George Noorey

ON AIR NOW

George Noorey

10:00pm - 12:00am

Contact
Business News


Stocks dipped yesterday as investors sift through a slew of 2nd quarter earnings reports.


Amazon’s 2019 Prime Day was its biggest sales event yet.  The company said it sold more than 175 million items over the course of the event, up from 100 million items last year.  Amazon-branded electronics including the Echo Dot, Fire Stick, and other Alexa-enabled devices were among the top-sellers.  Meanwhile, third-party sales volume topped $2 billion during this year’s Prime Day, up from $1.5 billion last year.


Construction of new houses fell slightly in June and permits sank to the lowest level in two years, suggesting a sluggish U.S. housing market has failed to gain much momentum from lower mortgage rates.  Housing starts slipped 0.9% to an annual pace of 1.25 million last month. That’s how many homes would be built in 2019 if construction took place at same rate over the entire year as it did in June.


Shares of railroad giant CSX fell sharply after the company reported earnings that missed expectations.  The CEO of the company said on the earnings call that the US economy was the most puzzling he has experience in his career.


Shares of United Airlines are higher after the company reported revenue and earnings that topped expectations.  The company also increased their stock buyback program to $3 Billion
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones.



Stocks slipped from record highs yesterday after President Trump said that we have a long way to go on trade talks with China.

Four of the major US Banks JP Morgan, Goldman Sachs, Wells Fargo, and Bank of America all reported earnings results that beat analysts expectations.  On the earnings conference calls all of the companies mentioned the trade war and the Fed cutting interest rates as reasons for declining revenues later this year.

Sales at U.S. retailers rose solidly in June for the fourth month in a row, pointing to a strong rebound in consumer spending in the second quarter that suggests the economy is not as fragile as the Federal Reserve apparently believes.  Retail sales increased 0.4% last month, the government said Tuesday. Economists polled by MarketWatch expected a 0.1% gain.

Oregon’s unemployment rate has been at or near a record low for almost three years. That trend continued in June, according to the latest figures released by the state.  The unemployment rate in Oregon for June was 4.1%, according to economists with the Oregon Employment Department. The rate for May was 4.2%. The record low, for data going back to 1976, was 4% in May 2018.  For 32 months, or since November 2016, Oregon’s unemployment rate has been between 4% and 4.4%.

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



Back to school time is the second busiest shopping period of the year and is projected to be flat compared to a year-ago. Spending for back-to-school clothing, school supplies and electronics for children in grades K-12 is expected to reach $27.8 billion this year. (Deloitte survey)

 

Shares of Helen of Troy, owners of Revlon, Vicks and Hydro Flask is raising their forward earnings guidance. The company also beat earnings and revenue expectations in announcing quarterly results. (CNBC)

 

President Trump is considering firing Commerce Secretary of Commerce Wilbur Ross. (NBC News) 

 

Second quarter earnings season gets rolling this week with nearly 60 S&P 500 Index companies reporting results. Consensus estimates are calling for a slight year-over-year decline in S&P 500 earnings amid the downshift in U.S. and international economic growth, tariffs, and ongoing trade tensions. (FactSet)

 

More than 1 million children were victims of identity theft or fraud in 2017, according to a report from Javelin Strategy & Research. Two-thirds of those affected were age 7 or younger.

 

With Northwest Quadrant Wealth Management on Troy Reinhart.
 



After more dovish communications from Federal Reserve officials sent U.S. stocks to record highs last week, second-quarter corporate earnings results that start this week will pose the next test for investors.
 
China's gross domestic product rose 6.2% in the second quarter from a year earlier, the slowest pace in at least 27 years.  The GDP figure comes as the world’s second largest economy remains locked in a trade war with the U.S.
 
Amazon kicked off its fourth annual blockbuster Prime Day sale at midnight, promising “more than one million deals globally” for products from Alexa-enabled devices to goods from many of the company’s third-party sellers.
 
