Markets remain mixed with the Dow higher while techs are sold

Dow shot up 190, advancers over decliners almost 2-1 & NAZ pared losses to down 28  The MLP index jumped up 4+ to the 255s & the REIT index lost 3+ to 340.  Junk bond funds were off a tad & Treasuries inched higher.  Oil slid lower into the 62s (more below) & gold slid back 1 to 1232.

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China tariffs will not ruin the 2018 holiday shopping season, according to National Retail Federation (NRF) CEO Matt Shay.  “I think for this holiday season, it is pretty well predetermined to give us a great holiday,” Shay said.  “I think when you talk about the tariffs, we are really talking about 2019 and beyond.”  Pres Trump is scheduled to meet Chinese Pres Xi Jinping at the Group of 20 (G20) summit in Argentina at the end of the month, as they look to put an end to the trade war Opens a New Window. .  Shay said the NRF agrees with the Trump administration's stance that “concrete reforms need to be in place.”  “I think what we need to see is real movement from China and we haven’t seen that yet,” he said.  “Until we see them take real action, and they haven’t yet, there are going to continue to be calls for harsh measures like tariffs.”  “Our view is that, that’s going to impact working-class Americans most dramatically,” he added.  The NRF projects holiday sales will rise up to 4.8% this year.

China tariffs won't impact 2018 holiday retail: NRF CEO

Pres Xi Jinping promised to open China's growing consumer market wider at an import fair meant to help defuse complaints Beijing abuses the global trading system.  But he offered no response to US & European complaints about technology policy & investment curbs.  The China Intl Import Expo is part of efforts to develop China-centered trading networks while resisting pressure to roll back industry plans that the US, Europe, Japan & other govs say violate its market-opening obligations.  "It is our sincere commitment to open the Chinese market," Xi said in a speech to a VIP audience that included Russian Prime Minister Dmitry Medvedev.  Xi promised to cut costs for importers & improve consumer spending power to help boost imports.  The pres made no mention of the standoff with Pres Trump over Chinese plans for state-led development of technology industries.  But in an indirect reference to Trump's "America first" policies & threats of import controls, Xi appealed to other govs to "jointly safeguard free trade."  Some 3600 companies from 152 countries selling everything from Egyptian dates to German factory machinery are attending the 5-day event at a cavernous convention center that bills itself as one of the world's biggest buildings.  Prime ministers & other senior officials of govs including Egypt, Pakistan & Vietnam also were attending the fair.  The US, China's biggest trading partner, did not send a high-level envoy.  Xi's gov is emphasizing the promise of a growing consumer market of 1.4B people to help deflect complaints that it subsidizes fledgling technology suppliers & shields them from competition.  Business groups say China still hampers access to industries including finance & logistics.  They say regulators are trying to squeeze foreign competitors out of promising fields such as information security.  Xi promised steps that might address such complaints if carried out, including easing restrictions on foreign competitors in finance, education, telecoms & health care.  He gave no details or a timetable but said the ruling party already was carrying out changes promised over the past year.  Businesspeople & economists welcomed the promises but said Beijing needs to act promptly to dispel concern about the cooling, state-dominated economy.  The speech "is at least a tacit acknowledgement that much needs to be done," the chairman of the American Chamber of Commerce in China, William Zarit, said.  "We will see if this leads to the timely sweeping reforms needed for a fair and reciprocal bilateral commercial relationship."  The ruling Communist Party is trying to restore public confidence after economic growth sank to a post-global crisis low of 6.5% over a year earlier in the last qtr.  The country's stock market has sunk 25% this year, becoming the world's worst performer.  Xi acknowledged some Chinese industries face "growing risks" but said efforts to shore up growth are already paying off.  China's $12T-a-year economy is "a sea, not a small pond" & can withstand shocks, he said.  "A storm can overturn a small pond, but not a sea," he added.  "After more than 5,000 years of hardship, China is still here. Facing the future, China will always be here."  China has cut tariffs & announced other measures this year to boost imports, which rose 15.9% in 2017 to $1.8T.  But none addresses US complaints that prompted Trump to impose penalty tariffs of up to 25% on $250B of Chinese imports.  Beijing has responded with tariff hikes on $110B of American goods.

China's Xi promises market opening as import fair begins

US oil futures reversed course in the last few minutes of trading to settle a few cents lower for the session.  Prices had been trading higher as US sanctions on Iranian oil took hold, but the Trump administration's decision to grant waivers to 8 buyers of Iranian crude pressured prices into posting a slight loss for the session.  News reports said Pres Trump told reporters that he wants to "go a little bit slower" when it comes to sanctions on Iranian oil because he doesn't walk to drive up oil prices.  That helped ease worries about tighter global supplies.  Dec West Texas Intermediate oil shed 4¢ to settle at $63.10 a barrel after earlier touching a high of $64.14.

U.S. oil benchmark erases gain to end slightly lower

Home improvement retailer Lowe's (LOW) will close underperforming stores in the US & Canada as part of a reorganization.  The company will wind down operations at 20 US locations & 31 Canadian stores by the end of its 2018 fiscal year, which ends Feb 2019.  It announced in Aug that it would close all 99 Orchard Supply Hardware stores, leading to write downs of $390-475M.  “While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” CEO Marvin Ellison, who took the helm of the company in Jul, said.  The company said most employees at the affected stores, which are located within 10 miles of one another, will have opportunities to “transition to a similar role” at a nearby LOW location.  Store closing sales will occur at most of the affected locations, with exception of select stores in the US, which the company said will close immediately.  The company & related businesses operate or service nearly 2400 locations which employ more than 310K.  The stock rose 24¢.

If you would like to learn more about LOW, click on this link:
club.ino.com/trend/analysis/stock/LOW?a_aid=CD3829&a_bid=6ae5b6f7

Lowe's to close underperforming stores in US, Canada

Today was a choppy time for stocks.  The Dow along with much of the market went higher, but techs shares were sold.  The latter is disturbing for the bulls since the tech stocks have been leading the overall stock market higher after the Feb plunge.  The Fed has a routine meeting this week & all expectations are for those guys to take a pass on the next rate hike.  That's coming next month.  Everybody is nervous about the elections & how they will affect US businesses.  Tomorrow night most results should be reported.  The Dow is down 1K in Q4.

Dow Jones Industrials