24 May 2019

1) Oil prices dropped liked a brick in its worst day of trading in 2019, the result of jitters over trade with China. The price of oil serves as a barometer to the world economic outlook, with a slowing of the world economy translating into a lesser demand for oil and therefore lower oil prices. The situation is aggravated by a surprise jump in American crude stockpile, with inventories up by 4.7 million barrels. The stock market reflected the world economic situation by massive drops too.

2) Panasonic electronics is joining a growing list of firms distancing themselves from Huawei, by stopping their supplying of some electronic parts to Huawei. Companies are declining to do business with Huawei because of warnings from U.S. intelligence that Huawei presences a security risk with their new 5G technology, which will allow the Chinese military to use smart phones to gather foreign intelligence.

3) President Trump announced $16 billion dollars in farm aid to offset the losses by farmers in the ten month long trade war. Distribution of aid payments will be based on where they farm rather than what crops they till. Farmers were a key constituency that help bring victory to President Trump, and they have been the hardest hit from the trade wars with China. China used to import 60% of U.S. soy bean production.

4) 23 May 19 Stock market closings: Dow tumbles 400 points as trade war worries continue.

Dow            25,490.47     down    286.14
Nasdaq         7,628.28     down    122.56
S&P 500        2,822.24     down      34.03

10 Year Yield:    down   at    2.30%

Oil:    up   at    $58.19

21 May 19

1 ) The stock for electric auto maker Tesla fell today as the car maker faces an uphill battle to become profitable in the second half of the year. Delivery of its new cars are way down from sales forecast, with Tesla stock closing down 2.7%, the lowest in two and a half years. Additionally, Tesla may be facing severe financial consequences from a fatal crash involving their Autopilot system.

2) The fallout from Huawei being blacklisted in America has caused the stock market to fall. Huawei uses electronic components in their product line, high technology parts that can’t be procured from other vendors. The down side is these vendors have significant sales from Hauwei, which lowers their revenues.

3) The trade wars with China is threatening to close as many as 12,000 stores in America this next year. For the last two years, the closing of retail stores in America had been accelerating before the trade war started, the result of falling store traffic. Tariffs would cause price increases at a time when consumers are increasingly reluctant to spend their money. All ready, the closure of 6,400 retail stores have been announced.

4) 20 MAY 19 Stock market closings:

Dow              25,679.90    down     84.10
Nasdaq          7,702.38    down   113.91
S&P 500         2,840.23    down      19.30

Year Yield:    up   at    2.42%

Oil:   up  at  $63.30

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

24 April 2019

1) The stock market rallied in a big way yesterday, recovering the losses from last year, pushed up by the tech stocks and the release of their positive quarterly earnings reports. Furthermore, confidence that the interest rate will not increase further drove the markets up. Both the Nasdaq and S&P broke their record highs too.

2) The government released a report today detailing the dire straights which the Social Security and Medicare programs are in financially. Medicare is forecast to be insolvent by 2026 resulting in doctors, nurses, hospitals and nursing homes not getting fully compensated for services. Even worst, for Social Security their cost will exceed their income in 2020. The fiscal situations come in part from increasing number of obligations because baby boomers are retiring in increasing numbers and the Affordable Care Act. Many politicians wish to extend Medicare to the uninsured.

3) Problems of air bags not deploying in accidents is prompting a recall for as many as 70 million inflaters in America and 100 million world wide by the end of the year. This will involve about 12.3 million automobiles.

4) 23 APR 19 Stock market closings:

Dow               26,656.39   up   145.34
Nasdaq            8,120.82   up   105.56
S&P 500           2,933.68   up      25.71

10 Year Yield:    down   at    2.57%

Oil:    down   at    $66.18

13 February 2019

New article posted below titled, “Failings of the Fourth Estate!”

1) The CIO of Vanguard investments expects stock market returns, for the next decade, to drop down from 8% to about 7%.

2) The national debt has topped $22 trillion dollars. The debt increase is accelerating as a result of the tax cut and congressional spending on domestic and military programs. Additionally, the mounting cost to fund social security and the retiring baby boomers is pushing federal spending up too.