China's trade with the United States plunged last month amid a tariff war.  Imports of US goods fell 32% over the same period last year, while exports to the American market fell 8%.  China's trade surplus with the US widened by 3%, giving critics ammunition to demand Washington take a hard line with Beijing.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones.
 



Markets have a July rate cut from the Federal Reserve as the base case following Chair Jerome Powell’s two-day testimony to Congress. Two regional Fed governors are pushing back, with Atlanta’s Raphael Bostic and Richmond’s Thomas Barkin disputing the need for stimulus right now. Each of them cited the Dallas Fed’s measure of inflation which has come in close to 2% in recent months. As neither of them are voting on the FOMC this year, their arguments could well get lost as Powell gets on with being the world’s central banker. (Bloomberg)

 

Shares of pharmacy benefit managers and other healthcare players soared on Thursday in reaction to the administration's reversal of its proposed overhaul of rebates collected by the drug middlemen. At this juncture, the administration is moving forward with its plan to tie Medicare reimbursement for drugs to the lowest prices paid elsewhere. The news came days after a federal judge dealt a blow to the White House by striking down a rule that would have forced pharmaceutical companies to disclose the list price of their drugs in TV ads. (SA)

 

Crude prices are headed for their biggest weekly gain in three as simmering Middle East tensions, shrinking U.S. crude inventories and Tropical Storm Barry in the Gulf of Mexico threaten the supply outlook. Despite the developments and recent rollover of an OPEC-led output cut, the IEA is forecasting another oil glut in 2020. "This surplus adds to the huge stock builds seen in the second half of 2018," the agency declared, adding that "market tightness is not an issue for the time being" but predicting growth of 1.4M barrels per day next year (from 1.2M bpd in 2019). (WSJ)

 

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



France’s Senate has approved a tax on the revenues of tech giants like Google, Amazon, Facebook and Apple, defying a warning from President Donald Trump's administration that it “unfairly targets American companies.” The administration has launched an investigation into the 3 per cent digital services tax, which is to be imposed on digital businesses with revenues exceeding €750m globally and €25m in France. The unilateral move by Paris could result in tariffs on French wine or cars though both sides would likely seek a negotiated settlement first.  The US has lobbied aggressively to block taxes on tech companies’ revenues. But France and other EU countries have pursued national-level duties after a pan-Europe effort stalled earlier this year. (FT)
 
The last Volkswagen Beetle has rolled off the assembly line in Mexico's central Puebla state, serenaded by a mariachi band and surrounded by proud factory workers. It marks the end of the road for an iconic car that began in Germany in the 1940s through the hippie counterculture in the 1960s, but failed to navigate a current swerve in consumer tastes toward SUVs. The Puebla factory, which already produces VW's Tiguan SUV, will make the Tarek SUV in place of the "bug" starting in late 2020. (SA)
 
U.S. underlying consumer prices increased by the most in nearly 1-1/2 years in June amid solid gains in the costs of a range of goods and services, but will probably not change expectations the Federal Reserve will cut interest rates this month.  The Labor Department said on Thursday its consumer price index excluding the volatile food and energy components rose 0.3% last month.  There were also increases in the cost of healthcare and rents. In the 12 months through June, the core CPI climbed 2.1%
 
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Jay Powell, the chairman of the Federal Reserve, has cemented the case for the US central bank to cut interest rates based on mounting risks to the US economic outlook, in dovish testimony to Congress that could fuel expectations of a looming monetary easing.  Despite a strong jobs report for the month of June and last month’s new truce in the trade war between the US and China, Mr Powell said “uncertainties about the outlook have increased in recent months”, particularly internationally. (FT)

 

Something interesting is happening in the media landscape, where Netflix is becoming the incumbent, and the challengers are established firms that have been around for nearly a century. Disney, Warner Media, and NBCUniversal are all launching direct-to-consumer streaming services by the first quarter of 2020, and the race is heating up over content. The latest move has seen Warner Media pull Friends off Netflix in 2020 when it debuts its service, HBO MAX, and comes shortly after Netflix lost The Office to NBC Universal coming 2021. (SA)

 

After achieving record deliveries in the second quarter, Tesla is getting ready to increase EV production at its factory in Fremont, California. Tesla has said it plans to produce "significantly" more than the 360,000 to 400,000 vehicles expected to be delivered in 2019, easing concerns over demand for the company's electric cars.


