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EU elections, Brexit drama and the usual U.S.-China tensions are sending stocks lower this morning.  A flurry of U.S economic reports are also on tap, including the latest weekly jobless claims data, a flash reading of manufacturing and services PMI figures for May, as well as new home sales for April. In corporate news, Medtronic, Best Buy, Hewlett Packard, Intuit are all set to report their earnings for the first quarter. (SA)


Amazon shareholders have rejected a proposal to stop selling the company’s controversial facial recognition technology to governments.  The proposal, which was voted down at the tech giant’s annual meeting, had called for Amazon to stop selling Rekognition to governments until after a review of whether it posed a threat to certain civil and human rights.  A second proposal that called for the company to commission an independent report into the threats posed by the technology was also rejected.  (FT)

 

Domestic data continues to be good:  The number of Americans filing applications for unemployment benefits unexpectedly fell last week, pointing to sustained labor market strength even as the economy slows.  Initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 211,000 for the week ended May 18, the Labor Department said this morning. Data for the prior week was unrevised. (CNBC)

 

Panasonic has become the latest electronics company to scale back ties with Huawei in the face of US export restrictions, a day after mobile phone carriers across the world suspended their plans to launch Huawei phones, and UK chip designer Arm said it would stop licensing essential technology to the Chinese group. Meanwhile, US companies are stepping up their response to the Administration’s China ultimatum. (Bloomberg)

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Target continued to gain the upper hand in the battle for US retail dollars, with its digital investment and aggressive push to offer same-day delivery powering sales for its latest quarter.  The company, whose cheap-chic offerings and stylish celebrity partnerships have garnered a loyal following among middle-class shoppers, saw its shares jumped more than 8 per cent in pre-market trading on Wednesday after it delivered sales and earnings growth that sailed past analysts’ lofty expectations.  Like-for-like sales, a closely followed industry metric, rose 4.8 per cent in the three months to May 4 as shoppers flocked to its stores. The rise marks the eighth straight quarter of same-store sales growth for Target and topped expectations for a 4.1 per cent rise. (FT)

 

Saudi Aramco has announced a deal with Sempra Energy for a 25 per cent stake in the first phase of its Port Arthur liquified natural gas export project in Texas, as the state energy giant seeks to grow its business beyond oil.  The transaction with the San Diego company would also include a 20 year supply agreement from the project, which is still under development, for 5m tonnes per year of the supercooled fuel.  Saudi Aramco is already planning billions of dollars worth of investments in its Port Arthur refinery, the largest in the US. (Alphaville)

 

The calls for 737 MAX compensation are growing as China's three biggest airlines - Air China, China Southern, and China Eastern - requested payments from Boeing for losses incurred by the grounding and delayed deliveries of 737 MAX. China was the first country to ground the jets globally after a crash in Ethiopia killed 157 people in March, in the second such incident for Boeing's newest aircraft. The compensation requests come as the FAA hosts global regulators in Dallas tomorrow to determine when the grounded 737 Max aircraft will return to the air. (SA)

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Home Depot reported a rise in earnings that beat analysts’ expectations in the first quarter -- The Atlanta-based company said net earnings rose to $2.5bn in the first quarter of fiscal 2019, beating expectations and up from $2.4bn the previous year.  The company reported revenue of $26.4bn, a 5.7 per cent increase from the first quarter of 2018.  (WSJ)
 
The sell-off in chipmakers is going from bad to worse.  Semiconductor stocks are facing their biggest monthly drop since the financial crisis as the Trump administration’s crackdown on Chinese technology group Huawei and the continued trade spat between Washington and Beijing heap pressure on the sector.  All 30 members of the Philadelphia semiconductor index, which tracks companies that design, distribute and manufacture semiconductors, were in the red on Monday, dragging the index 3.1 per cent lower this morning and leaving it down by 13 per cent so far this month. That puts the gauge, which trades under the ticker Sox, on track for its worst month since November 2008, when it shed 17.2 per cent.  (FT)
 
Chinese officials continue to warn that the country will retaliate to the U.S. blacklisting of Huawei Technologies Co., while also refusing to be drawn on what form that response might take.  The rhetoric has ramped up, with Chinese state TV playing a steady procession of anti-American movies from the Korean War era, and Tencent was prevented from broadcasting the season finale of Game of Thrones.  (WSJ) 
  
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.
 



