Written by Gary
US stocks struggle for gains (SPY -0.3%) as US-Canada trade talks near deadline. U.S. consumer sentiment falls to seven-month low as the DOW slips further in afternoon trading.
Here is the current market situation from CNN Money | |
 | North and South American markets are mixed. The IPC is higher by 0.27%, while the S&P 500 is leading the Bovespa lower. They are down 0.26% and 0.14% respectively. |
Traders Corner – Health of the Market
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.
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Wall Street sluggish on trade concerns; Apple, Amazon lift NasdaqThe S&P 500 and the Dow Jones Industrial Average were little changed on Friday as jitters over ongoing trade talks between the United States and other major economies weighed, but gains in Apple and Amazon lifted the Nasdaq. |
| Ford kills plan to sell Chinese-made vehicle in the United StatesFord Motor Co has abruptly killed a plan to sell a Chinese-made small vehicle in the United States because of the prospect of higher U.S. tariffs, the head of the automaker’s North American operations said Friday. |
| U.S., Canada slug it out as deadline looms to clinch NAFTA dealTalks between Canada and the United States to revamp NAFTA appeared to stumble on concessions over agriculture, as top negotiators struggled for a fourth day to meet President Donald Trump’s Friday deadline. |
| U.S., Canadian teams ‘not there yet’ on NAFTA deal: FreelandNAFTA negotiators from the Canada and the United States are “not there yet,” in resolving differences keeping them from a deal to modernize the North American Free Trade Agreement, Canadian Foreign Minister Chrystia Freeland said on Friday. |
| Casino shares sink, Muddy Waters tweet stirs fresh debt fearsShares in French retailer Casino sank as much as 15 percent on Friday amid fresh concerns over its debt burden. |
| Global shares extend fall on Trump trade threatsGlobal stocks were poised on Friday to end August much as they began the month – under the dark cloud of a potentially worsening trade war. |
| Summer is over for investors as global worries buildInvestors returning from their summer holidays in the coming days are likely to feel a distinct chill in the air as they assess the world economy. |
| Founder sues Papa John’s board to stop ‘irreparable harm’The founder and largest shareholder of Papa John’s International Inc sued the pizza chain’s board and chief executive late on Thursday to stop what he described as “the irreparable harm” they are causing the company, according to a court filing. |
| No Canadian agriculture concessions in U.S. trade talks: USTRCanada has made no agriculture concessions to the United States in bilateral trade talks aimed at reaching deal in principle to modernize the North American Free Trade Agreement, a spokeswoman for the United States Trade Representative’s office said. |
| Ford Kills Plan To Build China Plant, Blames Trade WarJust hours after being downgraded to one notch above junk (in what would be one of the biggest ‘fallen angels’ of this cycle) – due to the erosion in Ford’s “global business position and the challenges it will face implementing” its restructuring effort that could rack up $11 billion in the next three to five years – Ford has canceled plans to import a new crossover model from a plant in China, claiming that President Trump’s tariffs compromised the business case for bringing the vehicle to the U.S. market.
As Bloomberg reports, Kumar Galhotra, president of North America, said in a conference call with reporters that Trump’s move to slap China-built autos with an additional levy of 25 percent undermined the profitability of the Focus Active that Ford planned to start shipping into the U.S. about a year from now, adding that the company decided that it wasn’t worth investing more money in a vehicle that it would have sold fewer than 50,000 units a year in the U.S.
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| “Massive Buying Of Deflation Winners”: Traders Position For End Of Rate HikesIn the week in which the S&P hit 4 consecutive record highs, investors were just as giddy and according to EPFR, allocated $7.6bn into equities ($12.6bn in ETF inflows offset by $4.9bn in ETF outflows) – the biggest inflows in 11 weeks – and $0.8bn into bonds, while pulling another $0.3bn out of gold, the 5th straight week of outflows. Despite the rout in EM, investors remain optimistic the sector, and according to BofA’s Michael Hartnett there is no sign of EM equity ($0.4bn inflows) & debt ($0.1bn inflows) flow capitulation despite fresh sell-off in EM FX…BRL >4, TRY >6.5. This is surprising in light of the recent steep selloffs in EM equity and bond ETFs, the latter of which recently dropped to levels last seen in 2003.
