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Stocks rose yesterday, moving closer to record highs as trade and earnings optimism lift Wall Street sentiment.


Boeing stock continued to slide yesterday and this morning after explosive messages last week revealed a top pilot had concerns about a system on the 737 Max that was later implicated in two fatal crashes.  Several Wall Street analysts also downgraded Boeing, fretting about the fallout from the crisis that has barred the manufacturer from delivering its best-selling planes that make up around 40% of its profit.
 
Oregon’s jobless rate was 4.1% in September, the 35th consecutive month it has been at or near the lowest point on record. And the state is enjoying exceptional income growth.  Yet new data out this past week show employment growth has slowed to a crawl. The Oregon Employment Department reported the state added just 200 jobs in September.  This slowing isn’t necessarily bad news by itself – slower growth is inevitable after any long period of economic expansion. And Oregon’s current expansion is among the state’s longest on record.
  
Yesterday Facebook announced that they removed networks tied to Russia and Iran from its services as it launches new features designed to make posts related to the upcoming 2020 U.S. presidential election more transparent.  The company said it removed three networks of fake accounts and pages tied to Iran and another network with links to Russia’s Internet Research Agency, the group that was accused of using Facebook and other websites to interfere with the 2016 U.S. presidential election.

 

With Northwest Quadrant Wealth Management, I'm Tyler Simones



US Stocks traded higher last week on the back of some better than expected earnings reports.
 
The U.S. grew more slowly in September and is likely to remain soft in the months ahead, according to an index that measures the nation’s economic health.  The leading economic index slipped 0.1% in September and fell for the second month in a row.  The index fell mostly because of weakness among American manufacturers, whose sales have suffered from sluggish exports and disruptions in their supply chains caused by the U.S. trade war with China.
Coca-Cola shares popped amid a down market after the beverage company’s quarterly revenue beat Wall Street expectations, with healthier options like Zero Sugar soda and smaller size cans leading the way.  The 2020 launch of a Coke energy drink competitor to Red Bull and Monster Beverage in the U.S. market could add as much as $200 million in sales.
 
According to local attorney Jeff Eager and the Eager report, in the last seven years, Bend has experienced as much economic and socio-economic change as many cities see in 50 years. In October 2012, the unemployment rate was 10.1%, now it's around 4%.  The population was around 78,500 then; now there are around 20,000 more of us, all driving on Mt. Washington Drive at 8:30 a.m. each weekday.
International Stocks
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones
 



China’s gross domestic product rose 6% in the three months to September, the slowest pace since the early 1990s, and below consensus forecast. A slowdown in investment was the main driver for the lower-than-expected number. Investors are looking to a meeting of the Communist Party’s top leadership, due in the coming days, for a possible review of stimulus measures. There is a feeling, however, that officials are allowing growth to run a little slower as they seek to clean up the financial system and deal with excess leverage. The country’s benchmark Shanghai Composite Index closed 1.3% lower in the wake of the data. (Bloomberg)

 

The U.S. is slapping tariffs on $7.5B worth of European goods today. Aircraft produced in the European Union will be slapped with 10% tariffs, while a group of consumer products that includes wine, whiskey and cheese will be slapped with 25% tariffs. Earlier this week, the World Trade Organization cleared Washington to take action after concluding that Airbus received billions of dollars in illegal subsidies over the years. (SA)

 

In earnings news, Coca-Cola has lifted guidance for annual revenues and profits after demand for its eponymous drinks brand and new products boosted quarterly results.  Shares rose 1.9 per cent in pre-market trading on Friday to $54.81 after the Atlanta-based company said third quarter organic revenues rose 5 per cent. Net income climbed from $1.81bn a year ago to $2.59bn. (FT)

 

