Dow went up 14, decliners over advancers about 5-4 & NAZ gained 12 (for a new record). The MLP index gave back 4+ to the 384s & the REIT index was off fractionally to the 359s. Junk bond funds crawled higher & Treasuries continued to be sold. Oil slid lower in the 68s & & gold fell 9 to 1206 following recent strength..
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.8116015171332475)
Treasury Secretary Steve Mnuchini praised China for supporting its currency at a time when DC & Beijing are locked in a trade war. "Their currency is more of a controlled currency than other markets that are free access," Mnuchin said. "But if they go in and support their currency, that is not currency manipulation." "If they [China] let their currency weaken, either for structural reasons or for actual manipulation, that is something that is manipulation," he added. Pres Trump last week accused China of manipulating its currency, the yuan, lower to make up for having to pay tariffs on imports imposed by the US. But the yuan, also called the renminbi, firmed against the $ for the 3rd straight session after the Chinese central bank moved to put a floor under it. The yuan had been weakening against the $ due to escalating trade tensions & rising interest rates in the US, which is driving up the value of the $. Last month, Mnuchin said he was "closely monitoring" the yuan & has said the weakness would be reviewed as part of the Treasury's semi-annual report on currency manipulation. The report, due Oct 15, will be based on activity for the first 6 months of 2018. However, Mnuchin said there are other pressing issues with Beijing besides currency. He said if China were to sign on to the same type of agreement as Mexico, the US would "have no problems." The US & Mexico struck a trade deal yesterday that paved the way to replace NAFTA, the current agreement between the 2 nations & Canada. Mnuchin laid out the Trump administration's case for pursuing trade actions against China. "We need to make sure our technology is protected, we need to make sure our companies aren't forced into joint ventures, and we need to make sure we have fair market access," he added. The Trump administration is attacking what it sees as unfair trade on a number of fronts. A new round of US tariffs on $16B worth of Chinese imports kicked in Thurs, prompting an equivalent retaliation from Beijing.
Mnuchin now praises China for supporting its currency, saying that is not manipulation
An early look at trade patterns in Jul showed a widening in the nation's trade deficit to the highest level in 5 months, perhaps a sign that growth will slow down a little in Q3 from the torrid pace in the Apr-Jun period. The trade gap in goods, services are excluded, rose 6.3% to $72.2B from a revised $67.9B in Jun, gov data showed. That’s the highest rate since Feb. Economists were looking for the deficit to widen somewhat less, to $69.4B. The gov will release overall trade numbers next week, but the size of the deficit is tied to changes in exports & imports of goods. Services don’t change much month to month. An advanced look at wholesale inventories estimated a 0.7% increase in Jul. An early look at retail inventories estimated a 0.4% increase. There were widespread reductions in exports in Jul, which fell for the 2nd month in a row. Exports of capital goods & consumer goods help pace the month's losses. At the same time, the gains in imports were across the board, with the only monthly drop for consumer goods. For all of Pres Trump's focus on the trade deficit, it remains on a steadily widening trajectory. The trade gap is about 7% wider year-to-date compared with the corresponding period in 2017. A strong US economy is drawing in imports. On the other hand, the global economy has softened after a strong start in the year. Exports are also being held down by the rising $. The US-Mexico agreement reached yesterday has led to hopes that the various ongoing trade disputes with China & others would devolve into trade wars.
Tiffany (TIF) reported fiscal Q2 earnings of $144.7 & EPS of $1.17. The results topped expectations of $1. The luxury jeweler posted revenue of $1.08, which also beat the forecast of $1.04B. The company expects full-year EPS to be $4.65-4.80. The stock rose 1.29.
