{"id":12958,"date":"2019-05-20T07:54:06","date_gmt":"2019-05-20T12:54:06","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=12958"},"modified":"2019-05-20T07:54:06","modified_gmt":"2019-05-20T12:54:06","slug":"before-the-open-may-20-6","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=12958","title":{"rendered":"Before the Open (May 20)"},"content":{"rendered":"

Good morning. Happy Monday. Hope you had a good weekend. <\/span>
\nThe Asian\/Pacific<\/strong> markets closed mixed. India, New Zealand, Australia, Indonesia and the Philippines did well; China, Hong Kong and Sinagpore were weak. Europe, Africa and the Middle East<\/strong> are currently mostly down. The UK, Poland, France, Germany, Greece, South Africa, Sweden, Spain, the Netherlands, Italy, Belgium, Israel, Austria and Switzerland are all down a bunch. Futures in the States<\/strong> point towards a moderate down open for the cash market. <\/span>
\nNot a Leavitt Brothers subscriber but you appreciate our work? Consider making a small donation<\/a>.<\/span>
\n<\/span>
\nThe dollar is down. Oil is flat; copper is down. Gold and silver are flat. Bonds are up. <\/span>
\nStories\/News from Seeking Alpha…<\/span>
\nIt’s a rough start to the week for chipmakers as key semiconductor manufacturers cut off supplies to Huawei after the Trump administration added the Chinese company to a trade blacklist last week. Premarket movement: Qualcomm (NASDAQ:QCOM) -3.1%, Intel (NASDAQ:INTC) -1.8%; Xilinx (NASDAQ:XLNX) -2.7%, STMicroelectronics (NYSE:STM) -7.4%, Micron (NASDAQ:MU) -3.7%. Google started the trade suspensions over the weekend, leaving Huawei with access only to the open-source version of Android. Nokia (NYSE:NOK), which usually benefits from the Chinese firm’s woes, is up 4.1% premarket, while Ericsson (NASDAQ:ERIC) shares are 1.6% higher.<\/span>
\nTrade worries continue into new week<\/span>
\nA move by the White House on Friday to remove steel import tariffs on Canada and Mexico added to optimism overnight, but U.S. stock index futures have now turned around, pointing to opening losses of 100 points for the DJIA. President Trump appears unwilling to offer a similar olive branch to Beijing, saying that any agreement had to be weighted in America’s favor and couldn’t be a “50-50” proposition, as the Huawei blacklist added to trade concerns. Risk-off sentiment was also seen due to the current tensions in the Gulf region, with a weekend tweet in which Trump threatened “the official end of Iran.”<\/span>
\nPowell speaks at Atlanta Fed conference<\/span>
\nHigh on the agenda this evening is a keynote speech from Fed Chair Jerome Powell at the Atlanta Fed’s annual Financial Markets Conference, entitled “Mapping the Financial Frontier: What does the next decade hold?” Investors are also likely to monitor a flurry of other speakers today including Philly Fed President Patrick Harker and Vice Chair Richard Clarida. Ahead of the events, the yield on the benchmark 10-year Treasury note was up 1 bps at around 2.4015, while the yield on the 30-year Treasury bond was also higher at around 2.8307.<\/span>
\nOPEC+ seen keeping output cut plans<\/span>
\nCrude futures climbed as high as 1.7% to $63.96\/bbl overnight after Saudi Energy Minister Khalid al-Falih indicated there was consensus among OPEC and allied oil producers to drive down crude inventories “gently,” although markets remain “fragile.” “This second half, our preference is to maintain production management to keep inventories on their way declining gradually, softly but certainly declining towards normal levels,” he told a news conference following a ministerial OPEC+ panel in Jeddah. Concerns about Iranian supply also gave prices a boost.<\/span>
\nAustralia markets applaud Morrison victory<\/span>
\nAustralia’s benchmark S&P\/ASX 200 rose to an 11-year high as Prime Minister Scott Morrison and the Liberal-led conservative government claimed a surprise victory at national elections. The index climbed 1.7% to 6,476, boosted by bank, coal miner, property and healthcare stocks. Those were among the sectors most affected by the campaign of the opposition Labor Party, which had pledged to take strong action on climate change and property tax loopholes.<\/span>
\nA ‘bold’ offer for Brexit deal support<\/span>
\nTheresa May has pledged to set out a “new and improved” Brexit deal next month as she attempts to put together a cross-party coalition of MPs to finally pass her Withdrawal Agreement Bill. The “bold offer” is expected to include new proposals to uphold EU standards of workers’ rights and environmental protection to win over some Labour MPs despite the collapse of cross-party talks last week. May is also holding renewed talks with Northern Ireland\u2019s Democratic Unionist party to see whether she can overcome their opposition.<\/span>