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



International stocks are higher this morning as EU and UK negotiators have agreed a new Brexit deal, leaving Boris Johnson with the challenge of selling the accord to political allies at home. The text of the deal was being shared with national capitals ahead of a key leaders’ summit in Brussels later on Thursday. The UK prime minister is still struggling to win political backing for the accord - raising questions over Mr. Johnson’s ability to clinch support for the deal in the Westminster parliament — an issue that is likely to hang over the upcoming leaders’ summit.  But, reaching an agreed text represents a big leap forward for Mr. Johnson following weeks of inconclusive talks between UK and EU negotiators. Mr. Johnson will ask EU leaders tonight not to offer another Brexit extension. (FT)

 

Netflix jumped double digits in after-hours trading after its Q3 earnings showed a rebound from poor subscriber results in Q2, even while it hinted toward hotter competition in coming quarters. The company added 6.77M net subscribers vs. last quarter's 2.7M, and said forward guidance accounted for pressure from upcoming services such as Disney Plus, Apple TV Plus, AT&T's HBO Max, and NBC's Peacock.  But the potential market is large, Netflix said, and "we are all small compared to linear TV". (SA)

 

Nestle said it will start a new stock buyback program in January and may complement it with special dividends, seeking to return as much as $20B to shareholders by 2022. The news comes as the company also reported YTD sales rose 3.7%, in line with analyst estimates, helped by Starbucks-branded coffee for Nespresso machines and Purina pet food. Nestle also signals it is ramping up its M&A focus as it unveils a new management group to seek out growth opportunities, and says it is restructuring its bottled water unit - where YTD sales have slipped - to focus on faster growing brands such as Perrier and S. Pellegrino. (WSJ)

 

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



The U.S. could see shortages of pork bellies and ham with the spread of a pig-killing disease in China. American pork exports to China will likely see 12% growth in 2019 and 13% growth in 2020. China’s pork prices surged 69.3% in September from a year ago.

 

Retirees will get a 1.6% cost-of-living increase from Social Security in 2020. The increase amounts to $24 a month for the average retired worker. 

 

Costco sold 91 million rotisserie chickens last year, more than double the number from a decade prior. Costco has sold rotisserie chickens at $4.99 since 2009.  

 

The European brewer Carlsberg is working on beer bottles made of paper from sustainably sourced wood fiber. 

Walmart is launching a new service that will deliver groceries, and put them away in your fridge. InHome grocery delivery is a $19.95 membership program and requires shoppers to purchase a $49.95 smart door lock kit. 

 

The UK government's climate advisory body says frequent flier programs should be banned and a tax on frequent flyers implemented in order to reduce carbon emissions. 

 

Forty-three percent of cyberattacks are aimed at small businesses. Costing small businesses $200,000 on average, with 60% of them going out of business within six months.

 

With Northwest Quadrant Wealth Management I am Troy Reinhart.



JPMorgan Chase has recorded its best ever third quarter for investment banking fees, helping the bank to beat its earnings forecasts for the three months and taking the sting out of the division’s recent troubled listings including WeWork and Peloton.


America’s biggest bank was the lead manager in WeWork’s defunct initial public offering and also had a key role in listing Peloton, whose shares fell sharply after it floated in late September.  JPMorgan said that its investment banking division enjoyed an 8 per cent rise in revenues for the quarter, which came in at $1.9bn. (FT)

 

Johnson & Johnson raised forecasts for adjusted sales and earnings for the full year on the back of better than expected third-quarter results, while warning of uncertainty surrounding legal costs. The world’s largest healthcare company now expects sales, adjusted for currency fluctuations and divestitures, to grow between 4.5 and 5 per cent this year, compared with its last forecast for growth of between 3.2 and 3.7 per cent. Sales — driven by growth in the pharmaceuticals division — rose 1.9 per cent year-on-year to $20.7bn. (WSJ)

 

Goldman Sachs suffered a worse than expected 18 per cent fall in net income during the third quarter, with trading emerging as the only bright spot in the bank’s four core divisions. The 150-year-old institution, which has promised investors a strategic update in January, posted net income of almost $1.8bn.  Goldman Sachs shares are up more than 23 per cent so far this year, but it still trades at below the book value of its assets. (FirstFT)