Elon Musk’s automaker impressed Wall Street with record second quarter sales numbers yet analysts remain cautious, focusing instead on the company’s upcoming earnings report. Tesla is expected to report second-quarter earnings on Aug. 7. (CNBC)

 

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



Jerome Powell has stepped up to the starting line, with a marathon of speeches over the next three days ranging from comments at the Boston Fed to his semiannual monetary policy testimony to Congress. Today, he's scheduled to give opening remarks at a conference discussing the effectiveness of bank stress tests. While traders have priced in a 100% probability of a Fed rate cut in July, expectations for a more aggressive cut have been tempered by the strong jobs report released Friday. (SA)

 

Levi Strauss releases earnings figures The 166-year-old jeans maker releases second earnings after the market closes. Shares in the San Francisco-based group have only risen 0.5 per cent since its initial public offering on March 21, compared with a 7 per cent rise for the broader S&P 500. Alongside its first set of earnings as a public company, which were released in April, the company outlined plans to open 100 new stores. (Barron’s)

 

Richard Branson’s Virgin Galactic has announced plans to go public via a New York cash shell led by former senior Facebook executive Chamath Palihapitiya.  Virgin Galactic, which aims to take passengers into space, said this morning that it would merge with a cash shell led by Mr Palihapitiya, which was launched in 2017 and is publicly traded in New York. Virgin Galactic said the company would have an enterprise value of about $1.5bn.  The cash shell is an alternative way to bring technology companies to the stock market without the hassle of an initial public offering. (FT)

 

PepsiCo shares are higher this morning  after the company’s second-quarter earnings topped estimates, as healthier snacks and sparkling water helped fuel sales growth and offset a drag from foreign exchange.  As consumers drink less soda, Pepsi has turned to higher-growth beverage categories instead, releasing energy drinks like Mtn Dew Game Fuel and jumping in on the sparkling water trend with Bubly. (CNBC).

 

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



Stocks have stuttered and the dollar is circling a three-week high this morning while investors reassess their expectations for the pace of Federal Reserve interest rate cuts.  The cautious trading pattern comes with Jay Powell due to offer two days of testimony on monetary policy before Congress, starting on Wednesday. Minutes are also due then from the Fed’s last rate-setting meeting, at which policy was left on hold.  While a rate cut at this month’s policy meeting is expected, hopes for one of 50 basis points looked misplaced after a significantly stronger-than-expected jobs report on Friday. (WSJ)
 
While Deutsche Bank had once sought to compete with America's big banks on Wall Street, the German lender has been pummeled by scandals, probes and massive fines stemming from the financial crisis and other issues in recent years. The latest overhaul will see Deutsche exit the global equities business and shed 18,000 jobs, booking charges of €7.4B through 2022, while it won't pay a dividend this year or next. The German bank also expects to report a net loss of €2.8B for the second quarter, before it narrows its focus on serving European companies and retail-banking customers. (SA)
 
In another setback for Boeing, Saudi Arabian budget airline Flyadeal said it will cancel its order for up to 50 737 Max jets, a deal worth $5.9B when it was announced last December. The low-cost carrier will instead buy up to 50 A320neo planes and become an "all-Airbus fleet," marking one of the first tangible signs the 737 Max crisis could shift business to Boeing's European rival. (FT)
 
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



The meeting between President Donald Trump and China’s Xi Jinping at the G-20 might have been enough to pause the trade war, but it seems that finding a lasting peace is no easier than it was before the summit. China’s pre-condition is a removal of all tariffs placed on its goods, with state media saying talks will “go backward again” without the U.S. agreeing to that step. Trade spats are starting to spread beyond the U.S.-China faceoff, with the long-standing grudge match between Japan and South Korea among those that are beginning to re-emerge. (Bloomberg)

