Dow finished off 90 after tumbling 300 in the AM, decliners over advancers 3-2 & NAZ retreated 80. The MLP index lost 1+ to 231 & the REIT index was off fractionally to the 396s. Junk bond funds inched higher & Treasuries were a little weaker following their recent rally. Oil shot up 1+ to the 54s & gold slid back 1 to 1508 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Pres Trump fired another warning shot at the Chinese & hinted that talks set for Sep could be on or off. "We are not ready to make a deal," said Trump as he headed off for the weekend to attend 2 fundraisers. He reiterated that China continues to treat the US poorly, behavior that has been tolerated for years. "Nobody has done anything about it" he added. Stocks took a leg down on the comments amid another volatile session. Trump also squashed the idea of devaluing the $ in response to China's weakening of the yuan which fell to the lowest level since 2008 this week. Trump again hammered China for manipulating its currency. On Mon after the Chinese pushed the yuan down the US officially labeled the country a "currency manipulator." He also called on the Federal Reserve to lower rates by "one point or a little more than that."
Oil futures ended sharply higher, scoring back-to-back gains after slumping into a bear market earlier this week, dragged down by concerns a prolonged trade war will sap energy demand. Analysts said the selloff went too far, leaving scope for a partial rebound. West Texas Intermediate (WTI) crude oil earlier this week ended more than 20% below its 2019 settlement high of $66.30 hit on Apr 23, which, by most definitions, marks a return to bear-market territory. Brent also fell more than 20% from its late-Apr high-water mark. A 20% rise from its bear-market low would mark a return to bull territory. WTI for Sep delivery rose $1.96 (3.7%) to end at $54.50 a barrel. Its 4.7% plunge to $51.09 Wed marked the lowest settlement for the contract since Jan 14. The contract ended the week with a 2.1% loss. Oct Brent crude rose $1.15 (2%) to settle at $58.53 a barrel. The global benchmark saw a 5.4% weekly decline. Crude maintained gains today after oil-field services firm Baker Hughes said the number of US oil rigs fell 6 this week to 764. With weaker prospects for the global economy noted, the Intl Energy Agency (IEA) lowered its forecast for 2019 demand growth by 100K barrels a day to 1.1M barrels a day & its 2020 forecast was lowered by 50K barrels a day to 1.3M barrels a day. The IEA said new data show downward revisions to oil demand figures from India, Saudi Arabia, Korea & several European countries, & preliminary US data show lower demand for motor fuels at the start of peak driving season. On the upside, Chinese oil demand was raised on reports that Saudi Arabia plans to keep oil exports below 7M barrels a day next month in an effort to stabilize the market.
Gold futures settled virtually unchanged but marked the best weekly return in more than a month, amid Italian political jitters & another wrinkle in the US-China trade talks. Dec gold shed $1 at $1508 an ounce. For the week, gold climbed 3.5% based on the most-active contract's finish on Aug.2. The weekly advance would mark the best such stretch for futures since Jun 21. Despite the lackluster finish for the session, the better weekly return has gold bulls sanguine about the metal's outlook. Metals have mostly benefited from weakness in equity markets due to the US-China trade war as investors eschew assets perceived as risky in favor of those considered havens like gold & sovereign debt where yields have tumbled to historic lows. The slide in gov debt to ultra-low & negative rates has helped to buttress bullion & silver, which don't bear a coupon but tend to rally in times of uncertainty. Italy Deputy Prime Minister Matteo Salvini called for a snap election, with the political instability in the EU's 3rd largest economy send European stocks & bond yields lower. Pres Trump also ignited a brief period of selling in stock markets after he implied that a Sep meeting between China & US officials on trade may not take place.
This was another day of wild price swings in stocks. Early selling in the Dow was replaced when buyers returned in the PM. Then there was a little selling into the close. Go figga!. NAZ losses were also pared. When all is said & done, gold held its own & is at multi year highs. Nervous investors have been heavy buyers. These trends should continue in Aug with all the uncertainty in the US-China trade story.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Pres Trump said that he has no plans to devalue the $. "We
don’t have to – we have such a strong dollar," he said in response to
question about whether the Trump administration had
plans devalue the currency during a press gaggle at the White House. “The problem is our dollar is at a level that it
makes it hard," Trump continued. "But the advantage to doing what we have is
money is pouring in because we have the safest currency in the world." "We
have the standard of the world," he continued. "But because it’s so
strong, it’s gotten so strong because other countries have problems. It
makes it harder for our manufacturers." Trump added that if the Federal Reserve cut interest rates it would automatically bring down the $ "a
little bit” & make it easier for companies liked Caterpillar (CAT, a Dow stock).