 

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



China’s agreement to boost agricultural purchases and the White House’s decision to hold off on increasing tariffs on the country, sealed with a handshake on Friday, might be enough to keep prospects alive for a comprehensive deal between the two sides, but it isn’t sufficient for a reassessment of the global growth outlook. Adding to those doubts this morning is news that China wants further talks as soon as this month to iron out the details of the “phase one” deal before signing it. A health check for the world economy is due tomorrow when the International Monetary Fund revises its growth forecast. (Bloomberg)

 

Earnings season will provide another gauge of economic strength and an insight into how dividend payments are holding up in the face of disappearing profit growth. For the big U.S. banks, the focus will be on how they’re keeping costs in line in an environment where interest rates remain lower than previously forecast. JPMorgan Chase & Co. gets the ball rolling tomorrow, quickly followed by Goldman Sachs Group Inc., Wells Fargo & Co. and Citigroup Inc. (Refinitiv)

 

This week will also bring updates on two important parts of the US economy, the American consumer and factory sector.  Consumers have driven economic growth but concerns are emerging about whether they may start to curb spending in response to trade uncertainty and slower growth. Economists expect retail sales to have climbed 0.3 per cent month-on-month in September, with so-called control sales, an underlying measure of purchases also estimates to have climbed by the same margin.  However, expectations for industrial production are grim as economist’s anticipate a 0.2 per cent decline overall and a 0.3 per cent drop in the manufacturing component. (FT)

 

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



US Stocks rose yesterday after President Donald Trump said he will meet with Chinese Vice Premier Liu He today, raising hope the two countries could make progress on the trade front.
 
Applications for U.S. unemployment benefits fell in the first week of October and clung near a 50-year low, suggesting that layoffs still haven’t risen much even as hiring and the economy have slowed.
 
Consumer inflation in the U.S. was held in check in September by falling prices of gasoline and used vehicles, giving the Federal Reserve further cause to cut interest rates if the economy gets any weaker.
 
Millions of retirees will get a modest 1.6% cost-of-living increase from Social Security in 2020, an uptick with potential political consequences in an election year when Democrats are pushing more generous inflation protection.  The increase amounts to $24 a month for the average retired worker, according to estimates released by the Social Security Administration.
 
PepsiCo reported better-than-expected earnings, sales and organic revenues in the third quarter thanks to high returns from investment in marketing and advertisements. Further expansion in the company’s portfolio and ramp up of production facilities will help it grow in the near future.  The company has had record high sales in nine out of the last 11 quarters.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones
 



Stocks traded higher yesterday after a report surfaced that China is prepared to accept a partial trade deal as long as no more tariffs are imposed by President Donald Trump
 
The denim apparel maker Levi Strauss posted better-than-expected third-quarter earnings of 31 cents a share on revenue of $1.45 billion, but the stock traded lower after the company reported they are struggling to grow their wholesale business in the US which is their largest market.
 
Median home prices dropped in Bend and Redmond last month compared to August, but they remained higher in both cities compared to September 2018, according to The Beacon Report.  In Bend, the median price for a single-family home last month dipped to $440,000, a decline of about 7% from the record-setting price in August.


Bacon addicts, beware: Top pork producer are warning of shortages.  According to Smithfield Foods, the world's biggest pork producer the U.S. could see tight supplies, or even some shortages of pork bellies and ham next year as the spread of a pig-killing disease in China ripples through the global market.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones
 
 



Stocks traded lower again yesterday as investor optimism around the upcoming U.S.-China trade talks continue to fade.
 
Optimism among small-business owners fell in September mainly because of the impact of tariffs and uncertainty about the future economy, according to a survey from the National Federation of Independent Business.  The NFIB Small Business Optimism Index had a September reading of 101.8, down 1.3 points from 103.1 in August.  About 30% of owners surveyed said they were negatively affected by tariffs.


