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Dow Jones (INDEXDJX: .DJI) slips as presidential debate approaches

Dow Jones (INDEXDJX: .DJI) slips as presidential debate approaches

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INDEXDJX: .DJI indexdjx dji Dow 29000 global economic growth Robust Economy

September 29, 2020 Update: The Dow Jones Industrial Average (INDEXDJX: .DJI) slipped today after rallying on Friday and Monday due to renewed hopes that there would be another stimulus package. Today the index is falling ahead of the presidential debate between President Donald Trump and Democratic challenger Joe Biden.

Globally, more than 1 million people have now died from the coronavirus, and that’s serving to shake up global stock market indices as well. When Trump and Biden take the stage for their debate tonight, they are sure to discuss the handling of the pandemic and plans for the economic recovery. The U.S. has the highest number of coronavirus cases in the world at 7.1 million and the highest death toll at more than 205,000 of any country in the world.

The debate could set the tone for the markets leading up to the November presidential election.

Dow Jones Industrial Average (INDEXDJX: .DJI) declines amid economic uncertainty

September 18, 2020 Update: The Dow Jones Industrial Average (INDEXDJX: .DJI) fell 150 points before cutting its losses in morning trading today. U.S. stocks have been pressured by signs of trouble in the economic recovery and a fresh surge in coronavirus infections.

Today is also a quadruple witching day, which means both options and futures on indexes and stocks are expiring at the same time. The result is volatility on the stock market. The phenomenon often results in above-average volumes due to the way traders are moving out of hedges on their futures and options contracts.

Other pressure on the Dow Jones is coming from the presidential election and Congress’ lack of a deal on further coronavirus stimulus measures.

Survey puts Dow Jones Industrial Average at 52k in 5 years

August 17, 2020 Update: A new survey suggests the average investor is excessively optimistic—so optimistic, in fact, that they see the Dow Jones Industrial Average (INDEXDJX: .DJI) at 52,000 in only five years.

MarketWatch reported on the survey, which was conducted by money-management firm Schroders. The firm surveyed 23,450 private investors in 32 different countries, including 1,500 people in the U.S. U.S. investors are even more investors than those in other countries.

The average investor expects stock prices to continue skyrocketing, putting the Dow Jones at around 52,000 after accounting for dividends. The average investor predicted a return of 15.4% per year for the next five years.

How The Dow Jones Industrial Average Works

The Dow Jones Industrial Average (INDEXDJX: .DJI) has fallen off a cliff the past few weeks. The index is up almost 5% in trading on March 13th 2020, but that is still several thousand points below the recent high. The DJI is currently trading at 22,188.26. Previously, the Dow climbed to a new record high at 29,408 in early February before pulling back not long after the market opened. However, as the day rolled on, the index flipped back into the green.

The Dow Jones was up about 84 points amid further progress in the trade talks between China and the U.S. China plans to slash in half its tariffs on some $75 billion of imported U.S. goods starting on Feb. 14. It’s the first step in the nation’s phase-one trade resolution with Washington. Tariffs on many goods will be cut from 10% to 5%, while other goods’ tariffs will be slashed from 5% to 2.5%, according to China’s Ministry of Finance.

INDEXDJX: .DJI: Previously

Commenting on today’s trading which saw the Dow Jones INDEXDJX: .DJI near 29000, Gorilla Trades strategist Ken Berman said: 

It seems that the resilience of domestic stocks continues to be impressive. Indeed, it only took a few days to completely erase last week’s scary sell-off. It wasn’t that long time ago that we celebrated Dow Jones Industrial Average (INDEXDJX: .DJI) 28000, and thanks to today’s broad rally, the industrial average got very close to topping 29000, and bulls already have the historic 30,000 level in their crosshairs.”

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Q4 2019 hedge fund letters, conferences and more

The major indices all finished in the green for the second day in a row, and the large-cap benchmarks also closed at their highest levels ever. Equities were boosted by the de-escalation between the U.S. and Iran. The Dow Jones (INDEXDJX: .DJI) was up 212, or 0.7%, to 28,957, the Nasdaq gained 74, or 0.8%, to 9,203 while the S&P 500 rose by 22, or 0.7%, to 3,275. Advancing issues outnumbered decliners by an almost 3-to-2 ratio on the NYSE, where volume was slightly above average.  

