AT&T acquisition of Time Warner clears courts–let the media frenzy begin (and here’s what I’d buy)
Yesterday after the close of trading Judge Richard Leon gave the go-ahead to AT&T’s (T) acquisition of Time Warner, the owner of HBO and other content. The ruling is a green light to other vertical mergers in the media sector. The judge rejected the...
As expected, the Fed raises interest rates; as suspected, the Fed signals 4 increases in 2018 instead of 3
No surprise here: The Federal Reserve raised its benchmark short term interest rate by 25 basis points to 2% today from 1.75%. It was the second interest rate increase of 2018. But the Fed also signaled that it was more likely to raise rates two more times in 2018 for...
Moving on: With North Korea summit done, markets focus on Central Bank Week
The summit between U.S. President Donald Trump and North Korean dictator Kim Jong Un produced nothing of import, apparently meeting financial market expectations for “much ado about nothing,” and all eyes on Wall Street have shifted to what I’m...
An interest rate sign of our times–3% on a CD
So there I was, minding my own business, walking down Broadway in my neighborhood, and what do I see in the window of a local bank: An offer for 3% on a five-year CD. Now this wasn’t in the window of one of the megabanks that dominate this sector in New York....
Markets today “seem” to say North Korea summit more important than G7 explosion
At 2 p.m. New York time the Standard & Poor’s 500 stock index was up 0.3%. The Dow Jones Industrial Average was ahead 0.22%. And the NASDAQ Composite index had inched higher by 0.27%. Which is surprising given that the Group of 7 meeting ended Saturday with...
Time to further lighten up on emerging markets: Selling Arcos Dorados out of Jubak Picks
Back when emerging markets started to break down, I sold my positions in Argentina. Then it looked like the damage might be limited to that country. Not though it’s clear that the whole sector is under pressure and that investors trying to avoid the next...
Emerging markets “emerging” as focus of worry over trade, strong dollar, credit crunch
If you can’t tell from the cascade of negative commentary, you certainly should be able to tell from trend in share prices: emerging markets have become the focus of current worries about global trade, the effects of a strong dollar, and the potential for a...
Today the market is cutting risk ahead of possible G7 turmoil
Yesterday the story was that the market rallied on belief/hope that the leaders of the Group of 7 economies due to meet on Friday and Saturday of this week would not allow trade tensions to escalate into a full born trade war. Today it looks like investors and traders...
Trade deficit falls for April–not enough to take the heat out of increasingly hot tariff wars
The U.S. trade deficit narrowed more than expected in April. The deficit fell to $46.2 billion. Economists surveyed by Briefing.com had expected $48.8 billion. The March deficit was revised to $47.2 billion from an earlier report of $49 billion. The trade deficit with...
Nektar’s 40% drop yesterday was an extreme over-reaction: What I’m doing now
It’s never good to turn in disappointing results in a drug trial–as Nektar Therapeutics (NKTR) did over the weekend–but to whack 40% off the stock price on this news is an extreme over-reaction. To justify a 40% drop you have to assume 1) that the...
Apple’s Worldwide Developers Conference focuses on catching up and differentiation
The keynote that opened Apple’s (AAPL) Worldwide Developers Conference (June 4 through 8) walked a tough balancing act between admitting that Apple needs to catch up with competitors in some areas (Poor Siri) and introducing stuff that will differentiate Apple from...
Today markets don’t care about trade or tariffs–but what about if the G7 meeting explodes this Friday?
The Group of 7–Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States–is scheduled to meet on Friday, June 8, and Saturday June 9 to discuss, in theory, global economic growth. In reality, the group will discuss trade, U.S....
Oil price decline resumes after informal OPEC meeting Saturday
Oil prices continued their decline ahead of a June 22 meeting of OPEC and other producers that will discuss raising production to avoid political action in consuming countries to lower oil prices. As of 1:15 p.m. in New York, U.S. benchmark West Texas Intermediate was...
FDA delivers less than half a loaf to INCY and LLY in approving Olumiant
Today the U.S. Food & Drug Administration did finally approve Baricitinib, now known as Olumiant, for the treatment of moderately-to-severely active rheumatoid arthritis. But the approval carries more restrictions than expected. The FDA approved only the 2...
