Dow bounced back 287, advancers over decliners about 5-4 & NAZ recovered 167. The MLP index was fractionally lower in the 271s & the REIT index dropped to the 332s. Junk bond funds advanced in price & Treasuries slid lower. Oil went up pennies in the 71s & gold gave back 5 to 1222 after yesterday's big gain.
AMJ (Aleria72n MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Oil rose to $81 a barrel, rebounding after 2 days of declines, though prices pared gains after another closely watched forecaster deemed supply adequate & the outlook for demand weakening. Crude was still heading for its first weekly drop in 5 weeks, pressured by a big rise in US inventories & fading concerns that looming US sanctions on Iran will cut supplies significantly. A monthly report by the International Energy Agency (IEA) said the oil market looked "adequately supplied for now" after a big rise in production & trimmed its forecasts for world oil demand growth this year & next. "This is due to a weaker economic outlook, trade concerns, higher oil prices and a revision to Chinese data," said the IEA, which advises industrialized countries on energy policy. Intl benchmark Brent crude rose 76¢ to $81.02 a barrel, having dropped by 3.4% yesterday. US crude added 71¢ to $71.68. Brent had a 3.7% decline this week, the biggest weekly fall in about 4 months. Oil found support from figures showing that China's daily crude imports in Sep hit their highest since May & from a rebound in equities. A drop in equities amid wider risk-off investor sentiment had pressured crude yesterday. Still, the IEA report is the latest gov assessment to predict weaker demand ahead & conclude that supply is adequate. OPEC made a similar move yesterday. A drop in US oil production also lent prices some support. In the Gulf of Mexico, companies cut output by 40% yesterday because of Hurricane Michael, even as some operators began returning crews to offshore platforms. Michael made landfall in Florida on Wed as the 3rd most powerful hurricane to strike the US mainland, though it has since weakened to a tropical storm.
Some American companies could be using Chiina's retaliatory trade tariffs as an excuse for their own poor quarterly performances, White House economic advisor Larry Kudlow said. Kudlow, who declined to call out any companies by name, said he wanted to express his skepticism because CEOs "love to blame other factors outside to perhaps cover their own execution." A number of industrial companies in recent days, including paint & coating maker PPG & supply distributor Fastenal, have expressed concern about the US-China trade war damaging their businesses. Last month, Ford (F), the nation's 2nd-largest automaker, said it suffered $1B in lost profits from tariffs on metals imported to the US. "There are a lot of CEOs who come here and I visit with who are very positive and optimistic about the economy," Kudlow added." The US & China are locked in a trade war that's seen each side imposing tariffs on each other's products. Most recently, the US levied duties on $200B worth of goods from China, prompting Beijing to put tariffs on $60B worth of US goods.
Larry Kudlow suggests some CEOs may be using China tariffs as an excuse for poor performance
Mnuchin: I won't be 'losing any sleep' if China dumps US bonds in retaliation over trade
club.ino.com/trend/analysis/stock/JPM?a_aid=CD3289&a_bid=6ae5b6f7
Citigroup (C) reported Q3 EPS of $1.73 topping the for $1.69. Revenue came in at $18.4B. The estimate was for $18.5B. The bank earned a profit of $4.13B ($1.42 per share) in the year ago quarter on revenue of $18.17B. In Q2 of this year, Citi EPS was $1.63 as lower taxes boosted the bank's revenue, which offset the higher cost of credit. Revenue came in at $18.46B. The stock gained 1.40.
If you would like to learn more about Citi, click on this link:
Wells Fargo (WFC) reported Q3 adjusted EPS of $1.13, missing the estimate for $1.17 but still 12% above the year-earlier quarter. Revenue was $21.9B, in line with estimates. The bank had an 18% decline in profit in the year ago qtr due to legal costs. Profit was $4.6B (84¢ per share). Year ago revenue was $21.8B. In this year's Q2, WFC missed expectations reporting EPS of 98¢ on revenue of $21.6B. The quarterly EPS included a discrete income tax expense of 10¢. The stock rose 68¢.