 

Payroll growth rebounded sharply in June as the U.S. economy added 224,000 jobs amid concerns that both the employment picture and overall growth picture were beginning to weaken. The unemployment rate edged up to 3.7%. Economists surveyed by Dow Jones had expected nonfarm payrolls to rise by 165,000 after and the unemployment rate to hold steady at 3.6%. May’s initially reported growth of 75,000 had raised doubts about the durability of the record-setting expansion that began a decade ago. (CNBC)

 

Workers in the Bend-Redmond Metropolitan Statistical Area had an average hourly wage of $23.27 in May 2018, about 7 percent below the nationwide average of $24.98, according to U.S. Bureau of Labor Statistics.  When compared to the nationwide distribution, local employment was more highly concentrated in 8 of the 22 occupational groups, including food preparation and serving related; construction and extraction; and building and grounds cleaning and maintenance. 

 

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



Stocks were little changed yesterday after the U.S. threatened a new wave of tariffs on European goods, dampening recent optimism surrounding the Washington-Beijing trade truce.

 

Drivers should pay about a dime less per gallon for gasoline over the Fourth of July holiday than last year, even with a major refinery outage and new taxes in about a dozen states.  A record 41.4 million people are expected to travel on the nation’s roadways over the long holiday weekend, an increase of 4% from 2018, according to AAA, and even with the shutdown of the largest East Coast refinery, gasoline should be plentiful.
 
Anheuser Busch Inbev - The brewer’s stock jumped 2% after announcing that it is looking to raise as much as $9.8 billion from a Hong Kong listing, in what would be the world’s largest initial public offering of the year. The IPO would give Budweiser Asia, which has a portfolio of more than 50 beer brands in the region, a market capitalization of up to $63.7 billion.

 

According to the Commerce Department outlays for U.S. construction projects fell 0.8% in May at a seasonally adjusted annual rate of $1.3 trillion. That's the biggest drop since November.

 

With Northwest Quadrant Wealth Management, I'm Tyler Simones



U.S. stocks pared back early gains yesterday, including a new intraday high for the S&P 500, but were still up on the day after Washington and Beijing agreed to refrain from escalating their trade dispute.


As July starts, the current U.S. economic expansion is crossing an invisible line: At 121 months, it's officially the longest period of growth in U.S. history, and records for US GDP growth in the US go back to 1854.  One of the things that has made the current expansion the longest on record is its slow, gradual nature. Average annual GDP growth has been lower in this expansion than in the previous three.
 
U.S. manufacturers grew in June at the slowest pace in more than two years, hurt by trade tensions with China and Mexico and weak exports.  The Institute for Supply Management said its manufacturing index slipped to 51.7% in June from 52.1% in the prior month.  Readings over 50% indicate more companies are expanding instead of shrinking, but the index has fallen three months in a row and is well off recent highs.


Oregon’s minimum wage is set to rise again this month, and much of the impact will be seen in restaurants.  In Deschutes County, the minimum wage will rise from $10.75 per hour to $11.25 per hour. In the Portland metro area, the minimum wage will be $12.50 per hour. In rural counties, including Crook and Jefferson, it will be $11 per hour.  Few jobs in Central Oregon pay minimum wage, but those that do are concentrated in hospitality, one of the region’s largest industries, according to the Oregon Employment Department.

 

With Northwest Quadrant Wealth Management, I'm Tyler Simones



US Stocks finished slightly lower last week but posted their best June return in 80 years with the S&P 500 7% higher.  Stocks had a great first half of 2019 with the S&P 500 posting a 17% gain and the tech heavy NASDAQ 21% higher.
 
President Trump and President Xi Jinping of China managed to get trade talks back on track this past weekend, but an even tougher job lies ahead—appeasing hard-line factions within their own governments demanding they give no quarter.  President Xi faces party leaders and executives of state-owned enterprises who believe Washington is out to demolish the government-led economic model that is responsible for China’s emergence as a global power.  Mr. Trump, for his part, faces skepticism from some Republican and Democratic lawmakers who worry he will give up too much in any deal, as well as wariness among some of his own appointees.