3) In Venezuela the cost for a hamburger is now a months wages for the average worker, with inflation now over one million percent annual. Demonstrations mount against Maduro for not letting relief (food and medicine) convoys come in for his people. Maduro rejects foreign aid fearing it is a conspiracy to oust him. This issue could be a wedge between Maduro and the Venezuela military who he depends on to remain in power.

  4) 12 FEB 19 Stock market closings:

Dow                 25,425.76     up    372.65
Nasdaq             7,414.62     up    106.71
S&P 500            2,744.73     up      34.93

10 Year Yield:     up   at    2.68%

Oil:    up   at    $53.34

7 January 2019

1) The chairman for the Federal Reserve suggested that the interest rate may not be raised this year, which stimulated the markets.

2) The December unemployment rose to 3.9% with 312,000 jobs added, which may serve to raise interest rates. This news also stimulated the markets.

3) Apple faces partial ban of their phones in Germany, the German courts ordering bans on some models of Apple phones because of patent infringement disputes for energy saving chips.

4) 4 JAN 19 Stock market closings:

Dow           23,433.16 up 746.94
Nasdaq      6,738.86     up   275.35
S&P 500   2,531.94     up          84.05

10 Year Yield: up at 2.66%

Oil: up at $48.31

4 January 2019

1) Tech stocks dropped 5%, the worst drop in seven years. This prompted warnings to expect another 5% drop.

2) Apple is pulling the stock markets down because of it’s drop in sales, in particular I-phones sales in China. Slow sales are blamed on high prices for Apple phones coupled with China’s declining economy.

3) Recent survey finds that 51% of American young people favor socialism, a growing number as more young people are pushed out of the economic system unable to make substantive contributions to society.

4) 3 JAN 19 Stock market closings:

 Dow              22,686.22 down 660.02
Nasdaq          6,463.50       down   202.43
S&P 500           2,447.89       down      62.14

10 Year Yield: down at 2.55%

Oil: down at $46.98

21 December 2018

1) There are suggestions that people shouldn’t be worried about the stock market, rather they should worry about having a job with the possible weakening of economy.

2) Markets fell with the announcement of Feds raising interest rate. There are forecast of fewer raises for 2019, with four raises already having been made for 2018, with an interest rate of 2.5% at the close of the year. Amidst this is worries of a slower economy in 2019 from President Trump’s spending, the effects of the $1.5 trillion dollars tax cuts fading and global economic slowdowns.

3) Fears mount over pending government shutdown as the Congress and President grapple over the $5 billion dollar expenditure for border wall.

4) 20 DEC 18 Stock market closings:     All three market indices have lost over 10% in December.

Dow        22,859.60 down 464.06
Nasdaq               6,528.41 down        108.42
S&P 500      2,467.42        down 39.54

10 Year Yield: up at 2.79%

Oil: up at $46.36

STOCKS ARE GREEN TODAY & FOR THE YEAR!!!!!!!! HURRAYYYYYYYY

stock market pic

By: Economic & Finance Report

Wall Street gained today heavily because of rallying support of crude oil prices and energy stocks that attributed to enormous rise. The Dow erased loses that occurred from the first two months of the year. 

Traders were delighted when oil prices closed over $40/barrel which signal a good sign for commodities.  Energy sector had great highlights today as it closed up on several fronts. The Federal Reserve left rates unchanged and this brought about a bullish signal to investors.

In all today was a productive day for the markets and it was glaringly noticed by all markets.-SB

 

NAIRA BONDS UP THIS YEAR IN 2015…. BEATING ESTIMATES….

Naira bonds

By: Economic & Finance Report

Nigerian bonds are up over 7% this year  alone.  In October Naira bonds beat the US stock market over 24% according to data provided by Standard & Poors report, first reported by Channels Tv online.

Nigerian bonds have beaten other African bonds in yield, surpassing South Africa and Kenyan bonds collectively. Kenyan and South African bonds have returned negatively in the red by 13%, while Naira bonds have gained a respective positive 7%.-SB 

*( reporting & data provided by Channels Tv & S&P index)*