It's a rough start to the week for chipmakers as key semiconductor manufacturers cut off supplies to Huawei after the Trump administration added the Chinese company to a trade blacklist last week. Qualcomm, Intel, and Micron are all lower on the news. Google started the trade suspensions over the weekend, leaving Huawei with access only to the open-source version of Android. Nokia and Erikson shares are both higher on the news.  (SA)

 

Japan’s economy unexpectedly grew in the first quarter of the year.  The 2.1% growth rate defied analyst forecasts for a small contraction in gross domestic product The surprise rise in GDP piles pressure on prime minister Shinzo Abe to introduce a delayed change to the country’s consumption tax rate from the current rate of 8 per cent to 10 per cent. (FT)

 

Following talks with the FCC, T-Mobile and Sprint are planning to announce commitments to the U.S. government within days that include asset sales and rural-service guarantees to help secure regulatory approval for their $26.5B merger, Bloomberg reports. Among them: The sale of one of their prepaid brands, a three-year buildout of their 5G network and a reiterated pledge not to raise prices while the network is being constructed. The deal has stoked concerns of reduced competition in the wireless industry because the number of major players would fall from four to three. (Bloomberg)

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Stocks rose yesterday, and are a 3 day win streak as sentiment was boosted by strong earnings from Walmart and Cisco Systems while banks climbed on higher rates.
 
The number of people who applied for unemployment benefits last week fell to the lowest level in a month, dragging new jobless claims back near a post-recession low and suggesting all is well in the U.S. labor market.
 
Construction on new houses rose almost 6% in April, but builders still lagged behind last year’s pace despite a big drop in mortgage rates with the busy spring buying season in full throttle.Housing starts increased to an annual rate of 1.24 million last month.  Economists expected starts to rise at a 1.21 million pace.

 

Shares of Pinterest dropped more than 15%, after the company reported larger losses than expected in its first quarterly earnings report since its initial public offering.  Pinterest reported a net loss of $41 million, or 33 cents a share, on revenue of $201.9 million, up from $131 million a year ago.

 

Boeing said it has completed the development phase of its 737 Max software update, having flown the aircraft with the updated feature for more than 360 hours on 207 flights.  The company said they are hoping for speedy approval of the fix by the FAA.


With Northwest Quadrant Wealth Management, I'm Tyler Simones



U.S. stocks staged a comeback yesterday afternoon after starting the day sharply lower, amid developments in U.S. international trade relations that were being viewed as optimistic by investors who have become increasingly sensitive to tariff headlines.  The market‘s gains were broad, with shares of internet-related and information technology companies climbing the most.

 

Sales at U.S. retailers fell in April for the second time in three months, a sign that Americans are exercising caution over how much they spend with the economy facing increased headwinds.  Retail sales dropped 0.2% last month.   Sales declined in most major segments including automobiles, home centers and internet stores. 

 

The National Association of Home Builders’ monthly confidence index jumped three points to 66 in May. That was the highest reading since October.  The May increase beat consensus estimates for a one-point rise.  Any reading over 50 signals improvement in home building.  Builder confidence slid throughout 2018 as conditions in the housing market darkened, but it's perked up over the past few months.

 

Oregon taxpayers could receive a record-shattering $1.4 billion “kicker” tax rebate next year, state economists told lawmakers during a revenue forecast in Salem yesterday morning.  But Democratic leaders immediately suggested that at least some of the windfall be used to help hedge against a future economic downturn and expand government programs rather than be directed back to taxpayers. 
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones.