If you would like to learn more about WFC, click on this link:
club.ino.com/trend/analysis/stock/WFC?a_aid=CD3289&a_bid=6ae5b6f7
Today's rally was short of impressive & did not inspire confidence going forward. The Dow finished with a 1K decline for the week. Trade uncertainties & the prospects of higher interest rates will haunt investors. Also, ugly memories from past Octs will not go away. The rest of the month could feature more wild trading.
Dow Jones Industrials
AMJ (Aleria72n MLP Index tracking fund)
The latest China trade data is sure to remain a sore point in DC. China's
trade surplus with the US surged to a record high of $34.1B in Sep, compared with $31B in Aug. In fact, the Sep surplus with the US was larger than China's overall trade surplus of $31.7B for the month. China's trade surplus with the US was $225.8B from Jan-Sep. It was about $196B in the same period last year. An imbalance of trade is at the center of an increasing bitter dispute between the world's 2 biggest economies. The
US & China imposed new tariffs against each
other's goods in late Sep, the latest escalation in a heated trade
war between them. The administration placed
tariffs of 10% on the $200B of Chinese products, with the
tariffs to go up to 25% by the end of 2018. Beijing's new levies
will be 5-10%. The 2 countries already exchanged tariffs on $50B worth of each other's goods earlier this year. A protracted dispute could eventually stunt growth not just in
the US & China but across the broader global economy.
China's Sept. trade surplus with US widens to record $34.13B
Oil rose to $81 a barrel, rebounding after 2 days of declines, though prices pared gains after another closely watched forecaster deemed supply adequate & the outlook for demand weakening. Crude was still heading for its first weekly drop in 5 weeks, pressured by a big rise in US inventories & fading concerns that looming US sanctions on Iran will cut supplies significantly. A monthly report by the International Energy Agency (IEA) said the oil market looked "adequately supplied for now" after a big rise in production & trimmed its forecasts for world oil demand growth this year & next. "This is due to a weaker economic outlook, trade concerns, higher oil prices and a revision to Chinese data," said the IEA, which advises industrialized countries on energy policy. Intl benchmark Brent crude rose 76¢ to $81.02 a barrel, having dropped by 3.4% yesterday. US crude added 71¢ to $71.68. Brent had a 3.7% decline this week, the biggest weekly fall in about 4 months. Oil found support from figures showing that China's daily crude imports in Sep hit their highest since May & from a rebound in equities. A drop in equities amid wider risk-off investor sentiment had pressured crude yesterday. Still, the IEA report is the latest gov assessment to predict weaker demand ahead & conclude that supply is adequate. OPEC made a similar move yesterday. A drop in US oil production also lent prices some support. In the Gulf of Mexico, companies cut output by 40% yesterday because of Hurricane Michael, even as some operators began returning crews to offshore platforms. Michael made landfall in Florida on Wed as the 3rd most powerful hurricane to strike the US mainland, though it has since weakened to a tropical storm.
Some American companies could be using Chiina's retaliatory trade tariffs as an excuse for their own poor quarterly performances, White House economic advisor Larry Kudlow said. Kudlow, who declined to call out any companies by name, said he wanted to express his skepticism because CEOs "love to blame other factors outside to perhaps cover their own execution." A number of industrial companies in recent days, including paint & coating maker PPG & supply distributor Fastenal, have expressed concern about the US-China trade war damaging their businesses. Last month, Ford (F), the nation's 2nd-largest automaker, said it suffered $1B in lost profits from tariffs on metals imported to the US. "There are a lot of CEOs who come here and I visit with who are very positive and optimistic about the economy," Kudlow added." The US & China are locked in a trade war that's seen each side imposing tariffs on each other's products. Most recently, the US levied duties on $200B worth of goods from China, prompting Beijing to put tariffs on $60B worth of US goods.
