Dow shot up 121, advancers over decliners better than 3-2 & NAZ recovered 11. The MLP index rose fractionally to the 258s & the REIT index was off fractionally to the 391s. Junk bond funds fluctuated & Treasuries slid lower in price. Oil climbed a little higher & gold inched up 1 to 1408.
AMJ (Alerian MLP Index tracking fund)
It is another sign of the impact the trade war is having between the US & China, China's imports from the US plunged in Jun, while exports to the US weakened. Imports of US goods fell 31.4% from a year earlier to $9.4B, while exports to the American market declined 7.8% to $39.3B, customs data showed. China's trade surplus with the US widened 3% to $29.9B. The impact on trade has been seen ever since Pres Trump started hiking tariffs last year on goods from China in a fight over Beijing's technology ambitions. China retaliated with penalty duties & ordered importers to find non-US suppliers. Trump & his Chinese Pres Xi Jinping agreed in Jun to resume negotiations. That helped to reassure jittery financial markets but forecasters say their truce is fragile because the 2 sides are divided by the same array of conflicts that caused talks to break down in May. Trade envoys talked by phone Tues in their first contact since Trump & Xi met in Japan, the Chinese Commerce Ministry said. Chinese leaders express confidence their economy can survive the tariff fight. But while American exporters have been hit hardest, Chinese industries including electronics that Beijing sees its economic future have suffered double-digit declines in sales to the US, their biggest market.
China imports from US plunge 31% in June amid tariff war
US producer prices rise slightly; cost of goods declines
White House trade advisor Peter Navarro said media reports on the US-China trade talks are not reliable, even calling stories in the Wall Street Journal “garbage.” “My advice for investors is to be patient with the process & don't believe anything you read in either the Chinese or the US press about these negotiations unless it comes from the mouth of either the pres or advisor Lighthizer,” Navarro said. “There’s just going to be a lot of garbage coming out of the Wall Street Journal and the People’s Daily and everything in between,” Navarro said. “I’ve seen this movie before... There were all sorts of stories written and they were designed to shape the negotiations and they didn’t have any insight into them,” Navarro added. Navarro didn't discuss any specific stories or present any evidence to back up his point. The Wall Street Journal reported Mon that certain issues were weighing on new trade talks, including China not stepping up purchases of American agricultural products. Trump himself later confirmed that lack of the purchases were a hang up. “We stand by our reporting,” a spokeswoman at The Wall Street Journal said. The People's Daily is the official newspaper of the Communist Party in China. As far as those trade talks, Navarro said that the trade battle was “in a quiet period,” adding that US Trade Representative Robert Lighthizer will travel to Beijing with Treasury Secretary Steve Mnuchin in the near future.
Peter Navarro says don’t believe China or US press, calls Wall Street Journal stories ‘garbage’
Popular stock averages remain at or close to record highs. But there is a lack of supporting evidence. The rate cut by the Fed is still a couple of weeks away & that is not the biggest story for the economy. Trade wars drag on with no end in sight (see in the prior article). Next week, earnings reports will begin & early signals do not suggest they will be impressive. Negative investors continue to buy gold.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 60.43 | +0.23 | +0.4% |
| GC=F | Gold | 1,409.80 | +3.10 | +0.2% |
A surge in trading is continuing sending the Dow & S&P 500 to new intraday
highs. Any gains at the end of the day for those indices will set new
closing records. The Dow closed above 27K
for the first time yesterday. Investors continue to remain optimistic that the
Federal Reserve will cut interest rates at the end of Jul after
Chair Jerome Powell signaled as much during 2-days of hearings on
Capitol Hill. In
economic news, the Labor Dept said its producer price
index for final demand edged up 0.1% last month after a similar
gain in May.