The wholesale cost of U.S. goods and services posted the steepest decline in September since the first month of the year, largely reflecting lower gasoline prices and signaling that inflation is likely to remain low.  The producer price index sank 0.3% last month, reversing most of the increase in the prior two months.  Economist had forecast a .1% increase.


Federal Reserve Chairman Jerome Powell said the central bank will expand their balance sheet “soon.” He noted this measure will be used as a response to the recent funding issues the bond market faced in recent weeks.  Powell said this is not quantitative easing. Rather, Powell was referring to a more gradual increase to the balance sheet.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones



US Stocks were lower yesterday as traders have doubts about a US-China trade deal.
 
The U.S. jobs market’s resilience is not extending to wages, which fell in September for the first time in two years, as companies still aren’t ready to meet a tight labor market with higher pay and workers still are not demanding more.  While the September payrolls report showed that the 3.5% unemployment rate is at a fresh 50-year low, it also indicated that average hourly earnings are on the decline.
 
General Electric Co said yesterday they would freeze pensions for about 20,000 salaried U.S. employees and take other related moves to help the ailing conglomerate cut debt and reduce its retirement fund deficit by up to $8 billion.  Analysts said the move would largely offset the rise in GE's pension obligations due to lower interest rates.  GE has been taking steps to reduce the $106 Billion in debt they have on their balance sheet.
A groundbreaking research study released yesterday by Humana reveals that $1 out of every $4 spent on health care in the U.S. annually is being wasted. It's a situation that needs to be addressed by the industry at a time when consumers are grappling with spiraling medical costs.  Administrative complexity causes $265 billion to be misspent annually and the cost of complexity can become waste when clinicians and health plans work separately, despite our common goals.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones.



US Stocks traded lower last week after some weak manufacturing data stoked fears that the economy may be slowing.
 
The U.S. trade deficit widened in August to $55 billion.  Both import and exports increased, but imports rose at a faster pace. August exports of autos and auto parts were the highest since July 2014. Imports of consumer goods were the highest on record. Year-to-date, the U.S. is running a $429 billion deficit, up from $400 billion over the same period last year. Economists expect the trade gap will be a slight drag on third quarter growth.
 
The United Auto Workers’ strike against General Motors could continue for the foreseeable future, as the union on Sunday said talks between the sides have “taken a turn for the worse.”  About 48,000 UAW members with GM have been on strike and picketing outside the automaker’s U.S. facilities since Sept. 16. The work stoppage has caused a ripple-effect throughout the automaker’s North American operations, causing thousands of additional layoffs. It also has contributed to a double-digit decline GM shares during the past three weeks.
 
Oregon state workforce analyst Christian Kaylor noted last week that new Census data shows Portland’s median household income shot up by 34% between 2005 to 2018. Kaylor found the city, which had been the nation’s 22nd wealthiest, was No. 8 last year with a median household income of more than $73,000.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones



Today’s jobs data may bookend the bad week in markets amid mounting signs of a slowdown coming to the U.S. For many investors, payrolls will cast a deciding vote. A temporary boost from census hiring is has helped non-farm payrolls expand by 136,000, with unemployment at a 50 year low of 3.5% and hourly earnings growth slightly below trend at 2.9%. The weaker-than-expected outcome is likely to bolster the chances of two more Federal Reserve rates cuts by the end of the year. (Bloomberg)

 

HP plans to cut as many as 9,000 jobs as part of broader plans at the computer and printer maker to reduce costs and simplify its business.  In a statement the Palo Alto-based company said that it cut its global headcount by between 7,000 and 9,000 roles via redundancies and voluntary early retirements. That works out as a 16 per cent cut to its workforce based on a total headcount of 55,000 as of the end of 2018.  HP expects to book about $1bn in restructuring charges between now and fiscal year 2022 as a result, but anticipates that the job losses will also generate about $1bn in savings by the end of 2022. (FT)