Stocks traded higher yesterday, regaining some of the sharp losses from Monday’s trading session, as investors weighed the impact of the escalating trade war between the United States and China.  The market’s signal to the US and China on the trade war is that the countries leaders have wandered into a minefield.

 

Disney is taking full control of Hulu from Comcast, as both companies prepare to launch their own streaming services in response to declining audiences for traditional TV.  The companies said that Comcast, which owns a third of Hulu, can sell its stake to Disney starting in 2024, for a minimum of $5.8 billion. Until then, Comcast will be a silent investor.

 

The small-business optimism index by the National Federation of Independent Business rose to a four-month high in April. The index rose 1.7 points to 103.5, with 8 out of 10 index components increasing.

 

Oregon’s total nonfarm payroll employment rose in April, continuing a recent surge.  According to the Oregon Employment Department the state’s total nonfarm payroll employment rose 3,300 in April, following a gain of 6,500 jobs in March. Monthly gains were strongest in health care and leisure and hospitality, which each added 1,000 jobs. Oregon’s unemployment rate was essentially unchanged at 4.3 percent in April.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones.



US Stocks fell sharply yesterday, with the S&P 500 and Nasdaq having their worst day of the year, after China decided to raise tariffs on some U.S. goods as the ongoing trade war between the world’s largest economies intensifies.

 

Amazon wants its employees to start their own businesses — delivering packages for Amazon.  The company announced a program that will offer employees who quit their jobs $10,000 plus three months’ gross salary to start companies delivering Amazon packages.  The announcement comes just two weeks after Amazon announced it will offer one-day shipping for members of its $119-a-year Amazon Prime program. Amazon said it expected to spend $800 million in the second quarter on implementing that new, faster delivery option.

President Donald Trump’s latest appointee to the Supreme Court joined with liberal justices yesterday to green light a consumer class action accusing Apple of monopolizing the market for iPhone apps.  Justice Brett Kavanaugh, wrote the majority opinion holding that iPhone owners qualified as “direct purchasers” with the right to sue Apple for allegedly monopolizing the market for apps through its App Store.  Apple’s stock fell 6% on the news.

 

Shares of Boeing fell to their lowest since Jan. 7 on jitters the company’s 737 Max family could be grounded longer than Wall Street had anticipated.  The Wall Street Journal reported that the 737 Max planes would not be expected to return to the skies before the end of the summer travel rush.



Broad stock indexes had their worst week of 2019 last week, as it became apparent that President Trump was set to pull the trigger on his threat to raise tariffs on $200 billion in annual imports from China to 25% from 10%.

 

Uber’s public offering last week was a big belly-flop.  Uber fell below its offering price in the initial minutes of its hyped stock-market debut. The car-share company priced its shares at $45 but quickly fell to $41/share.  At that price, the entire company would be worth more than $75 billion, making it the largest to go public since Facebook in May 2012.

 

Goldman Sachs said the cost of tariffs imposed by President Donald Trump last year against Chinese goods has fallen “entirely” on American businesses and households, with a greater impact on consumer prices than previously expected.  The bank said in a note that consumer prices are higher partly because Chinese exporters have not lowered their prices to better compete in the US market.

 

Rising rents and the higher cost of gas in April spawned a sizable increase in inflation for the second month in a row, but price pressures more broadly appeared to pose little threat to the U.S. economy.  The consumer price index rose 0.3% in April, the government said Friday



Investors have held their nerve so far Friday as a sharp escalation in tariffs took effect as negotiations in Washington failed to produce a breakthrough.  Beijing’s commerce ministry said it “deeply regretted” increased US tariffs on $200bn worth of Chinese imports, but expressed optimism that a negotiated settlement could still be reached.  Meanwhile, on Twitter, the President said there’s “no rush” to reach a deal and that the imposition of tariffs will make the US “much stronger”.  (CNBC)

 

