Dow sank 210 (but off the lows but still under 26K) , decliners over advancers 2-1 & NAZ fell 123. The MLP index lost 2+ to the 255s & the REIT index did little in the 351s. Junk bond funds fluctuated & Treasuries were purchased, bringing lower yields. Oil slid below 60 in its new bear market period (more below) & gold dropped a very big 15 to 1209.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
White House trade advisor Peter Navarro said that any new trade agreement between the US & China will be on Pres Trump's terms, not Wall Street's. "If there is a deal — if and when there is a deal, it will be on President Donald J. Trump's terms. Not Wall Street terms," Navarro said. "If Wall Street is involved and continues to insinuate itself into these negotiations, there will be a stench around any deal that's consummated because it will have the imprimatur of Goldman Sachs and Wall Street," he added. Navarro, known for his hawkish economic views toward China, has encouraged Pres Trump's tough talk with Beijing throughout an escalating trade war between the 2 countries. Both economic powerhouses have imposed & threatened tariffs on B$ worth of each other's goods. Trump "has had the courage and wisdom to stand up to the globalist elites, to stand up to the countries of the world that are engaging in unfair trade practices," the trade advisor added. "Donald J.Trump has done an amazing job of addressing that issue and he didn't need the help of Wall Street. He didn't need the help of Goldman Sachs. And he doesn't need it now." Gary Cohn, the former top national economic adviser, argued against imposing tariffs on China. Cohn was formerly CEO of Goldman Sachs. Navarro also disparaged "unpaid foreign agents" & their "so-called diplomacy" in an apparent critique of those who have advised the pres to settle with Beijing. "All they do is weaken this president and his negotiating position. No good can come of this," he said. Navarro's comments come ahead of a widely-anticipated meeting between Trump & President Xi Jinping of China, an encounter economic advisors to both nations hope could provide an opportunity to calm the trade tensions. The meeting is set for the Group of 20 leaders' summit in Buenos Aires at the end of Nov. The White House slapped tariffs of 10% on $200B of Chinese products in Sep, with the duty set to increase to 25% in 2019 notwithstanding a trade agreement. In response, Beijing said it would impose taxes on 5K US imports worth about $60B. The 2 nations had already imposed tariffs on $50B of each other's goods before the Sep sanctions.
White House trade advisor Navarro says China trade deal will be on Trump's terms, not Wall Street's
US wholesale inventories gained slightly more than estimated in Sep. The Commerce Dep said that wholesale inventories rose 0.4% in Sep, better than the 0.3% gain expected. Wholesale inventories gained 0.9% in Aug, the biggest gain for the measurement since Nov 2016.
Wholesale inventories gain slightly more than expected in September
US crude prices fell for a 10th consecutive session, sinking deeper into bear market territory & wiping out the benchmark's gains for the year. The 10-day decline is the longest losing streak for US crude since 1984. Crude futures fell for a 5th straight week as growing output from key producers & a deteriorating outlook for oil demand deepen a sell-off spurred by Oct's broader market plunge. The drop marks a stunning reversal from last month, when oil prices hit nearly 4-year highs as the market braced for potential shortages once US sanctions on Iran snapped back into place. WTI fell into a bear market in the previous session, tumbling more than 20% from a nearly 4-year high last month at $76.90. Intl benchmark Brent crude was trading 39¢ lower at $70.26., down 19% from its recent high. The contract touched a 7-month low at $69.13 today. Brent has fallen in nine of the last 10 sessions, but is still up more than 4.5% this year. Oil prices spiked in early Oct on fears that US sanctions on Iran, OPEC's 3rd biggest oil producer, would thin out global petroleum supplies. However, the Trump administration granted temporary sanctions exemptions to 8 countries, allowing Iranian crude exports to continue and easing concern about undersupply. Analysts now expect the loss of exports from Iran to be less severe than anticipated. Meanwhile, the world's top 3 producers (the US, Russia & Saudi Arabia) are pumping at or near records. Other OPEC members & exporting nations are also turning on the taps. Preliminary data this week suggests U.S. production has hit an all-time high at 11.6M barrels per day. Today, oilfield services firm Baker Hughes reported that US drillers added 12 rigs to US oil fields across the country this week, the biggest increase since the end of May. The oil rig count, an indicator of future supply, has broken out of a tight range over the last 4 weeks. Prior to that, the count bounced around a tight range of 858-869 oil rigs for about 4 months. It now stands at 886 rigs, the highest since Mar 2015. West Texas Intermediate crude settled 48¢ lower at $60.19. The contract is now down nearly 0.5% YTD & fell as low $59.26 today, its weakest level in about 9 months.
