{"id":13208,"date":"2019-06-05T08:03:48","date_gmt":"2019-06-05T13:03:48","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=13208"},"modified":"2019-06-05T08:03:48","modified_gmt":"2019-06-05T13:03:48","slug":"before-the-open-jun-5-7","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=13208","title":{"rendered":"Before the Open (Jun 5)"},"content":{"rendered":"

Good morning. Happy Wednesday. <\/span>
\n Several Asian\/Pacific<\/strong> markets were closed today. Japan, Thailand and Australia closed up. Several European, African and Middle Eastern<\/strong> markets were also closed today. South Africa, Switzerland, the Netherlands, Italy and Israel are doing well; Finland is weak. Futures in the States<\/strong> point towards a positive open for the cash market. <\/span>
\nThe dollar is down. Oil and copper are down. Gold and silver are up. Bonds are up. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n President Trump may finally get the rate cut he has been demanding as top Fed officials began warning this week that the global trade war may force them to respond. Chair Jerome Powell made a subtle move in that direction on Tuesday, dropping his standard reference to the Fed being “patient,” and said it is prepared to “act as appropriate to sustain the expansion” amid intensifying trade tensions. Futures are now pointing to opening gains in the U.S., up about 0.6%, after the major indexes yesterday had their second-best day of 2019. The DJIA rose 512 points, while the S&P 500 jumped 2.1% and Nasdaq Composite surged 2.7%.<\/span>
\n Potential effects of Mexican tariffs<\/span>
\n The U.S. and Mexico are scheduled to start official talks in Washington this afternoon after President Trump threatened to impose punitive tariffs on Mexican products on June 10. Where would the levies hit hardest? Mexico is the world’s biggest exporter of beer (BUD, STZ), selling $3.6B worth to the U.S. last year, along with $2B in avocados (CVGW, FDP) and $2B in tomatoes. Corporations are also speaking out. Chipotle (NYSE:CMG) estimated a $15M hit, but said it could cover that by raising burrito prices by around 5 cents, while auto parts maker Aptiv (NYSE:APTV) said a 5% tariff would cost the company $17M per month.<\/span>
\n Retaliation against Apple?<\/span>
\n Apple (NASDAQ:AAPL) shares are up nearly 2% premarket after CEO Tim Cook told CBS News that he didn’t “anticipate” his company would be targeted by China should the ongoing trade war escalate further. “We’ve had a company in China for a long time. And so, there is a, I believe, a healthy level of respect for both sides,” he added. Cook also dismissed the idea that Apple was “too big” and took issue with suggestions from presidential candidate Elizabeth Warren that it had a monopoly position that would warrant action from either lawmakers or the DOJ.<\/span>
\n China phone output cut<\/span>
\n Samsung Electronics (OTC:SSNLF) is cutting production and laying off workers at its only remaining smartphone plant in China as it continues to shift production to lower-cost Asia locations. The world’s biggest smartphone maker has only about 1% market share in the country, down from about 20% in 2013. The intervening years have seen a bout of anti-South Korean sentiment following a diplomatic spat, as well as a shift to local champions like Huawei at a time of deteriorating Sino-U.S. relations.<\/span>
\n Walmart shareholder meeting<\/span>
\n There are likely to be some fireworks at Walmart’s (NYSE:WMT) annual shareholders meeting in Bentonville, Arkansas, as Bernie Sanders gatecrashes the “celebration” with calls to raise wages and and for hourly associates to have a seat on the retailer’s board. Walmart currently pays an $11 minimum wage, but says its average hourly total compensation and benefits total more than $17.50 an hour. Shareholders will also vote on whether to strengthen Walmart’s sexual harassment policies and approve executives’ pay.<\/span>
\n Ashtray evacuation<\/span>
