Dow inched up 7, decliners modestly ahead of advancers & NAZ was off 12. The MLP index slid below 251 & the REIT index rose 1+ to 374, close to its record highs. Junk bond funds fluctuated & Treasuries pulled back in price. Oil continued higher in the 58s (more below) & gold dropped 13 to 1296.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
With a US-China trade deal at least weeks away, Chinese negotiators have suggested combining a long-discussed state visit by Pres Xi Jinping to the US with the announcement of any forthcoming agreement, according to 3 leakers. The 2 countries had been planning a meeting between the 2 leaders at Pres Trump's private Mar-a-Lago resort in Florida to follow Xi's late-Mar visit to Europe, to avoid the optics of a standalone trip to announce a trade deal on US soil. But US officials have suggested there are too many outstanding details to conclude negotiations by then, making a meeting in Mar unlikely. "Our hope is we are in the final weeks of having an agreement," Robert Lighthizer, the administration's top trade official, testified to the Senate Finance Committee on Tues. But Lighthizer would not commit to a positive outcome, or a resulting meeting & said many issues remain. "If those issues are not resolved in favor of the United States, we won't have a deal." Since the 2 countries brokered a temporary truce at the G-20, US negotiators have been seeking commitments & concessions up front, while Chinese negotiators had sought to shelve complicated issues for the 2 pres's to settle in person. But that dynamic changed, the leakers said, when Trump walked out on talks with Kim Jong Un in Hanoi after North Korea sought an end to sanctions. Beijing now wants a deal fully locked in before its leader sits down with Trump, although Trump would still prefer to close the deal himself. "We could have the deal completed and come and sign — or we can get the deal almost completed and negotiate some of the final points," Trump said. "I would prefer that." Unlike a casual retreat — such as the one the 2 pres's shared at Mar-a-Lago in Apr 2017 — the trappings of a state visit would require much more coordination: an arrival at Andrews Air Force Base, a 21-gun ceremony on the White House lawn, an overnight stay at Blair House & a formal state dinner reception with entertainment.
China suggests linking an official state visit by Xi to a US trade deal
UK lawmakers vote in favor of delaying Brexit departure date
club.ino.com/trend/analysis/stock/TM?a_aid=CD3289&a_bid=6ae5b6f7
Oil futures split ways, with US prices up a 4th straight session after recent data revealed a weekly decline in domestic supplies, but global prices ending lower in the wake of a reported delay in the US-China trade discussions & a slowdown in OPEC output cuts. Apr West Texas Intermediate crude rose 35¢ (0.6%) to settle at $58.61 a barrel, logging a 4th straight session climb. It settled at its highest since mid-Nov. May Brent crude meanwhile, edged down 32¢ (0.5%) to $67.23 a barrel after settling at a 4-month high a day earlier. Yesterday, the Energy Information Administration (EIA) reported that US crude supplies unexpectedly fell by 3.9M barrels last week. The EIA also reported that total domestic crude production inched down from record territory, down 100K barrels to 12M barrels a day. Meanwhile, OPEC, in a monthly report released today, said output by its members fell in Feb, though at a significantly reduced rate than the month prior & well-below the group's pledge to the market. The report also left the global demand growth forecast for 2019 unchanged from the previous month, at 1.24M barrels a day, for total demand expectations of 99.96M barrels a day. Demand for OPEC crude, however, was forecast 30.5M barrels a day, about 1.1M barrels a day lower than the estimated 2018 level. Prices had been trading broadly lower early today after reports that a trade meeting between Pres Trump & China Pres Xi Jinping may be delayed, if it happens at all. That had fueled some fresh worries about disruptions to demand driven by the protracted tariff dispute. So far this week, futures contracts for WTI crude have jumped 4.5%, while the intl benchmark has gained 2.2%.
Stocks wavered with little breaking news that was noteworthy. The Brexit vote was expected & so was some sort of delay with the US-China trade talks. TM's investment in the US was largely announced previously. The volatility index (VIX) has come back down to the 13s, indicating a willingness by investors to accept added risk when purchasing stocks. Following an outstanding advance earlier in 2019, the Dow continues to tread water going sideways.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
With a US-China trade deal at least weeks away, Chinese negotiators have suggested combining a long-discussed state visit by Pres Xi Jinping to the US with the announcement of any forthcoming agreement, according to 3 leakers. The 2 countries had been planning a meeting between the 2 leaders at Pres Trump's private Mar-a-Lago resort in Florida to follow Xi's late-Mar visit to Europe, to avoid the optics of a standalone trip to announce a trade deal on US soil. But US officials have suggested there are too many outstanding details to conclude negotiations by then, making a meeting in Mar unlikely. "Our hope is we are in the final weeks of having an agreement," Robert Lighthizer, the administration's top trade official, testified to the Senate Finance Committee on Tues. But Lighthizer would not commit to a positive outcome, or a resulting meeting & said many issues remain. "If those issues are not resolved in favor of the United States, we won't have a deal." Since the 2 countries brokered a temporary truce at the G-20, US negotiators have been seeking commitments & concessions up front, while Chinese negotiators had sought to shelve complicated issues for the 2 pres's to settle in person. But that dynamic changed, the leakers said, when Trump walked out on talks with Kim Jong Un in Hanoi after North Korea sought an end to sanctions. Beijing now wants a deal fully locked in before its leader sits down with Trump, although Trump would still prefer to close the deal himself. "We could have the deal completed and come and sign — or we can get the deal almost completed and negotiate some of the final points," Trump said. "I would prefer that." Unlike a casual retreat — such as the one the 2 pres's shared at Mar-a-Lago in Apr 2017 — the trappings of a state visit would require much more coordination: an arrival at Andrews Air Force Base, a 21-gun ceremony on the White House lawn, an overnight stay at Blair House & a formal state dinner reception with entertainment.