Larry Kudlow suggests some CEOs may be using China tariffs as an excuse for poor performance
Treasury Secretary Steve Mnuchin said he isn't worried about China selling its stockpile of US Treasurys in retaliation over trade because there's plenty of demand for US gov bonds. "If they decide they don't want to hold
them, there are other buyers," Mnuchin added. "And,
obviously, that would be very costly for them to do." "They're looking at
economics the way we're looking at economics, so it is not something I'm
losing any sleep about," Mnuchin said. Top White House economic advisor Larry Kudlow said on yesterday the White House was working on a meeting between Pres Trump & Chinese Pres Xi Jinping at next month's G-20 summit in Argentina. The leaders will be getting together at a time when DC & Beijing are locked in a trade war that's seen each side imposing tariffs on each other's products. Some have speculated that China could hit back at the US in a far more significant way: selling a huge chunk of the more than $1T of Treasury bonds it holds. China has collected Bs in interest payments from the bonds. Mnuchin said a Trump meeting with Xi at the G-20 summit would happen if the administration believed it would be positive. "These tariffs are very
important negotiating tools," Mnuchin added. "If it looks like we can
make positive direction, then I'm sure the president will have the
meeting." The Trump administration
launched its tariffs campaign in the spring to try to get China to
change what the US feels are unfair trade practices & theft of
intellectual property. Mnuchin also said the stock market plunge this week was a "natural correction."
Mnuchin: I won't be 'losing any sleep' if China dumps US bonds in retaliation over trade
JPMorgan Chase (JPM), a Dow stock & the nation's biggest bank by
assets, said its Q3 profit surged 24% over the
year-earlier period as benefits from recent tax reforms offset slowing
revenue from the bank's trading desk. Q3 EPS was $2.34, surpassing expectations for EPS of
$2.26. For the qtr, revenue came in at $27.3B & managed revenue was $27.82B. It is unclear it that is
comparable to the estimate for revenue of $27.54B. Investment banking revenue, & consumer & community banking revenue
increased in the qtr, while home lending revenue decreased. In this year's Q2, EPS came in at $2.29 on managed revenue of $28.4B. The stock fell 1.19.
If you would like to learn more about JPM, click on this link:club.ino.com/trend/analysis/stock/JPM?a_aid=CD3289&a_bid=6ae5b6f7
JPMorgan Chase tops earnings estimates
Citigroup (C) reported Q3 EPS of $1.73 topping the for $1.69. Revenue came in at $18.4B. The estimate was for $18.5B. The bank earned a profit of $4.13B ($1.42 per share) in the year ago quarter on revenue of $18.17B. In Q2 of this year, Citi EPS was $1.63 as lower taxes boosted the bank's revenue, which offset the higher cost of credit. Revenue came in at $18.46B. The stock gained 1.40.
If you would like to learn more about Citi, click on this link:
Lower taxes help lift Citi's 3Q earnings
Wells Fargo (WFC) reported Q3 adjusted EPS of $1.13, missing the estimate for $1.17 but still 12% above the year-earlier quarter. Revenue was $21.9B, in line with estimates. The bank had an 18% decline in profit in the year ago qtr due to legal costs. Profit was $4.6B (84¢ per share). Year ago revenue was $21.8B. In this year's Q2, WFC missed expectations reporting EPS of 98¢ on revenue of $21.6B. The quarterly EPS included a discrete income tax expense of 10¢. The stock rose 68¢.
If you would like to learn more about WFC, click on this link:
club.ino.com/trend/analysis/stock/WFC?a_aid=CD3289&a_bid=6ae5b6f7
Wells Fargo's 3Q profit misses expectations
Today's rally was short of impressive & did not inspire confidence going forward. The Dow finished with a 1K decline for the week. Trade uncertainties & the prospects of higher interest rates will haunt investors. Also, ugly memories from past Octs will not go away. The rest of the month could feature more wild trading.
Dow Jones Industrials
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