(The Street, April 4th, 2018) – Here Are 3 Hot Things to Know About Stocks Right Now
The Dow Jones Industrial Average was rising Thursday after White House economic adviser Larry Kudlow said “good headway” had been made in trade talks between the U.S. and China.
Tesla (TSLA – Get Report) fell sharply after the electric carmaker reported disappointing first-quarter deliveries.
Constellation Brands (STZ – Get Report) rose after beating fourth-quarter earnings expectations and selling off 30 wine and spirit brands to Gallo for $1.7 billion.
Wall Street Overview
Stocks were mixed Thursday as investors weighed positive news about the ongoing U.S.-China trade talks and disappointing factory orders from Germany.
Vice Premier Liu He, China’s top trade negotiator, is scheduled to meet with President Donald Trump in the White House amid reports that suggested the trade talks were nearing a conclusion.
Bloomberg reported that China could agree to purchases of U.S. goods worth more than $1 trillion, as well as opening its markets to further American investment, in exchange for a multi-year window in which to meet certain conditions on intellectual property and technology transfer protections. The Financial Times said the two sides were close to a deal on most of the major issues, but were still negotiating ways in which China could implement them under U.S. monitoring.
White House economic adviser Larry Kudlow told reporters in Washington there had been “good headway” made in this week’s talks before adding “we’re not there yet.”
Meanwhile, Germany reported its weakest set of factory goods orders in more than two years in February, as Europe’s biggest economy continues to find itself exposed to a global manufacturing slowdown and the ongoing U.S.-China trade war.
The U.S. Labor Department said initial claims for state unemployment benefits declined 10,000 to a seasonally adjusted 202,000 for the week ended March 30, the lowest level since early December 1969.
The Dow Jones Industrial Average was rising 141 points, or 0.35%, to 26,311, the S&P 500 rose 0.02%, and the Nasdaq turned lower, falling 0.02%.
Leading the Dow higher were Boeing ( BA – Get Report) , Walt Disney ( DIS – Get Report) and United Technologies ( UTX – Get Report) .
Disney is a holding in Jim Cramer’s Action Alerts PLUS charitable trust.
Boeing climbed despite officials in Ethiopia saying the 737 MAX 8 plane that crashed shortly after takeoff last month was airworthy and that pilots followed all proper procedures prior to the catastrophe that killed all 157 passengers on board. Shares rose 2.4% to $393.89.
Tesla ( TSLA – Get Report) tumbled after the electric carmaker reported disappointing first quarter deliveries, while investors eyed a hearing in federal court over founder and CEO Elon Musk’s contempt battle with the U.S. Securities and Exchange Commission.
Musk is due in federal court Thursday to face contempt charges brought by the SEC, which alleges the Tesla CEO posted tweets that misstated, then clarified production targets for 2019. Shares were down 9% to $265.63.
Constellation Brands ( STZ – Get Report) rose nearly 3.4% to $185.75 after the beer, wine and spirits company beat fourth-quarter earnings expectations and agreed to sell a portfolio of 30 lower-priced wine and spirit brands to E. & J. Gallo Winery for around $1.7 billion.
(Kitco April 4th, 2018)
Russia Buys Additional 31 tons of Gold in 2018
As Russia continues it’s mega – purchases of gold, (along with other major global central banks) adding an additional 31 tons in 2018 alone it joins the rest of the world central banks totaling 651 tons for the year.
401 G.C. Commentary
This annual total of 651 tons is the most gold purchased since 1967 and represents a continuation of global central bank buying of gold since 2010, a trend worth paying attention to if you are watching the upcoming U.S. – China trade deal unfolding. Most countries see a strengthening of their currencies with regard to how much gold they own as a valid equation, and one that puts them squarely in the path of the world’s two biggest economies once a deal has been struck. Clearly, the global economy is bracing for a historic economic development, possibly a quasi- gold standard to be implemented, an idea that has been talked about a lot lately to address the massive ($22) trillion debt being held by the U.S. If this is true, then the amount of money that has been printed around the globe could translate into $5,000.00 – $10, 000.00 an ounce for the yellow metal. If this seems high, just refer to gold’s rise from $400/oz. in 2005 to $1,900/oz. in 2011, AND THAT WAS DURING OBAMA’S QE (QUANTATATIVE EASING) PROGRAM, THE MOST MASSIVE LIQUIDITY EXPERIMENT IN THE HISTORY OF MANKIND THAT PRINTED TRILLIONS OVER (3) ATTEMPTS, QE1, QE2 AND QE3.
That is a lot of dollars chasing a loaf of bread or an ounce of gold…stay tuned and STAY INVESTED.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com