 

J.P. Morgan Chase, Goldman Sachs, Citigroup — Shares surged more than 2% after the Federal Reserve said all major U.S.-based banks passed the central bank’s annual stress test. The banks also got approval to hike their quarterly dividends and increase buybacks.

 

The University of Michigan said the final reading of its consumer sentiment index in June was 98.2, down from the 100 reading in May.  Wealthier Americans were rattled over tariffs. Households with incomes in the top third of the distribution were responsible for the decline.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones



The U.S. lead M&A globally in the second quarter of 2019 as companies seized on strong equity and debt capital markets to agree on mega combinations. Among the top deals were the $121B agreed merger of United Technologies with Raytheon, AbbVie's $63B agreement to acquire Allergan, and Occidental Petroleum's $38B deal to buy Anadarko Petroleum.  U.S. M&A totaled $466B in Q2, down just 3% from a year ago, while deal-making in Europe plunged 54% to $152B and Asia M&A dived 49% to $132B. (SA)

 

All 18 banks – including Deutsche Bank AG which repeatedly failed past exams – passed the Federal Reserve stress tests, with many of the largest lenders in the U.S. announcing increased payouts to shareholders in the wake of the results. The total from dividends and buybacks will hit $173 billion, a record high amount for the group. Shares in Deutsche Bank gained more than 4% in German trading, while JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. all showed pre-market rises of around 2%. (Bloomberg)

 

Nike reported earnings after the bell yesterday – shares initially fell on the news after-hours, but have now turned higher. The largest company based in Oregon earned 62 cents a share in its fourth quarter ended May 31, slightly missing analyst expectations.  Nike said strong sales growth was offset by higher expenses and higher taxes.  Nike earned $989 million in the quarter, on total revenue of $10.2 billion, 4 percent higher than the same period last year. It was the first time Nike cracked the $10 billion mark for quarterly sales. (Oregonian)

 

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



Ahead of their G20 meeting in Osaka, President Xi plans to present President Trump with a set of terms the U.S. should meet before China is ready to settle their market-rattling trade confrontation, WSJ reports. Among the preconditions, Beijing is insisting that Washington remove its ban on the sale of American technology to Huawei and also wants the U.S. to lift all punitive tariffs. The nation additionally wants the Trump administration to drop efforts to get China to buy even more U.S. exports than Beijing said it would when the two leaders last met in December. (SA)

 

Wall Street’s biggest banks did well when the first round of the Federal Reserve stress test results were released last week. The second round of those tests is due today, including the Comprehensive Capital Analysis and Review (CCAR), which will set out how much the banks can return to investors in dividends and buybacks. Analysts are predicting a higher payout than last year due to the promising first round results. (Bloomberg)

 

After getting the green light from U.S. regulatory authorities last month, IBM is expected to win unconditional EU approval today for its largest ever takeover, a $33B bid for open-source provider Red Hat.  The deal would expand the firm's subscription-based software offerings to counter slowing software sales and waning demand for mainframe servers. It would also help IBM catch up with Amazon, Alphabet, and Microsoft in the fast-growing cloud computing business.

 

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



Stronger-than-expected earnings from Micron Technologies helped boost investor sentiment overnight as the semiconductor maker stuck to its forecast of a second half rebound in the memory chip market, and resumed shipments to Huawei, sending shares up 10% premarket. Qualcomm and Intel have also started shipping some components to the blacklisted Chinese tech giant.  Even when businesses have headquarters in the U.S. they may be able through ownership of overseas subsidiaries and operations to classify their technology as foreign.  This one is likely to play out in the courts… (SA)

 

New orders for key U.S.-made capital goods rose more than expected in May and shipments increased solidly, suggesting some stabilizing in business spending on equipment after it fell early in the year.  The Commerce Department said on Wednesday orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 0.4% last month and 2.3% year-on-year amid increases in demand for machinery, and computers and electronic products. (CNBC)

 

Drive.ai, a self-driving startup that was once valued at $200M – spare change to Tim Cook -- has been scooped up by Apple as well as dozens of its engineers. The deal confirms that Apple hasn't given up its autonomous driving project, called Project Titan, which has gone through its own struggles. Drive.ai talked with multiple possible acquirers, but only Apple was left as a possible suitor. 

