Dow shot up 353, advancers over decliners 5-2 & NAZ gained a solid 108. The MLP index crawled up to the 256s. Junk bond funds did little today & Treasuries were in demand, taking the yield on the 10 year Treasury down to 2.06%. Oil rose 2+ to the 54s (more below) & gold went up another 7 to 1350 (near a 3 year high).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Kudlow says the White House is not considering demoting Fed Chair Powell right now
Boeing (BA),a Dow stock, reached agreements to sell up to 100 737 Max jets to Nigeria's Green Africa Airways and up to 50 of the planes to Saudi budget carrier Flyadeal. Lagos-based Green Africa Airways has placed 50 firm orders, which BA said is the biggest-ever aircraft agreement in Africa. And the carrier has an option for 50 more planes. Combined, the deal carries a list price of $11.7B, though airlines typically get significant discounts for large orders. The deal has yet to be finalized. The African low-price carrier is looking to leverage the move to develop its presence in the Nigerian market before building a strong pan-African network. BA has predicted that Africa will require 1190 new airplanes over the next 2 decades as it boosts both intracontinental & intercontinental connectivity. "The growth potential for air travel across Nigeria and Africa is extraordinary with the airplane fleet expected to more than double over the next 20 years," Ihssane Mounir, BA's senior VP of commercial sales, said. "We are delighted that Green Africa Airways has selected the 737 MAX to serve this expanding market." The stock advanced 19 to 374.
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Oil futures rallied, with US prices settling at their highest in over a week, after a tweet from Pres Trump suggested progress in trade talks with China, lifting benchmark stock indexes & easing concerns over energy demand. Trump said he had a “very good telephone conversation with Pres Xi of China. We will be having an extended meeting next week at the G-20 in Japan.” West Texas Intermediate crude for Jul rose $1.97 (3.8%) to settle at $53.90 a barrel, the highest front-month contract finish since Jun 7. Prices also saw their largest one day $ & percentage gain since Jan 9. Aug Brent crude added $1.20 (2%) at $62.14 a barrel, the highest settlement in a week. Global stock & currency markets were roiled today after the ECB's Mario Draghi expressed a willingness to cut interest rates as necessary to pump more life into a weakening expansion. Stock markets shot higher, with risk-on sentiment providing support for oil prices. Investors also continue to keep tabs on price-supportive risks percolating in the Middle East. The attack on 2 tankers in the Middle East's Strait of Hormuz last week triggered concerns about disruptions to the global flow of oil & prompted a late-week rally in prices, but the market failed to recoup the 4% loss from Wed, sending front-month WTI prices tumbling 2.7% for last week.
The announcement that Trump & Xi will meet next week to discuss the trade deal brought heaving stock buying in the AM. That enthusiasm lasted throughout the trading session. Lost in this rally is that officials have said a final deal will take a lot of time to be finalized. Tomorrow, the Fed will speak & everybody will listen. Look for more excitement in the stock market.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Pres Trump is not currently considering removing Jerome Powell as head of the Federal Reserve, despite persistent White House
criticism of the way the central bank is handling monetary policy, a top advisers said. Larry Kudlow, director of
the National Economic Council, said Trump is not planning to demote
Powell. A report today said the White House had
looked at such a move in Feb. Kudlow refused to confirm or deny the report but said it is no longer relevant. “It’s a six-month-old story,” he told reporters. “It allegedly happened
six months ago and it’s not happening today and therefore I have
nothing to say about it. It is what it is.” Amid multiple reports
that Trump is not happy with Powell, the Fed chair himself has pushed
back on the notion of him being removed from his post, saying that he
can be dismissed only for cause. Trump has been unhappy with the
Fed for raising interest rates. The central bank approved 4 hikes in
2018, though markets expect up to 3 cuts by the end of 2019. However,
it’s unclear what removing Powell would accomplish. All of the rate
hikes during his tenure were approved with broad-based support from the
policymaking FOMC.
Kudlow says the White House is not considering demoting Fed Chair Powell right now
Boeing (BA),a Dow stock, reached agreements to sell up to 100 737 Max jets to Nigeria's Green Africa Airways and up to 50 of the planes to Saudi budget carrier Flyadeal. Lagos-based Green Africa Airways has placed 50 firm orders, which BA said is the biggest-ever aircraft agreement in Africa. And the carrier has an option for 50 more planes. Combined, the deal carries a list price of $11.7B, though airlines typically get significant discounts for large orders. The deal has yet to be finalized. The African low-price carrier is looking to leverage the move to develop its presence in the Nigerian market before building a strong pan-African network. BA has predicted that Africa will require 1190 new airplanes over the next 2 decades as it boosts both intracontinental & intercontinental connectivity. "The growth potential for air travel across Nigeria and Africa is extraordinary with the airplane fleet expected to more than double over the next 20 years," Ihssane Mounir, BA's senior VP of commercial sales, said. "We are delighted that Green Africa Airways has selected the 737 MAX to serve this expanding market." The stock advanced 19 to 374.
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Boeing announces preliminary deal to sell 737 Max planes for first time since Ethiopian Airlines crash
Oil futures rallied, with US prices settling at their highest in over a week, after a tweet from Pres Trump suggested progress in trade talks with China, lifting benchmark stock indexes & easing concerns over energy demand. Trump said he had a “very good telephone conversation with Pres Xi of China. We will be having an extended meeting next week at the G-20 in Japan.” West Texas Intermediate crude for Jul rose $1.97 (3.8%) to settle at $53.90 a barrel, the highest front-month contract finish since Jun 7. Prices also saw their largest one day $ & percentage gain since Jan 9. Aug Brent crude added $1.20 (2%) at $62.14 a barrel, the highest settlement in a week. Global stock & currency markets were roiled today after the ECB's Mario Draghi expressed a willingness to cut interest rates as necessary to pump more life into a weakening expansion. Stock markets shot higher, with risk-on sentiment providing support for oil prices. Investors also continue to keep tabs on price-supportive risks percolating in the Middle East. The attack on 2 tankers in the Middle East's Strait of Hormuz last week triggered concerns about disruptions to the global flow of oil & prompted a late-week rally in prices, but the market failed to recoup the 4% loss from Wed, sending front-month WTI prices tumbling 2.7% for last week.
Oil rallies as progress toward a trade deal eases demand worries
The announcement that Trump & Xi will meet next week to discuss the trade deal brought heaving stock buying in the AM. That enthusiasm lasted throughout the trading session. Lost in this rally is that officials have said a final deal will take a lot of time to be finalized. Tomorrow, the Fed will speak & everybody will listen. Look for more excitement in the stock market.
Dow Jones Industrials
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