Dow dropped 280 (off earlier lows), decliners over advancers 3-2 & NAZ lost 47. The MLP index fell 1+ to a depressed 197+ & the REIT index added 2+ to 402. Junk bond funds fluctuated & Treasuries were purchased heavily (more below). Oil crawled higher to the 56s & gold remained in demand, advancing 14 to 1483 (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)
VP Mike Pence said Pres Trump uses the strong US economy as leverage in trade talks during an interview. He made the comments as Trump meets with EU world leaders at the 2019 NATO Summit in London. "The president has also been willing to use the power of this economy and access to this economy and tariffs to leverage changes in our trading relationships with nations around the world," Pence said. "I think it's that combination that’s working for American workers, and it's working for the American economy, and as we go forward with negotiations -- whether it be with France, whether it be with Japan, or our ongoing negotiations with China -- the American people can be confident that this president is going to continue to be willing to use access to this economy and use tariffs to put American jobs and American workers first," he continued. The pres touted economic success during talks with world leaders at the NATO summit & took a dig at France's economy while meeting with French Pres Emmanuel Macron, saying the country is "not doing well economically at all." Later, he said during a NATO press conference that Dow's 400 points slide was "peanuts." "If the stock market goes up or down -- I don’t watch the stock market. I watch jobs. Jobs are what I watch," he said, adding that yesterday's market drop was "peanuts" & the US has "picked up record numbers, so that’s OK." The Dow's slide came after the pres said a trade deal with China might have to wait until after the 2020 election.
The US has a "very unfair" trade relationship with the EU, Pres Trump said during a NATO summit in London. The US's trade deficit with the EU reached nearly $169B in 2018 & has reached more than $133B so far in 2019, according to data from the US Census Bureau. "I came into a position where the European Union was making anywhere from $100-$150 billion a year in deficits to the United States. They were making it and we were losing it, and so we had to do something that is fair," Trump said during a meeting with French Pres Emmanuel Macron at the summit. "We're losing tremendous amounts of money. As you know, the EU is very strong on barriers. ... Some of our products can't come in, including agricultural products. ... And yet, the EU sells openly to the U.S. and generally untaxed or taxed at a low level. So, these are problems that we're talking about. These are problems we're working out." The pres added that France's digital tax -- which would place a 3% tax on American tech companies like Apple (AAPL), Google (GOOG), Facebook (FB) & Amazon (AMZN) in France -- is the "least" of the 2 countries' problems. Trump said EU countries are taking advantage of the US "very brilliantly," adding, "It's not right. I've exposed it. A lot of people didn't know it. We're doing this about it ... because the U.S. can't continue to lose the kind of money that they've lost over the last -- literally since the formation of the EU." "We have a very unfair trade situation where the U.S. loses a lot of money for many years with the EU. Billions and billions of dollars. To be specific, over $150 billion a year," he concluded. The US contributes nearly 22% of NATO's annual $2.5B budget split between 28 partner countries, which Trump plans to cut to 16%. His comments came after he reacted to Macron's an interview in Nov which in he said the US's actions in Syria are contributing to the "brain death" of NATO. Trump called these comments "very, very nasty."
The yield on benchmark Treasury note jumped the most since Aug after Pres Trump said he might wait till next year to complete a trade deal with China. The rate on the 10-year Treasury note, which moves inversely to price, dropped 14 basis points to around 1.70%, its biggest decline in 4 months. The yield on the 30-year Treasury bond fell about 12 basis points to 2.16%. Trump today indicated he might delay a trade agreement between the world's biggest economies until after the 2020 elections. “In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right,” Trump said. When asked if he had a deal deadline, he added: “I have no deadline, no ... In some ways, I think it is better to wait until after the election if you want to know the truth.” The US & China agreed to work up a phase 1 trade deal in early Oct after both sides slapped tariffs on Bs of $s' worth of each other's goods. Market participants had hoped they would reach a limited agreement before the new tariffs on Chinese goods kick in on Dec 15. The pres also threatened to impose steel &d aluminum tariffs on imports from Brazil & Argentina, saying it was necessary because the 2 countries had been “presiding over a massive devaluation of their currencies.” However, in recent months, both countries have been seeking to strengthen their respective currencies against the $.
10-year Treasury yield drops the most in 4 months as Trump’s cautious trade talk boosts safety trade
Holiday season off to a solid start as 190 million people shop Thanksgiving weekend
Black Friday brick-&-mortar retail sales fell by 6.2% compared to last year as consumers eschewed in-person shopping for online purchasing, according to preliminary data from ShopperTrak. The pullback corresponds with a jump in Black Friday spending online, which hit $7,4B, the largest online Black Friday total ever, according to Adobe Analytics. “There is no longer one way to shop on Thanksgiving Day and Black Friday,” said Brian Field, senior director of global retail consulting for ShopperTrak. “Black Friday continues to remain the busiest shopping day of the year by a long shot.” The drop in Black Friday physical shopping mirrors a year-long share pullback in departments stores which are down more than 25% this year. Meanwhile, Amazon, (AMZN) has gained about 20% this year. Brick-&-mortar sales on Thanksgiving Day rose 2.3% from a year ago, resulting in a combined 3% decline for the 2-day period, according to the ShopperTrak data. 8 of the 10 predicted busiest shopping days of the year are still to come as the Dec holidays arrive, according to ShopperTrak. Dec 2, also known as Cyber Monday, is on track to break records as the biggest online sales day ever, at $9.4B, based on Adobe estimates.