Even though the major indices finished below their intraday highs. This was due to a shallow afternoon dip. However, all of the key sectors gained ground, with even the defensive utilities edging higher. Tech stocks, consumer goods, and services were the strongest issues, which is as healthy as it gets when it comes to bull market rallies. The relative weakness of small-caps was the only major red flag today. This was despite the fact that large-caps continue to hit record highs, the Russell 2000 remains much weak from a technical perspective.

Dow 29000 Indexdjx:.DJI this week?

The Volatility Index (VIX) hit its lowest level since last week’s airstrike. Additionally, short interest continues to decline on Wall Street.  Analysts agree that there is no lack of risk appetite among equity investors. That said, we did have several short-lived pullbacks in recent weeks. These downturns ensure that the positive sentiment hasn't turned into exuberance. In fact, the positive shift in global economic trends provided another boost for stocks, just after the trade agreement between the U.S. and China. The lofty gains will eventually lead to a deeper correction, until the bullish catalysts keep on coming. In the meantime, the foundation of the rally remains solid.

Iran in focus

The traditional safe-haven assets, such as Treasuries, Silver and gold all declined today, and the price of oil also continued to fall in the face of the improving economic outlook, as the odds of a new military conflict in the Middle East declined. President Trump unexpectedly called for the resumption of the talks with Iran. While the hardliners in the Persian state called for revenge, downplaying the effects of yesterday’s missile attacks. However, the two sides seem to be steering away from a major conflict.

The government jobs report will likely steal the show tomorrow. Volatility could already spike higher in pre-market trading because of the release. All eyes will be on the non-farm payrolls figure following last month’s blowout reading of 266,000. This week’s bullish ADP payrolls number also indicates further gains. The unemployment rate is expected to be unchanged at 3.5%, while hourly earnings are forecast to rise by 0.3%. As the global economy has been showing signs of life in recent weeks, Treasuries yields could explode higher. Yields will follow if the U.S. labor market continue to show robust growth.

Dow (Indexdjx:.DJI) 29000 next?

Technical Corner.  Since the major indices all erased last Friday’s dip. It’s no surprise that technicals continue to be bullish across the board. Indeed, not a single trend indicator flashing red. The major indices are still well above their rising 200-day moving averages of 8,153 for the Nasdaq, 2,981 for the S&P 500, and 26,817 for the Dow Jones Industrial Average and now just shy of Dow 29000. Despite the late-day pullback, the benchmarks are also north of their steeply rising 50-day moving averages of 3,149 for the S&P 500, 8,682 for the Nasdaq, and 28,024 for the Dow.

Thanks to five consecutive bullish months, Apple’s (AAPL) stock achieved yet another technical milestone, passing the $300 per share level yesterday. Apple lost the title of the most valuable public company due to the IPO of the Saudi oil giant Aramco.  However, Apple took over Microsoft (MSFT), while crossing $1.3 trillion in total capitalization. The stock hit another record high today, and it’s well above both its moving averages. However, an orderly pullback of the INDEXDJX: .DJI could happen anytime.  Apple is still likely to lead the way higher in 2020. Stay tuned!

The post Dow Jones (INDEXDJX: .DJI) slips as presidential debate approaches appeared first on ValueWalk.

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International

United Airlines adds new flights to faraway destinations

The airline said that it has been working hard to "find hidden gem destinations."

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Since countries started opening up after the pandemic in 2021 and 2022, airlines have been seeing demand soar not just for major global cities and popular routes but also for farther-away destinations.

Numerous reports, including a recent TripAdvisor survey of trending destinations, showed that there has been a rise in U.S. traveler interest in Asian countries such as Japan, South Korea and Vietnam as well as growing tourism traction in off-the-beaten-path European countries such as Slovenia, Estonia and Montenegro.

Related: 'No more flying for you': Travel agency sounds alarm over risk of 'carbon passports'

As a result, airlines have been looking at their networks to include more faraway destinations as well as smaller cities that are growing increasingly popular with tourists and may not be served by their competitors.

The Philippines has been popular among tourists in recent years.

