30Jan2019 Pre-Market Commentary: Wall Street Stock Futures Point To Strong Start On Boeing, Apple Results, DOW Up Over 200 Points, WTI At 53.80

Here is the current market situation from CNN Money

European markets are mixed today. The FTSE 100 is up 1.84% while the CAC 40 gains 0.73%. The DAX is off 0.31%.

McDonald’s delivers global growth as it battles U.S. challenges

McDonald’s Corp beat estimates for quarterly same-store sales on Wednesday, powered by a strong international performance that again made up for weakness in a highly competitive U.S. fast-food market.

GE to combine renewable, grid assets into single unit

General Electric Co on Wednesday said it would consolidate its renewable and grid assets into a single business.

AT&T misses revenue estimates on slower wireless customer growth

AT&T Inc on Wednesday reported quarterly revenues and new wireless subscribers that fell short of Wall Street expectations, sending shares down nearly 3 percent, as its focus shifted to paying down debt from boosting its customer base.

U.S., China launch high level trade talks amid deep differences

The United States and China were set to try again on Wednesday to dig out from a damaging trade war with a new round of high-level talks aimed at bridging deep differences over China’s intellectual property and technology transfer policies.

Boeing profit beats; targets 900 plane deliveries in 2019

Boeing Co topped expectations with both quarterly profit and its forecast for 2019 cash flow on Wednesday, as a boom in air travel underpinned a prediction for full-year deliveries of around 900 commercial airplanes.

Subject to contract: German firms set own Brexit terms

With Brexit less than two months away, and no divorce deal in sight, some German companies are taking matters into their own hands to limit any damage to their businesses.

Alibaba revenue grows at weakest pace in 3 years as slowing China bites

E-commerce giant Alibaba Group Holding Ltd’s quarterly revenue grew at its weakest pace since 2016, as the impact of a slowing Chinese economy and a crippling Sino-U.S. trade war kept buyers away during its top-sale season.

Oil prices rise 1 percent on Venezuela sanctions

Oil prices rose about 1 percent on Wednesday, boosted by concerns about supply disruptions following U.S. sanctions on Venezuela’s oil industry but pegged back by uncertainty over the global economy.

Exclusive: Juul plans India e-cigarette entry with new hires, subsidiary

U.S.-based electronic cigarette company Juul Labs Inc is hoping to launch its products in India by late 2019, a person familiar with the strategy told Reuters, marking one of its boldest bets to expand away from its home turf.

Apple Cuts iPhone Prices For Second Time Ever

After reporting its first-ever dip in holiday season iPhone sales since the pioneering smartphone was introduced 12 years ago, it appears Apple has finally gotten the message that trying to sell $999 smartphones in a world where Samsung and (in foreign markets, at least) Huawei offer models with comparable functionality at a much, much lower price isn’t a savvy business strategy.

Apple will cut iPhone prices for only the second time in the device’s history, Apple CEO Tim Cook told Reuters on Tuesday, adding that the cuts will be restricted to foreign markets where the dollar’s strength has impacted sales (though critics have also questioned the company’s decision to offer $1,000 smartphones beginning with the iPhone X). Cook didn’t specify which markets would be impacted.

Cook said Apple would reset price …

ADP Employment Beats As Manufacturing Jobs Surge Most Since 2012

With the government finally reopened, this Friday brings the much-watched “data” that The Fed is so dependent on (if you believe them). But today we get a sneak-peek as ADP employment (albeit a notable under-forecaster for 4 of the last 5 months)

The January ADP employment change was +213k (well above the 181k expected but down from a revised lower 263k rise in December).

Mark Zandi, chief economist of Moody’s Analytics, said, “The job market weathered the government shutdown w …

Dow Jumps After Boeing Earnings, Outlook Smash Expectations

Boeing shares soared more than 6%, and are set to take out all time highs of $392 after reporting earnings that smashed expectations and unveiling guidance that was far higher than consensus.

Boeing’s annual sales topped $100 billion for the first time in its 102-year history according to Bloomberg, with the US planemaker, whose former employees are now close advisors to President Trump saying even more gains are on tap for 2019 as it bounces back from production snarls with its 737 jetliners.

The company reported 4Q core EPS $5.48, smashing estimates of estimate $4.59, and printing well above the high end of the forecast range ($4.36 to $4.87). Revenue of $28.34 billion also trounced expectations of $26.93 billion (range $25.46 billion to $28.24 billion), with the company reporting a 4Q backlog $490 billion and operating cash flow $2.95 billion.

More importantly, looking ahead the company said that adjusted earnings will be $19.90 to $20.10/share this year as sales climbed across all businesses, far above the analyst consensus of $18.44. Operating cash flow will be as much as $17.5 billion.

Tangentially, it is worth recalling that Trump’s acting defense secretary, Patrick Shanahan, worked at Boeing; additionally Trump’s deputy National Sec …

Global Markets Rise Ahead Of Fed And Trade Talks As Gold Hits 8 Month High

World stocks inched up and the dollar steadied on Wednesday after Apple failed to disappoint investors and reported earnings, meeting Wall Street’s lowered expectations, and sending its stock higher in a muted session as investors braced for a barrage of catalysts, from US-China trade talks and the Fed meeting to an avalanche of corporate earnings. The pound halted a two-day decline and U.K. shares rallied after lawmakers voted to renegotiate Brexit.

The MSCI world equity index was fractionally in the green following gains in Asia overnight and a muted start to trading in Europe. The pan-European STOXX 600 benchmark index was flat.

US equity futures all rose, supported by with Apple shares which extending gains in pre-market trading after first-quarter earnings reassured investors that the worst may be past, although it remains very much unclear if Apple can pivot from a cell phone to a “services” company, especially with services revenue growth slowing sharply. In any case, investors were relieved that there was no more bad news after the company shocked financial markets at the start of this month with a revenue warning that sparked fears that U.S.-China trade tensions were taking a toll …

January 2019 ADP Job Growth Is 213,000

Written by Steven Hansen

ADP reported non-farm private jobs growth at 213,000 which was well above the range of expectations..

The Tell: Here’s how hard China’s slowdown could hit global economic growth

If the U.S. slows alongside China, the global economy could see its weakest expansion in a decade, warn economists at Oxford Economics.

Howard Gold’s No-Nonsense Investing: It’s official: The Trump tax cuts were a bust

Lower taxes helped goose profits and stocks, but did little for jobs or the economy.

Market Snapshot: U.S. stocks point to strong start on Boeing, Apple results; Fed policy update looms

U.S. stock futures indicate a firmer start for Wall Street on Wednesday, led by the technology sector as shares of Apple and Advanced Micro Devices climbed in premarket trading after earnings reports.