Dow rose 15, advancers over decliners 4-3 & NAZ was off 5. The MLP index slid lower to the 239s & the REIT index added 1+ to the 408s (close to recent record highs). Junk bond funds hardly budged in price & Treasuries were purchased. Oil was fractionally higher in the 58s & gold shot up 15 to 1530 (more below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
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An increasing number of Americans are growing downbeat on the US economy, according to a Gallup poll. Gallup's Economic Confidence Index fell from +24 in Aug to +17 in Sep, the lowest since the gov shutdown ended in Jan. “As the poll was being conducted, the stock market was less tumultuous than earlier in the summer, but the August unemployment numbers showed that fewer new jobs were created than expected, concerns about the trade war with China continued and the global economy showed signs of slowing,” wrote Gallup research consultant Megan Brenan. 50% of survey respondents said the US economy is fair or poor & 48% believe it is getting worse. Americans are divided on the prospects of a recession, with 50% saying a recession is “not too” (32%) or “not at all” likely (18%). While Americans are growing more downbeat on the economy, its underlying fundamentals are still relatively strong. The strength of the US economy in the 2 years leading up to the election is critical for a sitting Trump's reelection chances.
Americans growing more worried about the economy
Pres Trump said that India has never invested in the US like it is doing today & added he wants to strengthen the 2 nation's "cherished bonds" during a rally with Indian Prime Minister Narendra Modi yesterday. Organizers expected roughly 50K to attend the "Howdy Modi" rally at Houston's NRG Stadium. "We welcome India's growing investments right here in the Lone Star state. Nations around the world are investing in the United States because they know we have the best economy and best workers in world.We want to thank everybody and India has never invested in the US like it is doing today, and I want to say it’s reciprocal because we’re doing the same thing in India," Trump said. He focused on the countries' investments in each other & highlighted the first-ever NBA games to be played in India in Oct. The Indiana Pacers & Sacramento Kings will face off in 2 preseason games in Mumbai. "We are committed to ensuring Indian people have access to greatest products in the world. ... Very soon, India will have access to another world-class American product, NBA basketball. ... Am I invited, Mr. PM? I may come, be careful I may," Trump said.
Federal Reserve Bank of St Louis Pres James Bullard said it is unclear right now whether or not his colleagues will support more rate cuts, but he said the ones made so far have added quite a bit of stimulus to the outlook. “U.S. monetary policy is considerably more accommodative today than it was as of late last year,” based on how markets have reacted to the Fed’s 2 qtr-percentage-point rate cuts, he said in Effingham, Ill.
Germany's economy is on the brink of recession, reflecting the deepening hit to its factories from the US-China trade war, uncertainty around the UK's departure from the EU & problems in its key automobile sector. A survey of purchasing managers today showed signs that weakness is spreading to Germany's services sector, which has seen robust growth over recent qtrs even as manufacturing output has declined. That could turn a mild downturn into a deeper & more prolonged contraction.
Gold prices rose to settle at their highest in more than 2 weeks, getting a boost from a round of downbeat data out of the eurozone that underlined worries about global growth prospects, as traders continued to keep an eye on US-China trade talks & tensions surrounding Iran. Gold for Dec rose $16.40 (1.1%) to settle at $1531 an ounce. Prices for both gold & silver marked the highest most-active contract settlements in more than 2 weeks. Gold had gained ground after data today indicated manufacturing activity in the eurozone contracted more sharply in Sep, posting its worst reading in nearly 7 years. The flash eurozone manufacturing purchasing managers index fell to an 83-month low of 45.6 in Sep, down from 47 in Aug. The forecast was for a 47.3 reading — a figure of less than 50 indicates activity declined. Trade concerns also remain a factor. The cancellation of visits to farms in Montana & Nebraska by Chinese officials rattled stocks & stirred support for haven assets on Fri, as did remarks by Trump, who said he wanted a fully fledged deal with China rather than a limited agreement that addresses particular grievances. But officials said talks would continue in Oct, as planned, helping to soothe worries.
Gold ends at highest in over 2 weeks as eurozone data feed global growth fears
Buying throughout the day gave market averages modest gains. The soybean purchase news by China was welcome, but is just a small step compared comparee to the macro picture of a US-China trade deal. The news about AAPL & India's investments in the US were also encouraging. Dow is a little under 27K & the bulls still will have to work to push it up to a new record (about 400 away).
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Apple (AAPL), a Dow & NAZ stock), is boosting its commitment to the American workforce, part of a push to invest hundreds of Bs into the US economy. In a major announcement, the company said it will build its redesigned Mac Pro in Austin, Texas. The
move comes 3 days after US trade officials approved exemptions
that allow Apple to import key Mac Pro parts from China without them
being subject to tasriff. “The Mac Pro is Apple’s most powerful computer ever and we’re proud to be building it in Austin,” CEO Tim Cook said. “We thank the administration for their support enabling this opportunity.” AAPL is moving Mac Pro production to China, but the tech giant said that the high-powered computer would continue to be made in the
Austin facility that has produced Mac Pros since 2013. “We believe deeply in the power of American innovation,” Cook continued.