Shutterstock

United brings back more routes, says it is committed to 'finding hidden gems'

This week, United Airlines  (UAL)  announced that it will be launching a new route from Newark Liberty International Airport (EWR) to Morocco's Marrakesh. While it is only the country's fourth-largest city, Marrakesh is a particularly popular place for tourists to seek out the sights and experiences that many associate with the country — colorful souks, gardens with ornate architecture and mosques from the Moorish period.

More Travel:

"We have consistently been ahead of the curve in finding hidden gem destinations for our customers to explore and remain committed to providing the most unique slate of travel options for their adventures abroad," United's SVP of Global Network Planning Patrick Quayle, said in a press statement.

The new route will launch on Oct. 24 and take place three times a week on a Boeing 767-300ER  (BA)  plane that is equipped with 46 Polaris business class and 22 Premium Plus seats. The plane choice was a way to reach a luxury customer customer looking to start their holiday in Marrakesh in the plane.

Along with the new Morocco route, United is also launching a flight between Houston (IAH) and Colombia's Medellín on Oct. 27 as well as a route between Tokyo and Cebu in the Philippines on July 31 — the latter is known as a "fifth freedom" flight in which the airline flies to the larger hub from the mainland U.S. and then goes on to smaller Asian city popular with tourists after some travelers get off (and others get on) in Tokyo.

United's network expansion includes new 'fifth freedom' flight

In the fall of 2023, United became the first U.S. airline to fly to the Philippines with a new Manila-San Francisco flight. It has expanded its service to Asia from different U.S. cities earlier last year. Cebu has been on its radar amid growing tourist interest in the region known for marine parks, rainforests and Spanish-style architecture.

With the summer coming up, United also announced that it plans to run its current flights to Hong Kong, Seoul, and Portugal's Porto more frequently at different points of the week and reach four weekly flights between Los Angeles and Shanghai by August 29.

"This is your normal, exciting network planning team back in action," Quayle told travel website The Points Guy of the airline's plans for the new routes.

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International

Walmart launches clever answer to Target’s new membership program

The retail superstore is adding a new feature to its Walmart+ plan — and customers will be happy.

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It's just been a few days since Target  (TGT)  launched its new Target Circle 360 paid membership plan. 

The plan offers free and fast shipping on many products to customers, initially for $49 a year and then $99 after the initial promotional signup period. It promises to be a success, since many Target customers are loyal to the brand and will go out of their way to shop at one instead of at its two larger peers, Walmart and Amazon.

Related: Walmart makes a major price cut that will delight customers

And stop us if this sounds familiar: Target will rely on its more than 2,000 stores to act as fulfillment hubs. 

This model is a proven winner; Walmart also uses its more than 4,600 stores as fulfillment and shipping locations to get orders to customers as soon as possible.

Sometimes, this means shipping goods from the nearest warehouse. But if a desired product is in-store and closer to a customer, it reduces miles on the road and delivery time. It's a kind of logistical magic that makes any efficiency lover's (or retail nerd's) heart go pitter patter. 

Walmart rolls out answer to Target's new membership tier

Walmart has certainly had more time than Target to develop and work out the kinks in Walmart+. It first launched the paid membership in 2020 during the height of the pandemic, when many shoppers sheltered at home but still required many staples they might ordinarily pick up at a Walmart, like cleaning supplies, personal-care products, pantry goods and, of course, toilet paper. 

It also undercut Amazon  (AMZN)  Prime, which costs customers $139 a year for free and fast shipping (plus several other benefits including access to its streaming service, Amazon Prime Video). 

Walmart+ costs $98 a year, which also gets you free and speedy delivery, plus access to a Paramount+ streaming subscription, fuel savings, and more. 

An employee at a Merida, Mexico, Walmart. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images)

Jeff Greenberg/Getty Images

If that's not enough to tempt you, however, Walmart+ just added a new benefit to its membership program, ostensibly to compete directly with something Target now has: ultrafast delivery. 

Target Circle 360 particularly attracts customers with free same-day delivery for select orders over $35 and as little as one-hour delivery on select items. Target executes this through its Shipt subsidiary.

We've seen this lightning-fast delivery speed only in snippets from Amazon, the king of delivery efficiency. Who better to take on Target, though, than Walmart, which is using a similar store-as-fulfillment-center model? 

