Dow declined 116, advancers still slightly ahead of decliners & NAZ was off 62. The MLP index was fractionally higher to 234 & the REIT index dropped 6+ to 400 following recent strength. Junk bond funds edged higher & Treasuries were sold again bringing higher yields. Oil rose to the 58s & gold fell back 10 to 1501.
AMJ (Alerian MLP Index tracking fund)
Ford falls as stock market waffles ahead of Apple event
Google's cloud chief says antitrust scrutiny won't hamper ability to do big deals
Pres Trump' trade advisor Peter Navarro believes it's certain that Congress passes landmark trade legislation known as the United States-Mexico-Canada Agreement (USMCA) before the end of the year. “I’m going to give it a 100% here because it’s so important for this country and I can’t imagine that Nancy Pelosi would not put this on the floor to at least have a vote,” he said. “I mean, as you know, there’s some progressive politics going on: They want to take our cars and our cheeseburgers, our private health insurance, raise our taxes and then give the money away to illegal immigrants for health care,” he added. “I don’t think that’s who Nancy Pelosi is. I think she is going to do the right thing on this and get the job done.” The legislation, shortened to USMCA & billed as a replacement to the North American Free Trade Agreement, is one of the administration's key economic accomplishments to date. The accord makes changes to 2 the trade relationships between the US & 2 of its largest trading partners, including stricter rules on the country of origin for auto parts & better enforcement of wage rules. But the USMCA could be hamstrung if the Demt-held House refuses to bring it to a vote as signed by the 3 countries last year. House Speaker Nancy Pelosi & top Dem negotiators remain unconvinced it provides enough protection for American workers & the environment. They also worry that a piece of the agreement could hike drug prices for US consumers. Navarro, a known trade hawk, has played a critical role in the negotiations with Canada & Mexico, as well as in the current US-China trade war. He has been a consistent advocate of the administration's use of tariffs as a way to coerce Beijing into making concessions during the bilateral negotiations. Administration's critics have bemoaned the ongoing trade war with China & its potential impact on GDP growth. Farmers & other small business owners in particular have felt the brunt of such trade disputes, & want to see the USMCA approved to end linger uncertainty about access to Canadian & Mexican markets.
Peter Navarro says there’s a 100% chance the House approves Trump’s North America trade deal by..
Job openings in the US fell slightly in Jul to a 5-month low in a sign of slackening demand for labor. But layoffs remained extremely low & the number of people quitting hit an all-time high, typically a mark of a strong jobs market. Job openings fell among wholesalers & gov, offsetting an increase in media & energy-related work such as oil extraction. Lower oil prices have forced drillers to cut back on employment. The share of people who left jobs on their own, known as the quits rate, rose to 2.6% among private-sector employees, matching a postrecession high. The only time the quits rate has been higher was in 2001, shortly after the gov first began tracking how many people left their jobs. The quits rate for all employees also rose a notch to set a postrecession high of 2.4%. Some 3.6M workers quit, a record high. The rate at which people quit tends to rise when the economy is strong & workers are confident they can find another job, often one that pays better. Job openings are still quite high & easily exceed the 6M Americans officially classified as unemployed, but companies aren't filling position as fast as they were at the start of the year. The US had added an average of 150K new jobs a month in the past 6 months, down from 232K in Jan. The trade dispute with China has gotten worse & the global economy has weakened, delivering a blow to farmers, manufacturers & other big exporters. A lack of skilled labor available for hire has also been a chronic problem. The US economy can keep growing even if hiring slows, however, so long as companies shun layoffs. So far there's no hard evidence that layoffs are on the rise.
Sellers are taking command today without significant news to bring out stocks buyers. Investors are waiting to hear from central banks, the ECB & Federal Reserve, before committing money. However, the Dow remains close to its recent record highs shown below.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 58.21 | +0.36 | +0.6% |
| GC=F | Gold | 1,507.70 | -3.40 | -0.2% |
Stocks were modestly lower as investors await Apple's (AAPL), a Dow & NAZ stock, big unveil later today. The tech giant is expected to roll out a new suite of iPhones among other potential product tweaks. The dip in AAPL pressured the NAZ which paced the declines for the broader market. Ford (F) shares tumbled after Moody's downgraded the automaker's debt citing
"considerable operating and market challenges facing Ford," adding that
weak earnings & cash generation are likely while Ford carries out it
restructuring plan. Investors are also taking a wait-&-see approach
to equities ahead of what could be a fresh round of global rate cuts.
The ECB meets Thurs, followed by the Federal Reserve meeting next week. In
overseas trading, China's Shanghai Composite ended slightly lower, following China's producer price index falling 0.8% in
Aug year-on-year. Slowing demand has forced some businesses to cut
prices. Japan's Nikkei ended the day up 0.4% & Hong Kong's Hang Seng closed unchanged. Investors
are taking a shine to smaller company stocks in hopes that they'll be
better shielded from the fallout of the costly trade war between the
US & China than large multinationals. The
broader market has bounced back the past 2 weeks following volatility
brought on by the trade war as the US & Beijing imposed new
tariffs on more of each other's imported goods. Investors worry the
escalation of tariffs may be dampening global economic growth &
threatening to nudge the US into a recession.
