Market Weekly: June 25 – 29 2018

Viewing 15 posts - 16 through 30 (of 47 total)
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    [quote=”CautiousInvestor” post=6938][color=green][b]RALLY TIME — as we have went ALL GREEN in market indexes 8)
    GE is off to races, (up 7%) in selling up a manufacturing arm of their business to raise some needed cash.[/b][/color][/quote]
    GE to sell healthcare unit and Baker Hughes stake[/b]

    Plans to spin off the healthcare business and divest its stake in oil-field services provider Baker Hughes, amidst growing concerns over the cash-strapped company’s ability to sustain its current dividend program.

    The move takes the industrial juggernaut closer to its goal of raising $20 billion by selling various industrial assets as part of an extensive restructuring program planned over three years.

    In the current fiscal year $GE to exit assets worth $10 billion under the program. The healthcare unit will be divested over a period of 12-18 months. It is looking to slash debt by $25 billion and achieve corporate cost savings of more than $500 million by the end of 2020.

    The massive restructuring program, which primarily involves divestiture of loss-making units, is aimed at focusing more on the core businesses of power, jet engine, and renewable energy. While the power business is in the negative territory, the renewable energy unit is currently generating meager profits.

    Earlier this week, GE announced the divestiture of its distributed power unit to buyout group Advent for $3.25 billion. Last month, the company sold its transportation unit, which manufacturers train locomotives, to Wabtech for $11 billion. While being able to exit some of the non-core businesses successfully, GE is facing difficulties in finding a buyer for the lighting division, a business it pioneered during the initial years of establishment.

    Ironically, the most recent divestitures coincide with the company’s exit from the Dow Jones industrial average, ending a long-drawn-out association that dates back to early years of the 20th century.


    Good cash for GE – these trade wars getting a little awry and now you have oil spiking higher $2 on Iran threats – not a rational place to be

    Helmholtz Watson

    Dallas Fed President Kaplan

    Sees US GDP growth of 2.75% this year (compared to a range of 2.50-2.75% previously)
    Sees US growth accelerating, then easing as fiscal stimulus fades


    S&P US ‘AA+/A-1+’ ratings affirmed, outlook remains stable

    Sees economy expanding by 3% in 2018 and then slowing to 2.5% growth in 2019


    [size=5][color=green][b]A GREEN & FEARLESS FINISH TODAY 🙂

    Dow Jones 24,283.11 +30.31 (0.12%)
    S&P 500 2,723.06 +5.99 (0.22%)
    Nasdaq 7,561.63 +29.62 (0.39%)
    Russell 1,668.53 +11.02 (0.66%)
    NYSE Comp 12,510.55 +28.95 (0.23%[/b][/color][/size]


    [color=green][b]RALLY TIME — FUTURES suddenly spiked from -150 to +30 and climbing

    Lessons from the “Art of the Deal” (although some of us may not want to learn them “live & in person” – lol) 😉 … and I thought #45 might postpone the JULY 6th implementation date for tariffs 😉 :whistle: :whistle: :whistle: :whistle:

    Long term correcting trade imbalances for a good thing but there is short term impacts to many (including in own country)



    Rate Rises Affecting — US MBA mortgage applications W/E. 22 June -4.9% vs +5.1% prior
    ***Huge Change
    Purchase index 244.3 vs 259.6 prior
    Market index 365.3 vs 384.1 prior
    Refinancing index 1,015.9 vs 1,052.3 prior
    30-year mortgage rate 4.84% vs 4.83% prior


    April prelim US durable goods orders -0.6% vs -1.0% expected. Prior -1.6%
    Ex transportation -0.3% vs +0.5% expected, Prior ex transportation +0.9%
    Capital goods orders nondefense ex air -0.2% vs +0.5% expected, Prior cap goods orders nondefense ex air +1.0% (revised to +2.3%)
    Capital goods shipments nondefense ex air -0.1% vs +0.3% expected, Prior shipments +0.9% (revised to +1.0%)


    US May preliminary wholesale inventories +0.5% vs +0.2% m/m expected Prior +0.1%
    Retail inventories +0.4% m/m
    Prior +0.6%; revised to +0.5%


    Bull is back today:

    The S&P is up 7.47 points or 0.28% at 2730.84
    The Nasdaq is up 23 points or 0.31% at 7585.20
    The Dow is up 62 points or 0.26% at 24347

    Spot gold is trading down $4.40 or -0.35% at $1254.64
    WTI crude oil futures are trading up $1.13 or 1.55% at $71.64.
    Bitcoin on Coinbase is trading down $87 at $6095. The low extended to $6006

    Super Harley

    Another well timed tweet from the President

    Super Harley

    [quote=”TradersCom” post=6955]Rate Rises Affecting — US MBA mortgage applications W/E. 22 June -4.9% vs +5.1% prior
    ***Huge Change
    Purchase index 244.3 vs 259.6 prior
    Market index 365.3 vs 384.1 prior
    Refinancing index 1,015.9 vs 1,052.3 prior
    30-year mortgage rate 4.84% vs 4.83% prior[/quote]

    High interest rates matter in an already stretched household – the Fed doesn’t get that clearly


    [color=blue][b]^^^ +1s … Yes, all of our TAX savings are going toward higher GAS prices & higher INTEREST rates :woohoo:
    FED members need to get out in real world & factor that into future plans … While some areas of economy like “new jobs” are doing better — there is still a LOT healing to take place in years ahead Personally, I’d recommend a more CAUTIOUS approach 😉 :).[/b][/color]


    US 5-year notes auction sees soft bids

    5-year notes auction high yield 2.719% compared t
    Bid to cover 2.55 from 2.52 previous auction.

    Helmholtz Watson

    Justice Kennedy, U.S. Supreme Court’s pivotal vote, to retire

    via Reuters –

    Supreme Court Justice Anthony Kennedy said on Wednesday he plans to retire after three decades as a pivotal vote on the highest U.S. judicial body, giving President Donald Trump an opportunity to make the court more firmly conservative.

    The conservative Kennedy, who turns 82 in July and is the second-oldest justice on the nine-member court, has become one of the most consequential American jurists since joining the court in 1988 as an appointee of Republican President Ronald Reagan. He proved instrumental in advancing gay rights, buttressing abortion rights and erasing political spending limits. His retirement takes effect on July 31, the court said.

    “It has been the greatest honor and privilege to serve our nation in the federal judiciary for 43 years, 30 of those years on the Supreme Court,” Kennedy said in a statement.

    The statement issued by the court said that Kennedy’s decision was motivated by his decision to spend more time with his family.

    Kennedy is a traditional conservative who sometimes joined the liberal justices on key rulings, earning a reputation as the court’s “swing” vote who heartened conservatives and liberals alike, depending on the issue.

    Kennedy on Tuesday joined the court’s four other conservatives in giving Trump a huge legal victory by upholding the Republican president’s travel ban targeting people from several Muslim-majority countries.

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