 

MGM Resorts has agreed to a settlement of up to $800m with survivors and family of victims killed in a 2017 mass shooting in Las Vegas, the deadliest ever on American soil.  MGM Resorts, which owns the Mandalay Bay Resort, has agreed to pay between $735m to $800m to resolve legal cases against it, depending on the number of claimants who choose to participate in the settlement. It has not admitted any liability.
The settlement fund will be paid for by MGM Resorts’ insurers with a minimum of $735m. MGM Resorts has insurance coverage for $751m. (SA)

 

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



U.S. stocks are steady as Wall Street comes off a tumultuous two days that has seen the Dow drop more than 800 points and the major averages slide to their lowest levels since late August. The S&P 500 is coming its first back-to-back drops of 1% or more this year.

 

ATM bank fees hit a record high. Customers are paying an all-in average fee of $4.72 to withdraw from ATMs outside of their bank’s network, according to Bankrate.com. This charge is up 33% over the last 10 years. 

 

Business Insider released the results of a survey that asked customers to rank the restaurant cleanliness of various fast food restaurants. Chick-fil-A topped the list. In second place was In-N-Out and next was Starbucks. 

 

The World Trade Organization has backed a U.S. request to impose tariffs on $7.5 billion of European goods. The WTO say there are illegal subsidies granted to planemaker Airbus by the European governments of Germany, France, Spain, and the United Kingdom. The U.S. first lodged complaints in 2004.

 

The Trail Blazers have ended their partnership with Beaverton-based rifle scope manufacturer Leupold and Stevens. Members of the Portland Democratic Socialists of America, Lutherans for Justice in the Holy Land, Portland’s Resistance and Jewish Voice For Peace staged protests last year to pressure the Blazers to end their partnership with Leupold, which makes a variety of scopes, binoculars and rangefinders.



US Stocks dropped yesterday, the first trading day of the fourth quarter, as disappointing manufacturing data stoked worries over the U.S. economy.

 

American manufacturers posted the biggest contraction in September since the end of the 2007-2009 recession, reflecting a slowdown in the U.S. and global economies made worse by a tense trade war with China.  The Institute for Supply Management said its manufacturing index fell to 47.8% last month from 49.1%, marking the lowest level since June 2009. That’s when the Great Recession ended.

 

Shares of brokerage firm Charles Schwab tanked more than 9% after announcing its ending commissions for online trading in U.S. stock, ETFs and options. Starting Oct. 7, Schwab will be slashing its trading commission cost from $4.95 to zero. Rival brokerage firm TD Ameritrade plummeted more than 25% and E-Trade shares cratered more than 16% on the news.

 

United Parcel Service won U.S. certification to fly drones under regulations like those for airlines, a milestone that allows the company to vastly expand airborne deliveries.  The Federal Aviation Administration gave UPS permission to use delivery drones at hospital, university and corporate campuses with few restrictions, for example, letting operators fly the aircraft at night and over people
 
With Northwest Quadrant Wealth Management, I’m Tyler Simones



Global Stocks are mixed this morning at the start of the fourth quarter as investors eye fresh indicators of global economic health, while government bonds sold off following a weak auction in Japan.  Gauges of factory activity in the eurozone, UK, Japan and South Korea all showed contraction in September, highlighting long-running concerns over the state of the global economy. US manufacturing figures will be released later this morning.  (FT)


Five drug makers tied up in sprawling opioid crisis lawsuits are pressing a novel plan to shrink or end the litigation: latching on to the bankruptcy of OxyContin maker Purdue Pharma. Johnson & Johnson, Teva, Endo International, Allergan, and Mallinckrodt are pursuing a global settlement where they'd fund a trust through Purdue's case, in exchange for release from liability - a plan not dissimilar to an approach tried in the Takata airbag litigation. (SA)


