Dow went up 146, advancers over decliners 2-1 & NAZ rose 46. The MLP index added 1+ to the 199s & the REIT index gained 2 to the 402s. Junk bond funds fluctuated & Treasuries were sold heavily. Oil surged 2+ to the 58s & gold dropped 3 to 1480 (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)
Oil jumps more than 4% on eve of OPEC meeting after larger-than-expected drop in US inventories
Gold futures finished lower, pulling back from a near one-month settlement high a day earlier, after a report that trade talks between Beijing & DC are progressing dulled some haven demand for the metal. Just a day earlier, Pres Trump suggested that he could delay a partial resolution until after the 2020 presidential elections. A report today said that a Sino-American trade pact was close to coming to fruition & that details on a partial roll back of import duties was being discussed, despite recent rhetoric that suggested that the tensions between the parties was becoming inflamed. Gold for Feb delivery lost $4 (0.3%) to settle at $1480 an ounce, after jumping 1% yesterday to the highest settlement for a most-active contract since Nov 6. The fresh reports come after Trump yesterday said it might be preferable to hold off on completing a long-awaited U.S.-China trade deal until after the Nov 2020 presidential race. Still, the uncertainty surrounding a trade deal, even in the face of today's optimism, has tempered the enthusiasm for gold bears.
Gold settles lower as report indicates progress in U.S.-China talks
Americans consume about 15B quarts annually of popcorn -- widely seen as a healthy snack -- while 1.5B pounds of not-so-healthy potato chips get chomped on every year. So snack giant PepsiCo (PEP), a Dividend Aristocrat, has decided to get healthier with popcorn. The maker of Lays'potato chips & Doritos is buying BFY brands, the company behind PopCorners, which combines chips with popcorn. BFY, which stands for "Better For You", was purchased from the private investment firm Permira Funds. Paul Nardone, the CEO of BFY, said on the deal that "with the fastest growing brand among better-for-you salty snacks, we look forward to leveraging PEP's world-class resources & distribution platform." PopCorners are made using proprietary heat compression technology that cooks the corn while shaping it before it moves to conveyor belts for seasoning for such flavors as "white cheddar" & "kettlecorn." In addition to PopCorners, Pepsi is also acquiring Flourish Veggie Crisps & Flex Protein Crisps. The push toward healthier snacks has been on for more than 2 years at PEP. Last year it acquired Health Warrior, a maker of plant-based protein bars, powders & other snacks. The company also paid $3.2B for carbonated beverage machine maker SodaStream. It fits into the company's Beyond the Bottle initiative, which has a goal to offer "consumers a range of great-tasting beverages while making (Pepsi) packaging more sustainable and fueling our future growth." Plus placing a bet that the demand for unsweetened bubbly water drinks will grow is likely a sound wager. The stock rose 1.84.
If you would like to learn more about PEP, click on this link:
club.ino.com/trend/analysis/stock/PEP?a_aid=CD3289&a_bid=6ae5b6f7
Treasury Secretary Steve Mnuchin warned one of the globe's largest economic organizations of the consequences new intl taxes could have on American business & voiced opposition to the recent introduction of digital services taxes. In a letter to the Organization for Economic Cooperation & Development, Mnuchin said the US objects to digital services taxes because they “have a discriminatory impact on U.S.-based businesses.” “We have serious concerns regarding potential mandatory departures from arm’s-length transfer pricing and taxable nexus standards — longstanding pillars of the international tax system upon which the U.S. taxpayers rely,” Mnuchin continued. “We urge all countries to suspend digital services tax initiatives, in order to allow to OECD to successfully reach a multilateral agreement,” he added in the letter to OECD Secretary-General Jose Angel Gurria. Yesterday, Pres Trump exchanged barbs with French Pres Emmanuel Macron for the country's new digital-services tax, which was signed into law in Jul. The French tax imposes a 3% tax on revenues tech companies generate in France, including targeted advertising & digital marketplaces. In response, the White House said it could impose duties of up to 100% on $2.4B in imports of Champagne, cheese & other French luxury goods. “Look, I’m not in love with those companies — Facebook (FB) and Google (GOOG) and all of them, Twitter (TWTR). Though I guess I do well with Twitter,” Trump said yesterday from NATO. “But they’re our companies, they’re American companies. I want to tax those companies. They’re not going to be taxed by France.” “I’m not going to let people take advantage of American companies. Because if anyone’s going to take advantage of the American companies it’s going to be us,” he added.
Treasury Secretary Mnuchin warns of new global taxes, opposes digital services duty
The status of intl trade negotiations continues to be unclear. Nobody understands where the US-China trade deal stands. The USMCA may have problems after Mexico talked about reservations it has with the deal & EU relations are muddy. But the bulls are keeping values for stock averages essentially at record highs.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Oil gained more than 4%, as a
larger-than-expected drop in US inventories & hopes of deeper
production cuts from OPEC lifted prices. West Texas Intermediate (WTI) crude
futures gained $2.33 (4.2%) settling at $58.43 a barrel. It was
WTI's 3rd straight day of gains & its best day since Sep. Brent crude futures gained $2.31 (3.8%) to reach $63.14. A surprise drop in stockpiles was among the factors pushing oil higher. US
inventories decreased 4.9M barrels last week, the Energy Information Administration said. That
was more than 3 times the 1.4M decrease expected. Data from the American Petroleum
Institute released showed a drop of 3.7M barrels,
compared to estimates of a 1.7M barrel decrease. Oil also got a boost from talk of deeper production cuts. OPEC's
biannual meeting kicks tomorrow in Vienna where the 14-member
group will discuss the next phase of their oil production policy. On
Fri, OPEC & allies, known as OPEC+ which includes Russia,
will meet. OPEC+
has cut output by 1.2M barrels per day since the beginning of
the year. The current deal runs thru Mar 2020.