 

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



The US dollar continues to lose ground this morning amid rising expectations of rate cuts by the Federal Reserve, boosting other major currencies ahead of speeches by several fed officials this week. Markets are pricing in at least a 40 per cent chance of two rate cuts before the end of this year, according to Fed fund futures.  As a result, major currencies have been buoyed despite global central banks beginning to signal the start of a fresh easing cycle.  Markets are watching closely as Jerome Powell is set to discuss the US economy at an event at the Council on Foreign Relations in New York today. (FT)

 

Pharmaceutical maker AbbVie has agreed to buy Allergan, the Irish-domiciled maker of Botox, in a $63bn deal that is the sector’s latest blockbuster transaction driven by the need to replenish drug pipelines.  AbbVie is betting the acquisition will improve its offering as Humira, the world’s best-selling treatment for inflammatory diseases, is set to face competition from generic versions as the drug goes off patent in the US. The deal will see AbbVie pay $188.24 for each share of Allergan, and the offer values Allergan at a 45 per cent premium to its closing price a day earlier. (FT)

 

President Donald Trump’s announcement of sanctions on Iran’s supreme leader, Ayatollah Ali Khamenei, seem to be a tactic aimed at annoying Iranians rather than doing any real damage to the country’s already battered economy. If that was the idea, it has been a complete success, with state media saying the move has permanently closed the diplomatic path. Oil, which had risen strongly on tensions in the region, was broadly unchanged this morning as traders do not see much escalation in the latest diplomatic wrangling, while looking for more details on a possible output deal from OPEC.  (Bloomberg)

 

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



Cutting its profit forecast for the third time in a year, Mercedes parent Daimler has warned investors that Q2 earnings will take a "high three-digit-million" hit due to higher-than-anticipated financial fallout of alleged diesel emissions manipulation. Shares fell the most in over four months on the news, sliding as much as 4% in European trading overnight. The profit warning comes at a highly politically sensitive moment, with the new Daimler CEO meeting Chancellor Angela Merkel in Berlin this week to discuss the future of the German car industry and the transition to electric vehicles. (SA)

 

Two senators from opposing sides of the aisle will introduce legislation today to call on tech giants to disclose the value of their users' data, Axios reports. Sens. Mark Warner and Josh Hawley will bring forward the DASHBOARD act (Designing Accounting Safeguards to Help Broaden Oversight and Regulations on Data), calling on major platforms like Facebook, Google, Amazon, and Twitter to disclose to users the types of data collected, how it is used, and to provide an assessment of the value of that data once every 90 days. (SA)

 

The G20 event, which begins on Friday in Osaka, is expected to include a meeting between Presidents Donald Trump and Xi Jinping on its sidelines. Hopes abound that such a top-level encounter could produce a breakthrough in the trade dispute between the world’s two biggest economies. The US has threatened to apply tariffs on another $300bn in Chinese goods if a deal is not reached. (FT)

 

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



Shares of Slack Technologies soared nearly 50% in their public trading debut on Thursday, valuing the company at more than $23B. The strong performance helped validate the unusual direct listing model the company used to go public, as well as underscoring investor demand for business software makers. Revenues for Slack soared more than 80% to $400M in 2018, but it reported losses from operations of $143.85M. The app has more than 90M users, but so far has only around 100K paid customers. (FT)

 

Dividend-focused bank investors should be paying attention this afternoon to the first round of the Fed's annual stress tests on 18 of the largest U.S. financial institutions. The quantitative part will show the impact of hypothetical scenarios on banks' capital levels, with a consensus that most lenders will pass the exam. A second round next week will say whether any firm failed because of either insufficient capital or on qualitative grounds. (SA)

