Written by Gary
US stock market index futures are pointing another sharp drop at the opening today (SPY -0.7%). The DOW is set to drop more than 300 points as Trump ratchets up pressure on China with more tariffs.
Here is the current market situation from CNN Money | |
European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.42% while France’s CAC 40 is off 1.30% and London’s FTSE 100 is lower by 0.59%. |
Looking at the last three columns (below), the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.
Dow is set to drop more than 250 points as Trump ratchets up pressure on China with more tariffs
Trump fires back at Beijing with threat of new tariffs on $200 billion in Chinese goods
China says the US ‘has initiated a trade war,’ and Beijing isn’t afraid to fight back
U.S.-China trade spat isn’t why stocks are stumbling, says Mark Hulbert
What Is Moving the Markets
Here are the headlines moving the markets. | |
U.S.-China trade spat isn’t why stocks are stumbling, says Mark Hulbert | |
Futures slide as China-U.S. trade dispute heats up(Reuters) – Futures on the three main U.S. indexes slumped more than a percent on Tuesday as President Donald Trump’s latest threat to impose duties on additional Chinese goods heightened concerns that tit-for-tat tariffs could spiral into a trade war. | |
VW names interim Audi boss, seeking to steady brand after CEO arrestMUNICH (Reuters) – Volkswagen suspended Audi boss Rupert Stadler and announced an interim replacement on Tuesday, seeking to steady its most profitable business after German authorities arrested Stadler as part of an emissions probe. | |
Russia, Saudi push for big hike in oil output despite Iran oppositionVIENNA/MOSCOW (Reuters) – Russia and Saudi Arabia are pushing OPEC and its allies to raise oil output steeply from July to meet growing demand and cover supply outages in Venezuela and Libya despite opposition from several members of the producer group including Iran. | |
CEO Musk emails staff alleging employee ‘sabotage’SAN FRANCISCO (Reuters) – Tesla Inc Chief Executive Elon Musk said on Monday in an email to staff that an unnamed Tesla employee had conducted “extensive and damaging sabotage” to the company’s operations including allegedly making unspecified code changes to its manufacturing operating system and sending what the email said was sensitive Tesla data to unnamed third parties. | |
Exclusive: China’s Xiaomi cuts valuation after pulling mainland offering: sourcesHONG KONG/SHANGHAI (Reuters/IFR) – Chinese smartphone maker Xiaomi has lowered its likely valuation to between $55 billion and $70 billion following its decision to delay its mainland share offering until after its Hong Kong IPO, three sources with direct knowledge of the matter said. | |
U.S. oil pipeline companies, producers seek relief from steel tariffsHOUSTON (Reuters) – Major U.S. energy companies including Plains All American Pipeline , Hess Corp and Kinder Morgan Inc are among many seeking exemptions from steel-import tariffs as the United States ratchets up trade tensions with exporters including China, Canada and Mexico. | |
Roche pays $2.4 billion for rest of cancer expert Foundation MedicineZURICH/LONDON (Reuters) – Swiss drugmaker Roche is paying $2.4 billion to buy the rest of Foundation Medicine (FMI) , raising its bet on the U.S. genomic profiling group’s ability to personalize cancer care. | |
Intel has paths around Trump’s China tariffs, analysts say(Reuters) – Intel Corp, the world’s biggest chipmaker by revenue and a prominent U.S. manufacturer, could avoid the most severe effects of a new list of Chinese tariffs proposed by U.S. President Donald Trump by shifting its production among its facilities, analysts said Monday. | |
Judge Rules Twitter Can Be Sued For Falsely Advertising They Allow Free SpeechAuthored by Mac Slavo via SHTFplan.com, A California judge has ruled that social media giant Twitter can be sued for falsely advertising free speech. As Bloomberg reports, the judge said that Twitter’s policy of banning users “at any time, for any reason or for no reason” may constitute an “unconscionable contract” for a company which advertises free speech. The judge rejected Twitter’s motion to dismiss the lawsuit from Jared Taylor, who was banned by the platform in December last year, according to Breitbart. Taylor, a self-described “white activist” may proceed with his lawsuit against Twitter because the social media company falsely advertises free speech, yet ban … | |
