23 April 2019

1) The United States announced that economic exemptions for Iran oil will be invalid starting the second of May. There are eight countries with exemptions, Asian nations who would suffered hardships from the oil sanctions, but some have already foregone their exemption status. China and India will be the hardest hit from no longer being exempt from Iranian oil sanctions.

2) The Trump administration is cracking down on zero-down home loans from the national affordable housing programs. Fears are mounting over the $1.3 trillion dollar Federally insured home mortgages, stemming from the 2008 housing crash which cost $17 billion dollars from defaults.

3) Executives of automotive manufactures are very concerned about new car sales, considering that at best, stagnation will occur in 2019. For the first three months, new auto sales have been down, they considering that the auto industry having reached a plateau. With half the new auto sales being SUV’s and crossovers, verses only one third for traditional sedans with many models being phase out, there are concerns over the typical new auto costing $34,000 to $35,000. Rising high prices are increasing putting new cars out of the reach of the average American.

4) 22 APR 19 Stock market closings:

Dow              26,511.05    down    48.49
Nasdaq           8,015.27         up    17.20
S&P 500          2,907.97         up      2.94

10 Year Yield:    up   at    2.59%

Oil:    up   at    $64.00

10 April 2019

1) The IMF (International Monetary Fund) has reduced their forecasted for world economic growth from 3.5% to 3.3%, which is the third reduction since last October. It forecasted 2.3% growth for the US economy, as well as reduced growth forecast for Germany and Great Britain.

2) Walmart is rolling out thousands of robots for use in their retail stores across America. These robots will automatically scan shelves and clean floors. With a million employees, Walmart is seeking ways to keep labor cost down.

3) Bank of America is raising it’s minimum wage to $20 an hour over the next two years. Starting the first of May, the rate will increase to $17 per hour. The bank has 205,000 employees.

4) 9 APR 19 Stock market closings: Markets pulled down by industrial sector.

Dow             26,150.58    down    190.44
Nasdaq          7,909.28    down      44.61
S&P 500         2,878.20    down      17.57

10 Year Yield:    down   at    2.50%

Oil:    up   at    $64.24

7 December 2018

1) The arrest of a top Chinese executive of Huawei, a major Chinese high technology company, caused world markets, including the Dow, to fall.  The Dow dropped 777 points before news that the Feds planned to slow down on increasing the interest rate was announced.

2) Research finds that millennials don’t have the money to spend that previous generations had.  The assumption has been a shift in spending habits, but with a millennial male making $6,600 dollars less than 1978 men, it appears they just don’t have the disposable income.  Working women haven’t made up the difference, opening the question about the future viability of our hyper-consumerism economy.

3) The EPA is expected to rollback back emission standards allowing coal fire powerplants to operate again without having to remove the carbon dioxide from burning coal.

4) 6 DEC 18     Stock market closings:

Dow                24,947.67         down      79.40
Nasdaq             7,188.26               up      29.83
S&P 500            2,695.95          down        4.11

10 Year Yield:     down   at   2.88%

Oil:    up   at     $51.52

6 December 2018

1) President Trump continues to play hardball with China to hammer out a trade agreement more favorable and equitable to the United States.  But he did praise China for taking new measures to control addictive drugs into America.

2) Facebook finds itself under the gun for giving personal data to select users. New documents have surfaced showing that Facebook intended for these select users to have wide spread access to data in exchange for advertising on Facebook. Facebook is adamant they didn’t sell any personal data to any third parties, but nevertheless, they profited from providing data.

3) Price increases are spreading broadly through the economy, driven by tariffs and the trade war.  Furthermore, the interest rate is expected to rise again in December, which may put further pressure to raise prices.  Chinese tariffs have had a very adverse effects on American agriculture.

4) 4 DEC 18     Stock market closings:     Markets closed.

5 December 2018

1) World stock markets fell dramatically, the Dow down 800 points, a result of uncertainty about China and American trade war.  There wasn’t any signing of agreements at G20, nor has China made any public statements about resolving the conflict since then, adding to the uncertainty.  Also contributing are fears of the American economy sliding downward in the near future.