The perplexing EM euphoria remains a sharp contrast to the EU, where recent the EURUSD rally has failed to stem to stem tide of redemptions, with another $0.2bn pulled out of Europe this week, resulting in 25 consecutive weeks of outflows amounting to -$57bn. Below is a detailed breakdown of flows by region, style and sector: US: biggest inflows in 11 weeks ($7.2bn) Japan: small outflows ($0.2bn) E … |
| No Deal? Loonie Slides After “Secret Insulting Remarks” By Trump, Downbeat Freeland NAFTA CommentsWith just hours to go until the Trump-imposed deadline to reach a NAFTA deal between the US and Canada, moments ago Chrystia Freeland poured cold water on hopes of an imminent deal, saying “we are not there yet” on a NAFTA deal. Below are her comments moments ago to the press after speaking to the USTR , courtesy of Bloomberg Freeland says she’ll return to talks at USTR later Friday Canadians are good at finding “win-win compromises,” says Freeland, adding “at the end of the day though we are only going to sign a deal that’s good for Canada” “In this negotiation we always stand up for the national interest and that’s what we’re going to continue to do” Canada is looking for a good deal, “not just any deal,” says Freeland Freeland says she agreed with U.S. Trade Representative Robert Lighthizer at start of the week to refrain from negotiating “specific issues in public” Freeland says she jokes with Lighthizer “that we could switch chairs” because they know each others’ positions on the Nafta issues so well Freeland also said that she would be back later in the day at the USTR for more NAFTA talks, but said she wouldn’t discuss specific NAFTA issues in Public: Trudeau also chimed in skeptically at the same time: *TRUDEAU SAYS CANADA WILL ONLY SIGN `GOOD’ NAFTA DEAL *TRUDEAU SAYS A WIN-WIN-WIN NAFTA DEAL REMAINS POSSIBLE *TRUDEAU SAYS NO NAFTA AGREEMENT IS BETTER THAN A BAD ONE Following the downbeat comments, the loonie slumped to session lows of 1.3080 |
| What Could Robert Mueller Reveal Today From His “Secret Files”?On Thursday evening, MSNBC’s Chuck Todd suggested that Robert Mueller might make a major Friday announcement in the ongoing Trump-Russia-Pornstar-Kitchen Sink investigation, as an announcement after Labor Day could be viewed as interference in the midterm elections. “I think he knows, more than anything, he keeps quiet between Labor Day and Election Day,” Chuck Todd said and then issued the following preview: “I’m not missing work tomorrow,” he continued. “I wouldn’t miss work tomorrow. Tomorrow is the last business day of the pre-Labor Day to Election Day window.” (3:30 mins into the video). Today, Axios is out with a list of evidence which might be in Mueller’s “secret files” for a Friday release. As former Obama White House counsel Bob Bauer told the news outlet; “Investigators have the skills and resources to turn up evidence, including witness testimony, that goes beyond what anyone on the outside can imagine in the daily speculation about the Mueller probe.” Here’s the evidence we have yet to see via Axios: President Trump’s tax returns. Trump bank records, which are more valuable than tax returns. Internal Trump Organization records. More recordings from Michael Cohen. Cellphone records (metadata showing calls placed/received and duration) related to the Trump Tower meeting. White House and campaign emails and text messages. (Trump’s legal team |
| Final August 2018 Michigan Consumer Sentiment Up Marginally From PreliminaryWritten by Steven Hansen The final University of Michigan Consumer Sentiment for August came in at 96.2, up from the August preliminary of 95.3 and down from the July final of 97.9.
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| NewsWatch: Warren Buffett: Apple investing in Tesla is a ‘very poor idea’Legendary investor Warren Buffett is not a fan of Apple Inc. buying Tesla Inc. |
| Apple Watch Series 1 is outselling newer models and it’s not even closeMore than two years after its launch, the Apple Watch Series 1 remains a best-seller for Apple Inc. |
| The fight over dialysis profits advances in California, hitting companies hardA bill that would significantly hit sales passed the state assembly this week, and another California voters will consider another dialysis-related proposal this fall. |
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