17 May 2019

1) The worst case for China in the trade war is slow growth, rising debt with companies exiting. If China’s growth should tumble, her debt would surge resulting in foreign companies fleeing a worsening business environment. The escalating economic clash with America is exacerbating the existing economic jitters across the world.

2) In the worsening trade war China, the largest owner of US debt, is selling off it’s Treasury holdings at the fastest rate in the last two years. China holds $1.12 trillion dollars, or about 7% of America’s total debt. China has been threatening to either not buy additional Treasury bonds or even selling off its holdings in retaliation for US actions in the trade war.

3) Pinterest Inc. stock has dropped more than 15% after it released its first earnings report. This is just twenty trading days after their IPO (Initial Public Offering). Pinterest explained the earnings drop as a result that the reported period was before the IPO, plus an increase in cost as a result of hiring of new employees.

4) 16 MAY 19 Stock market closings: Third day of across the board of stock rises.

Dow            25,862.68    up    214.66
Nasdaq        7,898.05    up      75.90
S&P 500       2,876.32    up       25.36

10 Year Yield:    up   at    2.41%

Oil:    up   at    $63.18