2) A recall of 12 million pounds of beef because of salmonella outbreak, has stretched across the country.  So far, there has been 240 cases of infection in 6 states.

3) New carbon taxes in France aimed at reducing global warming effects has resulted in extensive riots forcing France to back off the taxes.

4) 4 DEC 18    Stock market closings:    The stock market is like a rectal thermometer- rude and crude, but surprisingly effective in showing sickness.

Dow                           25,027.07          down       799.36
Nasdaq                        7,158.43          down       283.09
S&P 500                       2,700.06          down          90.31

10 Year Yield:     down   at    2.92%

Oil:      down   at    $52.61

4 December 2018

1) Qatar announced they are dropping out of OPEC to focus on natural gas production, which is what their oil fields mostly produce.  Being a small producer of oil, Qatar considered itself too small to be a part of OPEC, despite being a member for 57 years.

2) For the best bets in the stock market during this next 90 days of trade war truce, experts are saying to watch where China spends money in the US that best strengthens it’s position with America.  Look for such things as agriculture products like pork and grains, and big ticket machinery such as construction equipment and aircraft.

3) Walmart is buying robots, autonomous floor scrubbing machines, and will have 360 units in stores by end of January.  Walmart is already using robots which scan for ‘out of stock’ items on shelves. Both robots operate by themselves on the store floor while customers are present.

4) 3 DEC 18      Stock market closings:    Oil prices rise as Saudi Arabia and Russia agree to limit oil production.

Dow                  25,826.43    up    287.97
Nasdaq               7,441.51    up    110.98
S&P 500              2,790.37    up       30.20

10 Year Yield:     down   at    2.99%

Oil:    up   at    $53.22

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

30 November 2018

1) President Trump goes to G20 conference amid concerns for the near and far future of world economies, as countries are withdrawing into nationalism and protectionism.  While flying to the conference, Trump tweeted his cancellation of meeting Putin because of Russia’s recent aggressive actions against Ukraine.

2) Because of sever shortages of pork, a result of widespread disease in Chinese hog herds, China has resumed buying pork from America despite the trade war.

3) The pharmaceutical company Bayer announced plans to cut 12,000 jobs as a result of the Monsanto takeover.  This action is a result of restructuring because of losing a massive lawsuit over the weedkiller Roundup.

4) 29 NOV 18    Stock market closings:   The three day market rally ends.

Dow                           25,338.84       down          27.59
Nasdaq                        7,273.08       down          18.51
S&P 500                       2,737.76       down            6.03

10 Year Yield:      down   at    3.04%

Oil:         down   at    $51.33

29 November 2018

1) America had the fastest expanding GDP by growing 3.5% in the third quarter. The Feds hint that they might hold interest rates at present level, which would further stimulate growth.

2) There are threats of a partial government shutdown next week over funding for the border wall, the shutdown coming one week from this Friday.

3) Google is facing a $4 billion dollar fine for using smart phones to track people without their consent.  Last May, Europe passed regulations controlling the use of digital technology with people, which allows them to level such a large fine. The American Congress is considering similar legislation to regulate the digital industry.

4) 28 NOV 18   Stock market closings:   Biggest Dow rally in eight months.

Dow                    25,366.43            up         617.70
Nasdaq                 7,291.59            up         208.89
S&P 500                2,743.79            up           61.62

10 Year Yield:      down    at     3.04%

Oil:     up    at     $50.52

28 November 2018

1) There are reports that Apple stock holds key to end market slide, that the markets can’t turn around until Apple is going up, because the markets are being driven by the tech stocks, and Apple is the lead technology stock.  In the last two months, Apple stock has lost 25% of its value.

2) While home values have continued rising, the gains have shrunk to their lowest amount in the last two years.

3) Economy tiny houses are being offered in Silicon Valley costing $280,000.  The houses are prefabricated units.

4) GM has spent $10 billion dollars in buying back its stock, but then cut jobs to save $4.5 billion dollars.

5) 27 NOV 18      Stock market closings:

Dow                24,748.73     up      108.49
Nasdaq             7,082.70     up          0.85
S&P 500            2,682.17     up          8.72

10 Year Yield:     down    at    3.06%

Oil:     up    at     $52.02