Dow tumbled 414, decliners over advancers a huge 6-1 & NAZ sank 169. The MLP index lost 3+ to 210 & the REIT index fell 1+ to the 415s. Junk bond funds were sold & Treasuries was in heavy demand, as expected. Oil dropped to the low 53s & gold rose 15 to 1580, a multi year high.
AMJ (Alerian MLP Index tracking fund)
Stocks were under pressure today as the number of people affected by the coronavirus surged over the weekend. All 3 major averages were down at least 1.8% in the opening minutes of trading, continuing the selloff that began on Fri. On Sun there were 2744 confirmed cases of the virus & 80 deaths, according to China's National Health Commission. There have been % confirmed cases in the US, health officials said. Pres Trump tweeted that the US is "in very close communication with China concerning the virus." "Very few cases reported in USA, but strongly on watch," Trump wrote. "We have offered China and President Xi any help that is necessary. Our experts are extraordinary!" Brent crude oil, the intl benchmark, & West Texas Intermediate crude oil, the US benchmark, were both trading lower by 3% near $52.55 & $58.85 a barrel, respectively. Meanwhile, gold climbed 0.8% to $1590 an ounce & was on track to close at its highest level in nearly & years. Treasuries rallied, pushing the yield on the 10-year note down 6.5 basis points to 1.615%. Markets were lower across Europe with Britain's FTSE, Germany's DAX & France's CAC all lower by about 2.2%. In Asia, Japan's Nikkei shed 2%. China's Shanghai Composite & Hong Kong's Hang Seng were closed for the Lunar New Year holiday.
Pres Trump will sign the US-Mexico-Canada-Agreement (USMCA) into law on Wed, sources said. Trump is expected to sign the deal during a ceremony at the White House. Invitations were reportedly sent out to lawmakers across the nation. The ceremony would come during the Senate impeachment trial's 2nd week. The Senate voted 89-10 to pass the landmark trade deal last week sending it to the pres's desk. Trump's signature is the last step before being implemented. The House voted 385-41 to approve it in Dec. The USMCA has been ratified by Mexico, but still needs to be approved by Canada.
A novel coronavirus has now taken the lives of at least 81 people in China & sickened more than 2800 worldwide, including in the US & Europe, as Chinese authorities work to contain the fast-spreading infection. The total number of people sick stands at 2884 with roughly 1900 new cases diagnosed over the weekend, according to data from the World Health Organization & Chinese state media. The majority of the reported cases are in mainland China, where local authorities have quarantined several major cities & canceled Lunar New Year's events in Beijing & elsewhere. Pres Trump addressed the matter in a tweet today, saying the US is “in very close communication with China concerning the virus.” Multiple cases of the virus have been confirmed in Hong Kong, Macau, Taipei, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France & the US. Nepal has confirmed one case. Cambodia confirmed its first case today. Several companies are suspending operations until further notice during the normally festive weeklong Lunar New Year holiday to prevent the outbreak from spreading. Starbucks (SBUX) & McDonald's (MCD), a Dow stock & Dividend Aristocrat, also closed stores in Hubei province. The Centers for Disease Control (CDC) & Prevention confirmed yesterday a fifth US case of the coronavirus, a patient in Maricopa County, Arizona who recently traveled to Wuhan, China, the epicenter of the disease’s outbreak & where the majority of cases have been reported. US health officials warned that the flu or other respiratory illnesses could complicate identifying more cases. They recommend that people call a health-care provider before seeking treatment so the appropriate measures can be put in place. The CDC is trying to speed up testing & to get the tests in the hands of state health officials. It currently takes the CDC 4-6 hours to make a diagnosis once a sample makes it to its lab. Coronaviruses are a large family of viruses that usually infect animals but can sometimes evolve & spread to humans. Symptoms in humans include fever, coughing, & shortness of breath, which can progress to pneumonia. Physicians have compared the outbreak to the 2003 outbreak of SARS, which had a short incubation period of 2-7 days. US officials said Fri that symptoms from the new virus, temporarily named 2019-nCoV, may take up to 14 days to appear.
China coronavirus death toll climbs to 81 with nearly 2,900 cases worldwide
General Motors (GM), is spending $2.2B to refurbish an underused Detroit factory so it can build a series of electric & self-driving vehicles, eventually employing 2K. GM said that the factory will start building the company's first electric pickup late in 2021, followed by a funky-looking self-driving shuttle for GM's Cruise autonomous vehicle unit. The truck will be the first of several electric vehicles to be built at the plant, which straddles the border between Detroit & the enclave of Hamtramck. The company has plans to revive the Hummer nameplate for one of the vehicles. In Nov 2018 GM announced plans to close the factory along with 3 others in the US. But the company promised to reopen Detroit-Hamtramck to build electric vehicles during last fall's contentious contract negotiations with the United Auto Workers union. At that time the plant employed about 1500 hourly and salaried workers. Currently the plant is working on one shift with about 900 workers making the Cadillac CT6 & Chevrolet Impala sedans. GM will also invest $800M in equipment for parts suppliers & other projects related to the new electric trucks. The factory will be GM's first assembly plant to be fully dedicated to building electric vehicles. "Through this investment, GM is taking a big step forward in making our vision of an all-electric future a reality," GM Pres Mark Reuss said. He was to announce the plans today at the plant with Michigan Gov Gretchen Whitmer. GM CEO Mary Barra has promised an "all-electric future," with the company restructuring to raise cash in part to develop 20 electric models that it plans to sell worldwide by 2023. The stock fell 89¢ in a down market.