\n The Beverly Hills City Council has unanimously approved a ban on the retail sale of most tobacco products with a sweeping ordinance that is believed to be the first of its kind in the nation. The ban, which is set to begin in 2021, prohibits the sale of cigarettes, cigars, pipe tobacco, chewing tobacco and electronic cigarettes sold in gas stations, convenience stores, pharmacies and grocery stores. Only exemption: Tobacco sales will be permitted at high-end cigar lounges and hotels. Related tickers: MO, BTI, PM, JUUL<\/span>
\n Another EV partnership<\/span>
\n The next industry alliance has been formed to lower the costs of developing EVs as BMW (OTCPK:BMWYY) said it would develop its next-generation electric motors, transmission and power electronics with Jaguar Land Rover (NYSE:TTM). “We’ve proven we can build world beating electric cars but now we need to scale the technology to support,” said Nick Rogers, Jaguar Land Rover’s engineering director. Volkswagen (OTCPK:VWAGY) also announced a mega investment overnight, allocating \u20ac4B over the years to 2023 to digitalize its administration and production.<\/span>
\n No special treatment<\/span>
\n General Motors (NYSE:GM) is not getting a pass on tariffs snagging its Chinese-built Buick Envision. The Trump administration has refused to grant the automaker an exclusion for the SUV, keeping in place a 25% duty on the import. According to the Office of the U.S. Trade Representative, the vehicle is “strategically important or related” to Chinese industrial programs such as “Made in China 2025,” which it views as a national security risk. Separately, China has fined Ford’s (NYSE:F) Changan joint venture $24M for violating anti-monopoly law.<\/span>
\n Disciplinary action is warranted<\/span>
\n Recommending the launch of disciplinary procedures, the European Commission has escalated its debt level battle against Italy as the country has only made limited progress in hitting European budget targets and backtracked on structural reforms. The Commission, however, has not yet opened an “excessive deficit procedure” – EU states must first have their say in two weeks’ time – though it’s still a significant move in the long clash between Brussels and Italy’s coalition government.<\/span>
\n What else is happening…<\/span>
\n Bonds were extended in an extremely rare manner, writes contributor Chris Ciovacco.<\/span>
\n Bank of England calls ‘last orders’ on Libor benchmark.<\/span>
\n SEC sues Kik Interactive (KIKI) for $100M unregistered ICO.<\/span>
\n Amid struggles, Deutsche Bank’s (NYSE:DB) U.S. operations chief departs.<\/span>
\n Apple (AAPL) requires developers to place its login button above rivals.<\/span>
\n Best day of 2019 for Tesla (NASDAQ:TSLA), but shares still down 42% YTD.<\/span>
\n Trump administration bans cruise ships from Cuba.<\/span>
\n CVS (NYSE:CVS) leverages retail footprint to deliver managed care services.<\/span>
\n Tuesday’s Key Earnings<\/strong>
\n Ambarella (NASDAQ:AMBA) +16.4% AH on strong guidance, buyback.
\n GameStop (NYSE:GME) -29.7% AH amid double-digit sales decline.
\n Salesforce (NYSE:CRM) +2.7% AH following a beat-and-raise.
\n Tiffany & Co. (NYSE:TIF) +2.6% reaffirming FY revenue outlook.<\/span><\/span><\/span><\/span><\/span>
\n Today’s Economic Calendar<\/strong>
\n 7:00 MBA Mortgage Applications
\n 8:15 ADP Jobs Report
\n 9:45 Fed\u2019s Clarida: \u201cMonetary Policy Strategy, Tools, and Communication Practices\u201c
\n 9:45 Fed’s Bostic Speech
\n 9:45 PMI Services Index
\n 10:00 ISM Non-Manufacturing Index
\n 10:00 Fed\u2019s Bowman Speech
\n 10:30 EIA Petroleum Inventories
\n 1:15 PM Fed’s Rosengren: “Transmission of Monetary Policy to the Economy: Beyond the Headlines”
\n 2:00 PM Fed’s Beige Book<\/span><\/span><\/span><\/span><\/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 Wednesday. Several Asian\/Pacific markets were closed today. Japan, Thailand and Australia closed up. Several European, African and Middle Eastern markets were also closed today. South Africa, Switzerland, the Netherlands, Italy and Israel are doing well; Finland is weak. Futures in the States point towards a positive open for the cash market.<\/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\/13208"}],"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=13208"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/13208\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}