“That’s why every Apple product is designed and engineered in the US,
and made up of parts from 36 states, supporting 450,000 jobs with US
suppliers, and we’re going to continue growing here.” The announcement is more good news for Austin, which has the most AAPL
employees of any US location outside its headquarters in Cupertino,
California – 6200. The company said in Dec it
is spending $1B on a new North Austin campus for 5K more
employees, with the capacity to expand to 15K workers. “More than a dozen” US companies in 8 states will supply Mac Pro components &
the value of US-made parts is jumping 2.5 times compared to previous
models. At a recent dinner, Cook made a “very compelling argument”
that US tariffs on Chinese imports are hurting American companies
like AAPL, but not its South Korean competitor Samsung. AAPL stock gained 99¢.
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FIRST ON FOX BUSINESS: APPLE INVESTS IN AMERICA
An increasing number of Americans are growing downbeat on the US economy, according to a Gallup poll. Gallup's Economic Confidence Index fell from +24 in Aug to +17 in Sep, the lowest since the gov shutdown ended in Jan. “As the poll was being conducted, the stock market was less tumultuous than earlier in the summer, but the August unemployment numbers showed that fewer new jobs were created than expected, concerns about the trade war with China continued and the global economy showed signs of slowing,” wrote Gallup research consultant Megan Brenan. 50% of survey respondents said the US economy is fair or poor & 48% believe it is getting worse. Americans are divided on the prospects of a recession, with 50% saying a recession is “not too” (32%) or “not at all” likely (18%). While Americans are growing more downbeat on the economy, its underlying fundamentals are still relatively strong. The strength of the US economy in the 2 years leading up to the election is critical for a sitting Trump's reelection chances.
Americans growing more worried about the economy
Chinese importers purchased roughly 600K tons of US soybeans after deputy-level trade discussions between the US & China last week. Benchmark US soybean futures on the Chicago Board of Trade jumped more than 1% because of the news. The soybeans will not be shipped out all at once. The roughly 10 boatloads of soybeans will make their way to China in Oct-Dec. News of the purchase came after Chinese trade officials on Fri canceled their scheduled visit to US farm states, putting a damper on an otherwise seemingly positive few weeks on the trade front. As the trade war between the US & China continues, delegations from both countries are scheduled to meet for negotiations in Oct. A Chinese state news agency reported earlier in Sep that US soybeans & pork, in addition to some other farm products, will be exempt from additional tariff hikes, easing tensions between the 2 sides ahead of trade negotiations.
China buys 600,000 tons of US soybeans after trade talks
Pres Trump said that India has never invested in the US like it is doing today & added he wants to strengthen the 2 nation's "cherished bonds" during a rally with Indian Prime Minister Narendra Modi yesterday. Organizers expected roughly 50K to attend the "Howdy Modi" rally at Houston's NRG Stadium. "We welcome India's growing investments right here in the Lone Star state. Nations around the world are investing in the United States because they know we have the best economy and best workers in world.We want to thank everybody and India has never invested in the US like it is doing today, and I want to say it’s reciprocal because we’re doing the same thing in India," Trump said. He focused on the countries' investments in each other & highlighted the first-ever NBA games to be played in India in Oct. The Indiana Pacers & Sacramento Kings will face off in 2 preseason games in Mumbai. "We are committed to ensuring Indian people have access to greatest products in the world. ... Very soon, India will have access to another world-class American product, NBA basketball. ... Am I invited, Mr. PM? I may come, be careful I may," Trump said.
Federal Reserve Bank of St Louis Pres James Bullard said it is unclear right now whether or not his colleagues will support more rate cuts, but he said the ones made so far have added quite a bit of stimulus to the outlook. “U.S. monetary policy is considerably more accommodative today than it was as of late last year,” based on how markets have reacted to the Fed’s 2 qtr-percentage-point rate cuts, he said in Effingham, Ill.
Bullard: Fed Will Take Further Rate Changes Meeting by Meeting
Germany's economy is on the brink of recession, reflecting the deepening hit to its factories from the US-China trade war, uncertainty around the UK's departure from the EU & problems in its key automobile sector. A survey of purchasing managers today showed signs that weakness is spreading to Germany's services sector, which has seen robust growth over recent qtrs even as manufacturing output has declined. That could turn a mild downturn into a deeper & more prolonged contraction.
Germany on Brink of Recession as Factories Slump
Gold prices rose to settle at their highest in more than 2 weeks, getting a boost from a round of downbeat data out of the eurozone that underlined worries about global growth prospects, as traders continued to keep an eye on US-China trade talks & tensions surrounding Iran. Gold for Dec rose $16.40 (1.1%) to settle at $1531 an ounce. Prices for both gold & silver marked the highest most-active contract settlements in more than 2 weeks. Gold had gained ground after data today indicated manufacturing activity in the eurozone contracted more sharply in Sep, posting its worst reading in nearly 7 years. The flash eurozone manufacturing purchasing managers index fell to an 83-month low of 45.6 in Sep, down from 47 in Aug. The forecast was for a 47.3 reading — a figure of less than 50 indicates activity declined. Trade concerns also remain a factor. The cancellation of visits to farms in Montana & Nebraska by Chinese officials rattled stocks & stirred support for haven assets on Fri, as did remarks by Trump, who said he wanted a fully fledged deal with China rather than a limited agreement that addresses particular grievances. But officials said talks would continue in Oct, as planned, helping to soothe worries.
Gold ends at highest in over 2 weeks as eurozone data feed global growth fears
Buying throughout the day gave market averages modest gains. The soybean purchase news by China was welcome, but is just a small step compared comparee to the macro picture of a US-China trade deal. The news about AAPL & India's investments in the US were also encouraging. Dow is a little under 27K & the bulls still will have to work to push it up to a new record (about 400 away).
Dow Jones Industrials
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