Ford falls as stock market waffles ahead of Apple event
Thomas Kurian, who took over Google's (GOOGL) growing cloud business last year, isn't concerned about regulators
hampering his ability to expand, even as the Justice Dept
investigates the parent company for potential anti-competitive behavior. "They're different businesses," Kurian said. "There's a business in the consumer space.
There's business in the enterprise space. The cloud business [is] really
in the enterprise space." The
advertising revenue increased 16% in Q2 to $32.6B, representing about 84% of Alphabet's (GOOG) overall sales. In digital
advertising, GOOGL has a commanding position, with estimates that it controlled more than 38% of the market in 2018, making it by far the largest player. However,
in public cloud, where big tech companies provide infrastructure so
that customers can offload their computing and storage needs, GOOGL is
way behind the competition. The cloud business, which includes cloud hosting & the
Suite portfolio of productivity apps, is generating annualized revenue
of over $8B, up from $4B less than 2 years earlier. Recent data show that GOOGL controls 4% of the public cloud market & 10% of the office suite market. Regulators are clearly moe concerned about its growth in advertising, where the company has the
potential to use its ownership of the Android operating system, Chrome
browser & dominant search engine to collect vast amounts of consumer
data & control what users see. Last week, GOOG confirmed that it's being investigated by the DOJ & yesterday, Texas Attorney General Ken Paxton announced that 50 attorneys general have joined an investigation into GOOGL over possible antitrust violations. GOOG stock (GOOGL) retreated 4 to 1201.
If you would like to learn more about GOOGL, click on this link:
club.ino.com/trend/analysis/stock/GOOGL?a_aid=CD3289&a_bid=6ae5b6f7
If you would like to learn more about GOOGL, click on this link:
club.ino.com/trend/analysis/stock/GOOGL?a_aid=CD3289&a_bid=6ae5b6f7
Google's cloud chief says antitrust scrutiny won't hamper ability to do big deals
Pres Trump' trade advisor Peter Navarro believes it's certain that Congress passes landmark trade legislation known as the United States-Mexico-Canada Agreement (USMCA) before the end of the year. “I’m going to give it a 100% here because it’s so important for this country and I can’t imagine that Nancy Pelosi would not put this on the floor to at least have a vote,” he said. “I mean, as you know, there’s some progressive politics going on: They want to take our cars and our cheeseburgers, our private health insurance, raise our taxes and then give the money away to illegal immigrants for health care,” he added. “I don’t think that’s who Nancy Pelosi is. I think she is going to do the right thing on this and get the job done.” The legislation, shortened to USMCA & billed as a replacement to the North American Free Trade Agreement, is one of the administration's key economic accomplishments to date. The accord makes changes to 2 the trade relationships between the US & 2 of its largest trading partners, including stricter rules on the country of origin for auto parts & better enforcement of wage rules. But the USMCA could be hamstrung if the Demt-held House refuses to bring it to a vote as signed by the 3 countries last year. House Speaker Nancy Pelosi & top Dem negotiators remain unconvinced it provides enough protection for American workers & the environment. They also worry that a piece of the agreement could hike drug prices for US consumers. Navarro, a known trade hawk, has played a critical role in the negotiations with Canada & Mexico, as well as in the current US-China trade war. He has been a consistent advocate of the administration's use of tariffs as a way to coerce Beijing into making concessions during the bilateral negotiations. Administration's critics have bemoaned the ongoing trade war with China & its potential impact on GDP growth. Farmers & other small business owners in particular have felt the brunt of such trade disputes, & want to see the USMCA approved to end linger uncertainty about access to Canadian & Mexican markets.
Peter Navarro says there’s a 100% chance the House approves Trump’s North America trade deal by..
Job openings in the US fell slightly in Jul to a 5-month low in a sign of slackening demand for labor. But layoffs remained extremely low & the number of people quitting hit an all-time high, typically a mark of a strong jobs market. Job openings fell among wholesalers & gov, offsetting an increase in media & energy-related work such as oil extraction. Lower oil prices have forced drillers to cut back on employment. The share of people who left jobs on their own, known as the quits rate, rose to 2.6% among private-sector employees, matching a postrecession high. The only time the quits rate has been higher was in 2001, shortly after the gov first began tracking how many people left their jobs. The quits rate for all employees also rose a notch to set a postrecession high of 2.4%. Some 3.6M workers quit, a record high. The rate at which people quit tends to rise when the economy is strong & workers are confident they can find another job, often one that pays better. Job openings are still quite high & easily exceed the 6M Americans officially classified as unemployed, but companies aren't filling position as fast as they were at the start of the year. The US had added an average of 150K new jobs a month in the past 6 months, down from 232K in Jan. The trade dispute with China has gotten worse & the global economy has weakened, delivering a blow to farmers, manufacturers & other big exporters. A lack of skilled labor available for hire has also been a chronic problem. The US economy can keep growing even if hiring slows, however, so long as companies shun layoffs. So far there's no hard evidence that layoffs are on the rise.
Job openings dip in July as demand for workers slows, but high ‘quit rate’ shows labor market still strong
Sellers are taking command today without significant news to bring out stocks buyers. Investors are waiting to hear from central banks, the ECB & Federal Reserve, before committing money. However, the Dow remains close to its recent record highs shown below.
Dow Jones Industrials
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