Dow was off 53 after another day of wild price swings, advancers just ahead of decliners & NAZ went up 11. The MLP index was fractionally higher in the 239s & the REIT index fell 2+ to the 356s. Junk bond funds hardly budged & Treasuries were sold. Oil climbed higher in the 51s & gold lost 1 to 1248.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Multiple arms of the Trump administration are preparing to condemn China this week for allegedly stealing US trade secrets & technologies. It was reported that Pres Trump's Dept of Justice is also expected to announce charges against multiple alleged hackers thought to be working for a Chinese intelligence service. Additionally, the administration plans to disclose classified information about breaches of US networks & sanction some of the people deemed responsible. The punitive measures come less than a week after the arrest in Canada of Meng Wanzhou, CFO of Chinese tech giant Huawei. China strongly opposed the arrest of Meng, who currently faces extradition to the US. Her arrest is reportedly related to violations of US sanctions. Canada's move came after a meeting between Trump & Chinese Pres Xi Jinping at the G-20 summit in Argentina, which the US pres called a "great success." China & the US struck a 90-day trade truce at that meeting. In a series of tweets today, the pres expressed hope about reaching a "fair deal," but stressed that he is "a Tariff Man" if talks fail. Trump maintained that optimism today, when he tweeted: "Very productive conversations going on with China! Watch for some important announcements!"
Trump admin reportedly preparing to condemn China over trade secrets theft, hacking
The White House is delaying a 2nd round of payments from a $12B aid package for farmers stung by a trade dispute between China & the US, amid optimism China will soon resume buying US soybeans, according to leakers. Pres Trump's Office of Management & Budget at the White House is holding up approval of the payments due to concern over the cost of the program, & wants to see if the trade issues with China get resolved. "It has been no secret that OMB has not been terribly excited about the trade aid package," a source familiar with the matter said. The source added, however, that the payment will likely eventually be approved after some "back and forth." The Dept of Agriculture in Jul had authorized up to $12B in aid for farmers & ranchers hit by the fall-out from Trump's escalating trade war with China, a major buyer of American agricultural products, & the agency outlined payments for the first half last Aug. Agriculture Secretary Sonny Perdue said on Dec 3 that OMB was deliberating on a second round of trade aid & that it could be outlined by the end of that week. A USDA spokesman said the agency was still in the "final stages" of the process of approving the 2nd tranche of payments. "We are in discussions with the White House and anticipate that the second payment rates for the Market Facilitation Program will be published before the end of the year," was written in an emailed statement. The sources said the White House was delaying its approval mainly on hopes China will soon resume purchases of soybeans, something that has raised questions over what extent of aid will be necessary. Perdue said earlier this month China will probably resume buying American soybeans around Jan 1, after talks between Trump & Chinese Pres Xi Jinping about a potential trade ceasefire. Trump in late May had announced tariffs on steel & aluminum imports, prompting retaliation from top trading partners like China that spilled into agriculture markets.
White House delays new farm aid payments on hopes of a China trade deal, sources say
Market-research firm IDC predicted that global smartphone shipments would grow 2.6% in 2019, following an anticipated decline this year. The Chinese smartphone market "is finally showing signs of recovery," wrote IDC & could be flat in 2019 before showing growth again in 2020-2022. IDC predicts an 8.8% decline in China for 2018. "The recently lifted U.S. ban on ZTE had an impact on shipments in Q3 2018 and created a sizable gap that is yet to be filled heading into 2019," the IDC wrote. On a global level, Alphabet (GOOG)'s Android operating system is expected to maintain 85% market share & shipments of devices running Apple (AAPL)''s iOS operating system to drop by 2.5% in 2018 & then grow at a compound annual growth rate of just 0.1% thru 2022.
The wholesale cost of US goods & services rose slightly in Nov, but inflationary pressures more broadly continued to recede from a midsummer peak largely due to cheaper energy prices. The producer price index crept 0.1% higher last month, the gov said. The forecast called for a 0.1% decline. The increase in wholesale inflation over the past year slowed again to 2.5% from 2.9%. Just 5 months age the 12-month rate had hit a 7-year peak of 3.4% to help fuel growing worries about inflation. Another measure of wholesale inflation that strips out food, energy & trade margins rose 0.3% in Nov. The rate of change over the past 12 months was flat at 2.8%, but it’s still elevated. The cost of services rose 0.3%, including a sizable increase in transportation costs such as trucking. A shortage of drivers has raises costs for businesses trying to move goods. Wholesale prices for wireless plans also saw the biggest increase since records began being kept in 2009. None of it has filtered into what consumers actually pay, however. Cell-phone prices have fallen slightly in the past year. On the flip side, the cost of goods dropped 0.4% to mark the biggest decline in a almost 1½ years. Wholesale gasoline prices sank 14%, the biggest drop in almost 3 years, & natural gas prices tumbled 28%. Gasoline stations took advantage of falling oil prices to boost their own profit margins. They lowered prices more slowly than the cost of gasoline fell, which led to the biggest increase in margins in 8 years. The cost of partly & unfinished goods, meanwhile, were also muted, suggesting inflationary pressures in the pipeline aren't building up as much as they were 6 months ago. The price of raw materials is now 0.7% lower compared to one year ago. They were rising at a 7% annual rate as recently as May.
