1) Demand for oil is shrinking as the trade war causes the world economies to retract. China’s economy is slowing faster than experts had expected, with the EU and US also not growing in oil demand. Fears that oil prices will drop below $40 a barrel fuel fears of a continual global slowing of economies. The U.S. boom in domestic oil production using fracking is dependent on high oil prices, and with American petroleum stocks at an all time high, it may not be feasible to continue fracking.
2) With mortgage rates dropping to their lowest level in nearly two years, there has been a surge in refinancing applications. In just one week, applications increased 26.8%, which is 41% greater than a year ago. Refinance mortgages are the most rate-sensitive because when low, people rush to refinance while they can get the lower rates.
3) For the second straight month, Boeing aircraft reports no new aircraft sales. The drop isn’t just because of the 737 MAX grounding, but the company already has a massive 5,000 aircraft backorder to fill, so many customers don’t need to place additional orders. With the airline Jet Airways halting operations, their pending sales contracts have been canceled, which totaled 71 aircraft.
4) Stock market closings for- 12 JUN 19:
Dow 26,004.83 down 43.68 Nasdaq 7,792.72 down 29.85 S&P 500 2,879.84 down 5.88
1) Markets continue to rise as President Trump delays the actual implementation of auto tariffs. Reportedly, the tariffs are to be delayed for up to six months. Other news helped push the markets up, such as Boeing expects to have its 737 MAX software fix released soon.
2) Monet’s ‘Meules’ is now the most expensive painting ever sold at auction. The painting sold for $110.7 million dollars after an eight minute bidding war at Sotheby’s in New York. This is a crushing return on investment, which was bought for $2.56 million dollars in 1986, giving a return on investment of 4,300%.
3) Prior to the new tariffs, China’s economy was slowing down, showing the fragility of the world’s second largest economy. China’s industrial output, retail sales and investment have slowed more than economist expected. With the faltering of credit coupled with slowing consumption at home, combining with a weaker global economy translates into China running out of steady growth right when it’s most needed.
4) 15 MAY 19 Stock market closings:
Dow 25,648.02 up 115.97 Nasdaq 7,822.15 up 87.65 S&P 500 2,850.96 up 16.55
1) China has countered U.S. tariffs imposed last Friday with tariffs on $60 billion dollars of U.S. imports to China. About 10 to 15% of America’s import revenues come from China, and while the trade war is high stakes and risky, it’s the only real tool America has to deal with China, because China ignores the world trade organization rulings.
2) Fears are increasing that China may not buy as many U.S. treasury notes as she has in the past, which would force America to increase the prime interest rate. There are even fears that China might not buy any bonds at all, or even start selling off bonds she now holds in retaliation for the tariffs. It’s reported that China is also buying up gold.
3) Boeing aircraft is fearful of being a target for tariff reprisals, who holds substantial orders from China. Apple, who gets 20% of its revenues from China, and Caterpillar are also facing business downturns if China places tariffs on imports of their products.
1) Boeing’s profits have plunged because of their 737 MAX problems, which has cost them one billion dollars so far. The fix for the aircraft is causing uncertainty in their earnings and how long it will take before the aircraft is re-certified for operating. There are further concerns over foreign re-certification taking longer than the FAA. Boeing had 4,600 unfilled orders for the 737 MAX.
2) Almost one half of American parents are cutting back on their retirement savings to help pay their adult children’s bills. Additionally, parents are not setting aside some amount of their earns for retirement savings, instead are helping their children pay bills. The average American needs three-quarters of a million dollars in savings to retire and maintain their standard of living.
3) Many major companies are raising prices, considering that raising prices a little will help increase profits. Some of these companies are the railroads, Kimberly-Clark, Procter and Gamble and Whirlpool. Rising wages and raising productivity will tend to increase inflation.
4) 24 APR 19 Stock market closings: Red across the board with everything down.
Dow 26,597.05 down 59.34 Nasdaq 8,102.02 down 18.81 S&P 500 2,927.25 down 6.43
1) New Jeep Wranglers are being offered for as much as $9,500 dollars off list price. There is an over supply of leftover JL Wranglers, which makes for some really good deals for auto buyers wanting a traditional style SUV.
2) Panama disease is a highly contagious infection which is ravaging banana plantations across the world from Asia to Australia. The Philippines has suffered $400 million dollars in losses, where the world banana cultivation is a $44 billion dollar industry involving the livelihood of 400 million people.