Oil jumps more than 4% on eve of OPEC meeting after larger-than-expected drop in US inventories
Gold futures finished lower, pulling back from a near one-month settlement high a day earlier, after a report that trade talks between Beijing & DC are progressing dulled some haven demand for the metal. Just a day earlier, Pres Trump suggested that he could delay a partial resolution until after the 2020 presidential elections. A report today said that a Sino-American trade pact was close to coming to fruition & that details on a partial roll back of import duties was being discussed, despite recent rhetoric that suggested that the tensions between the parties was becoming inflamed. Gold for Feb delivery lost $4 (0.3%) to settle at $1480 an ounce, after jumping 1% yesterday to the highest settlement for a most-active contract since Nov 6. The fresh reports come after Trump yesterday said it might be preferable to hold off on completing a long-awaited U.S.-China trade deal until after the Nov 2020 presidential race. Still, the uncertainty surrounding a trade deal, even in the face of today's optimism, has tempered the enthusiasm for gold bears.
Gold settles lower as report indicates progress in U.S.-China talks
Americans consume about 15B quarts annually of popcorn -- widely seen as a healthy snack -- while 1.5B pounds of not-so-healthy potato chips get chomped on every year. So snack giant PepsiCo (PEP), a Dividend Aristocrat, has decided to get healthier with popcorn. The maker of Lays'potato chips & Doritos is buying BFY brands, the company behind PopCorners, which combines chips with popcorn. BFY, which stands for "Better For You", was purchased from the private investment firm Permira Funds. Paul Nardone, the CEO of BFY, said on the deal that "with the fastest growing brand among better-for-you salty snacks, we look forward to leveraging PEP's world-class resources & distribution platform." PopCorners are made using proprietary heat compression technology that cooks the corn while shaping it before it moves to conveyor belts for seasoning for such flavors as "white cheddar" & "kettlecorn." In addition to PopCorners, Pepsi is also acquiring Flourish Veggie Crisps & Flex Protein Crisps. The push toward healthier snacks has been on for more than 2 years at PEP. Last year it acquired Health Warrior, a maker of plant-based protein bars, powders & other snacks. The company also paid $3.2B for carbonated beverage machine maker SodaStream. It fits into the company's Beyond the Bottle initiative, which has a goal to offer "consumers a range of great-tasting beverages while making (Pepsi) packaging more sustainable and fueling our future growth." Plus placing a bet that the demand for unsweetened bubbly water drinks will grow is likely a sound wager. The stock rose 1.84.
If you would like to learn more about PEP, click on this link:
club.ino.com/trend/analysis/stock/PEP?a_aid=CD3289&a_bid=6ae5b6f7
Pepsi buys popular chip snack in push for healthier food
Treasury Secretary Steve Mnuchin warned one of the globe's largest economic organizations of the consequences new intl taxes could have on American business & voiced opposition to the recent introduction of digital services taxes. In a letter to the Organization for Economic Cooperation & Development, Mnuchin said the US objects to digital services taxes because they “have a discriminatory impact on U.S.-based businesses.” “We have serious concerns regarding potential mandatory departures from arm’s-length transfer pricing and taxable nexus standards — longstanding pillars of the international tax system upon which the U.S. taxpayers rely,” Mnuchin continued. “We urge all countries to suspend digital services tax initiatives, in order to allow to OECD to successfully reach a multilateral agreement,” he added in the letter to OECD Secretary-General Jose Angel Gurria. Yesterday, Pres Trump exchanged barbs with French Pres Emmanuel Macron for the country's new digital-services tax, which was signed into law in Jul. The French tax imposes a 3% tax on revenues tech companies generate in France, including targeted advertising & digital marketplaces. In response, the White House said it could impose duties of up to 100% on $2.4B in imports of Champagne, cheese & other French luxury goods. “Look, I’m not in love with those companies — Facebook (FB) and Google (GOOG) and all of them, Twitter (TWTR). Though I guess I do well with Twitter,” Trump said yesterday from NATO. “But they’re our companies, they’re American companies. I want to tax those companies. They’re not going to be taxed by France.” “I’m not going to let people take advantage of American companies. Because if anyone’s going to take advantage of the American companies it’s going to be us,” he added.
Treasury Secretary Mnuchin warns of new global taxes, opposes digital services duty
The status of intl trade negotiations continues to be unclear. Nobody understands where the US-China trade deal stands. The USMCA may have problems after Mexico talked about reservations it has with the deal & EU relations are muddy. But the bulls are keeping values for stock averages essentially at record highs.
Dow Jones Industrials
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