Dow gained 27, advancers modestly ahead of decliners & NAZ went up 11. The MLP index added 2 to 251 & the REIT index rose 6+ to the 335s. Junk bond funds are still in demand & Treasuries were a tad lower in price. Oil jumped up to the 51s, continuing its recent strength from the low 40s, & gold rose 6 to 1292 (another multi month high).
AMJ (Alerian MLP Index tracking fund)
Stocks rise on optimism about trade talks
Trade meetings conclude in China as hopes of a deal build
club.ino.com/trend/analysis/stock/AAPL?a_aid=CD3289&a_bid=6ae5b6f7
St. Louis Fed Pres James Bullard thinks interest rates have gone high enough & could endanger an otherwise strong economy if they rise more. Coming off a year in which the Fed hiked rates four times, he said that further policy tightening could jeopardize an otherwise strong economy. The central bank is “bordering on going too far and possibly tipping the economy into recession,” he added. “We’ve got a good level of the policy rate today,” he continued. Bullard was not a voting member on the Federal Open Market Committee during its rate-hiking campaign last year. He takes a voting position this year & indicated that with inflation contained & financial markets concerned about more rate increases, it's time for the Fed to pause. At the Dec meeting, FOMC officials indicated 2 more increases could be coming this year to the benchmark funds rate target, which currently sits at 2.25-2.5%. However, markets are pricing in no hikes this year & possibly a rate cut in 2020, which Bullard said he would be open to if conditions deteriorate. Bullard estimated that ”the committee is coming to my view on this, but we’ll have to see how things play out going forward.”
Fed’s Bullard takes stand against more interest rate hikes
The Dow is off 150 from its highs at the opening on nervousness about what will come from the US-China trade talks. Additionally the gov partial shutdown is still lumbering along with no resolution in sight. Safe have gold continues strong as it nears the important 1300 ceiling. Today has the makings of another wild day for trading.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 51.44 | +1.66 | +3.3% |
| GC=F | Gold | 1,289.80 | +3.90 | +0.3% |
Stocks opened higher, headed for
their 4th straight session of gains, as trade negotiators for the
US & China extended talks for an unscheduled 3rd day. The
decision to keep negotiating fueled optimism the world's largest
economies can strike a trade deal & avoid disrupting the global
economy. The US trade delegation was set to return to the
US later after what a US official called a
"good few days." A
positive close today would be the longest winning streak in 4
months for the S&P 500 & 2 months for the Dow. Oil prices extended their gains as the Energy
Information Administration on expectations that crude stockpiles fell by
2.8M barrels last week. West Texas Intermediate, the American
benchmark crude oil, was trading above $51 for the first time since Dec
17 on optimism about US-China trade talks and reduced
production from OPEC members. Crude oil prices are higher for their 8th consecutive session, the longest winning streak since Jul 2017. In Asian markets, China's Shanghai Composite ended the day higher by 0.7%. Japan's Nikkei closed up 1%. In Europe, London's FTSE opened up 1%, Germany's DAX gained 1.4% & France's CAC added 1.4%. Stocks rose yesterday, the market's 3rd
consecutive day of gains, on optimism that China & the US
are close to settling an economically damaging trade dispute. All the major equity indices closed at or near 1% higher.
Stocks rise on optimism about trade talks
The US trade delegation that met with Chinese officials in Beijing, will return to the US after what a US official called a "good few days." Asian stock markets jumped after the talks were extended for an unscheduled third day, fueling optimism that the world's largest economies can strike a trade deal & avoid disrupting the global economy. This week's meetings are the first face-to-face
talks since Pres & Chinese Pres Xi Jinping agreed in
Dec to a 90-day truce in a trade war that has roiled global
financial markets. Originally
scheduled for Mon-Tues, the negotiations were extended by a
day amid signs of progress on issues including purchases of US farm
and energy commodities & increased access to China's markets. However, people familiar with the talks said that the 2 sides were further apart on Chinese structural reforms that the
Trump administration is demanding in order to stop alleged theft &
forced transfer of US technology, & on how Beijing will be held to
its promises. In what is widely seen as a goodwill gesture,
China issued long-awaited approvals for the import of 5
genetically modified crops, which could boost its purchases of US
grains as farmers decide which crops to plant in the spring. On Mon, Chinese importers made another large purchase of US soybeans, their 3rd in the past month.
Trade meetings conclude in China as hopes of a deal build
Apple (AAPL), a Dow & NAZ stock, has reduced production for its 3 new iPhone models by about 10% for the Jan-Mar qtr, according to the Nikkei Asian Review. This comes after AAPL slashed its quarterly sales forecast last week. China is cited as the reason for weakening iPhone sales as that country's economy slows, which has been impacted by a trade war with the US. The higher price for the new iPhones has been a concern for analysts & consumers. AAPL asked its suppliers late last month to produce fewer-than-planned
units of its XS, XS Max & XR models. Overall planned production volume of both old & new iPhones is likely
to be cut to 40-43M units in Q1, from an earlier projection of 47-48M
units. The stock rose 1.72.
If you would like to learn more about AAPL, click on this link:club.ino.com/trend/analysis/stock/AAPL?a_aid=CD3289&a_bid=6ae5b6f7
Apple cuts 1Q iPhone production: Report
St. Louis Fed Pres James Bullard thinks interest rates have gone high enough & could endanger an otherwise strong economy if they rise more. Coming off a year in which the Fed hiked rates four times, he said that further policy tightening could jeopardize an otherwise strong economy. The central bank is “bordering on going too far and possibly tipping the economy into recession,” he added. “We’ve got a good level of the policy rate today,” he continued. Bullard was not a voting member on the Federal Open Market Committee during its rate-hiking campaign last year. He takes a voting position this year & indicated that with inflation contained & financial markets concerned about more rate increases, it's time for the Fed to pause. At the Dec meeting, FOMC officials indicated 2 more increases could be coming this year to the benchmark funds rate target, which currently sits at 2.25-2.5%. However, markets are pricing in no hikes this year & possibly a rate cut in 2020, which Bullard said he would be open to if conditions deteriorate. Bullard estimated that ”the committee is coming to my view on this, but we’ll have to see how things play out going forward.”
Fed’s Bullard takes stand against more interest rate hikes
The Dow is off 150 from its highs at the opening on nervousness about what will come from the US-China trade talks. Additionally the gov partial shutdown is still lumbering along with no resolution in sight. Safe have gold continues strong as it nears the important 1300 ceiling. Today has the makings of another wild day for trading.
Dow Jones Industrials
No comments:
Post a Comment