U.S. economy adds 223,000 jobs in May; odds of June interest rate increase bounce back
The U.S. economy added 223,000 jobs in May, well ahead of the 190,000 gain expected by economists surveyed by Briefing.com Revised figures for April showed the economy adding slightly fewer jobs, a revised 159,000 new jobs versus an initial 164,000. The official...
Investing in a Late Cycle Market: Special Report on JubakAM.com
I’ve just posted Part 1 of my Special Report on Investing in a Late Cycle Market on my JubakAM.com subscription site. This was originally going to be just a one-part Special Report. And then two. Now I’m hoping to hold it to three with Part 2 posted...
Temporary exemptions done; Trump administration imposes steel and aluminum tariffs on EU, Canada, and Mexico
Just hours before temporary exemptions on steel and aluminum imports from the European Union, Canada and Mexico were due to expire at 12:01 a.m. on Friday, the Trump administration has imposed the 25% and 10% tariffs on those imports originally announced in March....
Markets relax, a bit, on Italy crisis
The consensus in financial markets today seems to be that yesterday’s drop on fears that Italy was headed to a crisis that could shake the euro were a bit overstated. This isn’t to say that markets have concluded that the crisis is over–or never...
Canadian government buys Trans Mountain Pipeline and removes huge albatross from neck of Kinder Morgan
Yesterday the Canadian government announced that it will buy the Trans Mountain Pipeline from Kinder Morgan Canada for CAD$ 4.5 billion. Kinder Morgan (KMI), a member of my Dividend Portfolio, owns a 70% stake in Kinder Morgan Canada. The sale, which certainly...
So much for the China tariff truce
Just a week after U.S. Treasury Secretary Stephen Mnuchin declared a “truce” in President Donald Trump’s tariff war with China, today the White House has announced that it plans to put a 25% tariff on $50 billion in Chinese exports to the United...
Here we go again on the euro: The bad news is that Italy’s financial crisis is political
The Dow Jones Industrial Average was down as much at 505 points today–before rallying to a loss of “just” 391 points or 1.6%–on fears that a crisis in Italy could once again put the entire EuroZone project in danger. Italian stocks were down...
Now it’s the Saudis talking about increasing oil production
Yesterday, Russia sent oil prices tumbling by saying that it might be time for OPEC and its allies (including Russia) to revisit current production cuts. Today, it’s Saudi Arabia. “I think in the near future there will be time to release supply,”...
Book keeping changes: Statoil (STO) changes its name and ticker to Equinor (EQNR)
A change in the name and ticker of portfolio holding Statoil (STO). The explanation offered by the company is that it wanted to remove “oil” from its name to better reflect the company’s increasing emphasis on other forms of energy including wind...
Russia and Saudi Arabia signal intent to revisit production curbs; oil retreats from three-year high
The energy ministers from Russia and Saudi Arabia will discuss a potential relaxation of the global output cap agreed between OPEC and Moscow when they meet on June 22. That was enough today to end the rally in oil. West Texas Intermediate fell to $70.71, down...
Federal Reserve minutes to the rescue
The release of the minutes from the Federal Reserve’s May meeting turned markets from red to green this afternoon. The day had started off with just about everything in retreat on an avalanche of disquieting news. President Donald Trump seemed to back away from...
Another strong day for financials
The financial sector is up again today with the Financial Select Sector SPDR ETF (XFL) up 0.96% as of 3 p.m. New York time. This continues a strong May run for the sector that has seen the ETF climb 5.6% from May 3–after the sector spent there period from March...
Stocks up on China trade “truce”–but markets aren’t sure the truce will last or turn into an actual deal
Remarks by Treasury Secretary Steve Mnuchin and White House economics advisor Larry Kudlow over the weekend have the market feeling that the United States and China may avert a full on trade war. The Standard & Poor’s 500 stock index was ahead 0.65% as of...
Financial markets have a case of “trade jitters” today
It’s actually amazing to me that U.S. stock markets weren’t down more today given all the uncertainty regarding trade relations between United States and China, between the United States and its NAFTA partners Canada and Mexico, and between the United...
Adding shares of Valero Energy to my Jubak Picks Portfolio
Last night on my JubakAM.com and JugglingWithKnives.com subscription sites I laid out the case argued by Morgan Stanley for believing that distillate prices are heading higher in the face of a tight supplies for these refinery products. One of the refiners Morgan...Jim’s Daily Email Alerts:
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