Uber has priced its shares at $45 a piece, near the bottom of its indicated $44 to $50 range, after paring expectations following the fraught debut of its rival Lyft and a broader US market sell-off.  The ride-hailing company sold 180m shares to raise $8.1bn in new capital and deliver a total valuation of $82.2bn on a fully diluted basis. This makes it the biggest IPO for a US-based technology company since Facebook in 2012, and the tenth biggest overall US listing in terms of proceeds.  (FT)

 

The latest inflation figures are out -- U.S. consumer prices rose in April but, underlying inflation remained muted.  The Labor Department said its Consumer Price Index increased 0.3% last month, lifted by rising gasoline, rents, and health-care costs.  The persistently low inflation print should help rationalize further stability in interest rates.  (WSJ)

 

The Bend housing market zoomed to another sales price record in April, and so did Redmond, which experienced an even larger jump from a year ago.  The median home sale price in Bend hit $463,000 last month, up $18,000 from March and an increase of more than 11.5 percent from April of last year, according to Beacon Appraisal Group of Redmond.  Redmond’s median home sale price rose to a record $326,000 in April.  April's median sales price in other Central Oregon markets ranged from $510,000 in Sunriver and $428,000 in Sisters to $225,000 in La Pine, $229,000 in Jefferson County/Crooked River Ranch and $250,000 in Crook County.  (KTVZ)


With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Walt Disney eclipsed Wall Street expectations for sales and profits in the first set of quarterly results since closing its blockbuster acquisition of the Fox entertainment empire.  The world’s largest traditional media company reported adjusted earnings of $1.61 a share on sales of $14.9bn. Profits declined from the same period a year ago,but were better than analyst predictions.  Growth in theme parks helped outweigh a downbeat quarter for Disney’s film studio, which still dominated the box office with huge hits like Avengers: Endgame and Black Panther. (FT)

 

The number of Americans filing applications for unemployment benefits fell less than expected last week, a sign the labor market continues to tighten.  Initial claims for state unemployment benefits decreased 2,000 to a seasonally adjusted 228,000 for the week ended May 4, the Labor Department said this morning. Data for the prior week was unrevised. (CNBC)

 

The President amped up rhetoric about a Friday deadline to raise tariffs on Chinese goods with comments at a political rally Wednesday night, sending Asian markets lower. "They broke the deal," he said, but "don't worry about it," suggesting there's "nothing wrong with taking in $100B a year" in tariffs. Doubters already wondered whether a U.S. visit from China's Vice Premier Liu He could avert the new tariffs. (SA)

 

The most-anticipated initial public offering of the year will price after the bell today, with ride-sharing giant Uber Technologies Inc. expected to look at something close to the middle of the marketing range, despite the offer being three-times oversubscribed. Coming just a day after a drivers’ strike, and amid what can only be described as challenging market conditions, the debut of the highly valued U.S. startup will be watched with unusual intensity. (Bloomberg)

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Wall Street is looking to stabilize following yesterday’s sell-off, as Chinese trade negotiators travel to Washington for high-level talks on Thursday and Friday. That leaves at least one more day for markets to contemplate how the talks will turn out and whether the cracks showing in the stock rally are real. It's also possible the rout sparked by the President’s tariff threats won't be bad enough to force a rethink, giving him a green light to impose the new levies. (SA)

 

An increase in the number of people looking for love — or something a little less long term — online via the dating app Tinder underpinned forecast-topping revenue growth for Match Group in its first quarter.  Match said the number of average subscribers across its suite of services, which include Tinder, Hinge and OKCupid, rose 16 per cent in the three months ended March 31 from a year ago, to 8.6m.  Total revenue increased 14 per cent from a year ago to $464m.  (FT)

 

Lyft has told investors 2019 will be its “peak loss year” as the ride-hailing company posted a $1bn-plus quarterly loss and warned revenue growth would slow this year, in its first results as a public company.  The group on Tuesday said its net loss jumped to $1.14bn, or $48.53 a share.  Revenue for the first quarter rose 95 per cent from a year ago to $776m, slightly higher than analyst expectations.  (WSJ)

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Stocks closed marginally lower yesterday after being down more than 2% early in the trading session. The market staged a comeback after the Chinese said they will in fact still travel to the U.S. to continue negotiations this week.
 
