Written by Gary
US stocks dipped today as U.S.-China trade worries pressured technology shares (SPY -0.3%). Trump’s attack on China dampens hope of a trade deal.
Here is the current market situation from CNN Money | |
North and South American markets are lower today with shares in Mexico off the most. The IPC is down 0.49% while U.S.’s S&P 500 is off 0.38% and Brazil’s Bovespa is lower by 0.31%. |
Moderate U.S. consumer spending, inflation support rate cut
What Is Moving the Markets
Here are the headlines moving the markets. | |
Under Armour sales growth in North America trails Nike again; shares sinkSportswear maker Under Armour Inc on Tuesday cut its full-year revenue forecast for North America as demand at its stores and online faced pressure from relentless competition from bigger rivals Nike and Adidas. | |
Oil rises on expectations of Fed rate cut, another U.S. crude drawdownOil prices rose on Tuesday, on track to close at a two-week high, on optimism the U.S. Federal Reserve will cut interest rates this week for the first time in more than 10 years, boosting demand expectations in the world’s biggest oil user. | |
Sony surprises with record profit as image sensor demand offsets weak gamingJapan’s Sony Corp surprised the market by reporting on Tuesday a record first-quarter operating profit despite the slowing gaming business, as strong demand for multiple-lens camera systems for smartphones boosted sales of image sensors. | |
Newer drugs help Eli Lilly top Wall Street quarterly profit estimateEli Lilly and Co reported a second-quarter profit that topped Wall Street estimates and raised its 2019 earnings forecast on Tuesday, as higher demand for newer drugs offset increased discounts for the U.S. Medicare program and sales declines of medicines that lost patent protection. | |
P&G posts strong sales, takes $8 billion Gillette writedownProcter & Gamble Co’s quarterly revenue and adjusted profit beat Wall Street expectations on Tuesday, sending shares to a record-high even as the world’s No.1 personal goods company took an $8 billion charge on its Gillette shaving business. | |
Xerox cuts full-year revenue forecast, shares fallXerox Corp posted a better-than-expected quarterly profit on Tuesday, but cut its full-year revenue forecast citing organizational changes, primarily in North America. | |
Wall Street dips on U.S.-China trade tensions, Fed meeting eyedU.S. stocks dipped on Tuesday as U.S.-China trade worries pressured technology shares, while the scale of consensus at the Federal Reserve in favor of deeper cuts in interest rates ate into optimism that drove markets to record highs last week. | |
Under fire, Swiss minister dumps Philip Morris as Expo sponsorSwitzerland scrapped a 1.8 million Swiss franc ($1.8 million) sponsorship deal with Philip Morris International for the country’s pavilion at Expo 2020 in Dubai after being widely criticized for taking tobacco money to promote its image abroad. | |
Trump warns China not to wait for 2020 U.S. election to make trade dealU.S. President Donald Trump on Tuesday warned China against waiting out his first term to finalize any trade deal, saying if he wins re-election in the November 2020 U.S. presidential contest, the outcome could be no agreement or a worse one. | |
Why NIRP Can Only Get NIRPierAuthored by Omid Malekan via Medium.com, Economics is the only profession where the more an idea fails, the more it is believed. Consider the following theory:
If it were true, then a decade of the lowest rates in recorded history would have seen the global economy go gangbusters. Instead it’s been mostly the opposite, leading any reasonable person to at least question this theory.