China suggests linking an official state visit by Xi to a US trade deal
UK lawmakers voted in favor of seeking a delayed
departure from the EU for at least 3 months, marking another step in
a political crisis that has ripped through the heart of Westminster. Members of Parliament (MPs) voted 412
to 202 for an extension of Article 50 — which sets out the EU departure
process — beyond its current Mar 29 deadline. The vote this
evening was nonbinding, however, & the EU will have to agree to a
delay. Brussels has already said Britain needs to justify requesting
such an extension. The vote completes a
dramatic trilogy of events this week which have added yet more confusion
into the whole Brexit process. On Tues, Prime Minister Theresa May's Brexit deal suffered a 2nd humiliating defeat as it was voted down by a majority of 149 votes. Yesterday,
UK lawmakers rejected the idea of leaving the bloc without a
withdrawal agreement in place. The main motion this evening
was tabled by May & her gov & its passing was a rare piece
of good news for the UK leader during a difficult week. The exact
wording meant that lawmakers backed an extension until Jun 30 if
Parliament approves the gov's Brexit deal by Mar 20. The motion was in danger
of being radically altered by a series of amendments, which would have
frustrated May's gov once again. UK politicians narrowly voted
against a senior opposition MP's amendment which would have allowed
lawmakers to take control of the parliamentary business & potentially
hold votes that test out different Brexit options, undermining May's
control of the situation. Sterling was unchanged after the result.
UK lawmakers vote in favor of delaying Brexit departure date
Toyota (TM) announced it is
investing an additional $750M at 5 US plants that will bring
nearly 600 new jobs, including the production of 2 hybrid vehicles
for the first time at its Kentucky facility. It
marks yet another expansion of the Japanese automaker's US presence,
bringing to nearly $13B the amount it will spend by 2021. The
latest investments are at facilities in Alabama, Kentucky, Missouri,
Tennessee & West Virginia. Those same facilities were part of a 2017
announcement by Toyota for a $374M investment to support
production of its first American-made hybrid powertrain. TM North America exec Chris Reynolds said the investments
represent yet more examples of the company's long-term commitment to
build where it sells, irrespective of trade uncertainty due to tariffs. "Our
overarching manufacturing principle is if we can sell it here we need
to make it here. That's been true before any tariff uncertainty, it's
true during tariff uncertainty and it will be true after. Our investment
cycles go beyond any particular political cycle," he said. TM
North America CEO Jim Lentz said, "In a time when others are scaling
back, we believe in the strength of America, and we're excited about the
future of mobility here in America." The automaker is spreading the additional investments among several plants. The stock fell 1.61.
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Toyota investing $750M at 5 US plants, creating 600 jobs
Oil futures split ways, with US prices up a 4th straight session after recent data revealed a weekly decline in domestic supplies, but global prices ending lower in the wake of a reported delay in the US-China trade discussions & a slowdown in OPEC output cuts. Apr West Texas Intermediate crude rose 35¢ (0.6%) to settle at $58.61 a barrel, logging a 4th straight session climb. It settled at its highest since mid-Nov. May Brent crude meanwhile, edged down 32¢ (0.5%) to $67.23 a barrel after settling at a 4-month high a day earlier. Yesterday, the Energy Information Administration (EIA) reported that US crude supplies unexpectedly fell by 3.9M barrels last week. The EIA also reported that total domestic crude production inched down from record territory, down 100K barrels to 12M barrels a day. Meanwhile, OPEC, in a monthly report released today, said output by its members fell in Feb, though at a significantly reduced rate than the month prior & well-below the group's pledge to the market. The report also left the global demand growth forecast for 2019 unchanged from the previous month, at 1.24M barrels a day, for total demand expectations of 99.96M barrels a day. Demand for OPEC crude, however, was forecast 30.5M barrels a day, about 1.1M barrels a day lower than the estimated 2018 level. Prices had been trading broadly lower early today after reports that a trade meeting between Pres Trump & China Pres Xi Jinping may be delayed, if it happens at all. That had fueled some fresh worries about disruptions to demand driven by the protracted tariff dispute. So far this week, futures contracts for WTI crude have jumped 4.5%, while the intl benchmark has gained 2.2%.
U.S. oil prices up a 4th straight session, but global prices fall from 2019 highs
Stocks wavered with little breaking news that was noteworthy. The Brexit vote was expected & so was some sort of delay with the US-China trade talks. TM's investment in the US was largely announced previously. The volatility index (VIX) has come back down to the 13s, indicating a willingness by investors to accept added risk when purchasing stocks. Following an outstanding advance earlier in 2019, the Dow continues to tread water going sideways.
Dow Jones Industrials
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