19 April 19

1) Amazon announced it is shutting down its store in China, and instead will focus on cross boarder global sales to China. Amazon cited the high competition in China from local companies, with 80% coming from Alibaba, the giant Chinese online retailer.

2) The magazine National Enquirer is being sold for $100 million dollars, along with two sister publications to reduce the $355 million dollar debt of the holding company AMI. National Enquirer sales have dropped by half over the last four years.

3) Sprint, the wireless carrier, has revealed they are not as strong a performer as the public had been lead to believe. In a proposed merger with T-Mobile, Sprint had to make full disclosure with regulators, disclosing that many of their added new connections were actually free lines.

4) 18 APR 19 Stock market closings:

Dow              26,559.54   up   110.00
Nasdaq           7,998.06   up       1.98
S&P 500          2,905.03   up       4.58

10 Year Yield:    down   at    2.56%

Oil:    unchanged   at    $64.00

16 April 2019

1) The British business climate is expected to get worst after Brexit. A survey of chief finical officers finds that a full 80% consider Britain’s economy will slump after Brexit, especially if an unplanned exit occurs. The long term outlook for investment is poor, so with little investment, the economy will flatten.

2) Battle lines of banking are being drawn in China between virtual banks and conventional banks. A banking shakeup is in progress between hi-tech companies and traditional banks, who find it hard to quickly react to the challenges of virtual banks, much as with Amazon is to retailing or Urber is to transportation.

3) The auto maker Mercedes-Benz is being investigated for software cheating of emissions test. Germany has ordered recall of 238,000 cars using illegal software to defeat government testing for compliance of emissions standards.

4) 15 APR 19 Stock market closings:

Dow            26,384.77    down    27.53
Nasdaq         7,976.01    down      8.15
S&P 500        2,905.58    down      1.83

10 Year Yield:    down   at    2.55%

 Oil:    up   at    $63.57

15 March 2019

1) GE (General Electric) paid $1.5 billion dollars civil penalty for sub-prime house loans prior to 2007, to resolve claims over residential mortgage loans made by their WMC Mortgage unit, a company purchased by GE during the boom prior to the economic collapse in 2008. Their lending activities concealed the poor quality of the loans being made.

2) The Chevron oil company is buying the Anadarko Petroleum Corporation for $33 billion dollars which will put Chevron Corporation in the top ranks of energy companies. Chevron will be the third largest oil producer behind Exxon and Shell.

3) The GE20 group announced the global economy is slowing down faster than was expected, with an anticipated global growth of 3.3% for this next year. This is the lowest expansion since 2016, which may become worst if US-China trade tensions should increase.

4) 12 APR 19 Stock market closings: JP Morgan-Chase and Disney pushed stocks up.

Dow             26,412.30    up    269.25
Nasdaq          7,984.16    up      36.80
S&P 500         2,907.41    up      19.09

10 Year Yield:    up   at    2.56%

Oil:    down   at    $63.76

2 April 2019

1) Oil hits its highest for 2019 as demand outlook improves, spurred on by positive manufacture PMI numbers for China and US, both the worlds largest economies. This caused US stocks to rally, in addition to China-US trade talks continuing. Additionally, OPEC has cut it’s production while sanctions on Iran and Venezuela add to pushing oil prices up.

2) The breakfast cereal company Kellogg is selling several of its brands for $1.3 billion dollars, divesting itself of its cookies and sweet brands as sugary fast foods seemed to be on the decline. Brands being sold include Keebler cookies as well as Mother’s and Famous Amos cookies. The Italian confectionary company Ferrero will acquire six manufacturing plants in the US from the deal.

3) The low cost Iceland air carrier WOW Airline, which started up in 2012, suddenly collapsed fiscally leaving an estimated 10,000 people stranded. The airline abruptly ceased operations by repeatedly delaying flights for hours on end, until finally announcing that all flights were canceled and customers would have to make other arrangements on their own. There had been rumors for the last several months of a possible sale of WOW Airline.

4) 1 APR 19 Stock market closings:

Dow           26,258.42     up    329.74
Nasdaq        7,828.91     up      99.59
S&P 500       2,867.19     up      32.79

10 Year Yield:    up   at    2.50%

Oil:    up   at    $61.77

27 March 2019

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

10 Year Yield:     down   at    2.41%

Oil:     up   at    $60.04

7 March 2019

1) The economic balance in US trade deficient soared last year to $621 billion dollars, the highest level in ten years. Exports from the US fell 1.9% while imports rose 2.1%. The deficient with China was $419 billion dollars. The strong US economy is considered a factor in the increase of the imbalance.