U.S. Trade Representative Robert Lighthizer said the U.S. will raise tariffs on China to 25% from 10% on $200 billion worth of goods on Friday morning. Lighthizer reportedly told reporters at a briefing that China was "reneging" on previous commitments in talks and talked of "erosion in commitments," though he didn't say in which areas China backtracked. Lighthizer said he did expect talks to continue with Chinese officials on Thursday and Friday.
 
The U.S. initial public offering market is entering its biggest week since 2015, with at least 15 deals expected to be priced, including that of Uber, the biggest IPO since Alibaba in 2014 and the biggest U.S. company going public since Facebook in 2012.  Uber is expected to price its much anticipated offering on Thursday, just weeks after its ride-sharing rival Lyft, which has had a rocky start as a public company. Lyft’s shares have fallen 15% from their IPO price, given widespread concerns about the company’s ability to become profitable.


Anadarko Petroleum announced that its board had unanimously decided that an acquisition bid from Occidental Petroleum was a better deal than an earlier bid from Chevron.  Chevron has until the end of the week to alter its bid or make another proposal, and stands to receive a $1 billion termination fee. Anadarko shares dipped slightly in late trading after the announcement, but are up more than 60% in the past month as the acquisition talks have been public.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones.



US Stocks traded higher last Friday after a stellar jobs report but were flat on the week.
 
Stocks are set to open sharply lower this morning after President Donald Trump threatened Beijing with increased tariffs.  Trump said in a Sunday afternoon Twitter post that the current 10% tariffs on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% levies on an additional $325 billion of Chinese goods “shortly.”  In response the premier of China said they may back out of trade talks scheduled for this week with U.S. officials.
 
In just two weeks, “Avengers: Endgame”  has garnered more than $2.2 billion worldwide.  This is the fastest a film has ever surpassed the $2 billion mark at the box office.  As of Sunday, “Endgame” is the second-highest grossing film of all time, just behind “Avatar.”

 

We are now 2/3 of the way through 1st quarter earnings season and of the companies that have reported so far 77% have beaten expectations.  The stand outs so far have been the heath care and consumer staple companies with energy being the laggard.

 

This one goes in the genius file.  MIT research scientist Fei Yan was arrested on federal charges of insider trading.  Prosecutors caught Yan because he Googled “how sec detect unusual trade” before he bought numerous stocks and options that netted him around $120,000 in illicit profits.  Federal prosecutors allege that Yan’s profits came from confidential information he obtained from his wife.

 

With Northwest Quadrant Wealth Management, I'm Tyler Simones.



Stocks closed lower yesterday after Fed Chairman Jerome Powell said in a news conference that recently low inflationary pressures may only be “transitory,” dashing speculation the central bank was at least entertaining the idea of an interest rate cut.

 

The Federal Reserve left interest rates unchanged yesterday.  The Fed funds rate influences the cost of borrowing for mortgages and all sorts of consumer and business loans, noting a recent decline in inflation even as the economy continues to grow “at a solid rate.”


More proof that the US labor market is on fire.  The payroll company ADP said that private-sector employers hired 275,000 people in April, which topped economists’ consensus estimate for 180,000 jobs added.

 

Cura Partners the biggest cannabis company to rise in Oregon since the state legalized recreational pot in 2014, has agreed to be acquired in a blockbuster, nearly $1 billion all-stock deal with Curaleaf Holdings, a Massachusetts-based company.

 

We’re halfway through 1st quarter earnings season and of the companies that have reported so far 77% have beaten Wall St estimates.

 

With Northwest Quadrant Wealth Management, I'm Tyler Simones



U.S. stocks traded mixed yesterday, as investors reacted to disappointing sales figures from Google-parent Alphabet, which weighed on technology shares.