Oil prices are tracking higher on reports that production in the U.S. and Russia fell during the third quarter. While oil prices are forecast to remain fairly steady for the balance of the year, many market watchers think upward pricing pressure is fading away with Saudi Arabia believed to have restored capacity to 11.3M barrels per day after the attack on September 14 knocked out 5.7M bpd of output. Demand growth is weakening, oil supply outside OPEC is rising significantly and OPEC+'s production discipline has recently faded. (WSJ)

 

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



Officials from the Trump administration issued a partial -- and qualified -- denial to the revelation that there have been discussions about imposing limits on U.S. investments in Chinese companies and financial markets. A statement over the weekend said there were no current plans to stop companies from the world’s second-largest economy listing on American exchanges. The statement did not address nor rule out other possibilities. Authorities in Beijing, meanwhile, insisted they would continue to take measures to open the country’s financial markets to foreign investment.  (Bloomberg)


Forever 21, the fashion retailer whose constantly changing styles and low prices once made it a hit among young women, has filed for bankruptcy protection, felled by intense competition and its own aggressive global expansion.  After weeks of questions about its future, the California-based company said on Sunday night that it planned to shut as many as 350 of its 800 stores around the world as part of a Chapter 11 restructuring. (First FT)

 

Congressional antitrust investigators are scrutinizing plans by Google to use a new internet protocol because of concerns that it could give the company a competitive advantage by making it harder for others to access consumer data.  The new standard modernizes a fundamental building block of the internet known as the domain name system, or DNS.  (WSJ)

 

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



Stocks were lower yesterday as investors remain on edge about the trade war with China and the potential for impeachment.


The number of people who applied for jobless benefits in mid-September rose slightly — largely reflecting a General Motors worker strike in Michigan — but the level of new “claims” nationwide remained near a 50-year low.
 
An index of pending home sales increased 1.6% in August, following July’s decline.  This is only the third month this year in which contract signings have risen.  The highest gain occurred in the West, where the pending home sales index rose 3.1% from July.

 

Beyond Meat shares rallied 11.6% after global fast food giant McDonald’s announced plans to try their plant-based burgers in Canada. The 12-week trial will begin Sept. 30 and be marketed as the P.L.T., short for plant, lettuce, and tomato.

 

The connected fitness company Peloton Interactive went public yesterday and investors weren’t buying.  The shares dropped over 11% in their first trading session as investors seem to be shunning these growth at all cost companies in favor of companies actually making money.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones
 



Shares in the world's biggest sportswear maker, Nike, surged as much as 5% to an all-time-high after their earnings results showed its margins soaring and sales up 42% through apps and websites it has developed under its Nike Direct strategy.  That signaled an end to a rough period marked by strong competition from German rival Adidas and prompted at least 11 Wall Street brokerages to raise price targets on its stock far above a current $87.

 

The Federal Reserve is expected to resume its balance sheet expansion in response to demand for bank reserves.  The central bank is reacting to a crunch last week in the overnight lending markets that sent short-term borrowing rates for bank’s surging.  In doing so, the Fed will be embarking on a different kind of program from the asset purchases used to pull the economy out of the financial crisis.  The Fed’s goal is for the overnight rate for loans stays constant at 1.75%-2%.

 

According to attorney Jeff Eager and the Bend Entrepreneur Report the number of new Bend businesses registered with the Oregon Secretary of State May through August 2019 (1,099 businesses) is down 9.5 % versus the same timeframe from 2018, and about on par with registrations from that timeframe in 2017. Bend continues to have more businesses registered per capita compared to any other large-ish Oregon city other than Keizer. Furthermore, the rate of registrations in 2018 was probably unsustainable, given labor and real property constraints.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones



The pace of home price appreciation across much of the U.S. continued to peter out last month.  The S&P CoreLogic Case-Shiller 20-city price index remained the same in August on a monthly basis after seasonal adjustments.  On an annual basis, the index only increased 2% from August 2018. This represents the slowest rate of home price appreciation since 2012.  Seattle continued to be the only city where home prices have fallen over the past year, but the rate of home price declines has slowed.

