Written by Gary
US growth slows, amid government shutdown and weakening world economy (SPY -0.2%).

Here is the current market situation from CNN Money | |
![]() | North and South American markets are mixed. The Bovespa is higher by 0.54%, while the IPC is leading the S&P 500 lower. They are down 0.31% and 0.13% respectively. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
![]() | GM to invest $22 million in Tennessee plantGeneral Motors Co said on Thursday it will invest $22 million at its Tennessee plant to build fuel-efficient engines. |
![]() | Oil edges higher on Venezuela turmoil, but weighed by U.S. crude stock buildOil prices rose on Thursday, boosted by the U.S. threat of sanctions on OPEC member Venezuela, but gains were limited by U.S. data showing record high gasoline inventories and an unexpected big build in crude. |
![]() | U.S. shutdown hangs over airlines even as profits beatThree major U.S. airlines posted quarterly profits on Thursday that beat Wall Street expectations thanks to healthy passenger demand, but the carriers said the U.S. government partial shutdown was disruptive. |
![]() | U.S., China ‘miles and miles’ from trade deal: RossThe United States and China are “miles and miles” from resolving trade issues but there is a fair chance the two countries will get a deal, U.S. Commerce Secretary Wilbur Ross said on Thursday. |
![]() | No-deal Brexit would cost Ford up to $1 billion: sourceFord faces a bill of up to $1 billion if Britain leaves the European Union without a deal, comprising World Trade Organization tariffs and the impact of a weaker pound, a person familiar with the company’s plans said on Thursday. |
![]() | Renault names new leaders as scandal-hit Ghosn bows outRenault appointed Michelin boss Jean-Dominique Senard as its new chairman on Thursday, after Carlos Ghosn was forced to resign in the wake of a financial scandal that has rocked the French carmaker and its alliance with Japan’s Nissan. |
![]() | Stocks weak, bonds up after ECB, U.S.-China trade talkA global stock index clung to gains on Thursday and U.S. Treasuries were in demand after the European Central Bank chief said economic growth was likely to be weaker than previously expected and the United States was cautious on prospects for a trade deal with China. |
![]() | Chipmakers, airlines lift Nasdaq; trade worries stall S&P, DowA rally in shares of chipmakers and airlines lifted the Nasdaq on Thursday, while the Dow Industrials and the S&P 500 wavered due to concerns about the Sino-U.S. trade dispute and the longest U.S. government shutdown ever. |
![]() | U.S. labor market remains strong, economy slowingThe number of Americans filing applications for unemployment benefits fell to more than a 49-year low last week, but the drop likely overstates the health of the labor market as claims for several states including California were estimated. |
![]() | How Low Will The S&P Go? Buffett & Shiller Know…Authored by Brian Livingston via MarketWatch.com, Every trader’s secret wish is to be psychic. If we could only know in advance whether the market was going to go up or down.
Well, good luck trying to predict next year’s return – or even just tomorrow’s. But surprisingly, there are several recognized methods for projecting the S&P 500’s return in the next 7 to 15 years, and they’re pretty good. Decade-length forecasts won’t help any day traders make big profits this week. But longer-term investors can benefit a lot from these forward-looking estimates. Whatever goal you may be saving money for-a kid’s college tuition or a financial-freedom day that may be 10 years in the future – you want the answer to two questions: Are we entering a “go-go decade,” such as 2009-2018, when most stocks grow up, up, up? Or is this the beginning of a “bummer decade,” such as 2000-2009, when stock markets around the world cra … |
![]() | Cohen Agrees To Testify Before Intel Committee After Senate SubpoenaEarlier this week, Michael Cohen delayed his testimony before the House Oversight Committee, which had initially been set for Feb. 7, citing concerns about his family’s safety following what Cohen described as threats issued by President Trump and his lawyer Rudy Giuliani. And before the former Trump Organization attorney-turned government witness could even reschedule, it looks like the Senate Intelligence Committee has jumped at the opportunity to try and be the first to drag Cohen in behind closed doors by issuing a subpoena.
According to the Wall Street Journal, Cohen will appear before the committee for a closed-door meeting on Feb. 12. Though the testimony will be closed, we imagine the details will swiftly leak to the press. The subpoena was issued a day after the chairmen of the House Oversight and Intelligence committees issued a joint statement saying they expected Cohen to testify before their panels, and that not doing so was “never an … |
![]() | Kudlow Leaks January Payrolls, Says Jobs Report Will Be “Up A Significant Amount”Remember when last June, Trump tweeted just ahead of what would be a blockbuster jobs report that he was “Looking forward to seeing the employment numbers at 8:30 this morning”, a tweet which prompted accusations of leaking material, economic news ahead of time especially since the jobs report was indeed impressive:
Well, it now appears that it is Larry Kudlow’s job to leak key economic news (especially with the government shut and many of the regular economic reports no longer hitting), because moments ago when speaking on Fox News, the White House economic advisor – whose primary task in recent weeks has been to appear on TV and halt any incipient market selloffs – Kudlow said that the jobs report for January will be “up” and may show “significant” gains based on the amount of (near record low) jobless claims. Why is Kudlow so sure that the report will be solid? Because, according to Eamon Javers, “the furloughed federal workers will be counted in the next jobs number – in the establishment survey”, in other words, even those who are expressly not working, will be counted toward the payrolls number.
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![]() | Defaulted Venezuelan “Hunger Bonds” Rally As Maduro Clings To PowerAs a growing number of world leaders recognize opposition leader Juan Guaido as the legitimate president of Venezuela, defaulted Venezuelan “hunger bonds” are rallying to their strongest level in more than a year as the brutal socialist regime of Nicolas Maduro – who was sworn in earlier this month for a second six-year term – teeters on the brink of outright collapse.
Venezuela’s 2022 bonds on Thursday halted their biggest three-day rally since October, but the rally so far has been nothing short of stunning, though many LatAm investors have opted to steer clear for now.
While Maduro is still technically in control of the levers of power and the countr … |
![]() | Mark Hulbert: Why denial might be a smart investment strategy5 ways to avoid reacting irrationally to the stock market’s volatility |
![]() | Struggling malls will have a hard time adjusting to more Sears vacanciesMalls that are already in trouble don’t have the money to repurpose vacant Sears space for new, successful tenants. |
![]() | Market Extra: German government bond yields inch closer to zero, defying Wall Street callsDefying calls for the end of the European Central Bank’s bond purchases to spark a selloff in eurozone government bonds, the 10-year German bund is rallying, dragging the yield toward zero. |
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