Permits Plunge But Starts Surge As Housing Data Suggests Rough Future AheadAfter April’s disappointing dip in starts and permits, and following an unexpected drop in homebuilder optimism (blamed on surging lumber prices, and therefore Trump), May was expected to see a modest rebound – but it didn’t work out that way. It was a very mixed picture that paints an ugly scenario for what comes next… Housing Starts surged a huge 5.0% MoM in May (smashing the 1.9% rebound expected) after a revised 3.1% drop in April. Building Permits plunged a shocking 4.6% MoM (notably worse than the 1.0% decline expected) and dramatically worse than the revised 0.9% MoM drop in April. Starts rose most since January as Permits puked most since Feb 2017… The surge in Starts was driven by an 11.3% spike in multifamily starts to 404K from 363K, highest since January. Single-family starts up 3.9% to 936K from 901, highest since November. | |
Trump Tells Cook iPhones Will Be Spared Chinese Tariffs: NYTAmerica’s business community is being squeezed by a Chinese government that is threatening hardball tactics like unexpected “customs delays” for goods produced by American (-owned or -invested) firms; and a White House that has steadfastly refused to back down from what by now has been acknowledged as a trade war by most. Gradually, even the market is waking up to the reality (considering that Dow futures are down 300+ points after Trump threatened another $200 billion in tariffs). In the latest story of how American companies are responding to this fluid situation (there have been a lot of them in recent days), the New York Times reports how all three constituencies – the Chinese government, the US government and the US business community (or at least one of its most high-profile factions) – have turned to Apple CEO … | |
Here Are The Six Ways China Could Retaliate In Trade War With The U.S.It’s all about the trade war between the US and China this morning, and more specifically, how will Xi retaliate to Trump. For those who missed the overnight fireworks, late on Monday, President Trump asked the US Trade Representative to identify USD 200BN in Chinese goods for further tariffs of 10% which will be imposed if China refuses to change its practices and goes ahead with its retaliation threat, while he also stated that China raising tariffs is unacceptable and that the US will pursue tariffs on another USD 200bln of Chinese goods if China increases tariffs yet again. Predictably, China – which last week reacted instantly to Trump’s first round of $50BN in tariffs – again responded immediately, wasting no time in accusing Trump of “blackmail.” China’s commerce ministry said on its website that if the US “irrationally” moves forward with the tariffs then China has no choice but to “forcefully fight back” with “qualitative” and “quantitative” measures. “China’s response is to safeguard the interests of the country and its people,” China’s Mofcom said, adding that the US “practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed international society”. But now that the chips are on the table, and Trump is locked into a tit-for-tat strategy with China from which neither he nor Xi can “defect” without losing face, the question is how exactly will China retaliate to punish the US while minimizing the damage to China’s economy as much as possible. There are 6 possible things that China can do at this time, in order of escalating severity: China could de-escalate tensions by presenting a list of actions it will follow to reduce its significant trade deficits in services with the US. This could affect education service institutions, the lo … | |
The Other Yield Curve Investors Should Watch as Trouble MountsEscalating trade tensions have helped push the U.S. Treasury yield curve to its flattest in more than a decade. This flattening is watched closely by investors as an indicator of economic trouble ahead. But another curve deserves attention too—and it is getting steeper. | |
Xiaomi Will Have to Dial Down Valuation HopesThe tech company has postponed plans for a mainland Chinese listing—a blow to its hopes of a high valuation. | |
Can’t Anyone Here Cook Anymore?Delivery apps like Grubhub, meal kits and takeout are a rising threat to supermarkets like Kroger and Walmart and packaged food companies like Kraft Heinz | |
Market Extra: Stock market investors are acting as if a genuine U.S.-China trade war has eruptedHas a tit-for-tat tariff spat between China and the U.S. shifted from a skirmish to a full-blown trade war? | |
Medical practices have become a hot investment — are profits being put ahead of patients?Private-equity firms are buying doctor’s offices across the U.S. — but critics say profits are coming before patients, and driving up health costs. |
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