TRUMP: WON'T DEVALUE 'STRONG' DOLLAR
Pres Trump fired another warning shot at the Chinese & hinted that talks set for Sep could be on or off. "We are not ready to make a deal," said Trump as he headed off for the weekend to attend 2 fundraisers. He reiterated that China continues to treat the US poorly, behavior that has been tolerated for years. "Nobody has done anything about it" he added. Stocks took a leg down on the comments amid another volatile session. Trump also squashed the idea of devaluing the $ in response to China's weakening of the yuan which fell to the lowest level since 2008 this week. Trump again hammered China for manipulating its currency. On Mon after the Chinese pushed the yuan down the US officially labeled the country a "currency manipulator." He also called on the Federal Reserve to lower rates by "one point or a little more than that."
Trump talks China: Not ready to make a deal
Oil futures ended sharply higher, scoring back-to-back gains after slumping into a bear market earlier this week, dragged down by concerns a prolonged trade war will sap energy demand. Analysts said the selloff went too far, leaving scope for a partial rebound. West Texas Intermediate (WTI) crude oil earlier this week ended more than 20% below its 2019 settlement high of $66.30 hit on Apr 23, which, by most definitions, marks a return to bear-market territory. Brent also fell more than 20% from its late-Apr high-water mark. A 20% rise from its bear-market low would mark a return to bull territory. WTI for Sep delivery rose $1.96 (3.7%) to end at $54.50 a barrel. Its 4.7% plunge to $51.09 Wed marked the lowest settlement for the contract since Jan 14. The contract ended the week with a 2.1% loss. Oct Brent crude rose $1.15 (2%) to settle at $58.53 a barrel. The global benchmark saw a 5.4% weekly decline. Crude maintained gains today after oil-field services firm Baker Hughes said the number of US oil rigs fell 6 this week to 764. With weaker prospects for the global economy noted, the Intl Energy Agency (IEA) lowered its forecast for 2019 demand growth by 100K barrels a day to 1.1M barrels a day & its 2020 forecast was lowered by 50K barrels a day to 1.3M barrels a day. The IEA said new data show downward revisions to oil demand figures from India, Saudi Arabia, Korea & several European countries, & preliminary US data show lower demand for motor fuels at the start of peak driving season. On the upside, Chinese oil demand was raised on reports that Saudi Arabia plans to keep oil exports below 7M barrels a day next month in an effort to stabilize the market.
Oil ends down week with big bounce
Gold futures settled virtually unchanged but marked the best weekly return in more than a month, amid Italian political jitters & another wrinkle in the US-China trade talks. Dec gold shed $1 at $1508 an ounce. For the week, gold climbed 3.5% based on the most-active contract's finish on Aug.2. The weekly advance would mark the best such stretch for futures since Jun 21. Despite the lackluster finish for the session, the better weekly return has gold bulls sanguine about the metal's outlook. Metals have mostly benefited from weakness in equity markets due to the US-China trade war as investors eschew assets perceived as risky in favor of those considered havens like gold & sovereign debt where yields have tumbled to historic lows. The slide in gov debt to ultra-low & negative rates has helped to buttress bullion & silver, which don't bear a coupon but tend to rally in times of uncertainty. Italy Deputy Prime Minister Matteo Salvini called for a snap election, with the political instability in the EU's 3rd largest economy send European stocks & bond yields lower. Pres Trump also ignited a brief period of selling in stock markets after he implied that a Sep meeting between China & US officials on trade may not take place.
Gold prices end higher, notch best weekly gain since late June
This was another day of wild price swings in stocks. Early selling in the Dow was replaced when buyers returned in the PM. Then there was a little selling into the close. Go figga!. NAZ losses were also pared. When all is said & done, gold held its own & is at multi year highs. Nervous investors have been heavy buyers. These trends should continue in Aug with all the uncertainty in the US-China trade story.
Dow Jones Industrials
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