Dow jumped 376 (session high), advancers over decliners 3-1 & NAZ climbed 173. The MLP index inched up to 231 & the REIT index added 3+ to the 405s. Junk bond funds fluctuated & Treasuries saw a little buying which lowered yields. Oil was fractionally higher to settle over 80 & gold fell 10 to 1862 (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)
Ford (F) will collaborate with a Chinese supplier on a new $3.5B battery plant for electric vehicles in Michigan, despite tensions between the US & China. The
anticipated announcement of the deal between Ford & Contemporary
Amperex Technology (CATL) follows Virginia Gov. Glenn Youngkin
saying he was withdrawing the state from a competitive process to attract the planned Ford plant over its connection to the Chinese company. Lisa
Drake, Ford’s VP of EV industrialization, said the
automaker will own the new facility thru a wholly owned subsidiary
instead of operating it as a joint venture with CATL, which several
automakers, including Ford, have done with non-China partners in the
US. She said the company will license the technology from CATL, which
will be a strategic partner. “The LFP technology is already here
in the U.S. It’s in a lot of consumer electronics devices, it’s actually
in another OEM product, but, unfortunately, it’s always imported,”
Drake added. “This project is aimed at de-risking
that by actually building out the capacity and the capability to scale
this technology in the United States, where Ford has control.” The
plant is expected to open in 2026 & employ about 2500 people. It will produce new lithium iron
phosphate batteries (LFP) as opposed to pricier nickel cobalt
manganese batteries, which the company is currently using. The new
batteries are expected to offer different benefits at a lower cost,
assisting Ford in increasing EV production & profit margins. The stock rose 36¢.
If you would like to learn more about Ford, click on this link:
club.ino.com/trend/analysis/stock/F_aid=CD3289&a_bid=6ae5b6f7
Ford to move forward with $3.5 billion EV battery plant with Chinese partner
The Federal Reserve will likely continue to keep raising interest rates to get a firmer grip on inflation, Federal Reserve Governor Michelle Bowman said. Bowman, addressing an audience at a conference of the American Bankers Association, said that even once rates reach their height, they will have to remain there for "some time," so that prices stabilize. "I expect we'll continue to increase the federal funds rate because we have to bring inflation back down to our 2% goal and in order to do that we need to bring demand and supply into better balance," Bowman added. Rates are already 4.5-4.75%. Bowman did not say how high she expects the rates to eventually get, nor did she specify how long she expects the eventual high point to remain in place. The US still has a ways to go to reach the preferred 2% inflation level, as the current level is about 5%. Bowman did note that the economy could see a "soft landing" due to the combination of more rate increases & a strong labor market.
Interest rates will likely 'continue to increase,' Fed governor says
Ukraine's gov signed an agreement with JPMorgan Chase (JPM), a Dow stock, to help advise the war-afflicted country on its economy & future rebuilding efforts. Ukraine's
Ministry of Economy signed a memorandum of understanding with a group
of execs from the New York-based bank aimed at
rebuilding & developing the country, according to Pres Volodymyr Zelenskyy. One year into its conflict with Russia, Ukraine's gov is laying the
groundwork to help rebuild the country. The invasion has cost thousands
of civilian lives & set off Europe's largest refugee crisis since World War II. It also ignited a corp exodus from Russia & has helped galvanize support for Ukraine. JPM will tap its debt capital markets operations, payments & commercial
banking & infrastructure investing expertise to help the country
stabilize its economy & credit rating, manage its funds & advance
its digital adoption. Of particular importance is advising the nation on
efforts to raise private funds to help rebuild & invest for future
growth in areas including renewable energy, agriculture & technology. “The full resources of JPMorgan Chase are available to Ukraine as it charts its post-conflict path to growth,” CEO Jamie Dimon said. He added JPM was proud of its support for Ukraine & was committed to its people. The bank led a $20B debt restructuring for the country last year & has committed Ms of $s in support for its refugees. The stock went up 1.53
If you would like to learn more about JPM, click on this link:
club.ino.com/trend/analysis/stock/JPM_aid=CD3289&a_bid=6ae5b6f7
Ukraine plots post-war rebuilding effort with JPMorgan Chase as economic advisor
Gold futures posted a 3rd straight decline to settle at their lowest in more than 5 weeks. Gold prices are slipping back towards support at the $1850 area & 50 day short-term moving average as rising short term yields & a stronger $ act as a dead weight on its recent gains. Nervousness ahead of tomorrow's US CPI is exerting upward pressure on yields with the picture set to become clearer once the numbers for Jan inflation drop. Gold for Apr fell $11 (0.6%) to settle at $1863 an ounce. Based on the most-active contract, prices finished the session at their lowest since Jan 5.
Gold Futures Settle at a 5-Week Low
Oil futures climbed, with US prices settling at their highest in more than 2 weeks. Traders weighed Russia's plan to cut its oil output by 500K barrels per day in Mar & awaited tomorrow's consumer-price index data for hints on the Federal Reserve's next move on interest rates & the outlook for the US economy. US benchmark West Texas Intermediate crude for Mar rose 42¢ (0.5%) to settle at $80.12 a barrel. That was the highest finish for a front-month contract since Jan 26
U.S. oil futures end at a more than 2-week high
The stock market traded higher on expectation for better news on consumer price inflation. Even if there is a lower number than in recent times, many consumers continue to struggle with much higher prices. High inflation & high interest rates are tough on the economy.
Dow Jones Industrials
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