This kind of defensive argument is popular among failed forecasters. And to be fair, I can’t prove that it isn’t true and low rates didn’t prevent some unforeseen calamity. That’s the beauty of the Hyperbolic Avoided Hypothetical (HAH! for short) and why it has become a favorite of the Central Banking elite. But it’s junk science, because you can’t disprove it either. For example: I just used my superpowers to prevent a zombie apocalypse. Go ahead and prove that I didn’t. (Do you see any zombies? No? You’re welcome.) These twin tendencies of believing an idea that keeps disappointing and justifying it with all the worse outcomes that didn’t happen are the pillars of the global liquidity trap that is slowly pulling us all under. Ten years ago, there was a plausible theory that lower rates were a good idea. When they failed, rates were taken to zero (zero interest rate policy, or ZIRP). When that failed, they were taken negative (negative interest rate policy, or NIRP). At no point was it ever even considered that … | |
US-China Trade Talks Begin At Shanghai’s Most Infamous Celebrity HangoutWhen Steven Mnuchin and Robert Lighthizer meet with their Chinese counterparts in Shanghai this week, few observers expect that a breakthrough will be reach. That includes President Trump, who chided the Chinese in a tweet Tuesday morning to cut a deal before the 2020 election – or risk facing a second-term president with a strengthened popular mandate. But in what appears to be an effort to distract from the lingering tensions over China’s promised purchases of American farm products, or Trump’s promise to remove Huawei from the Commerce Department’s blacklist – neither of which have been kept – Bloomberg reports that the Chinese negotiators are pulling out all of the stops: They will be hosting their American counterparts at the Fairmont Peace Hotel Tuesday evening after the delegation arrives at another hotel on the Bund waterfront shortly after 1:30 pm. The 1920s art-deco building, which used to be known as the Cathay Hotel, was described by Bloomberg as “one of the most celebrated buildings on the Shanghai riverside” and has hosted famous guests including Charlie Chaplin and Noel Coward. The hotel was briefly used as an administrative building during the early years of the People’s Republic. | |
There’s Blood On The Streets Of Baltimore, Homicides Flare-Up, Could See Record YearOut of control gun violence continues to plague Baltimore through mid-Summer, extending a years-long surge in shootings. As of Tuesday morning, 196 people have been killed, if that was from a gunshot wound, stabbing, blunt force, and or asphyxiation. | |
Whalen Warns Of “Imminent Insolvency Of Large Industrial Nations”Authored by Chris Whalen via TheInstitutionalRiskAnalayst.com, With the end of Q2 2019 earnings in sight, there is good news and bad news. The good news is that the rate of change in US bank funding costs is slowing, from 50-60% year-over-year rates of increase to 30-40% or so this past quarter. Indeed, even though the middle of the Treasury yield curve has essentially collapsed, there is no indication that funding costs are following suit. Interest rates in the US remain buoyant outside of the government bond market. | |
The feud between IndiGo founders isn’t over yet. Here’s proofThe feud between IndiGo founders isn’t over yet. Here’s proofRakesh Gangwal and Rahul Bhatia are locked in a bitter battle over alleged corporate governance lapses. | |
CCD founder case: What we know so farCCD founder case: What we know so farSiddhartha, the founder of India’s largest Coffee chain Cafe Coffee Day, is missing since Monday evening. | |
How 3 ex-bankers plan to shake up BollywoodHow 3 ex-bankers plan to shake up BollywoodIndia has become a battleground for global streaming giants from Netflix to Amazon and Hotstar. | |
July 2019 Conference Board Consumer Confidence ImprovedWritten by Steven Hansen The latest Conference Board Consumer Confidence Index’s headline number now stands at 135.7 (1985=100), up from 124.3 in June. | |
June 2019 Pending Home Sales ImprovesWritten by Steven Hansen The National Association of Realtors (NAR) seasonally adjusted pending home sales index improved and now is in expansion. Our analysis shows the year-over-year rate of growth only marginally improved. The quote of the day from this NAR release:
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A review of money flows in popular tech stocks could save you pain this earnings seasonProfessional investors were bearish on Netflix before the company released earnings, money flows showed. Sure enough, the stock tanked after Netflix released its report. | |
Brett Arends’s ROI: You can buy this WeWork rival’s shares at a fraction of the priceIWG, listed in London, has been in business for three decades, is profitable and has almost seven times the number of locations around the world. | |
Kamala Harris proposes cancelling $20,000 in student debt for these low-income borrowers, unleashing Twitter backlashExperts wonder how large of an impact the plan would make on the issues it’s designed to address |
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