Dow crawled up 15, advancers over decliners 3-1 & NAZ jumped up 91. The MLP index rose 2+ to the 251s (extending its longer term sideways trend) & rhe REIT index was even in the 365s. Junk bond funds were a little higher after selling last week & Treasuries drifted lower in price. Oil climbed higher in the 56s & gold was off 5 to 1293.
AMJ (Alerian MLP Index tracking fund
Stocks trade mixed as Dow Industrials fall on Boeing news
US retail sales unexpectedly rose in Jan, lifted by an increase in purchases of building materials & discretionary spending, but receipts in Dec were much weaker than initially thought. The Commerce Dept said retail sales rose 0.2% & data for Dec was revised down to show retail sales dropping 1.6% instead of tumbling 1.2% as previously reported. The drop in Dec was the biggest since 2009 when the economy was emerging from recession. The forecast called for retail sales to be unchanged in Jan. Retail sales in Jan increased 2.3% from a year ago. Feb's retail sales report, which was scheduled for publication on Thurs, will be released on Apr 1. Excluding automobiles, gasoline, building materials & food services, retail sales rebounded 1.1% in Jan after a downwardly revised 2.3% plunge in Dec. The core retail sales correspond most closely with the consumer spending component of GDP. They were previously reported to have decreased 1.7% in Dec. The downward revision to Dec core retail sales could have an impact on the Q4 GDP estimate. The gov reported last month that the economy grew at a 2.6% annualized rate in Q4. However, Dec reports on the trade deficit & construction spending have led economists to believe Q4 GDP growth estimate would be revised lower when revised data is reported later this month. The rebound in Jan core retail sales will probably do little to change expectations of a significant slowdown in economic activity in Q1. Growth estimates for Q1 are below a 1.5% pace. In Jan, online & mail-order retail sales increased 2.6%, the biggest gain since Dec 2017. Receipts at auto dealerships tumbled 2.4%, the biggest drop since 2014, after gaining 0.3% in the prior month. Sales at building material stores increased 3.3%, the most since Sep 2017.
Drillers are cutting billions of dollars in spending, raising questions about US oil output
The Dow opened down more than 200 but buyers saw bargains & brought it in the black. Meanwhile tech stocks are taking NAZ higher. There is much to digest in the retail figures & they are clouded by the gov shutdown muddying up any analysis. Selling pressure for stocks remains with US-China trade talks in limbo & US economic data coming in soft.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund
| CL=F | Crude Oil | 56.83 | +0.76 | +1.4% |
| GC=F | Gold | 1,294.60 | -4.70 | -0.4% |
Stocks began the week trading mixed with the Dow down more than 100 as Boeing (BA) shares plunged following a 2nd deadly crash involving the planemaker's 737 MAX jet. London's FTSE gained
0.3%, Germany's DAX added 0.2% & France's CAC inched higher. In Asian markets, China's
Shanghai Composite index closed up 1.9% after the central bank
governor pledged more support for a slowing economy. Hong Kong's Hang Seng added 1% & Japan's Nikkei ended the day up 0.5%. In US economic news, retail sales unexpectedly rose in Jan, lifted by an increase in purchases of building materials & discretionary spending,
but receipts in Dec were much weaker than initially thought. The
Commerce Dept said retail sales rose 0.2%. Data for
Dec was revised down to show retail sales dropping 1.6%
instead of the 1.2% fall that as previously reported.
Stocks trade mixed as Dow Industrials fall on Boeing news
BA shares fell almost 9% following the second deadly crash involving the 737 MAX 8 passenger jet. The crash has caused some airlines to ground the plane. BA was supposed to hold a ceremonial debut of its 777X widebody aircraft this week. That has been postponed. The
Ethiopian Airlines jet crashed minutes after takeoff from Addis Ababa
on Sun, killing all 157 on board. It was the same model aircraft flown by Lion Air that crashed off the coast of Indonesia in Oct, killing all 189 on board. China ordered Chinese airlines to ground all BA 737 MAX 8 planes after the crash. Ethiopian Airlines said it has grounded its 737 MAX 8 fleet until further notice. BA said an investigation into the latest crash is in its early
stages & there is no need to issue new guidance to operators of its
737 MAX 8 aircraft based on the information it has so far. The stock dropped 30 (7%).
If you would like to learn more about BA, click on this link:
Boeing shares fall after second deadly 737 MAX 8 crash
US retail sales unexpectedly rose in Jan, lifted by an increase in purchases of building materials & discretionary spending, but receipts in Dec were much weaker than initially thought. The Commerce Dept said retail sales rose 0.2% & data for Dec was revised down to show retail sales dropping 1.6% instead of tumbling 1.2% as previously reported. The drop in Dec was the biggest since 2009 when the economy was emerging from recession. The forecast called for retail sales to be unchanged in Jan. Retail sales in Jan increased 2.3% from a year ago. Feb's retail sales report, which was scheduled for publication on Thurs, will be released on Apr 1. Excluding automobiles, gasoline, building materials & food services, retail sales rebounded 1.1% in Jan after a downwardly revised 2.3% plunge in Dec. The core retail sales correspond most closely with the consumer spending component of GDP. They were previously reported to have decreased 1.7% in Dec. The downward revision to Dec core retail sales could have an impact on the Q4 GDP estimate. The gov reported last month that the economy grew at a 2.6% annualized rate in Q4. However, Dec reports on the trade deficit & construction spending have led economists to believe Q4 GDP growth estimate would be revised lower when revised data is reported later this month. The rebound in Jan core retail sales will probably do little to change expectations of a significant slowdown in economic activity in Q1. Growth estimates for Q1 are below a 1.5% pace. In Jan, online & mail-order retail sales increased 2.6%, the biggest gain since Dec 2017. Receipts at auto dealerships tumbled 2.4%, the biggest drop since 2014, after gaining 0.3% in the prior month. Sales at building material stores increased 3.3%, the most since Sep 2017.
U.S. retail sales rise in January; December revised sharply down
The shale drillers behind booming US oil &
natural gas output have survived a bevy of challenges in recent years,
from a historic oil price downturn to an effort by OPEC to wash them out of the market with a flood of cheap crude. Now, with US output at all-time highs
near 12M barrels per day, the industry is facing a new obstacle:
how to keep growing output amid a wave of belt-tightening that is
cutting Bs$ from capital budgets. Publicly traded shale drillers emerged from the 2014-2016 downturn with a new mandate from investors
to get their finances in order & start generating value for
shareholders. For years, drillers have spent more cash than they
generated, borrowing heavily to snap up acreage & increase their
output at seemingly any cost. The latest round of quarterly
earnings reports shows many shale drillers are cutting spending to meet
investors' demands. That is translating into lower expectations for oil & gas output from the companies, which rely on advanced drilling
methods like hydraulic fracturing to free oil & gas from shale rock
formations. But even with these
frackers now pursuing the elusive goal of drilling at a profit,
forecasters expect another blockbuster year for US output. After
surging 1.6M barrels per day (bpd) last year, making the US the
world's biggest producer, average annual American output is poised to
grow by more than 1.4M bpd in 2019, according to the Dept
of Energy. However, some analysts cast doubts on these forecasts.
Drillers are cutting billions of dollars in spending, raising questions about US oil output
The Dow opened down more than 200 but buyers saw bargains & brought it in the black. Meanwhile tech stocks are taking NAZ higher. There is much to digest in the retail figures & they are clouded by the gov shutdown muddying up any analysis. Selling pressure for stocks remains with US-China trade talks in limbo & US economic data coming in soft.
Dow Jones Industrials
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