"Walmart is stepping up to save our customers even more time with our latest delivery offering: Express On-Demand Early Morning Delivery," Walmart said in a statement, just a day after Target Circle 360 launched. "Starting at 6 a.m., earlier than ever before, customers can enjoy the convenience of On-Demand delivery."

Walmart  (WMT)  clearly sees consumers' desire for near-instant delivery, which obviously saves time and trips to the store. Rather than waiting a day for your order to show up, it might be on your doorstep when you wake up. 

Consumers also tend to spend more money when they shop online, and they remain stickier as paying annual members. So, to a growing number of retail giants, almost instant gratification like this seems like something worth striving for.

Related: Veteran fund manager picks favorite stocks for 2024

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Government

President Biden Delivers The “Darkest, Most Un-American Speech Given By A President”

President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through…

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President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through the State of The Union, President Biden can go back to his crypt now.

Whatever 'they' gave Biden, every American man, woman, and the other should be allowed to take it - though it seems the cocktail brings out 'dark Brandon'?

Tl;dw: Biden's Speech tonight ...

  • Fund Ukraine.

  • Trump is threat to democracy and America itself.

  • Abortion is good.

  • American Economy is stronger than ever.

  • Inflation wasn't Biden's fault.

  • Illegals are Americans too.

  • Republicans are responsible for the border crisis.

  • Trump is bad.

  • Biden stands with trans-children.

  • J6 was the worst insurrection since the Civil War.

(h/t @TCDMS99)

Tucker Carlson's response sums it all up perfectly:

"that was possibly the darkest, most un-American speech given by an American president. It wasn't a speech, it was a rant..."

Carlson continued: "The true measure of a nation's greatness lies within its capacity to control borders, yet Bid refuses to do it."

"In a fair election, Joe Biden cannot win"

And concluded:

“There was not a meaningful word for the entire duration about the things that actually matter to people who live here.”

Victor Davis Hanson added some excellent color, but this was probably the best line on Biden:

"he doesn't care... he lives in an alternative reality."

*  *  *

Watch SOTU Live here...

*   *   *

Mises' Connor O'Keeffe, warns: "Be on the Lookout for These Lies in Biden's State of the Union Address." 

On Thursday evening, President Joe Biden is set to give his third State of the Union address. The political press has been buzzing with speculation over what the president will say. That speculation, however, is focused more on how Biden will perform, and which issues he will prioritize. Much of the speech is expected to be familiar.

The story Biden will tell about what he has done as president and where the country finds itself as a result will be the same dishonest story he's been telling since at least the summer.

He'll cite government statistics to say the economy is growing, unemployment is low, and inflation is down.

Something that has been frustrating Biden, his team, and his allies in the media is that the American people do not feel as economically well off as the official data says they are. Despite what the White House and establishment-friendly journalists say, the problem lies with the data, not the American people's ability to perceive their own well-being.

As I wrote back in January, the reason for the discrepancy is the lack of distinction made between private economic activity and government spending in the most frequently cited economic indicators. There is an important difference between the two:

  • Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant

  • It's the private sector that's responsible for producing goods and services that actually meet people's needs and wants. So, the private components of the economy have the most significant effect on people's economic well-being.

Recently, government spending and hiring has accounted for a larger than normal share of both economic activity and employment. This means the government is propping up these traditional measures, making the economy appear better than it actually is. Also, many of the jobs Biden and his allies take credit for creating will quickly go away once it becomes clear that consumers don't actually want whatever the government encouraged these companies to produce.

On top of all that, the administration is dealing with the consequences of their chosen inflation rhetoric.

Since its peak in the summer of 2022, the president's team has talked about inflation "coming back down," which can easily give the impression that it's prices that will eventually come back down.

But that's not what that phrase means. It would be more honest to say that price increases are slowing down.

Americans are finally waking up to the fact that the cost of living will not return to prepandemic levels, and they're not happy about it.

The president has made some clumsy attempts at damage control, such as a Super Bowl Sunday video attacking food companies for "shrinkflation"—selling smaller portions at the same price instead of simply raising prices.

In his speech Thursday, Biden is expected to play up his desire to crack down on the "corporate greed" he's blaming for high prices.