 

Looks like GE could be the surprise winner of the Paris Air Show: Marking its highest close in four months, General Electric closed up 2.8% to $10.63/share on Thursday after emerging as the surprise winner at the Paris Air Show. Its International joint venture with Safran tallied a total of $55B in orders, including more than 1,150 LEAP engines. (WSJ)

 

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



As the Fed spreads its dovish wings, the yield on the benchmark 10-year Treasury dropped below 2% overnight for the first time since November 2016. The FOMC left interest rates unchanged at its monetary policy meeting on Wednesday, dropped the word "patient" from its statement and said it would "act as appropriate" to sustain the economy.  Free money for everyone.  (Bloomberg)

 

The latest high-profile company to go public in 2019 is Slack Technologies, which will begin trading this morning on the NYSE through a direct listing. The method allows a firm to simply float its existing stock onto a public exchange. Valued at about $15.7B, the NYSE has set a reference price for Slack at $26/share, which will be used by market makers to build an order book to open trading. More firms may follow suit if the direct scheme is successful, with the workplace-messaging app being only the second big tech company after Spotify to bypass the traditional IPO process. (SA)

 

In earnings news, business software maker Oracle claimed headway in shifting its applications to the cloud as it reported stronger than expected revenues and earnings in its latest quarter.  Oracle reported revenue of $11.1bn, up 1 per cent from a year before, despite a three percentage point headwind caused by the rise of the US dollar. (FT)

 

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



Episode 4 of FOMC Season 2019 airs this morning 11pm PST and it looks like the Fed is backed into a corner. A failure now to suggest a rate cut later this year - or a pivot back to even a neutral stance - could cause a violent selloff by markets, but if Jerome Powell does flag the plans, he will be accused of caving to President Trump, who has been relentless in excoriating the Fed and demanded that it reverse rate hikes made last year. More drama? Asked by reporters outside the White House yesterday if he wanted to demote Powell, Trump said "let's see what he does." (SA)

 

Amazon is leasing another 15 737-800 cargo aircraft made by Boeing through a partnership with General Electric Capital Aviation Services.  The aircraft will be in addition to the five Boeing 737-800s already leased from GECAS, announced earlier this year. By 2021, Amazon Air will have a portfolio of 70 aircraft flying in their dedicated air network. (WSJ)

 

Adobe on Tuesday reported upbeat quarterly results driven by strength in its digital media unit, but delivered a soft outlook for the current quarter. The California-based company said revenues rose 25 per cent year-on-year to a record $2.74bn. Revenues in its largest division, digital media, which includes its creative cloud tools and photo-editing app Photoshop, rose 22 per cent from a year ago to $1.89bn.  (FT)

 

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



Stocks rose slightly on Monday, led by gains in tech, as investors looked ahead to a crucial Federal Reserve meeting this week.
 
While other economic signs may be weakening, Americans are still confident about their job prospects.  A recent New York Federal Reserve consumer expectations survey showed that workers’ confidence for finding a new job after losing their current position was at 61.5% in May — an increase from 59.3% in April and the highest since the central bank started keeping track in June 2013.
 
The nation’s homebuilders reported solid confidence in the housing market in June, but levels dropped slightly due to concerns over trade issues, the high costs of construction and the lack of skilled labor.  Builder confidence dipped to 64, that’s down from 66 in May.  Sentiment has remained in the low 60s for the past five months. Anything above 50 is considered positive.
 
Wall Street analysts are eagerly anticipating Facebook’s possible unveil of its long-awaited cryptocurrency payments plan on Tuesday. According to various reports the company is preparing to finally reveal what it calls Project Libra with partners including Visa and Mastercard.
 