Coca-Cola (KO), a Dow stock & Dividend Aristocrat, made 6 deals in 2018, but CEO James Quincey said that investors shouldn't expect Coke to keep up that pace next year. "We've got to absorb the ones we've invested in in 2018 but experience will tell you that they just don't come up at that sort of rhythm," he said. In the last several years, consumer staple companies like KO have turned to dealmaking to fuel growth, further consolidating these industries. Quincey said KO tries to focus on its consumers & take a disciplined approach to building its intl portfolio. "As we lean forward into a broader portfolio, we're starting to get the growth people want us to start riding, and I think that's coming through in the stock," Quincey added. KO has a market value of $210B. Coke's $5.1B acquisition of the British chain Costa Coffee is an upcoming addition to its portfolio. The deal is expected to close in H1-2019. Costa serves as the company's introduction to retail as the coffee chain operates more than 3800 locations worldwide. The Costa acquisition will let KO market itself to customers as a provider of both hot & cold beverages. For example, Costa has touchscreen vending machines that make hot beverages with the chain's coffee beans. The stock rose 30¢.
If you would like to learnmore about KO, click on this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f7
Coca-Cola CEO: Deal-making in 2019 will likely slow down as company integrates this year's deals
Wild trading patterns make it difficult to figure out what is going on with traders. The Dow was up 350 at the open, then dropped to minus 150 in early PM. A rally took it up to plus 150 & then sold off into the close, finishing in the red. Go figga! Never a dull day in DC, plenty going on, especially with evolving China trade negotiations. The Dow remains in the red YTD. However the stock market is taking the high level of uncertainty reasonably well.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Multiple arms of the Trump administration are preparing to condemn China this week for allegedly stealing US trade secrets & technologies. It was reported that Pres Trump's Dept of Justice is also expected to announce charges against multiple alleged hackers thought to be working for a Chinese intelligence service. Additionally, the administration plans to disclose classified information about breaches of US networks & sanction some of the people deemed responsible. The punitive measures come less than a week after the arrest in Canada of Meng Wanzhou, CFO of Chinese tech giant Huawei. China strongly opposed the arrest of Meng, who currently faces extradition to the US. Her arrest is reportedly related to violations of US sanctions. Canada's move came after a meeting between Trump & Chinese Pres Xi Jinping at the G-20 summit in Argentina, which the US pres called a "great success." China & the US struck a 90-day trade truce at that meeting. In a series of tweets today, the pres expressed hope about reaching a "fair deal," but stressed that he is "a Tariff Man" if talks fail. Trump maintained that optimism today, when he tweeted: "Very productive conversations going on with China! Watch for some important announcements!"
Trump admin reportedly preparing to condemn China over trade secrets theft, hacking
The White House is delaying a 2nd round of payments from a $12B aid package for farmers stung by a trade dispute between China & the US, amid optimism China will soon resume buying US soybeans, according to leakers. Pres Trump's Office of Management & Budget at the White House is holding up approval of the payments due to concern over the cost of the program, & wants to see if the trade issues with China get resolved. "It has been no secret that OMB has not been terribly excited about the trade aid package," a source familiar with the matter said. The source added, however, that the payment will likely eventually be approved after some "back and forth." The Dept of Agriculture in Jul had authorized up to $12B in aid for farmers & ranchers hit by the fall-out from Trump's escalating trade war with China, a major buyer of American agricultural products, & the agency outlined payments for the first half last Aug. Agriculture Secretary Sonny Perdue said on Dec 3 that OMB was deliberating on a second round of trade aid & that it could be outlined by the end of that week. A USDA spokesman said the agency was still in the "final stages" of the process of approving the 2nd tranche of payments. "We are in discussions with the White House and anticipate that the second payment rates for the Market Facilitation Program will be published before the end of the year," was written in an emailed statement. The sources said the White House was delaying its approval mainly on hopes China will soon resume purchases of soybeans, something that has raised questions over what extent of aid will be necessary. Perdue said earlier this month China will probably resume buying American soybeans around Jan 1, after talks between Trump & Chinese Pres Xi Jinping about a potential trade ceasefire. Trump in late May had announced tariffs on steel & aluminum imports, prompting retaliation from top trading partners like China that spilled into agriculture markets.
