16 March 2021

1) The technology known as carbon capture and storage, a concept that has been around for at least a quarter century to reduce the climate damaging emissions from factories, is being pursued by major international oil companies. The idea sounds deceptively simple, just divert pollutants before they can escape into the air, and bury them deep in the ground where they are harmless. But the technology has proved to be hugely expensive, and so has not caught on as quickly as advocates hoped. Exxon Mobil, BP and Royal Dutch Shell plus lesser known Norway’s Equinor, France’s Total, and Italy’s Eni are investors in capture and storage projects.

2) Reports are, that amid all the trillion dollar spending, the White House is now starting to consider how to pay for the programs meant to bolster long term economic growth with investments in infrastructure, clean energy and education. The challenges are twofold: 1) how much of the bill is paid for with tax increases and 2) which policies to finance with more borrowing. The administration hasn’t decided whether to pursue a wealth tax. With interest rates so low, U.S. borrowing costs are manageable right now. The federal government currently collects the biggest chunk of its revenue, about half in 2019, from individual income taxes, which now tops out at 37% of income above $518,000 per year. For now, there are few signs of inflationary spiral or fiscal crisis that policy makers thought would accompany debt levels like today’s. The Congressional Budget Office this month projected that the national debt would double as a proportion of gross domestic product over the next 30 years. But the cost of borrowing is rising for the government and across the economy so the large debt could mean trouble in the future.

3) India’s foreign-exchange reserves has surpassed Russia’s to become the world’s fourth largest, as India central bank continues to hoard dollars to cushion the economy against any sudden outflows. Reserves for both countries have mostly flattened this year after months of rapid increase. India’s reserves, enough to cover roughly 18 months of imports, have been bolstered by a rare current-account surplus, raising inflows into the local stock market and foreign direct investment. India’s foreign currency holdings fell by $4.3 billion to $580.3 billion as of March 5, edging out Russia’s $580.1 billion pile. China has the largest reserves, followed by Japan and Switzerland on the International Monetary Fund table.

4) Stock market closings for – 15 MAR 21:

Dow 32,953.46 up by 174.82
Nasdaq 3,459.71 up by 139.84
S&P 500 3,968.94 up by 25.60

10 Year Yield: down at 1.61%

Oil: down at $65.29

11 August 2020

1) Online retailer giant Amazon is considering taking over closed department stores in some malls to use as warehouses in their distribution system. Amazon is in talks with Simon Property Group, America’s largest mall owner, to convert J.C. Penny and Sears stores into distribution hubs for package delivery. Simon malls have 63 J.C. Penny and 11 Sears stores available. With many traditional brick-and-mortar stores in collapse, such a deal would make sense for both Amazon and Simon. Amazon is looking for more space closer to where customers live to help with its one day delivery strategy, while Simon needs cash rich tenants to bolster their business.

2) A report that outlines the three potential future movies in the Star Trek franchise has been released. The movies for Star Trek follow-on’s have been in limbo since the 2016’s Star Trek Beyond. There are three potential projects being considered for possible production, including a Tarantino’s Star Trek movie. The first movie by Noah Hawley (Fargo and Legion creator) is centered on a pandemic story line using a brand new cast, but is now on pause. The second is a movie by Tarantino, of Pulp Fiction fame, as writer, but not necessary directing it. Something of a take on of a prior Star Trek episode, it would be largely an earthbound 1930’s gangster setting. The third is a far more traditional Star Trek with the recent stars Chris Pine and Zachary Quinto. The next few weeks is expected to yield the fate of the Star Trek franchise.

3) Latest job numbers show 1.8 million new jobs created last month to give a 10.2% unemployment rate. This is another coming down of the rate, a good sign for the economy. This leaves 43% unemployed of the 22 million people who lost their jobs from the pandemic, so the economy is still a long way from a full recovery. Fears are that it will be a long time before full recovery, what with the large number of small businesses that have succumb to the Covid-19 crisis with subsequent loss of jobs. The continual struggling price of oil indicates a still weak international economy.

