28 June 2019

1) The Ford Motor company will eliminate 20% of its European workforce in a sweeping move to overhaul the manufacture’s falling sales. This will entail reducing its manufacturing facilities from 24 down to 18, with England, Germany and Russia the hardest hit. About 12,000 regular, staff and workers at joint ventures will be effected. Predicted deliveries for automobiles is down, as a result of Britain’s uncertainty from Brexit, with Ford’s European sales dropping 8.3% in May.

2) The crypto-currency Bitcoin having moved up over the last eighteen months to $14,000, suddenly drop 16%, down to $11,000. Bitcoin’s all time high was $20,000 reached in December of 2017, and is noted for it’s wild deviations of price over the last few years. Facebook just announced they are coming out with their own crypto-currency which may be a factor in Bitcoin’s sudden drop.

3) The Federal Aviation Administration has announced more safety concerns with Boeing’s 737 MAX just as the aircraft is being evaluated for software fixes designed to correct computer flight control systems. This system was responsible for two recent crashes with the death of all passengers and crew. Boeing’s stock dropped 3% Thursday as a result of added concerns for its star product, which the FAA is now evaluating software fixes with the expectations of finally getting its airliners airborne again. Boeing is presently parking completed 737 MAX aircraft in its car parking lots waiting for approval so they can make deliveries.

4) Stock market closings for- 27 JUN 19:

Dow           26,526.58    down    10.24
Nasdaq       7,967.76         up     57.79
S&P 500      2,924.92         up      11.14

10 Year Yield:    down   at    2.00%

Oil:     down   at    $59.28

5 June 2019

1) The tech giants Apple, Google, Facebook and Amazon are facing antitrust troubles. The government is stepping up scrutiny of these big four with possible new rules, regulations and law suits. The investigative efforts will be split between the Justice Department and Federal Trade Commission driven by mounting criticism over political bias, disinformation and privacy breaches. This could spell years of troubles and law suits and possible breakup of the companies.

2) The threat of tariffs on Mexican imports has American oil refiners worried, since Mexico is the number two source of foreign oil to the United States. American produced oil is a light oil which is a poor match for Gulf Coast refining facilities, while the Mexican oil is a heavy oil that when blended with the America optimizes the refinery’s output.

3) The Medicaid system is still suffering from the Great recession, so there are fears than another recession could be devastating for the system. This is at a time when state spending on Medicaid is still high with no signs of subsiding. In a recession, payrolls decrease from people unemployed or underemployed, so contributions are down. This means less buildup of reserve funds needed for the future, and a second recession so soon, could seriously deplete those reserves quicker, leaving the future of the system in doubt.

4) Stock market closings for 4 June 2019: Jump in Dow comes from Fed signals flexibility on rates.

Dow               25,332.18    up    512.40
Nasdaq             7,527.12    up    194.10
S&P 500            2,803.27    up      58.82

10 Year Yield:    up   at    2.12%

Oil:    down   at    $52.95

28 May 2019

1) Some young people with outstanding student debts are moving abroad where cost of living is much lower and debt collectors have little to no powers. One former student has moved to a concrete house in India and now lives on $50 a month, while hoping to never again set foot in a Walmart. The strategy of abandoning America to avoid student loans is spreading via social media and the internet.

2) The crypto-currency Bitcoin nears $9,000 dollars as it breaks it highest level this year, but is still a long way from its 2017 high of $19,000 dollars. Other crypto-currencies are also up sharply , and with the renewed interest in the past few weeks, their prices are up over 140% this year. Other companies, including Facebook, are reportedly coming out with new crypto-currencies to offer consumers.

3) Democratic candidate Bernie Sanders, the 2020 party nomination for president, is proposing a plan to raise $2 trillion dollars by taxing Wall Street trading. The senator has introduced a bill that would tax trading of stocks, bonds and derivatives to raise between $776 billion and $2.4 trillion dollars over the next ten years. He would use this money to pay for his Medicare for all and free public college, which is the centerpiece for his presidential bid.

4) 27 MAY 19 Stock market closings:

Dow                25,585.69    up    95.22   
Nasdaq              7,637.01    up      8.73
S&P 500             2,826.06    up      3.82

10 Year Yield:    up   at    2.32%

Oil:    up   at    $59.24

UBER STOCK TANKED, AFTER IT’S IPO HIT THE MARKETS!!!!!!!!!!!!!!!!

