7 October 2019

1) As part of its restructuring plan, HP announced they will cut about 7,000 to 9,000 jobs, resulting in an estimated savings of about $1 billion dollars. While HP expects to incur labor and non-labor cost of about $1 billion dollars, they expect to generate at lease $3 billion dollars of free cash flow. As of 31 October 2018, HP had world wide employment of about 55,000 workers.

2) Consumer spending has been the bright spot in an economy showing signs of weakening on multiple fronts, in particular manufacturing. Economists worry if consumer spending will continue to prop up the economy, saying that the up coming Christmas season will be a test. Issues such as trade, interest rates, global risk factors and political rhetoric are where confidence can be eroded by deterioration of these items.

3) The new Costco in Shanghai China reports membership of more than 200,000 as compared to an American average of 68,000 per store. Costco will open a second Shanghai location in early 2021. The first day opening, the store was so swamped with customers, that the doors had to be closed for four hours to limit the number of people inside to safe limits.

4) Stock market closings for – 4 OCT 19:

Dow                  26,573.72    up    372.68
Nasdaq               7,982.47    up    110.21
S&P 500              2,952.01    up      41.38

10 Year Yield:    down   at    1.52%

Oil:    up   at    $53.01

2 August 2019

1) Goldman Sachs, the investment bank, is starting a three year, $100 million dollar plan to overhaul its stock trading platform. The project, which is named Atlas, is aimed at the world’s largest quant hedge funds with the intent of shaving milliseconds off trades. The quantitative hedge fund investment has become a cutthroat business as other firms have been winning a larger share of a shrinking pie, and Goldman Sachs realizes they have been falling behind the technology race. They must make a strong effort to push forward the technology of electronic trading to maintain their market position.

2) As trade talks continue in Shanghai between China and America, President Trump has imposed an additional 10% tariff on $300 billion dollars worth of Chinese imports. These imports are due to start on the first of September. This does not include the $250 billion dollars already tariffed at 25%. The President blames the Chinese for imposing the tariff, saying China is not following through their promise to buy more American agricultural products and not doing more to stem sales of synthetic opioid fentanyl.

3) Lowe’s, the home improvement retailer, has told thousands of its workers that their jobs are being eliminated. The company will out source the jobs of maintenance and assembly workers to third party companies. These workers assembly products such as wheelbarrows and grills, claiming this will allow store associates to spend more time on the sales floor serving customers. Lowe’s employs 190,000 full time and 110,000 part time workers.

4) Stock market closings for – 1 AUG 19:

Dow           26,583.42    down    280.85
Nasdaq         8,111.12    down      64.30
S&P 500        2,953.56    down      26.82

10 Year Yield:    down   at    1.89%

Oil:    up   at    $54.49

31 July 2019

1) One of the nations largest credit card companies Capital One announced a massive data breach which affects tens of millions of customers. This news has sent its stock down 7%. Most of the data lost to hackers was personal information such as names, addresses, phone numbers and income of consumers and small businesses from 2005 to 2019. About 140,000 Social Security numbers of customers was comprised with 80,000 bank links. This breach is one of the largest yet.

2) China and America have resumed trade talks in Shanghai after a three month suspension. President Trump has criticized China for it’s reluctance to buy U.S. agricultural products, the Chinese using this as a pressure point on Trump with many farmers having previously supported Trump. There are low expectations for a breakthrough in trade talks because the two sides are further apart now than three months ago.

3) American consumer confidence is at the highest level since November negating its June drop. The index rose from June’s 124.3 to 135.7. The index measures consumers’ assessment of the current economic conditions and their expectations for the next six months. Consumers have little concern for trade tensions with China or a slowing economy. This should translate into robust spending in the near future.

4) Stock market closings for – 30 JUL 19:

Dow               ,198.02    down    23.33
Nasdaq       8,273.61    down    19.72
S&P 500      3,013.18    down      7.79

10 Year Yield:    up   at    2.06%

Oil:    up   at    $58.34