4) Stock market closings for – 10 AUG 20:

Dow 27,791.44 up 357.96
Nasdaq 10,968.36 down 42.63
S&P 500 3,360.47 up 9.19

10 Year Yield: up at 0.57%

Oil: up at $41.99

28 May 2020

1) The aircraft manufacture Boeing is laying off almost 12,000 workers this week, a result of the coronavirus crisis impact on the aircraft company. Boeing, which is the largest exporter in the U.S., is trimming its workforce by about 10% which include international locations. It is anticipated the airline industry will take some years to recover with air travel dropping a whopping 95% because of the virus, and major airlines canceling the majority of their domestic flights while suspending nearly all international flights. The company suffered a major set back with its 737 MAX grounding that resulted in near record number of order cancellations for passenger jets with zero new orders in April. This has been Boeing’s worst year in decades.

2) The discount home goods retailer Tuesday Morning has filed for bankruptcy, a result of the prolong store closings from Covid-19. The lost revenues created an insurmountable financial hurdle in a company that was thriving before the pandemic. The chain is closing 230 of its nearly 700 US stores across America. The first phase of closures of 130 stores will begin this summer. This is in line with another home goods retailer, Pier 1, which filed for bankruptcy in February, another casualty of the virus.

3) More than one in every six young workers have stopped working because of the coronavirus pandemic world wide. There are fears that young workers (15 to 28 years old) could face the inability to get proper training or gain access to jobs long after the pandemic ends, maybe even deep into their careers. Of those still working, about 23% report reduction in the number of hours they work. For 178 million young workers around the world, more than 40% are in the food services and hospitality industries, which is the hardest hit sector from the virus. Three fourths of the young workers are in informal jobs or casual labor. In addition, many companies in the U.S. are cutting salaries of those who still have a job, trying to remain in business, which will reduce discretionary income that will further slow economic recovery.

4) Stock market closings for – 27 MAY 20:

Dow 25,548.27 up 553.16
Nasdaq 9,412.36 up 72.14
S&P 500 3,036.13 up 44.367

10 Year Yield: down at 0.68%

Oil: down at $32.22

3 December 2018

1) President Trump has signed USMCA, the new trade agreement with Mexico which will replace the NAFTA, the current agreement.

2) Microsoft has been awarded a $480 million dollar contract from the military to adapt their HoloLens for virtual reality training and combat.  This could mean sales of up to 100,000 units.

3) Microsoft surpassed Apple as the most valuable publicly traded company, closing with a total stock value of $851.2 billion compared to Apple’s value of $847.4 billion.  Apple’s stock dropped 20% last month.

4) 30 NOV 18    Stock market closings:    Ninety day truce of American-China trade war is expected to boost markets.

Dow                     25,538.46      up      199.62
Nasdaq                  7,330.54      up        57.45
S&P 500                 2,760.17      up        22.41

10 Year Yield:    down    at    3.01%

Oil:    down    at    $50.72

26 November 2018

1) The government released a report on climate change and the adverse effects to be expected.  The US GPD may decline as much as 10% by 2100. It acknowledge that the US is not the only driving force of global warming, as of now, not a single G20 country is meeting their climate targets.  The costs of climate change could reach hundreds of billions of dollars annually, with agriculture predominate where farms may produce 75% less corn and 25% less soybeans.

2) The Dow may drop another 2,000 points before market selling is done.  The US economic growth could be cut in half this next year over fears of consumer demand declining.

3) A family feud threatens Campbell’s dynasty as soup sales tank, with one cousin complaining to another cousin that he didn’t have any confidence in the company management, which precipitated a feud.  Shareholders vote next Thursday, that will determine if Campbell’s will remain a family dynasty.

4) 23 NOV 18    Stock market closings:     Drop in oil prices causes drop in stock markets.

Dow                         24,285.95         down         178.74
Nasdaq                      6,938.98         down            33.27
S&P 500                     2,632.56         down            17.37

10 Year Yield:      down   at    3.05%

Oil:    down   at    $50.39

23 November 2018

1) Global economic slowdown is due to rising interest rates and the trade war. The international slowdown is faster for other nations than for America, while England’s growth rate is slowing because of the additional problem of Brexit.