Shares of Apple are higher after they reported earnings for the 1st quarter that fell in line with expectations, although revenue was down from the same period last year. However, Apple’s guidance for next quarter was higher than analysts expected, and it said it planned to spend $75 billion buying back its own shares.


The S&P Case-Shiller 20-city home price index rose a seasonally adjusted 0.2% in February compared to January and was 3.0% higher compared to a year ago. That was the slowest pace of annual growth since September 2012 and shows national home price growth coming back to earth.


Consumer confidence bounced back in April, suggesting the economy is likely to keep growing solidly through the summer.  The consumer confidence index rose to 129.2 from 124.2, showing American consumers feel pretty good about how the economy is doing right now, and they see good times continuing over the next six months.


Rebuilding the country’s aging infrastructure is one of the few bipartisan issues they can seem to agree on in Washington.  Yesterday President Donald Trump and leading Democratic lawmakers agreed a plan to overhaul U.S. infrastructure to the tune of $2 trillion.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones
 



The S&P 500 reached an all-time high yesterday, but the trading session’s gains were kept in check as investors braced for a busy week including a flurry of corporate earnings reports, economic data and an announcement from the Federal Reserve regarding interest rates.

 

Shares of Google’s parent company Alphabet reported earnings that came up short of expectations as all of its major sales categories performed slightly worse than projected in the first quarter, and yet another big fine out of Europe dinged the company’s earnings.  Google’s parent company reported first-quarter earnings of $6.66 billion, or $9.50 a share, on revenue of $29.48 billion.  Shares of the stock traded lower on the news.

 

Consumer spending surged in March, adding to the sense the economy is on strong footing, while core inflation weakened.  Spending jumped 0.9% in March after a 0.1% gain in February. This was the largest monthly gain in almost ten years.  The closely followed core inflation rate was flat in March, knocking the yearly rate down to 1.6% from 1.7%. This is the lowest rate since September 2017. Personal incomes, meanwhile, increased 0.1% in March and remained on a moderate growth path.

 

One of the nation’s largest homebuilders, D.R. Horton, is doing business in Central Oregon for the first time since 2011.  The Texas-based company bought 49 lots in the Stone Creek neighborhood in southeast Bend and has several homes under construction.  D.R. Horton’s return is noteworthy because the homebuilding scene in Central Oregon is dominated by local companies, though two of them — Hayden Homes and Pahlisch Homes — work in multiple states. 

 

With Northwest Quadrant Wealth Management, I'm Tyler Simones



US Stocks traded higher last week and are at record highs on the back of better-than-expected economic and earnings reports.   This week is the busiest week of first-quarter earnings season, with 150 S&P 500 constituents reporting in the days ahead. 
 
Shares of Disney are trading higher after the Marvel blockbuster “Avengers: Endgame” shattered the record for biggest opening weekend with an estimated $350 million in ticket sales domestically and $1.2 billion globally, reaching a new pinnacle in the blockbuster era that the comic-book studio has come to dominate.    
 
Rates for home loans ticked up slightly, a reminder that the easy-money era for mortgages will likely have to end at some point.  The 30-year fixed-rate mortgage was up three basis points during the week and marked the fourth straight weekly rise for the popular product. The 15-year fixed-rate mortgage averaged 3.64%, up from 3.62%.
Consumer sentiment slipped slightly in April while personal finance outlook hits 15-year high.  The number of people who think their financial prospects for the year ahead will improve has reached the best level since 2004.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones



The US economy kicked off the new year with a bang, overcoming a prolonged government shutdown, trade tensions and a global economic slowdown to deliver first-quarter growth that trounced analysts’ estimates.  Gross domestic product rose at an annualized pace of 3.2% during the first three months of the year, an initial reading from the commerce department showed on Friday, handily topping Wall Street predictions for 2.3% growth. It is also a leg up from the 2.2% pace of expansion recorded during the fourth quarter. (CNBC)

 