Black Friday shopping at brick-and-mortar stores dropped by 6% as consumers spent record
Gold futures marked their highest finish in nearly a month, finding haven-related buying interest after Pres Trump said it might be preferable to hold off on completing a long-awaited US-China trade deal until after the 2020 presidential election. Trump's comments come ahead of a Dec 15 deadline for the imposition of fresh import tariffs on China. Gold for Feb delivery rose $15.20 (1%) to settle at $1484. an ounce. That was the highest settlement for a most-active contract since Nov 6. The yellow metal & other traditional havens, including Treasuries, saw a surge in buying interest as global equities & the US stock market turned south in the wake of Trump's remarks. Trump, speaking at a London news conference where he is attending a NATO meeting, said he had “no deadline” when it comes to concluding the long-running US-China trade talks. “In some ways, I think it’s better to wait until after the election if you want to know the truth. But I’m not going to say that, I just think that,” Trump said.
This was another wild day for investors, bringing back memories of last Dec. Late day buying trimmed losses, but this was not a pretty day in the stock market. Worries have increased about the future for a trade deal with China. Holiday retail sales look like they will be good, but short of great. However, the yearly chart below shows the Dow remains close to its record highs reached last month.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
VP Mike Pence said Pres Trump uses the strong US economy as leverage in trade talks during an interview. He made the comments as Trump meets with EU world leaders at the 2019 NATO Summit in London. "The president has also been willing to use the power of this economy and access to this economy and tariffs to leverage changes in our trading relationships with nations around the world," Pence said. "I think it's that combination that’s working for American workers, and it's working for the American economy, and as we go forward with negotiations -- whether it be with France, whether it be with Japan, or our ongoing negotiations with China -- the American people can be confident that this president is going to continue to be willing to use access to this economy and use tariffs to put American jobs and American workers first," he continued. The pres touted economic success during talks with world leaders at the NATO summit & took a dig at France's economy while meeting with French Pres Emmanuel Macron, saying the country is "not doing well economically at all." Later, he said during a NATO press conference that Dow's 400 points slide was "peanuts." "If the stock market goes up or down -- I don’t watch the stock market. I watch jobs. Jobs are what I watch," he said, adding that yesterday's market drop was "peanuts" & the US has "picked up record numbers, so that’s OK." The Dow's slide came after the pres said a trade deal with China might have to wait until after the 2020 election.
Pence reveals Trump uses 'power' of economy as trade leverage
The US has a "very unfair" trade relationship with the EU, Pres Trump said during a NATO summit in London. The US's trade deficit with the EU reached nearly $169B in 2018 & has reached more than $133B so far in 2019, according to data from the US Census Bureau. "I came into a position where the European Union was making anywhere from $100-$150 billion a year in deficits to the United States. They were making it and we were losing it, and so we had to do something that is fair," Trump said during a meeting with French Pres Emmanuel Macron at the summit. "We're losing tremendous amounts of money. As you know, the EU is very strong on barriers. ... Some of our products can't come in, including agricultural products. ... And yet, the EU sells openly to the U.S. and generally untaxed or taxed at a low level. So, these are problems that we're talking about. These are problems we're working out." The pres added that France's digital tax -- which would place a 3% tax on American tech companies like Apple (AAPL), Google (GOOG), Facebook (FB) & Amazon (AMZN) in France -- is the "least" of the 2 countries' problems. Trump said EU countries are taking advantage of the US "very brilliantly," adding, "It's not right. I've exposed it. A lot of people didn't know it. We're doing this about it ... because the U.S. can't continue to lose the kind of money that they've lost over the last -- literally since the formation of the EU." "We have a very unfair trade situation where the U.S. loses a lot of money for many years with the EU. Billions and billions of dollars. To be specific, over $150 billion a year," he concluded. The US contributes nearly 22% of NATO's annual $2.5B budget split between 28 partner countries, which Trump plans to cut to 16%. His comments came after he reacted to Macron's an interview in Nov which in he said the US's actions in Syria are contributing to the "brain death" of NATO. Trump called these comments "very, very nasty."
