1) Experts forecast that a rising stock market and a weak dollar will keep going hand in hand in the near future. The movements of the past month are consistent with movements between equities and the dollar observed this year, which is at its strongest level since before the global financial crisis. Additionally, the seesaw relationship between the dollar and equities is getting more intense, so a rapidly falling currency serves as fodder for stock-market bulls, who are expecting this pattern to endure for some time. Stocks saw a historic rise in November, with the Dow Jones Industrial Average logging its biggest monthly rise since January 1987, as major indexes hit all-time highs. At the same time, the dollar fell 2.3%, its worst month since a 4.2% fall in July and its worst November since 2006. A weaker dollar is often seen as supportive to equities.
2) Boeing Aircraft Co. is considering an equity sale and other ways to ease its debt burden that has soared to $61 billion this year, a result of the worst slump in aviation history. Additionally, Boeing will cut back on production of its 787 Dreamliner from six down to five planes a month by mid-2021. The company has sufficient reserves to see it through months of tumult until coronavirus vaccines are widely distributed. Boeing is prepared to speed up deliveries of 450 of its 737 MAX planes that it built but couldn’t deliver during the global grounding. Therefore undelivered aircraft are starting to stack up around Boeing’s factories and in a storage lot in the California desert, and so it will take the manufacture through 2021 to clear them from its inventory.
3) Negotiations for Britain to exit the European Union continue as the dead line nears. The fundamental differences between the two sides remain over a ‘level playing field’ of the standards the U.K. must meet to export into the bloc, how future disputes are resolved and the fishing rights for EU trawlers in U.K. waters. Ireland finds itself in a difficult place with the most to lose from a no-deal exit. Speed is now of the essence since the 27 EU member states have to unanimously support any deal. Both sides will suffer economically from a failure to secure a trade deal, but most economists think the British economy would take a greater hit. The main problem is how Britain wrests itself free of EU rules with the bloc’s insistence that no country, should get easy access to EU’s market by undercutting its high environmental and social standards.
4) Stock market closings for – 7 DEC 20:
Dow 30,069.79 down by 148.47
Nasdaq 12,519.95 up by 55.71
S&P 500 3,691.96 down by 7.16
10 Year Yield: down at 0.93%
Oil: down at $45.66
1) Ford Motor Company’s sales in China has declined for the third straight year, falling by 26.1%. The company has been trying to revive sales in China after the decline started in 2017 and plans to introduce thirty new models in the next three years, with a third being electric models. General Motors has also experienced a decline in sales of 15% this last year.
2) One of the largest suppliers of parts to Boeing’s 737 MAX, Spirit AeroSystems, is laying off 2,800 workers. Based in Wichita Kansas, will eliminate 20% of its workforce. Smaller layoffs will happen at its facilities in Tulsa and McAlester, with half its annual sales from parts for the 737 MAX. Since last February, Spirit’s stock has fell from a high of $100 a share to $71.50 on news of the layoffs.
3) Expectations are that the U.S. will remove China from its list of currency manipulators two days before the signing of initial U.S. – China trade agreement. Part of the agreement is that both nations will not devalue its currency to gain a competitive advantages of exports. Labeling China a currency manipulator was viewed largely as a symbolic action.
4) Stock market closings for – 13 JAN 20: Stocks are up 495% in the past decade.
Dow 28,907.05 up 83.28
Nasdaq 9,273.93 up 95.07
S&P 500 3,288.13 up 22.78
10 Year Yield: up at 1.85%
Oil: down at $58.12
1) President Trump has imposed tariffs on metal from Brazil and Argentina in response to currency manipulation which hurt American farmers. The tariffs is on steel and aluminum imports. Additionally, Trump has called on America’s central bank to take action to prevent other countries from devaluing their currencies. Brazil and Argentina had been exempt from tariffs imposed in March 2018.
2) The factory sector in the U.S. shrank again in November, the fourth straight month as new order volumes slid back to around their lowest level since 2012. The index of national factory activity fell to 48.1, a reading below the expectations of 49.2, a reading above 50 indicates expansion while below indicates contraction.
3) The auto makers Nissan Motor Co., Renault SA and Mitsubishi Motors Corp. have formed an alliance in the form of a new company to do research and development of advance automotive technologies. The new venture also aims to strengthen the alliance which has been worn thin since the arrest and ouster of former supremo Carlos Ghosn. The formal plans will be announced in January.
4) Stock market closings for – 2 DEC 19:
Dow 27,783.04 down 268.37
Nasdaq 8,567.99 down 97.48
S&P 500 3,113.87 down 27.11
10 Year Yield: up at 1.84%
Oil: unchanged at $55.42
1) Stock markets fell sharply over new trade war moves with the Dow dropping over 700 points and the S&P and Nasdaq also sharply dropping too. Troubles renewed with China devaluating its currency, opening at seven yuan to the U.S. dollar. In return President Trump accused China of manipulating its currency which suggests the Chinese have abandoned all hopes of resolving the trade war with America, and instead are moving in another direction for the future. Reports are that China has asked state owned companies to suspend U.S. agriculture imports. A weaker Chinese currency gives them an unfair export advantage, and so can be used as a potent weapon in the trade war.