WALL STREET RALLY CONTINUES WITH NEW RECORDS
It is another sign of the impact the trade war is having between the US & China, China's imports from the US plunged in Jun, while exports to the US weakened. Imports of US goods fell 31.4% from a year earlier to $9.4B, while exports to the American market declined 7.8% to $39.3B, customs data showed. China's trade surplus with the US widened 3% to $29.9B. The impact on trade has been seen ever since Pres Trump started hiking tariffs last year on goods from China in a fight over Beijing's technology ambitions. China retaliated with penalty duties & ordered importers to find non-US suppliers. Trump & his Chinese Pres Xi Jinping agreed in Jun to resume negotiations. That helped to reassure jittery financial markets but forecasters say their truce is fragile because the 2 sides are divided by the same array of conflicts that caused talks to break down in May. Trade envoys talked by phone Tues in their first contact since Trump & Xi met in Japan, the Chinese Commerce Ministry said. Chinese leaders express confidence their economy can survive the tariff fight. But while American exporters have been hit hardest, Chinese industries including electronics that Beijing sees its economic future have suffered double-digit declines in sales to the US, their biggest market.
China imports from US plunge 31% in June amid tariff war
US producer prices rose slightly in Jun as the cost of energy & other goods fell for a 2nd straight month, offsetting an
acceleration in services, leading to the smallest annual increase in
producer inflation in nearly 2½ years. The
Labor Dept said its producer price index (PPI) for final
demand edged up 0.1% last month after a similar gain in May. In
the 12 months thru Jun, the PPI rose 1.7%, the smallest gain
since Jan, slowing further from a 1.8% increase in May. The forecast called for the PPI unchanged in Jun & increasing 1.6% on a year-on-year basis. Underlying
producer prices slowed last month, a sign that overall inflation could
remain moderate despite strong gains in prices of most consumer goods & services in Jun. Excluding the volatile
food, energy & trade services components, producer prices were
unchanged in Jun after rising 0.4% for 2 straight months. The core PPI increased 2.1% in the 12 months thru Jun
after advancing 2.3% in May. Low
inflation & growing risks to the economy from a trade war between the
US & China, & slowing global growth are likely to see the
Federal Reserve cutting interest rates this month for the first time in
a decade. Fed Chairman Jerome Powell on
Wed told lawmakers the central bank would "act as
appropriate" to protect the economy against these risks. In Jun, wholesale energy prices fell 3.1% after slipping 1.0% in the prior month. Goods prices decreased 0.4% last
month after declining 0.2% in May. A 5.0% drop in gasoline
prices accounted for nearly 60% of the decline in the cost of
goods last month.
US producer prices rise slightly; cost of goods declines
White House trade advisor Peter Navarro said media reports on the US-China trade talks are not reliable, even calling stories in the Wall Street Journal “garbage.” “My advice for investors is to be patient with the process & don't believe anything you read in either the Chinese or the US press about these negotiations unless it comes from the mouth of either the pres or advisor Lighthizer,” Navarro said. “There’s just going to be a lot of garbage coming out of the Wall Street Journal and the People’s Daily and everything in between,” Navarro said. “I’ve seen this movie before... There were all sorts of stories written and they were designed to shape the negotiations and they didn’t have any insight into them,” Navarro added. Navarro didn't discuss any specific stories or present any evidence to back up his point. The Wall Street Journal reported Mon that certain issues were weighing on new trade talks, including China not stepping up purchases of American agricultural products. Trump himself later confirmed that lack of the purchases were a hang up. “We stand by our reporting,” a spokeswoman at The Wall Street Journal said. The People's Daily is the official newspaper of the Communist Party in China. As far as those trade talks, Navarro said that the trade battle was “in a quiet period,” adding that US Trade Representative Robert Lighthizer will travel to Beijing with Treasury Secretary Steve Mnuchin in the near future.
Peter Navarro says don’t believe China or US press, calls Wall Street Journal stories ‘garbage’
Popular stock averages remain at or close to record highs. But there is a lack of supporting evidence. The rate cut by the Fed is still a couple of weeks away & that is not the biggest story for the economy. Trade wars drag on with no end in sight (see in the prior article). Next week, earnings reports will begin & early signals do not suggest they will be impressive. Negative investors continue to buy gold.
Dow Jones Industrials
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