Oil drops for a 10th day, longest losing streak since 1984
Stocks rebounded this week & profits were taken today. But there was buying in the last 2 hours of trading which limited losses. Meanwhile, sinking oil prices on worries about global growth going forward & a sluggish Chinese economy are disturbing. The Dow finished up 700 this week, a welcome sign after a dreary Oct.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
China's auto sales sank for a 4th month in
Oct as an unexpectedly painful slump in the global industry's
biggest market deepened. Purchases of SUVs,
sedans & minivans contracted 13% from a year earlier to just
over 2M units, the China Association of Auto Manufacturers
(CAAM) reported. Auto demand had been forecast
to weaken after Beijing clamped down on bank lending late last year to
cool a debt boom. But the slump is sharper than expected, prompting
expectations regulators might try to prop up sales with tax cuts or
other incentives. The downturn comes at an
awkward time for global & Chinese automakers that are spending heavily
to meet gov targets to develop & sell electric models. It adds to challenges for communist leaders as
they try to shore up cooling economic growth & fight a tariff war with
Pres Trump over Beijing's campaign for state-led creation
of global champions in robotics & other technology industries. Sales
for the 10 months thru Oct fell 1% from a year earlier to
19.3M vehicles. That was well below forecasts of growth in
mid-single digits after last year's anemic 1.4% expansion. The
slowdown is considered a "normal correction" following years of rising auto
ownership levels. China
is a top market for General Motors (GM), Volkswagen & other
industry majors that look to increasingly prosperous Chinese customers
to drive revenue growth. They are spending B$ to
develop models to appeal to local tastes while they
face rising competition from young but ambitious Chinese rivals
including electric brand BYD Auto, Geely Auto & SUV maker Great Wall
Motor. Total vehicle sales, including trucks & buses, shrank 11.7% in Oct to 2.4M. YTD sales were off 0.1% at 22.9M. The decline in Oct was worse than Sep's 12% contraction. VW,
which vies with GM for the status of China's most popular brand, said
sales declined 9.8% to 274K. Sales for the first 10 months of
the year were up 0.4% at 2.5M. Nissan Motor Oct sales shrank 5.5% to 142K vehicles. CAAM
gave no details of Oct purchases of SUVs, the industry's profit
engine, but said YTD sales growth slowed to 1.6% from
Sep's 3.9%.