3) Japan’s Mitsubishi Aircraft it about to build Japan’s first airliner in fifty years, to compete with Boeing and Airbus. The small 88 passenger airliner is for the regional air carrier business. Other small aircraft manufactures are also getting into the small carrier airline business betting they can build smaller, simpler and cheaper airliners than Boeing or Airbus.
1) Boeing has not received any new orders for its 737 since its grounding, in addition, Boeing has had 100 cancellations of orders. Its stock is down 19%, but worst its stockholders have filed a law suit against Boeing claiming the company has defrauded its investors because Boeing failed to disclosed safety issues concerning their 737 MAX-8.
2) British Prime Minister May has asked the EU (European Union) for a second extension. Britain will be leaving the EU this Friday if an extension is not granted, so the EU held an emergency summit to consider warnings that a crash-out might cause a recession. Last reports are that the EU will grant an extension to 31 October this year.
3) The ECB (European Central Bank) will leave interest rates steady, forecasting no change for 2019. The ECB is being forced to backtrack on its tightening monetary policy as signs of a world economic slowdown are increasing.
4) 10 APR 19 Stock market closing:
Dow 26,157.16 up 6.58 Nasdaq 7,964.24 up 54.97 S&P 500 2,888.21 up 10.01
1) British parliament voted to take control of Brexit for one day this Wednesday, to try their hand at resolving Britain’s dilemma of departing the European Union. If the division running through the British public is any indicator, then it’s rather unlikely parliament will reach any consensus on a solution.
2) Airbus of France announced a $35 billion dollar sale to China for 290 of their A320 airliners plus another 10 of their A350 wide body airliners. This is another blow to Boeing in addition to the grounding of their best seller, the 737 MAX 8, which is comparable to the A320. The grounding of the 737 MAX 8 coupled with the fallout from the US-China’s trade war is a serious impediment to Boeing. China is the world’s largest aviation market.
3) Apple sales in China has declined due to demand for domestic products. Apple products have become too expensive, so the Chinese people are turning to domestic products which now have most of the same features as Apple for much less.
4) 26 MAR 19 Stock market closings:
Dow 25,657.73 up 140.90 Nasdaq 7,691.52 up 53.98 S&P 500 2,818.46 up 20.10
1) The English pound has had its biggest single day drop because of Brexit. Brexit will be delayed until May the twenty-second if the British Parliament passes the exit deal.
2) Boeing has experience its first cancellation of its 737 MAX with Indonesia canceling a huge order of 49 aircraft. Boeing is rushing to complete its new warning system since the 737 MAX is its biggest seller.
3) Pinterest files for its IPO, releasing its prospectus this last Friday showing a $53 million dollar loss. Presently, the software has about 265 million users. Uber also plans to list its IPO on the New York Stock Exchange, the largest so far this year.
4) 22 MAR 19 Stock market closings: Dow dropped over fears of a global slowdown.
Dow 25,502.32 down 460.19 Nasdaq 7,642.67 down 196.29 S&P 500 2,800.71 down 54.17
1) Boeing is testing a small self flying car, to compete in the budding autonomous air taxi market or electric Vertical Take Off and Landing (eVTOL) vehicles. Airbus and Google, plus several smaller companies are vying to pioneer the untapped market of electric flying machines carrying people.
2) Microsoft is expanding the number of different devices able to use their new software NewsGuard, software which can detect and root out fake news from the internet.
3) China has partially lifted its ban on Microsoft’s search engine Bing, allowing some access by its citizens. The ban is part of a very concerted effort by China to control their citizens criticism of the Chinese regime.
4) 24 JAN 19 Stock market closings:
Dow 24,553.24 down 22.38 Nasdaq 7,073.46 up 47.70 S&P 500 2,642.33 up 3.63
President Elect Trump has indicated that the price tag for the Presidential Air Force One fleet upgrades are a little too expensive to place on the American taxpayer. The President Elect tweeted that the contract Boeing has with the US govt for the upgrades of the Presidential Air Force One Jets, may be too pricey for the American taxpayer.
Mr. Trump tweeted that the contract would cost taxpayers somewhere of around $4 billion dollars, and possibly more. Boeing has indicated that those figures are incorrect, the cost should be around the $2 billion dollar price range and that it could possibly be lower,since they are still in the exploratory stages of the contract, in which they are trying to determine the full cost.
Experts have indicated Boeing has had the Presidential Air Force One air fleet contracts for the past 40 years, starting with President Reagan and that the Air Force One jets are due for upgrades every 30 years, which would mean upgrades are due around this current time going into 2017. -SB