US has 'very unfair' trade relationship with EU: Trump
The yield on benchmark Treasury note jumped the most since Aug after Pres Trump said he might wait till next year to complete a trade deal with China. The rate on the 10-year Treasury note, which moves inversely to price, dropped 14 basis points to around 1.70%, its biggest decline in 4 months. The yield on the 30-year Treasury bond fell about 12 basis points to 2.16%. Trump today indicated he might delay a trade agreement between the world's biggest economies until after the 2020 elections. “In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right,” Trump said. When asked if he had a deal deadline, he added: “I have no deadline, no ... In some ways, I think it is better to wait until after the election if you want to know the truth.” The US & China agreed to work up a phase 1 trade deal in early Oct after both sides slapped tariffs on Bs of $s' worth of each other's goods. Market participants had hoped they would reach a limited agreement before the new tariffs on Chinese goods kick in on Dec 15. The pres also threatened to impose steel &d aluminum tariffs on imports from Brazil & Argentina, saying it was necessary because the 2 countries had been “presiding over a massive devaluation of their currencies.” However, in recent months, both countries have been seeking to strengthen their respective currencies against the $.
10-year Treasury yield drops the most in 4 months as Trump’s cautious trade talk boosts safety trade
The holiday shopping season has begun in earnest,
with nearly 190M consumers shopping between Thanksgiving &
Cyber Monday, the National Retail Federation (NRF) said. The
retail trade group said that’s up 14% from the same period a year ago.
On average, those shoppers spent $361, up 16% from last year. In
Oct, the NRF released its initial forecast, predicting that holiday
retail sales in Nov-Dec would grow 3.8-4.2%
from a year ago. The retail group did not revise its forecast today. Last year, holiday sales, excluding automobile dealers,
gasoline stations & restaurants, totaled $701B after tariffs,
market volatility & other factors took a toll on sales. The
NRF, which has lobbied against tariffs, said the trade war did not hurt
spending over the holiday weekend, but it estimates consumers have paid
$40B due to increased prices stemming from tariffs already in
place. Pres Trump has threatened to impose tariffs on more Chinese goods Dec 15 if a deal is not reached. Half
of consumers shopped at department stores 49% bought goods online,
the NRF said. Clothing, toys & electronics were among the most
popular products. On Cyber Monday alone shoppers spent a record $9.4B online, according to data released by Adobe Analytics. But
as consumers shop more online, brick-&-mortar retailers may be having
a more difficult holiday season. Shoppertrak data found that sales for brick-&-mortar stores dropped 6.2% on Black Friday. Still, the NRF found that more than 124M consumers shopped in stores during the holiday weekend. Consumers
are also starting their shopping earlier than the typical holiday
season. More than ½ had already started buying gifts by the beginning
of Nov, according to the NRF. By the end of the holiday
weekend, 86% of consumers had begun their holiday shopping, up from 77% a
year ago. Thanksgiving fell on Nov 28 this year, the latest since
2013.
Holiday season off to a solid start as 190 million people shop Thanksgiving weekend
Black Friday brick-&-mortar retail sales fell by 6.2% compared to last year as consumers eschewed in-person shopping for online purchasing, according to preliminary data from ShopperTrak. The pullback corresponds with a jump in Black Friday spending online, which hit $7,4B, the largest online Black Friday total ever, according to Adobe Analytics. “There is no longer one way to shop on Thanksgiving Day and Black Friday,” said Brian Field, senior director of global retail consulting for ShopperTrak. “Black Friday continues to remain the busiest shopping day of the year by a long shot.” The drop in Black Friday physical shopping mirrors a year-long share pullback in departments stores which are down more than 25% this year. Meanwhile, Amazon, (AMZN) has gained about 20% this year. Brick-&-mortar sales on Thanksgiving Day rose 2.3% from a year ago, resulting in a combined 3% decline for the 2-day period, according to the ShopperTrak data. 8 of the 10 predicted busiest shopping days of the year are still to come as the Dec holidays arrive, according to ShopperTrak. Dec 2, also known as Cyber Monday, is on track to break records as the biggest online sales day ever, at $9.4B, based on Adobe estimates.
Black Friday shopping at brick-and-mortar stores dropped by 6% as consumers spent record
Gold futures marked their highest finish in nearly a month, finding haven-related buying interest after Pres Trump said it might be preferable to hold off on completing a long-awaited US-China trade deal until after the 2020 presidential election. Trump's comments come ahead of a Dec 15 deadline for the imposition of fresh import tariffs on China. Gold for Feb delivery rose $15.20 (1%) to settle at $1484. an ounce. That was the highest settlement for a most-active contract since Nov 6. The yellow metal & other traditional havens, including Treasuries, saw a surge in buying interest as global equities & the US stock market turned south in the wake of Trump's remarks. Trump, speaking at a London news conference where he is attending a NATO meeting, said he had “no deadline” when it comes to concluding the long-running US-China trade talks. “In some ways, I think it’s better to wait until after the election if you want to know the truth. But I’m not going to say that, I just think that,” Trump said.
Gold ends at a nearly 1-month high as Trump suggests China trade deal could wait till after 2020 election
This was another wild day for investors, bringing back memories of last Dec. Late day buying trimmed losses, but this was not a pretty day in the stock market. Worries have increased about the future for a trade deal with China. Holiday retail sales look like they will be good, but short of great. However, the yearly chart below shows the Dow remains close to its record highs reached last month.
Dow Jones Industrials
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