If you would like to learn more about GM, click on this link;
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
This is a gloomy time for investors. The virus is spreading & worries grow about how much it will impact the global economy. For the time being, safe haven gold & Treasuries are in demand. Risky investments, such as stocks, are not.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 53.28 | -0.91 | -1.7% |
| GC=F | Gold | 1,578.40 | +6.50 | +0.5% |
Stocks were under pressure today as the number of people affected by the coronavirus surged over the weekend. All 3 major averages were down at least 1.8% in the opening minutes of trading, continuing the selloff that began on Fri. On Sun there were 2744 confirmed cases of the virus & 80 deaths, according to China's National Health Commission. There have been % confirmed cases in the US, health officials said. Pres Trump tweeted that the US is "in very close communication with China concerning the virus." "Very few cases reported in USA, but strongly on watch," Trump wrote. "We have offered China and President Xi any help that is necessary. Our experts are extraordinary!" Brent crude oil, the intl benchmark, & West Texas Intermediate crude oil, the US benchmark, were both trading lower by 3% near $52.55 & $58.85 a barrel, respectively. Meanwhile, gold climbed 0.8% to $1590 an ounce & was on track to close at its highest level in nearly & years. Treasuries rallied, pushing the yield on the 10-year note down 6.5 basis points to 1.615%. Markets were lower across Europe with Britain's FTSE, Germany's DAX & France's CAC all lower by about 2.2%. In Asia, Japan's Nikkei shed 2%. China's Shanghai Composite & Hong Kong's Hang Seng were closed for the Lunar New Year holiday.
Stocks slammed as coronavirus spooks markets
Pres Trump will sign the US-Mexico-Canada-Agreement (USMCA) into law on Wed, sources said. Trump is expected to sign the deal during a ceremony at the White House. Invitations were reportedly sent out to lawmakers across the nation. The ceremony would come during the Senate impeachment trial's 2nd week. The Senate voted 89-10 to pass the landmark trade deal last week sending it to the pres's desk. Trump's signature is the last step before being implemented. The House voted 385-41 to approve it in Dec. The USMCA has been ratified by Mexico, but still needs to be approved by Canada.
Trump to sign USMCA trade deal into law Wednesday
A novel coronavirus has now taken the lives of at least 81 people in China & sickened more than 2800 worldwide, including in the US & Europe, as Chinese authorities work to contain the fast-spreading infection. The total number of people sick stands at 2884 with roughly 1900 new cases diagnosed over the weekend, according to data from the World Health Organization & Chinese state media. The majority of the reported cases are in mainland China, where local authorities have quarantined several major cities & canceled Lunar New Year's events in Beijing & elsewhere. Pres Trump addressed the matter in a tweet today, saying the US is “in very close communication with China concerning the virus.” Multiple cases of the virus have been confirmed in Hong Kong, Macau, Taipei, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France & the US. Nepal has confirmed one case. Cambodia confirmed its first case today. Several companies are suspending operations until further notice during the normally festive weeklong Lunar New Year holiday to prevent the outbreak from spreading. Starbucks (SBUX) & McDonald's (MCD), a Dow stock & Dividend Aristocrat, also closed stores in Hubei province. The Centers for Disease Control (CDC) & Prevention confirmed yesterday a fifth US case of the coronavirus, a patient in Maricopa County, Arizona who recently traveled to Wuhan, China, the epicenter of the disease’s outbreak & where the majority of cases have been reported. US health officials warned that the flu or other respiratory illnesses could complicate identifying more cases. They recommend that people call a health-care provider before seeking treatment so the appropriate measures can be put in place. The CDC is trying to speed up testing & to get the tests in the hands of state health officials. It currently takes the CDC 4-6 hours to make a diagnosis once a sample makes it to its lab. Coronaviruses are a large family of viruses that usually infect animals but can sometimes evolve & spread to humans. Symptoms in humans include fever, coughing, & shortness of breath, which can progress to pneumonia. Physicians have compared the outbreak to the 2003 outbreak of SARS, which had a short incubation period of 2-7 days. US officials said Fri that symptoms from the new virus, temporarily named 2019-nCoV, may take up to 14 days to appear.
China coronavirus death toll climbs to 81 with nearly 2,900 cases worldwide
General Motors (GM), is spending $2.2B to refurbish an underused Detroit factory so it can build a series of electric & self-driving vehicles, eventually employing 2K. GM said that the factory will start building the company's first electric pickup late in 2021, followed by a funky-looking self-driving shuttle for GM's Cruise autonomous vehicle unit. The truck will be the first of several electric vehicles to be built at the plant, which straddles the border between Detroit & the enclave of Hamtramck. The company has plans to revive the Hummer nameplate for one of the vehicles. In Nov 2018 GM announced plans to close the factory along with 3 others in the US. But the company promised to reopen Detroit-Hamtramck to build electric vehicles during last fall's contentious contract negotiations with the United Auto Workers union. At that time the plant employed about 1500 hourly and salaried workers. Currently the plant is working on one shift with about 900 workers making the Cadillac CT6 & Chevrolet Impala sedans. GM will also invest $800M in equipment for parts suppliers & other projects related to the new electric trucks. The factory will be GM's first assembly plant to be fully dedicated to building electric vehicles. "Through this investment, GM is taking a big step forward in making our vision of an all-electric future a reality," GM Pres Mark Reuss said. He was to announce the plans today at the plant with Michigan Gov Gretchen Whitmer. GM CEO Mary Barra has promised an "all-electric future," with the company restructuring to raise cash in part to develop 20 electric models that it plans to sell worldwide by 2023. The stock fell 89¢ in a down market.
If you would like to learn more about GM, click on this link;
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM to invest $2.2B in Detroit to build electric vehicles
This is a gloomy time for investors. The virus is spreading & worries grow about how much it will impact the global economy. For the time being, safe haven gold & Treasuries are in demand. Risky investments, such as stocks, are not.
Dow Jones Industrials
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