Uber is reportedly aiming for an IPO valuation of as much as $90B, seeking to price its shares in the $44-$50 per share range and hoping to raise $8B-$10B. Uber is expected to make the price range public in a filing later this morning, which is likely to also include news of a roughly $500M investment in Uber by PayPal.  PayPal already partners with Uber on processing its fares. (WSJ)

 

Amazon reported first-quarter profit yesterday of $3.6 billion, or $7.09 a share, on sales of $59.7 billion, doubling earnings per share from a year ago.  The company has committed to bringing one-day shipping to its Prime customers, as the company predicted a sharp decrease in operating profit next quarter.  Amazon Web Services, the company’s cloud-computing arm, grew profits nearly 40%.  (Marketwatch)

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Earnings results have been mixed so far this morning, with 3M reporting it missed expectations and plans to shed 2000 jobs globally.  The conglomerate, whose products range from Post-it notes and Magic Tape to the reflective material for road signs, pointed to slowing economic conditions in key markets like China.  On the positive side, Southwest Airlines reported better than expected first-quarter results despite being hit by a plethora of problems during the period — not least the crisis that has led to the grounding of the Boeing 737 Max aircraft. (FT)

 

A slew of earnings are on deck today, including updates from Amazon, Intel ,Starbucks, Ford, Comcast), UPS, AbbVie, and Altria.

 

The business-messaging application Slack plans to make public its prospectus for a direct listing on the stock market as soon as this week, the Wall Street Journal reports. The messaging platform submitted its filing to regulators confidentially in February. The document will show that the company is on track for about $500M in annual revenue this year and that it's unprofitable because it continues to spend money for growth. Expectations will no doubt be buoyed by the performance of similar SaaS companies so far this year. (SA)

 

Turning to the economic data, initial claims for unemployment benefits jumped to 230,000 – the largest increase since September of 2017.  Claims tend to be volatile this time of year due to the Easter holiday and spring break.  Orders for durable goods—products designed to last at least three years, such as computers and machinery—jumped 2.7% in March from the prior month to a seasonally adjusted $258bn.  Through the first three months of 2019, demand for durable products was up 3%, compared with the same period a year earlier. 

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.
 



Boeing has revealed it suffered a hit of more than $1bn of revenues from the worldwide grounding of its troubled 737 Max aircraft.  This morning the company withdrew its previous financial guidance for the year because it cannot predict when the Max, its biggest cash generator, will return to service.  First-quarter revenues fell to $11.8bn from $12.9bn last year. Boeing said that reflected lower deliveries of 737 aircraft that were offset by higher margins on other planes.  (FT)

 

AT&T reported a first-quarter revenue miss this morning as its premium TV and streaming service lost subscribers while the telecoms group said it was on track to meet its debt-reduction goals.  The Texas-based company said revenues rose 17.8 per cent from a year ago to $44.8bn, primarily driven by its acquisition of Time Warner.  The company lost 544,000 premium TV subscribers, which brought its total to 22.4m, but phone subscriptions increased by 80,000.  (Alphaville)


The S&P 500 and Nasdaq Composite clocked fresh closing highs on Tuesday, driven by a strong batch of corporate earnings. The S&P 500 ended up 0.9 per cent higher at 2,933.68, nearly 3 points above its previous peak close on September 20, and just off its intraday high. It was a similar story for the Nasdaq, up 1.3 per cent yesterday to 8,120.82, a level that took it past its previous peak close from August last year. (WSJ)

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Stocks ended yesterday’s trading session mixed as investors face a big week for corporate quarterly results and economic data following an extended holiday weekend. Investors were also monitoring a jump in crude-oil prices as the U.S. said it would end waivers for countries that import Iranian crude oil.
 
The Trump administration moved to broaden Iran’s economic isolation on Monday by announcing it would fully enforce sanctions that were imposed last fall and stop allowing five large nations to buy Iranian oil with the ultimate goal of imposing full economic isolation on Iran.  The price of oil jumped 3% on the news. 
 