By: Economic & Finance Report

Uber the rideshare tech company, its stock tanked on its first official trading day on the NYSE, Friday, May 10, 2019 will be a day of turmoil on the Uber corporate calendar. It was a horrible trading day for the mammoth ride sharing tech company.

Uber declined close to 8% during the stock market trading day. The stock plummeting so much (in which it did), is the first time any stock has come out the gates on Wall St and lost so much market share. The valuation of Uber was at $76 billion dollars, when analysts had predicted that it would be valued around $90-$100 billion dollars, well that didn’t happen. Not only that, Uber has been bleeding money and the perception is that, Uber won’t actually make any real money until the year 2024, hopefully.

Uber being one of the biggest IPO companies probably since Alibaba, Facebook and a few others. So it to falter as it did was a shocker to some and to others, not so much. Technology companies tend not to fare well in the beginning of their IPO presence. Facebook had a rocky start coming out the gates and other big tech companies before it, have gone through similar revelations.

It’s the test of time that will dictate the longevity of Uber’s existence and if they can navigate their ship in theses rough and turbulent stock market waters. -SB

18 March 2019

1) A second crash of a new Boeing 737 MAX 8 airliner, in just months, is raising doubts about its safety. Speaker Pelosi is calling on Boeing to ground all 737 MAX 8 airliners. The airliner was one in Ethiopia’s airline fleet, which like the first one, crashed just after takeoff killing all onboard. Reportedly, one of the Ethiopian pilots had only 200 hours experience, while American pilots typically average about 1,500 hours. In America 200 hours is only enough to qualify for a commercial license, but doesn’t allow a pilot to fly aircraft over 12,500 pounds (airliners). General rule – that at 300 hours a pilot is considered most dangerous and overconfident, and so gets into trouble, but doesn’t have the experience to get out of trouble.

2) The sudden questions of the Boeing’s 737 MAX 8 airlines caused Boeing’s stock to drop 9%. But even with a 9% drop in Boeing stock, the rise in tech stocks pushed the overall stock markets up.

3) Facebook is facing ever increasing series of problems starting with Senator Elizabeth Warren’s proposal to break up the company, then came Facebook’s longest outage of network and services. Followed by news of a criminal investigation into data agreements with other companies, then two of Facebook’s top executives left the company. Finally, the live movies of the New Zealand’s shooting massacre focusing the growing problem of hate on social media.

4) 15 MAR 19 Stock market closings:

Dow           25,848.87    up    138.93
Nasdaq       7,688.53    up      57.62
S&P 500      2,822.48    up      14.00

10 Year Yield:    down   at    2.59%

Oil:    down   at    $58.39

28 January 2019

1) This next week, the markets promises to be positive because the big high-tech companies will be releasing their accounting statements with anticipation of healthy profits.

2) Germany announces it will close down all its coal fired power plants by 2038, which presently generates about 40% of Germany’s electrical power.

3) Facebook announced its plan to integrate it’s Whatsapp, Instagram and Messenger services so they can argue that the three are the same service, thereby avoiding anti-trust allegations and possible actions aimed at breaking up monopolies.

4) 25 JAN 19    Stock market closings:

Dow                    24,737.20    up    183.96
Nasdaq                 7,164.86    up      91.40
S&P 500                2,664.76    up      22.43

10 Year Yield:    up   at 2   .75%

Oil:    down   at    $53.55

18 January 2019

1) The question of ‘monopoly’ for the large tech companies is starting to come to light as a results of congressional questions about the power and influence of such companies as Amazon, Facebook and Google.

2) There are four major retailers on ‘death watch’ for 2019, and they are Barns & Noble, Kmart, JC Penny and Sears. This is particularly important concerning the viability of a consumer based economy.

3) There are talks circulating around Washington of easing the tariffs on China. However, there has been little progress in negotiations, in particular issues of intellectual property.

4) 17 JAN 19    Stock market closings:

Dow               24,370.10    up    162.94
Nasdaq            7,084.46    up      49.77
S&P 500           2,635.96    up      19.86

10 Year Yield:    up   at    2.75%

Oil:    up   at    $52.15