club.ino.com/trend/analysis/stock/TIF?a_aid=CD3289&a_bid=6ae5b6f7
Oil prices fell as some investors took profits on recent strong gains, but losses were limited the day after a US-Mexico trade agreement eased worries about tensions between the 2 countries. Brent crude was down 25¢ to $75.96 a barrel, having touched a session peak of $76.97, the highest since Jul 11 & US crude futures ended the session down 34¢ at $68.56 a barrel. Last week Brent marked a 5.6% gain, while WTI increased 4.3%. Market participants awaited industry data on US oil inventories, expected to show a drop in crude stocks last week. Boosting market sentiment, however, was news that the US & Mexico agreed to overhaul the North American Free Trade Agreement (NAFTA). Canada's top trade negotiator joins her Mexican & US counterparts in a bid to remain part of the trilateral North American trade pact. Modest output increases from OPEC also supported prices. The monitoring committee of OPEC found that producers participating in a supply-reduction agreement, which includes non-OPEC member Russia, cut output in Jul by 9% more than called for. The findings of the OPEC monitoring committee for last month compare with a compliance level of 120% for Jun & 147% for May, meaning participants have been steadily increasing production, but at a more modest pace than some had expected. Investors are now more confident that supply is likely to fall short of demand in the coming months, as reflected by a narrowing in the discount, or spread, between the Oct & Nov Brent futures contracts to around 26¢ a barrel, ½ of what it was a month ago. The biggest potential catalyst for higher oil prices are US sanctions on Iran's energy sector that come into force in Nov & analysts estimate export restrictions could cut supply by 650K-1.5M bpd.
US crude slips 34 cents, settling at $68.53, on profit taking
Today was another sleepy day for stocks as they digested yesterday's big advance. The popular averages are generally at record highs while the Dow still needs another leg up to reach a new record. Excitement in the stock market will probably slow for the balance of the week with many traders away on a long holiday.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
US home prices climbed 6.3% in Jun from a
year earlier, as affordability is becoming a greater obstacle for
would-be buyers. The S&P CoreLogic
Case-Shiller 20-city home price index rose at a slightly slower pace
than the 6.5% annual gain in May from a year earlier, according
to a new report. But home values are increasing at more than double
the pace of average wage growth, weighing down property sales despite
solid demand because of accelerating economic growth & solid hiring. Mortgage
rates are also higher than a year ago, creating another price pressure
for would-be buyers. The National Association of Realtors said that
sales of existing homes have declined for the past 4 months. Despite
the sales slowdown, inventories remain tight & that has meant that
buyers, especially those searching for homes worth less than $250K,
have scant options. "Sellers, for now and for the foreseeable future,
are still in control in this market," the real estate company Zillow said. Home
prices in 3 metro areas have increased by double digits in the past
year: Las Vegas (13%), Seattle (12.8%) & San Francisco
(10.7%). The smallest annual growth in prices was in DC (2.9%), Chicago (3.3%) & New York City (3.8% ).
US home prices jumped 6.3 percent from a year ago
Treasury Secretary Steve Mnuchini praised China for supporting its currency at a time when DC & Beijing are locked in a trade war. "Their currency is more of a controlled currency than other markets that are free access," Mnuchin said. "But if they go in and support their currency, that is not currency manipulation." "If they [China] let their currency weaken, either for structural reasons or for actual manipulation, that is something that is manipulation," he added. Pres Trump last week accused China of manipulating its currency, the yuan, lower to make up for having to pay tariffs on imports imposed by the US. But the yuan, also called the renminbi, firmed against the $ for the 3rd straight session after the Chinese central bank moved to put a floor under it. The yuan had been weakening against the $ due to escalating trade tensions & rising interest rates in the US, which is driving up the value of the $. Last month, Mnuchin said he was "closely monitoring" the yuan & has said the weakness would be reviewed as part of the Treasury's semi-annual report on currency manipulation. The report, due Oct 15, will be based on activity for the first 6 months of 2018. However, Mnuchin said there are other pressing issues with Beijing besides currency. He said if China were to sign on to the same type of agreement as Mexico, the US would "have no problems." The US & Mexico struck a trade deal yesterday that paved the way to replace NAFTA, the current agreement between the 2 nations & Canada. Mnuchin laid out the Trump administration's case for pursuing trade actions against China. "We need to make sure our technology is protected, we need to make sure our companies aren't forced into joint ventures, and we need to make sure we have fair market access," he added. The Trump administration is attacking what it sees as unfair trade on a number of fronts. A new round of US tariffs on $16B worth of Chinese imports kicked in Thurs, prompting an equivalent retaliation from Beijing.
