20 August 2019

1) Fears of a possible recession were dampened as stocks rose while Treaasury yields rebounded. The U.S. decision to extend a temporary reprieve to the Chinese telecom giant Huawein is credited with the change in markets. The Treasury notes appears to have broken out of the yield-curve inversion , which is a potential signal that a recession may be coming in the near future.

2) Delivery platforms like DoorDash, Uber Eats, Postmates and Grubhub have open new opportunities for America’s fast food industries. Previously, the only fast food delivered was pizza, but these new delivery services allows a wide range of foods to be delivered to customers at home or office. While it does open new opportunities for increased sales, the down side is the service could eat into restaurant’s profits and erode customer loyalty.

3) The retail giant Target, known for being the master of private label brands, is launching it’s own new food brand called ‘Good & Gather’. Due to start on the 15th of September, it will initially have 650 products, but will eventually expand to about 2,000 products, such as coffee, milk and eggs. Target describes their product line to be affordable and will replace present brands such as Simply Balanced and Archer Farms brands, while also reducing its Market Pantry line. For Target, using private label brands have been a way to boost profit margins while maintaining affordable prices. They’re a big asset in driving traffic to their stores.

4) Stock market closings for – 19 AUG 19:

Dow           26,135.79    up    249.78
Nasdaq        8,002.81    up    106.82
S&P 500       2,923.65    up      34.97

10 Year Yield:     up   at    1.60%

Oil:    down   a   t $56.08

Leave a Reply

Your email address will not be published. Required fields are marked *