, even after shares across Asia built on gains from a day earlier. Elsewhere, the Australian $ fluctuated after employment in the country rose less than forecast in Mar. The ¥ slipped as Pres Trump & Japanese Prime Minister Abe agreed to work closely on bilateral trade.
Stocks, Treasuries Fall as Trade Concerns Return: Markets Wrap
QCOM reapplied for approval from China's Ministry of Commerce for its purchase of NXP Semiconductors & set a new deadline for closing the deal as regulators demanded additional concessions to win approval. The 2 companies have extended their agreement until Jul 25, QCOM said. If they haven't obtained Chinese sign off by then, QCOM will pay NXP the previously agreed termination fee of $2B, ending the more than $40B deal. China's Mofcom said the proposed acquisition would have a substantial impact on the technology industry & may have negative affects on the market. In Mar, Mofcom wanted more protection for local companies, which are concerned the combined entity would extend QCOM's patent licensing business into areas like mobile payments and autonomous driving. “The authority has talked with Qualcomm about how to reduce the negative impact on the market and has conducted market tests using the remedy plan from Qualcomm,” said a Mofcom spokesman. “An initial investigation shows Qualcomm’s plan can hardly solve relevant problems.” The US chipmaker, which needs to complete its largest-ever deal to deliver on promises made to shareholders during its fight to fend off a hostile takeover by Broadcom (AVGO), didn't explain why it was forced to withdraw & reapply for approval. The company has said it may use cash reserves set aside for the acquisition for a share repurchase if the transaction founders. The deal could turn into a bargaining chip in the increasingly tense trade negotiations between the world's 2 largest economies. Pres Trump has threatened tariffs on $150B in Chinese imports for alleged violations of intellectual property rights, while Beijing vowed to retaliate on everything from American soybeans to planes. QCOM stock declined 2.09.
If you would like to learn more aout QCOM, click on this link:
club.ino.com/trend/analysis/stock/QCOM?a_aid=CD3289&a_bid=6ae5b6f7
Qualcomm Sets New Date for NXP Deal as China Seeks Concessions
Procter & Gamble (PG), a Dow stock & Dividend Aristocrat, reported
better-than-expected quarterly revenue, boosted by strong
sales in its beauty, & fabric & homecare businesses. Earlier
in the day, PG agreed to buy the consumer health business of Merck
(MRK), another Dow stock, for about €3.4B ($4.2B), giving
its vitamin brands such as Seven Seas & greater exposure to Latin
American & Asian markets. EPS rose to 95¢ from 93¢ a year earlier. Net
sales for the world's largest consumer products maker
rose 4.3% to $16.28B, compared to the estimate of
$16.21B. PG stock dropped 2.10.
If you would like to learn more aout PG, click on this link:club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
P&G's quarterly sales beat estimates
Stocks are digesting gains made this week. Earnings have been generally good, but dark clouds on trade issues between the US & China are making investors nervous. Gold, thought of as a safe haven investment, continues to do well close to its recent highs. As pointed out previously, trade negotiations will last months based on how they are going presently.
Dow Jones Industrials
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