White House delays new farm aid payments on hopes of a China trade deal, sources say
Market-research firm IDC predicted that global smartphone shipments would grow 2.6% in 2019, following an anticipated decline this year. The Chinese smartphone market "is finally showing signs of recovery," wrote IDC & could be flat in 2019 before showing growth again in 2020-2022. IDC predicts an 8.8% decline in China for 2018. "The recently lifted U.S. ban on ZTE had an impact on shipments in Q3 2018 and created a sizable gap that is yet to be filled heading into 2019," the IDC wrote. On a global level, Alphabet (GOOG)'s Android operating system is expected to maintain 85% market share & shipments of devices running Apple (AAPL)''s iOS operating system to drop by 2.5% in 2018 & then grow at a compound annual growth rate of just 0.1% thru 2022.
Smartphone industry to grow in 2019 after falling in 2018, says IDC
The wholesale cost of US goods & services rose slightly in Nov, but inflationary pressures more broadly continued to recede from a midsummer peak largely due to cheaper energy prices. The producer price index crept 0.1% higher last month, the gov said. The forecast called for a 0.1% decline. The increase in wholesale inflation over the past year slowed again to 2.5% from 2.9%. Just 5 months age the 12-month rate had hit a 7-year peak of 3.4% to help fuel growing worries about inflation. Another measure of wholesale inflation that strips out food, energy & trade margins rose 0.3% in Nov. The rate of change over the past 12 months was flat at 2.8%, but it’s still elevated. The cost of services rose 0.3%, including a sizable increase in transportation costs such as trucking. A shortage of drivers has raises costs for businesses trying to move goods. Wholesale prices for wireless plans also saw the biggest increase since records began being kept in 2009. None of it has filtered into what consumers actually pay, however. Cell-phone prices have fallen slightly in the past year. On the flip side, the cost of goods dropped 0.4% to mark the biggest decline in a almost 1½ years. Wholesale gasoline prices sank 14%, the biggest drop in almost 3 years, & natural gas prices tumbled 28%. Gasoline stations took advantage of falling oil prices to boost their own profit margins. They lowered prices more slowly than the cost of gasoline fell, which led to the biggest increase in margins in 8 years. The cost of partly & unfinished goods, meanwhile, were also muted, suggesting inflationary pressures in the pipeline aren't building up as much as they were 6 months ago. The price of raw materials is now 0.7% lower compared to one year ago. They were rising at a 7% annual rate as recently as May.
U.S. wholesale prices barely rise in November as inflationary pressures recede
Coca-Cola (KO), a Dow stock & Dividend Aristocrat, made 6 deals in 2018, but CEO James Quincey said that investors shouldn't expect Coke to keep up that pace next year. "We've got to absorb the ones we've invested in in 2018 but experience will tell you that they just don't come up at that sort of rhythm," he said. In the last several years, consumer staple companies like KO have turned to dealmaking to fuel growth, further consolidating these industries. Quincey said KO tries to focus on its consumers & take a disciplined approach to building its intl portfolio. "As we lean forward into a broader portfolio, we're starting to get the growth people want us to start riding, and I think that's coming through in the stock," Quincey added. KO has a market value of $210B. Coke's $5.1B acquisition of the British chain Costa Coffee is an upcoming addition to its portfolio. The deal is expected to close in H1-2019. Costa serves as the company's introduction to retail as the coffee chain operates more than 3800 locations worldwide. The Costa acquisition will let KO market itself to customers as a provider of both hot & cold beverages. For example, Costa has touchscreen vending machines that make hot beverages with the chain's coffee beans. The stock rose 30¢.
If you would like to learnmore about KO, click on this link:
club.ino.com/trend/analysis/stock/KO?a_aid=CD3289&a_bid=6ae5b6f7
Coca-Cola CEO: Deal-making in 2019 will likely slow down as company integrates this year's deals
Wild trading patterns make it difficult to figure out what is going on with traders. The Dow was up 350 at the open, then dropped to minus 150 in early PM. A rally took it up to plus 150 & then sold off into the close, finishing in the red. Go figga! Never a dull day in DC, plenty going on, especially with evolving China trade negotiations. The Dow remains in the red YTD. However the stock market is taking the high level of uncertainty reasonably well.
Dow Jones Industrials
No comments:
Post a Comment