2) Government funding may run out on the seventh of December, when Congress might shut down the government over the boarder wall funding.

3) Worries are growing about high corporate debt, which might cause economic problems in the future, with corporate debt now totaling nine trillion dollars. Furthermore, increasing interest rates on debts may pull corporations down who are unable to service that debt. Corporate debt has double over the last decade.

4) 21 NOV 18    Stock market closings:

Dow                        24,464.69       down        0.95
Nasdaq                     6,972.25             up     63.43
S&P 500                    2,649.93             up       8.04

10 Year Yield:      up   at     3.06%

Oil:       up    at      $54.72

14 November 2018

1) For the twelfth straight trading day oil prices have dropped, the steepest in 3 years.  US oil inventories are at record high.

2) Tesla’s Gigafactory produces more battery packs for electric vehicles than all the rest of the world combined.  Presently, Tesla is producing battery packs for $116 per kilowatt-hour while the average cost from other manufactures is $146 per kilowatt-hour.  Tesla expects cost to continue dropping.

3) While unemployment dropped to 3.7%, the cost of living has risen 14% over the last 3 years.  The median home price is up 21% over the same period.

4) 13 NOV 18    Stock market closings:  Volatile market fails to rebound.

Dow                                25,286.49                down        100.69
Nasdaq                             7,200.88                      up            0.01
S&P 500                            2,722.18                 down           4.04

10 Year Yield:       down   at    3.14%

Oil:         down   at      $55.61

9 November 2018

1) Eighteen states will increase their minimum wage starting in 2019, but eight of these states will have smaller initial increases with automatic increases that adjust the minimum wage to keep pace with price growth.

2) Amazon’s ‘Alexa’ has been reprogram to speak Spanish, so is being released for sale in Mexico as Amazon expands into the Mexican market.

3) The Federal Reserve has held interest rates the same, but signaled that most likely it will be increased this next month.

4) Amazon plans to split it’s new headquarters (HQ2) between two cities, Long Island City in New York and Arlington, Virginia.

5) 8 NOV 18     Stock  market  closings:

Dow                        26,191.22           up        10.92
Nasdaq                     7,530.88      down        39.87
S&P 500                    2,806.83      down          7.06

10 Year Yield:      up    at    3.23%

Oil:                    down    at      $60.74

8 November 2018

1) Russia stands to be the beneficiary of the Iran oil ban from newly imposed sanctions, with Moscow taking over Iran’s customers while defying sanctions to import Iranian oil.  Although Russia-Iran trade will be by barter only, there will still be high profits for Russia.

2) The Democrats taking control of the House probably means no new consumer legislation because of expected ‘grid lock’ of the legislative branch, meaning little to no new regulation of lending, student loan debt, service and financial protection.  No new taxes are expected by business, which should therefore continue economic stimulation.

3) Price of oil sinks from the swelling of US oil inventories. There is too much supply with more oil coming into the market too fast.

4) 7 NOV 18    Stock market closings:   The Dow exploded over Tuesday’s election results.

Dow                          26,180.30     up    545.29
Nasdaq                       7,570.75     up    194.79
S&P 500                       2,813.89    up       58.44

10 Year Yield:       down   at    3.21%

Oil:     down   at    $61.73

29 October 2018

1) Both oil prices and global stocks plunged as fears over global trade mount.

2) Deep sea robots reveal mineral riches in the deep ocean, that could be worth a fortune in mining.

3) Global economic crisis drags down world markets in addition to fears that earnings are peaking with banner stocks.  New house construction has dipped, another sign that the economy may be weakening.

3) 26 OCT 18    Stock   market   closings:

Dow                       24,688.31       down     296.24
Nasdaq                    7,167.21      down      151.12
S&P 500                   2,658.69      down        46.88

10 Year Yield:    down   at    3.08%

Oil:    up   at    $67.62