 

Escalating trade tensions with China undermined consumer confidence in September, underscoring the dangers of a conflict that has harmed key business sectors such as manufacturing and farming and poses a threat to a record U.S. economic expansion.  The consumer confidence index fell to a three-month low of 125.1 this month from 134.2 in August.

Shares of Netflix have tumbled over 15% in the last 5 trading sessions as the company continues to get downgraded by Wall St. analysts.   In their annual report out in January, Netflix reported 2018 free cash flow of negative $3.02 billion, compared with negative $2.02 billion in 2017, and said it expected negative free cash flow “for many years” as it continues to “significantly increase” investment in streaming content.
 
WeWork co-founder Adam Neumann has agreed to resign as chief executive of the U.S. office-sharing company but will remain as non-executive chairman, bowing to pressure from some of his investors.  The decision, taken at a board meeting yesterday, follows a challenge to Neumann's authority by his biggest investors, including Japan's SoftBank Group.

 

With Northwest Quadrant Wealth Management, I'm Tyler Simones



US Stocks finished near the flat line yesterday as investors continue to digest US-China trade wars news.
 
The initial reading of U.S. manufacturing Purchasing Managers’ Index for September reached 51.0, the highest figure since April and up from 50.3 in August. Readings above 50 show an expansion.  The escalated trade war between the U.S. and China has taken a big bite from the manufacturing sector.
 
AT&T shares climbed more than 2% in trading following a Wall Street Journal report that the company is exploring a spinoff of DirecTV unit as its own company or a combination with Dish, which also saw its share price rise 3.75%.
 
Microsoft shares rose more than 1% after the company announced a quarterly dividend increase of 5 cents to bring it up to 51 cents per share and a new stock buyback worth up to $40 billion. The tech giant has regularly bought back its shares and has seen its stock almost quadruple under CEO Satya Nadella’s tenure.
 
Shares of United States Steel, meanwhile, dropped more than 8% during extended trading after the company gave weak third-quarter guidance.  The company expected an adjusted diluted loss per share at 35 cents compared to the 7 cent loss per share forecast of analysts.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones
 



US Stocks snapped a 3 week winning streak last week to finish lower on news that Chinese officials were cutting short their visit to the U.S., dampening hope around trade negotiations between the two countries.
 
In the past year, since Facebook CEO Mark Zuckerberg’s last official visit to Washington, D.C., lawmakers around the world have scolded the executive for failing to give them face time.  But this week, Zuckerberg suddenly made himself extremely accessible to U.S. lawmakers and even President Donald Trump. During a surprise visit to D.C., Facebook was the one requesting meetings, including a Wednesday night dinner between Zuckerberg and a group of senators, some of whom have threatened regulations that could fundamentally change his business. Over the next two days, he met with several more lawmakers, including one who suggested he sell two of Facebook’s most successful acquisitions before regulators potentially try to force a breakup.
 
The manufacturing sector here in the US has been hurt by U.S.-China trade tensions, helping to drive the Institute for Supply Management’s manufacturing index down to 49.1% in August. That reading below 50% indicates a contraction in activity.
 
According to the Oregon Employment Department, Oregon workers enjoyed broad wage gains last year, reflecting continued strength in the state’s labor market.  The most new jobs, were concentrated at the top and bottom ends of the wage scale.  Oregon’s median hourly wage rose 4.5% in 2018 to $17.79. That works out to $37,000 annually for a full-time worker. Accounting for inflation, though median wages were up just 2.0%.
 
With Northwest Quadrant Wealth Management, I'm Tyler Simones.