\nIs USMCA closer to ratification?<\/span>
\nCanada will move “full steam ahead” to ratify USMCA, Foreign Minister Chrystia Freeland said on Saturday, a day after the U.S. agreed to lift tariffs on Canadian steel and aluminum. While several U.S. Democrats applauded removal of the tariffs, some said the new North American trade pact was not yet ready for their support. “House Democrats continue to have a number of substantial concerns related to labor, environment, enforcement, and access to affordable medicines provisions. Those issues still need to be remedied,” said U.S. House Ways and Means Committee Chairman Richard Neal.<\/span>
\nLatest 737 MAX blow for Boeing<\/span>
\nBoeing (NYSE:BA) has acknowledged it had to correct flaws in its 737 MAX flight simulator software used to train pilots after recently discovering that they couldn’t accurately replicate the difficult conditions created by a malfunctioning MCAS anti-stall system, which played a role in both the Ethiopian and Lion Air disasters. The company did not indicate when it first became aware of the problem, and whether it informed regulators, but its statement marked the first time Boeing admitted there was a software design flaw linked to the 737 MAX. BA -1% premarket.<\/span>
\nMore Turkish F-35 drama<\/span>
\nThe U.S. will “sooner or later” have to face reality and understand that Turkey’s purchase of Russian S-400 systems is a done deal, President Tayyip Erdogan said, adding that Ankara would jointly produce the next generation S-500 system with Moscow. American officials have called Turkey’s planned purchase “deeply problematic,” saying it would risk its F-35 partnership because it would compromise the jets, made by Lockheed Martin (NYSE:LMT). “They (the U.S.) are passing the ball around in the midfield now, showing some reluctance,” Erdogan declared. “But sooner or later, we will receive the F-35s. (The U.S.) not delivering them is not an option.”<\/span>
\nNext steps for T-Mobile-Sprint deal<\/span>
\nFollowing talks with the FCC, T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) are planning to announce commitments to the U.S. government within days that include asset sales and rural-service guarantees to help secure regulatory approval for their $26.5B merger, Bloomberg reports. Among them: The sale of one of their prepaid brands, a three-year buildout of their 5G network and a reiterated pledge not to raise prices while the network is being constructed. The deal has stoked concerns of reduced competition in the wireless industry because the number of major players would fall from four to three.<\/span>
\nWhat else is happening…<\/span>
\nContributor Dale Roberts takes on the “dividend doubters or dividend deniers.”<\/span>
\nMajor oil deal between Iraq and Exxon Mobil (NYSE:XOM) slows after staff evacuation.<\/span>
\nFurious weekend rally takes Bitcoin (BTC-USD) back above $8K.<\/span>
\nMarkets in India soar on projected Modi win.<\/span>
\nDeutsche Bank (NYSE:DB) slips despite denial of NYT report on Trump transactions.<\/span>
\nNew investment from Capital Re sees Juul (JUUL) valuation top $38B?<\/span>
\nDish Network (NASDAQ:DISH) to acquire EchoStar’s (NASDAQ:SATS) BSS Business for $800M.<\/span>
\n“What Determines The Investment News Agenda?” asks contributor Jeff Miller.<\/span>
\n—————
\n BLOG: <\/strong>A Day Trade Example With AMD<\/a>
\n—————<\/span>
\nToday’s Economic Calendar<\/strong>
\n8:30 Chicago Fed National Activity Index
\n8:50 Fed’s Bostic Speech
\n9:30 Fed’s Harker: Economic Outlook
\n1:00 PM Fed’s Williams Speech
\n1:00 PM Fed’s Clarida Speech
\n7:00 PM Jerome Powell Speech<\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\nOther<\/strong>…<\/span>
\ntoday’s upgrades\/downgrades<\/a> from briefing.com<\/span>
\nthis week’s Earnings<\/a><\/span> from Morningstar<\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning. Happy Monday. Hope you had a good weekend. The Asian\/Pacific markets closed mixed. India, New Zealand, Australia, Indonesia and the Philippines did well; China, Hong Kong and Sinagpore were weak. Europe, Africa and the Middle East are currently mostly down. The UK, Poland, France, Germany, Greece, South Africa, Sweden, Spain, the Netherlands, Italy, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/12958"}],"collection":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12958"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/12958\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}