The number of existing-homes sold dropped nearly 5% in March as the on-again-off-again housing market retreats.  The median price of a home sold in March was $259,400, a 3.8% increase versus a year ago. At the current pace of sales, it would take 3.9 months to exhaust available supply, still well below the long-time average of 6 months.
 
Shares of Kimberly-Clark rose 5.4% after the company reported strong first-quarter earnings. The parent company of Kleenex, Huggies and Kotex reported $1.66 per share versus the expected $1.54 per share.

With Northwest Quadrant Wealth Management, I'm Tyler Simones



Futures are lower after the Easter long weekend that could make today a quiet lull before one of the busiest weeks of the earnings season. Earnings reports before the bell today include Halliburton and Kimberly-Clark, while Whirlpool and Celanese are among those reporting after the close. Big names printing later in the week include Procter & Gamble, Twitter, Facebook, Microsoft, Tesla, Amazon, Ford, and Chevron. (SA)

 

First-quarter revenue at Huawei rose 39 per cent from the previous year to Rmb179.7bn ($26.8bn), an increase that suggests US efforts to persuade countries to ban the Chinese group’s telecoms equipment from their 5G networks have not tempered growth.  Huawei is privately held and the latest figures, the first quarterly numbers it has published, are unaudited. (FT)

 

Shares in railroad stocks are trading near all-time highs after a trio of America’s largest train operators steamrollered earnings forecasts late last week, backed by higher shipping rates.  Union Pacific, CSX and Kansas City Southern cheered investors with first-quarter results that benefited from price hikes and cost efficiencies, which offset the financial impact of disruptive winter storms and record Midwest flooding that caused billions of dollars in damage in the region. (WSJ)

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



US Stocks finished the week marginally higher on the heels of a slew of economic reports and earnings season in full swing.  US Markets are closed today in observance of the Good Friday Holiday.

 

The labor market continues to flex its muscle.  The number of people who applied for unemployment benefits in mid-April fell for the fifth week in a row to a nearly 50-year low of 192,000, a remarkably small level of layoffs that gives the economy a sturdy foundation on which it can continue to grow despite recent hiccups.

 

Sales at U.S. retailers surged in March by the most in a year and a half, the latest in a string of reports suggesting the economy is firming up after a soft spell of growth earlier in the year.  Retail sales soared 1.6% last month after slumping in the 1st quarter.


Two big tech IPO’s started trading yesterday on the NYSE and the NASDAQ.  Zoom Video Communications soared over 75% in trading giving the company a value of over $10 Billion.  A year ago, the company was valued at less than $1 Billion in a private funding round.  Shares of Pinterest also soared over 25% in their first day of trading giving them a $10 Billion valuation.  Wall St. is starting to feel frothy.

 

US Markets are closed in observance of the Good Friday Holiday.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones



U.S. stocks closed lower yesterday as the health-care sector slumped on concerns over potential adverse impact from future policy changes. Investors also parsed a steady stream of corporate earnings and the latest snapshot of the economy via the Federal Reserve’s Beige Book.
 
The social media company Pinterest raised $1.43 billion in its IPO yesterday after pricing the offering at $19 a share, valuing the company at $10 billion.  Pinterest, which is expected to start trading today on the New York Stock Exchange, had originally given a pricing range of $15 to $17. But investors appear to be showing an appetite for the social media companies.
 
The National Association of Home Builders’ monthly confidence index rose to 63 in April.  Any reading over 50 signals improving conditions.  Housing analysts remain optimistic about the housing market. Mortgage rates remain low, uncertainty around the 2017 tax law changes is receding, and macro conditions support homeownership for many more Americans.

 

Shares of Pepsi the beverage and snack company rose 3.8% after it beat Wall Street’s estimates in its first-quarter financial report. Pepsi reported earnings per share of 97 cents, while analysts polled by Refinitiv expected a profit of 92 cents.


With Northwest Quadrant Wealth Management, I'm Tyler Simones


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