2) Italy’s experiment with Universal Basic Income is having dismal results, with Italy’s poverty and unemployment rising. The intent of the program was to alleviate poverty and address it’s high unemployment, for Italy has the highest unemployment rate in Europe. Finland tried the same scheme, but scraped it’s program after two years. The European Union is taking exception to Italy’s spending habits.

3) The General Motor’s Lordstown plant is shutting down with the loss of 5,400 jobs. This shows that despite the booming job market in America, the economy is still leaving people behind. Major problem is the workers are older and lack the computer and technical knowledge to retrain for other job fields.

4) 6 MAR 19 Stock market closings:

Dow               25,673.46       down       133.17
Nasdaq            7,505.92       down         70.44
S&P 500           2,771.45       down         18.20

10 Year Yield:     down   at   2.69%

Oil:     down   at    $56.15

5 March 2019

1) Shale oil companies are adding even more new wells, but that is threatening the future of the US oil boom. Their strategy of drilling more wells chose to old wells has backfired because the new wells not only have lower outputs than the old wells, but the production of the old wells also declines.

2) Again, there are reports that the US-China trade talks are still progressing well and soon may end with an agreement to end the trade war tariffs.

3) 4 MAR 19   Stock market closings:

Dow             25,819.65    down    206.67
Nasdaq          7,577.57    down      17.79
S&P 500         2,792.81    down      10.88

10 Year Yield:    down   at    2.72%

Oil:    down   at    $56.45

28 February 2019


1) The takeover of Time Warner by AT&T, an $81 billion dollar acquisition, has been cleared by the US Appeals Court. This acquisition will bring Warner Brothers, HBO and Turner to AT&T’s video, mobile and broadband services.

2) US farm debt soars to levels that haven’t been seen since the 1980’s farm crisis. The debt has risen from $385 billion dollars to $409 billion dollars which indicates a high strain on the US farm belt, a result of commodity prices, storm damage and loss of key exports principally China. The present day situation is similar to 1980’s financial collapse of American farms.

3) China-US are making real progress in trade talks, but the talks are far from being completed. US is taking a tougher stand by insisting on an all or nothing agreement.

4) 27 FEB 19     Stock market closings:

Dow               25,985.16     down    72.82
Nasdaq            7,554.51          up       5.21
S&P 500           2,792.38     down       1.52

10 Year Yield:    up   at    2.69%

Oil:    up   at    $56.96

27 February 2019

1) Venezuela has 1,700,000% inflation rate, its money now so worthless that the people are now using the Columbia Peso to do business such as paying for labor and buying goods. This has come about because so many Venezuelans are buying what supplies they can get from Colombia.

2) Wal-mart announced they will no longer employ store greeters. This was a job that many handicapped people could do, and there are thousands of disabled workers whose jobs will be lost with limited prospects of re-employment. No reason was given, but the slump in big box retailing was most likely a significant factor.

3) The Central Bank Chief warns that dangers are brewing ahead, the bank closely watching the situation. While the current economy is heathy, fears of the impact of China’s and Europe’s economic future are of particular concern from effects of Brexit and trade negotiations. Also considers the Federal debt making an unstable economic environment.

4) 26 FEB 19 Stock market closings:

Dow               26,057.98    down    33.97
Nasdaq            7,549.30    down      5.16
S&P 500           2,793.90    down      2.21

10 Year Yield:    down   at    2.64%

Oil:    up  at   $55.93    up   at    0.43

8 February 2019

1) The EU (European Union) has declared they will not negotiate the Brexit deal with Britain. There are only fifty days remaining before Brexit automatically happens.

2) Optimism fades over China-US trade talks stalling, which caused domestic market to dip down. The administration is considering another tax cut this next year for middle American’s.

3) The growth forecast for the EU is down because of the trade war and global tensions plus the slowdown of China’s economy.

4) 7 FEB 19    Stock market closings:

Dow                  25,169.53    down     220.77
Nasdaq              7,288.35    down       86.93
S&P 500              2,706.05   down       25.56

10 Year Yield:     down   at    2.65%

Oil:    down   at    $52.54