2) Fears continue to increase over a near future recession, with bond yields giving the highest alert since 2007. The 10-year notes sank on Monday to 1.74% with fears of it sinking to a low of 1.5%. This is further pressure for the feds to further cut interest rates to starve off a recession. There are further concerns about the trade war with China that America will move to let the dollar weaken to counter China’s devaluation. Wall Street’s VIX volatility index, also know as their ‘fear gage’ rose to 21.48, its highest level since May 9, with Asian markets also plummeting.
3) Huawei, China’s manufacture of smart phones, might release a phone running the HongMeng OS by the end of the year. HongMeng OS is a competitor to Google’s Android OS, which would free Huawie paying licensing fees for other’s operating systems, allowing Huawei to undercut competition in the low end smart phone market. This is a response to President Trump’s executive order banning Google and Qualcomm from Huawei over security risks. The HongMeng OS is considered part of a long term strategy.
4) Stock market closings for – 5 AUG 19:
Dow 25,717.74 down 767.27
Nasdaq 7,726.04 down 278.03
S&P 500 2,844.74 down 87.31
10 Year Yield: down at 1.74%
Oil: up at $55.01
1) German technology giant SAP takes a drop in the markets because of a one time write off charge.
2) Chinese purchases of US commercial property is at the lowest since 2012. For the last four quarters, the Chinese have sold more than they bought as the Chinese government pushes to bring money back into China in an effort to stabilize its currency. With China’s economic problems springing from the slowing down in its growth, this trend is expected to continue in 2019.
3) The Feds signal an end to interest rate hikes, with economic growth remaining strong and expected to continue, while fears of inflation are diminishing. Their announcement spurred the stock markets up.
4) 30 JAN 19 Stock market closings:
Dow 25,014.86 up 434.90
Nasdaq 7,183.08 up 154.79
S&P 500 2,681.05 up 41.05
10 Year Yield: down at 2.70%
Oil: down at $54.22
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
1) Sudan is experiencing a sever cash availability problem because of its ongoing economic crisis, a result of taking their currency off the Pound (fixed exchanged rate) and letting it float.
2) England’s prime minister Theresa Mayhem is facing strong opposition to her proposed Brexit plan agreed to by negotiators. Most of the English parliament is voicing opposition to the plan, plus two cabinet ministers have resigned in protest. Britain will depart the EU (European Union) on 29 March 2019 regardless if an exit agreement has been agreed upon or accepted.
3) Electric scooters, two wheel skate boards with an electric motor, is a hot booming market growing across the country, with profits expected to follow.
4) 15 NOV 18 Stock market closings:
Dow 25,289.27 up 208.77
Nasdaq 7,259.03 up 122.64
S&P 500 2,730.20 up 28.62
10 Year Yield: unchanged at 3.12%
Oil: up at $56.53
New article posted below titled “The Monopoly Game for Millennials”
1) The US government will issue $1.34 Trillion dollars of debt in 2018, the highest since the recession. Debt issuance has jump 146% from 2017, with the 2019 debt issuance anticipated to be $1 Trillion dollars, and excesses of $1 Trillion dollars in the following four years.
2) Analysis say Sears mistake, that has resulted in its financial woes, was spending $6 Billion dollars for stock buy backs. If that cash had been used to revamp stores, reduce Sears debt and for working capital, their financial crisis may have been averted. Sears stock has lost 99% of its value and is now considered worthless.
3) Disney’s first cruise out of New Orleans was sold out in just one hour. Disney is the home port for the cruise ship, and other cruise lines are watching closely considering New Orleans as their port too.
4) 30 OCT 18 Stock price closings:
Dow 24,874.64 up 431.72
Nasdaq 7,161.65 up 111.36
S&P 500 2,682.63 up 41.38
10 Year Yield: up at 3.11%
Oil: down at $66.53
1) The Nasdaq fell 4%, erasing its 2018 gains, because of concerns for rising interest rates and fears over the economies of the world. Wall Street is calling this drop a correction.
2) Best Buy announced the closing of 50 box stores, causing its stock to drop after also reporting quarterly results.
3) The Treasury Department has auctioned off its preferred shares in six smaller banks it acquired during the financial crisis.
4) 24 OCT 18 Stock market closings: The Dow drops over 600 points as late-day selling accelerates.
Dow 24,583.42 down 608.01
Nasdaq 7,108.40 down 329.14
S&P 500 2,656.10 down 84.59
10 Year Yield: down at 3.12%
Oil: $66.46 down from $66.27