In the name of "bringing down costs for Americans," the administration wants to implement targeted price ceilings - something anyone who has taken even a single economics class could tell you does more harm than good. Biden would never place the blame for the dramatic price increases we've experienced during his term where it actually belongs—on all the government spending that he and President Donald Trump oversaw during the pandemic, funded by the creation of $6 trillion out of thin air - because that kind of spending is precisely what he hopes to kick back up in a second term.

If reelected, the president wants to "revive" parts of his so-called Build Back Better agenda, which he tried and failed to pass in his first year. That would bring a significant expansion of domestic spending. And Biden remains committed to the idea that Americans must be forced to continue funding the war in Ukraine. That's another topic Biden is expected to highlight in the State of the Union, likely accompanied by the lie that Ukraine spending is good for the American economy. It isn't.

It's not possible to predict all the ways President Biden will exaggerate, mislead, and outright lie in his speech on Thursday. But we can be sure of two things. The "state of the Union" is not as strong as Biden will say it is. And his policy ambitions risk making it much worse.

*  *  *

The American people will be tuning in on their smartphones, laptops, and televisions on Thursday evening to see if 'sloppy joe' 81-year-old President Joe Biden can coherently put together more than two sentences (even with a teleprompter) as he gives his third State of the Union in front of a divided Congress. 

President Biden will speak on various topics to convince voters why he shouldn't be sent to a retirement home.

According to CNN sources, here are some of the topics Biden will discuss tonight:

  • Economic issues: Biden and his team have been drafting a speech heavy on economic populism, aides said, with calls for higher taxes on corporations and the wealthy – an attempt to draw a sharp contrast with Republicans and their likely presidential nominee, Donald Trump.

  • Health care expenses: Biden will also push for lowering health care costs and discuss his efforts to go after drug manufacturers to lower the cost of prescription medications — all issues his advisers believe can help buoy what have been sagging economic approval ratings.

  • Israel's war with Hamas: Also looming large over Biden's primetime address is the ongoing Israel-Hamas war, which has consumed much of the president's time and attention over the past few months. The president's top national security advisers have been working around the clock to try to finalize a ceasefire-hostages release deal by Ramadan, the Muslim holy month that begins next week.

  • An argument for reelection: Aides view Thursday's speech as a critical opportunity for the president to tout his accomplishments in office and lay out his plans for another four years in the nation's top job. Even though viewership has declined over the years, the yearly speech reliably draws tens of millions of households.

Sources provided more color on Biden's SOTU address: 

The speech is expected to be heavy on economic populism. The president will talk about raising taxes on corporations and the wealthy. He'll highlight efforts to cut costs for the American people, including pushing Congress to help make prescription drugs more affordable.

Biden will talk about the need to preserve democracy and freedom, a cornerstone of his re-election bid. That includes protecting and bolstering reproductive rights, an issue Democrats believe will energize voters in November. Biden is also expected to promote his unity agenda, a key feature of each of his addresses to Congress while in office.

Biden is also expected to give remarks on border security while the invasion of illegals has become one of the most heated topics among American voters. A majority of voters are frustrated with radical progressives in the White House facilitating the illegal migrant invasion. 

It is probable that the president will attribute the failure of the Senate border bill to the Republicans, a claim many voters view as unfounded. This is because the White House has the option to issue an executive order to restore border security, yet opts not to do so

Maybe this is why? 

While Biden addresses the nation, the Biden administration will be armed with a social media team to pump propaganda to at least 100 million Americans. 

"The White House hosted about 70 creators, digital publishers, and influencers across three separate events" on Wednesday and Thursday, a White House official told CNN. 

Not a very capable social media team... 

The administration's move to ramp up social media operations comes as users on X are mostly free from government censorship with Elon Musk at the helm. This infuriates Democrats, who can no longer censor their political enemies on X. 

Meanwhile, Democratic lawmakers tell Axios that the president's SOTU performance will be critical as he tries to dispel voter concerns about his elderly age. The address reached as many as 27 million people in 2023. 

"We are all nervous," said one House Democrat, citing concerns about the president's "ability to speak without blowing things."

The SOTU address comes as Biden's polling data is in the dumps

BetOnline has created several money-making opportunities for gamblers tonight, such as betting on what word Biden mentions the most. 

As well as...

We will update you when Tucker Carlson's live feed of SOTU is published. 

Tyler Durden Fri, 03/08/2024 - 07:44

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