Lines are forming outside major Apple stores across the globe as shoppers line up to score the newest models of the iPhone 11. Analysts are betting the new smartphone will be a key sales driver for the tech giant heading into the holiday season, with JPMorgan expecting iPhone 11 shipments to reach 184M units in 2019 and 195M units in 2020. Others focused in on the device's aggressive pricing in U.S. dollars, which was discounted to previous rollouts, and the impact it would have on Apple's overall profit margins. (SA)


Airbnb has said that it plans to go public next year, making the announcement a day after it reported more than $1bn in second-quarter revenue.  The 11-year-old company stands to be among the biggest listings in 2020, having been valued at $31bn in its most recent funding round. But a series of rocky debuts for other so-called unicorns has raised questions about the durability of investor demand for new offerings.  In a press release, Airbnb said it made “substantially more” than $1bn in revenue in the second quarter of 2019 and that Airbnb hosts — people who rent out rooms or apartments on the platform — have made more than $80bn from renting their homes since it was created. (FT)

 

The U.S. is temporarily exempting more than 400 types of Chinese products - like Christmas lights, plastic straws and printed circuit boards - from tariffs, according to documents set to be published today by the U.S. Trade Representative. The exemptions stem from more than 1,100 exclusion requests made by American companies and other entities.  (Bloomberg)

 

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



Oregon wine sales broke $607 million last year up from $550 million in 2017 according to the Oregon Wine Board.  The increase was driven by a 19% increase in direct-to-consumer shipments. Canadians purchased 47,338 cases of Oregon wine in 2018, representing 45% of Oregon’s export sales. Oregon had 793 wineries in 2018, up 24 from 2017. The number of acres planted to grapes totaled 35,972 acres in 2018, an increase of approximately 6%. Pinot noir represents 56% of all planted acreage. 

 

Oregon wood products manufacturing sector jobs have been cut in half since 1990, according to the Oregon Employment Department. Going from 46,100 in 1990 to just 23,000 in 2017. Growth in tourism-related jobs has offset the decline in timber-related ones in some locations. However, In Coos County tourism jobs paid half the $52,000 timber jobs paid. Not all jobs are created equally.

 

Millennials are changing how we eat. Pizza Hut is selling a gigantic Cheez-It stuffed pizza. The Stuffed Cheez-It Pizza will cost just $6.49. (CNN)

 

U.S. industrial production grew at 0.4% year over year beating estimates of 0.2%. 

Gregory Bryant and Michelle Johnston Holthaus are now executive vice presidents at Intel. Bryant runs Intel’s PC group and is located in Hillsboro. Holthaus runs Intel’s sales, marketing and communications and is a graduate of Linfield.  Intel is Oregons largest employer. 

 

With Northwest Quadrant Wealth Management on Troy Reinhart.
 



Fed officials are set to inject another $75 billion of cash to the market this morning after funding shortages drove the rate on one-day loans backed by Treasury bonds -- known as repurchase agreements, or repos to as high as 10%.  The first cash infusion in more than a decade came Tuesday as an overnight liquidity squeeze threatened everything from Treasury bond trading to lending to companies and consumers. It’s a structural money problem that’s hard to ignore. While the spike wasn’t evidence of any broader crisis, it highlighted how the Fed was losing control over short-term lending, one of its key tools for implementing monetary policy.  (Bloomberg)

 

Facebook is teaming up with eyewear giant Luxottica to develop augmented-reality Ray-Bans, sources told CNBC. The smart glasses, code-named "Orion," will take years to develop, with the company hoping to get them to consumers between 2023 and 2025. Smartphone replacement? According to the report, Facebook is including the ability to take calls, see info via a small display, livestream what the wearer sees and allow for interaction with an AI voice assistant. (SA)

 

U.S. homebuilding surged to more than a 12-year high in August as both single- and multi-family housing construction increased, suggesting that lower mortgage rates were finally providing a boost to the struggling housing market.  Housing starts jumped 12.3% to a seasonally adjusted annual rate of 1.364 million units last month, the highest level since June 2007.  (CNBC)

 

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


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