China auto sales fall in October, deepening slump
White House trade advisor Peter Navarro said that any new trade agreement between the US & China will be on Pres Trump's terms, not Wall Street's. "If there is a deal — if and when there is a deal, it will be on President Donald J. Trump's terms. Not Wall Street terms," Navarro said. "If Wall Street is involved and continues to insinuate itself into these negotiations, there will be a stench around any deal that's consummated because it will have the imprimatur of Goldman Sachs and Wall Street," he added. Navarro, known for his hawkish economic views toward China, has encouraged Pres Trump's tough talk with Beijing throughout an escalating trade war between the 2 countries. Both economic powerhouses have imposed & threatened tariffs on B$ worth of each other's goods. Trump "has had the courage and wisdom to stand up to the globalist elites, to stand up to the countries of the world that are engaging in unfair trade practices," the trade advisor added. "Donald J.Trump has done an amazing job of addressing that issue and he didn't need the help of Wall Street. He didn't need the help of Goldman Sachs. And he doesn't need it now." Gary Cohn, the former top national economic adviser, argued against imposing tariffs on China. Cohn was formerly CEO of Goldman Sachs. Navarro also disparaged "unpaid foreign agents" & their "so-called diplomacy" in an apparent critique of those who have advised the pres to settle with Beijing. "All they do is weaken this president and his negotiating position. No good can come of this," he said. Navarro's comments come ahead of a widely-anticipated meeting between Trump & President Xi Jinping of China, an encounter economic advisors to both nations hope could provide an opportunity to calm the trade tensions. The meeting is set for the Group of 20 leaders' summit in Buenos Aires at the end of Nov. The White House slapped tariffs of 10% on $200B of Chinese products in Sep, with the duty set to increase to 25% in 2019 notwithstanding a trade agreement. In response, Beijing said it would impose taxes on 5K US imports worth about $60B. The 2 nations had already imposed tariffs on $50B of each other's goods before the Sep sanctions.
White House trade advisor Navarro says China trade deal will be on Trump's terms, not Wall Street's
US wholesale inventories gained slightly more than estimated in Sep. The Commerce Dep said that wholesale inventories rose 0.4% in Sep, better than the 0.3% gain expected. Wholesale inventories gained 0.9% in Aug, the biggest gain for the measurement since Nov 2016.
Wholesale inventories gain slightly more than expected in September
US crude prices fell for a 10th consecutive session, sinking deeper into bear market territory & wiping out the benchmark's gains for the year. The 10-day decline is the longest losing streak for US crude since 1984. Crude futures fell for a 5th straight week as growing output from key producers & a deteriorating outlook for oil demand deepen a sell-off spurred by Oct's broader market plunge. The drop marks a stunning reversal from last month, when oil prices hit nearly 4-year highs as the market braced for potential shortages once US sanctions on Iran snapped back into place. WTI fell into a bear market in the previous session, tumbling more than 20% from a nearly 4-year high last month at $76.90. Intl benchmark Brent crude was trading 39¢ lower at $70.26., down 19% from its recent high. The contract touched a 7-month low at $69.13 today. Brent has fallen in nine of the last 10 sessions, but is still up more than 4.5% this year. Oil prices spiked in early Oct on fears that US sanctions on Iran, OPEC's 3rd biggest oil producer, would thin out global petroleum supplies. However, the Trump administration granted temporary sanctions exemptions to 8 countries, allowing Iranian crude exports to continue and easing concern about undersupply. Analysts now expect the loss of exports from Iran to be less severe than anticipated. Meanwhile, the world's top 3 producers (the US, Russia & Saudi Arabia) are pumping at or near records. Other OPEC members & exporting nations are also turning on the taps. Preliminary data this week suggests U.S. production has hit an all-time high at 11.6M barrels per day. Today, oilfield services firm Baker Hughes reported that US drillers added 12 rigs to US oil fields across the country this week, the biggest increase since the end of May. The oil rig count, an indicator of future supply, has broken out of a tight range over the last 4 weeks. Prior to that, the count bounced around a tight range of 858-869 oil rigs for about 4 months. It now stands at 886 rigs, the highest since Mar 2015. West Texas Intermediate crude settled 48¢ lower at $60.19. The contract is now down nearly 0.5% YTD & fell as low $59.26 today, its weakest level in about 9 months.
Oil drops for a 10th day, longest losing streak since 1984
Stocks rebounded this week & profits were taken today. But there was buying in the last 2 hours of trading which limited losses. Meanwhile, sinking oil prices on worries about global growth going forward & a sluggish Chinese economy are disturbing. The Dow finished up 700 this week, a welcome sign after a dreary Oct.
Dow Jones Industrials
No comments:
Post a Comment