With Northwest Quadrant Wealth Management I’m Tyler Simones



Wall Street futures suggest modest gains at the open as investors adopt a cautious stance on risk heading into this week's Fed gathering. While market expectations point to an interest rate cut this year, most observers expect rates to stay unchanged at this meeting, although eyes will be on the wording of Jerome Powell's policy statement, as well as the dot plot. Bets on central bank action have underpinned stocks in recent weeks, even as manufacturing data continues to suggest that the U.S.-China trade dispute is having knock-on effects across the globe. (SA)

 

Shares in online pet supply retailer Chewy jumped about 60 per cent on their trading debut, giving the company a market capitalization of around $15bn as investors show a strong appetite for selected new listings.  The pop placed it towards the higher end of first-day performances for companies that have IPO’d this year. Some companies that listed last week, such as Fiverr, Revolve Group and CrowdStrike had first-day gains between 70 per cent and 90 per cent. (FT)

 

India will impose higher retaliatory tariffs on 28 U.S. products including almonds, apples and walnuts from Sunday, following Washington's decision to strip the country of preferential access to the American market. New Delhi initially issued an order in June last year to raise import taxes as high as 120% on a slew of U.S. items, incensed by Washington's refusal to exempt it from higher steel and aluminum tariffs, but repeatedly delayed the decision as the two nations engaged in trade talks. U.S.-India bilateral trade reached $142B in 2018, a seven-fold increase since 2001.

 

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



U.S. stocks rose yesterday as investors mostly shrugged off a spate of geopolitical concerns. Meanwhile, oil prices reversed steep declines earlier this week amid reports of a suspected attack on tankers in the Gulf of Oman.

 

The number of people who applied for jobless benefits in early June edged up to a five-week high, but not enough to signal any deterioration in a robust labor market that’s fueling the longest economic expansion in U.S. history.  Initial jobless claimed rose by 3,000 to 222,000, which is close to a 46-year low.

 

A pair of lawsuits filed in Washington and California allege Amazon’s Alexa keeps voiceprints of children without their parents’ consent.   These suits which allege that the devices are breaking the law in at least eight states by recording children who use the smart speakers without consent.  Shares of Amazon traded lower on the news.

 

And the punches keep coming for Facebook.  Amid ongoing controversy over its use of its user’s private information, Facebook has been kicked out of an index tracking companies that abide behind socially responsible practices.  S&P Dow Jones Indices announced Thursday that the social network no longer will be part of the S&P 500 ESG Index.  Shares of Facebook are lower on that news.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones.



US Stocks traded lower yesterday to break a 6-day winning streak as investors digest more signs of growing global economic stimulus.

 

The index of small-business optimism from the National Federation of Independent Business rose to 105.0 in May.  Six of ten survey components increased, three were unchanged, and only one fell in May. Nearly two-thirds, reported hiring or trying to hire, a 5-point increase from April, but 54% reported “few or no qualified applicants for the positions they were trying to fill”.

 

The wholesale cost of goods and services barely rose in May, reflecting easing inflationary pressures in the U.S. amid slower economic growth and fading gasoline prices.  The producer price index edged up 0.1% last month, matching forecast.  More notably, the increase in wholesale prices over the past year slowed to 1.8% from 2.2%, and down sharply from a recent high of 3.1% last summer.

 

NASA has opened the International Space Station to tourists and companies are already buying rides to fly so-called “private astronauts” up to the laboratory in the sky for a visit.  For approximately $52 million per person, you can purchase a seat to fly with SpaceX.  Bigelow Aerospace, a company that is developing space stations that expand, announced that its subsidiary Bigelow Space Operations has “paid substantial sums as deposits and reservation fees” to SpaceX for four launches to the space station.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones


Traffic

 

 

  • Click on the link for the latest conditions on the mountain passes.
  • Empire at Purcell CLOSED for RAB contruction through mid-August.
  •  Empire and Purcell Blvd closure expanded to include Spinnaker Street (7/15 – 24) 
  • RDM:SW 15th St from SW Indian Ave to SW Kalama Ave – Closed for construction thru August 15,2019 
  • TERREBONNE: C Avenue is closed >< Hwy 97 and 6th St (7/8-8/13)
KBND ON FACEBOOK
 
 
FOLLOW US ON TWITTER