Dow rose 86, advancers slightly ahead of advancers & NAZ retreated 41. The MLP index was off fractionally in the 278s & the REIT index added 3 to the 257s. Junk bond funds were flattish & Treasuries inched higher bringing the 10 year Treasury yield down 1 basis point to 3.07%. Oil was fractionally higher above 70 (more below) & gold dropped 9 to 1201.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
The US & Mexico are prepared to move ahead alone on a new trade agreement & Canada may get left behind, a top White House official said. Kevin Hassett, chairman of the Council of Economic Advisers, said that the revised NAFTA agreement could end up being a bilateral rather than trilateral agreement if Canada doesn't come around soon. "We're still talking to Canada. We're getting very, very close to the deadline where we're going to have to move ahead with Mexico all by themselves," Hassett said. "I'm a little surprised that the Canadians haven't signed up yet. They've got a really, really good deal that they should be participating in." The deadline for Canada to come on board is likely Sep 30. The pact between the US & Mexico, agreed to in late Aug, contains significant provisions on measures including intellectual property theft & trade secrets. Negotiations with Canada, though, have been trickier, with disputes over agriculture & dairy products believed to be unresolved. The new NAFTA could be a template for negotiations with China, which remains the key sticking point in the White House's desire to revamp global trade agreements. Hassett said the US has made a fair offer to Canada & is awaiting a response. "I worry that politics in Canada is trumping common sense, because there's a very good deal that was designed by Mexico and the U.S. to appeal to Canada and they're not signing up, and it's got everybody over here a little bit puzzled," he said. "Hopefully at the last minute they come in, but if they don't we'll just move ahead with Mexico and we'll get Canada fixed a little bit later." This was not the first time the White House has said it is prepared to move ahead without Canada, Treasury Secretary Steve Mnuchin said a month ago that it was a possibility. But Hassett's remarks still seemed to take a slight bit of steam out of what appears to be another positive day stocks which were mixed.
US is getting 'very, very close' to moving ahead on a trade deal without Canada, Hassett says
U.S. oil prices finished firmly higher, after briefly paring gains intraday, as prices bounced around ahead of meeting of major oil producers in Algiers over the weekend. Nov West Texas crude on its first full day as a front-month contract, closed the session up 46¢ (0.7%) higher at $70.78 a barrel. The settlement marked the highest close for a most-active contract since Jul 13. For the week, the US benchmark contract gained 2.6%, marking its 2nd straight weekly advance. A committee made up of representatives of OPEC & some of its outside allies plans to hold a meeting on Sun in Algiers, which will be closely watched as the group addresses plans to address expected supply disruptions due to US sanctions against Iran, which set to take effect in early Nov.
Even after a sluggish day of trading, the Dow finished the week up almost 600 with another record close. Trading today is not all that meaningful. A lot is going on in the trade front & the big meeting by the oil producers on Sun will impact trading next week. Also, the yield on the the 10 year Treasury is well over 3%. That will increase mortgage rates & the housing industry has been stumbling recently. All is not rosy in the strong economy.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
A World Trade Organization arbitrator will step into a years-old dispute brought by China over US anti-dumping measures. A
trade official said the arbitration was triggered automatically
after the US objected to Beijing's request for authorization to
retaliate against more than $7B worth of US goods in the case. The
case originated with a Chinese challenge nearly 5 years ago over 40
US anti-dumping rulings against Chinese goods, which the US says
were sold below market value. In 2017, the WTO's appellate body ruled largely in favor of China. Beijing insists the US has not complied. The arbitrator has until Oct 21 to rule on the issue, but such cases often go past the deadline. The standoff comes amid a high-profile showdown between China & the Trump administration over trade.
World trade body to rule on US, China anti-dumping spat
The US & Mexico are prepared to move ahead alone on a new trade agreement & Canada may get left behind, a top White House official said. Kevin Hassett, chairman of the Council of Economic Advisers, said that the revised NAFTA agreement could end up being a bilateral rather than trilateral agreement if Canada doesn't come around soon. "We're still talking to Canada. We're getting very, very close to the deadline where we're going to have to move ahead with Mexico all by themselves," Hassett said. "I'm a little surprised that the Canadians haven't signed up yet. They've got a really, really good deal that they should be participating in." The deadline for Canada to come on board is likely Sep 30. The pact between the US & Mexico, agreed to in late Aug, contains significant provisions on measures including intellectual property theft & trade secrets. Negotiations with Canada, though, have been trickier, with disputes over agriculture & dairy products believed to be unresolved. The new NAFTA could be a template for negotiations with China, which remains the key sticking point in the White House's desire to revamp global trade agreements. Hassett said the US has made a fair offer to Canada & is awaiting a response. "I worry that politics in Canada is trumping common sense, because there's a very good deal that was designed by Mexico and the U.S. to appeal to Canada and they're not signing up, and it's got everybody over here a little bit puzzled," he said. "Hopefully at the last minute they come in, but if they don't we'll just move ahead with Mexico and we'll get Canada fixed a little bit later." This was not the first time the White House has said it is prepared to move ahead without Canada, Treasury Secretary Steve Mnuchin said a month ago that it was a possibility. But Hassett's remarks still seemed to take a slight bit of steam out of what appears to be another positive day stocks which were mixed.
US is getting 'very, very close' to moving ahead on a trade deal without Canada, Hassett says
U.S. oil prices finished firmly higher, after briefly paring gains intraday, as prices bounced around ahead of meeting of major oil producers in Algiers over the weekend. Nov West Texas crude on its first full day as a front-month contract, closed the session up 46¢ (0.7%) higher at $70.78 a barrel. The settlement marked the highest close for a most-active contract since Jul 13. For the week, the US benchmark contract gained 2.6%, marking its 2nd straight weekly advance. A committee made up of representatives of OPEC & some of its outside allies plans to hold a meeting on Sun in Algiers, which will be closely watched as the group addresses plans to address expected supply disruptions due to US sanctions against Iran, which set to take effect in early Nov.
Even after a sluggish day of trading, the Dow finished the week up almost 600 with another record close. Trading today is not all that meaningful. A lot is going on in the trade front & the big meeting by the oil producers on Sun will impact trading next week. Also, the yield on the the 10 year Treasury is well over 3%. That will increase mortgage rates & the housing industry has been stumbling recently. All is not rosy in the strong economy.
Dow Jones Industrials
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