Mnuchin now praises China for supporting its currency, saying that is not manipulation
An early look at trade patterns in Jul showed a widening in the nation's trade deficit to the highest level in 5 months, perhaps a sign that growth will slow down a little in Q3 from the torrid pace in the Apr-Jun period. The trade gap in goods, services are excluded, rose 6.3% to $72.2B from a revised $67.9B in Jun, gov data showed. That’s the highest rate since Feb. Economists were looking for the deficit to widen somewhat less, to $69.4B. The gov will release overall trade numbers next week, but the size of the deficit is tied to changes in exports & imports of goods. Services don’t change much month to month. An advanced look at wholesale inventories estimated a 0.7% increase in Jul. An early look at retail inventories estimated a 0.4% increase. There were widespread reductions in exports in Jul, which fell for the 2nd month in a row. Exports of capital goods & consumer goods help pace the month's losses. At the same time, the gains in imports were across the board, with the only monthly drop for consumer goods. For all of Pres Trump's focus on the trade deficit, it remains on a steadily widening trajectory. The trade gap is about 7% wider year-to-date compared with the corresponding period in 2017. A strong US economy is drawing in imports. On the other hand, the global economy has softened after a strong start in the year. Exports are also being held down by the rising $. The US-Mexico agreement reached yesterday has led to hopes that the various ongoing trade disputes with China & others would devolve into trade wars.
U.S. trade deficit widens in July to highest in five months
Tiffany (TIF) reported fiscal Q2 earnings of $144.7 & EPS of $1.17. The results topped expectations of $1. The luxury jeweler posted revenue of $1.08, which also beat the forecast of $1.04B. The company expects full-year EPS to be $4.65-4.80. The stock rose 1.29.
Tiffany: Fiscal 2Q Earnings Snapshot
Oil prices fell as some investors took profits on recent strong gains, but losses were limited the day after a US-Mexico trade agreement eased worries about tensions between the 2 countries. Brent crude was down 25¢ to $75.96 a barrel, having touched a session peak of $76.97, the highest since Jul 11 & US crude futures ended the session down 34¢ at $68.56 a barrel. Last week Brent marked a 5.6% gain, while WTI increased 4.3%. Market participants awaited industry data on US oil inventories, expected to show a drop in crude stocks last week. Boosting market sentiment, however, was news that the US & Mexico agreed to overhaul the North American Free Trade Agreement (NAFTA). Canada's top trade negotiator joins her Mexican & US counterparts in a bid to remain part of the trilateral North American trade pact. Modest output increases from OPEC also supported prices. The monitoring committee of OPEC found that producers participating in a supply-reduction agreement, which includes non-OPEC member Russia, cut output in Jul by 9% more than called for. The findings of the OPEC monitoring committee for last month compare with a compliance level of 120% for Jun & 147% for May, meaning participants have been steadily increasing production, but at a more modest pace than some had expected. Investors are now more confident that supply is likely to fall short of demand in the coming months, as reflected by a narrowing in the discount, or spread, between the Oct & Nov Brent futures contracts to around 26¢ a barrel, ½ of what it was a month ago. The biggest potential catalyst for higher oil prices are US sanctions on Iran's energy sector that come into force in Nov & analysts estimate export restrictions could cut supply by 650K-1.5M bpd.
US crude slips 34 cents, settling at $68.53, on profit taking
Today was another sleepy day for stocks as they digested yesterday's big advance. The popular averages are generally at record highs while the Dow still needs another leg up to reach a new record. Excitement in the stock market will probably slow for the balance of the week with many traders away on a long holiday.
Dow Jones Industrials
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