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Wall St. rebounds on robust jobs report, dovish Powell remarks

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At the session symbolizing increased volatility, which swept the markets for several weeks, all three major US stock indexes rose by more than 3 percent in one of the most significant gains in recent years. The profit more than wiped out the losses of the previous session and was due to the technology sector, which rebounded from its largest one-day decline in the last seven years after Apple Inc. (AAPL.O) cut its sales forecast.

Since Christmas’s 20-month low, on the eve of Christmas, due to rounding errors, which are considered to be a bear market, the S & P 500 .SPX index has grown by 7.7%. Friday's advance, measured by the number of stocks rising against falling, was the largest in eight years.
The main catalysts for growth were the monthly wage report in the United States, which surpassed economists' estimates, according to which the largest number of jobs was created in 10 months, and the comments of the Fed Powell.

In comments to the American Economic Association, Powell reassured market nerves with assurances that the central bank is sensitive to the risks that worry investors, and is not on a given path of raising interest rates.

Speaking after months of instability in the global bond and equity markets, Powell avoided some communication errors that worried rather than reassured investors in the past. He also promised to stay in his post, even if asked by President Donald Trump, who repeatedly scolded the person he appointed to work, for repeated increases in the Fed rate.
"(Powell) says the right thing: that the Fed is ready to change, that it listens carefully, that it is sensitive to the messages that the market sends,” said James Eti, senior investment manager at Aberdeen Standard Investments in London. "This is good news for a market that is beginning to absorb itself out of fear."

However, others have warned that the rollercoaster ride this week could be a new norm.

"Despite the fact that today such days seem good, we still foresee further economic weakness and expect the market to continue to grow," said Eric Friedman, investment director at the American bank Wealth Management in Minneapolis.

News that China and the United States will hold trade talks in Beijing next week helped tariff-vulnerable industrial leaders lead the Dow rally, led by Caterpillar Inc. (CAT.N), United Technologies Corp (UTX.N), 3M Co ( MMM.N). ) and Boeing Co (BA.N).
The Dow Jones Industrial Average .DJI rose 746.94 points, or 3.29 percent, to 23.433.16, the S & P 500 .SPX added 84.05 points, or 3.43 percent, to 2.531.94, and The Nasdaq Composite .IXIC index added 275.35 points, or 4.26 percent, to 6,738.86.

All 11 major sectors of the S & P 500 ended the session in positive territory: technology, communication services .SPLRCL, materials .SPLRCM and industrial shares .SPLRCI showed the largest percentage increase.

Apple shares rose 4.3 percent and led to an increase in the technical sector, as the company began to recover positions lost after a warning about a decrease in revenue in the holiday quarter on Wednesday.

Each of the FAANG impulse promotions, a group that includes Facebook Inc (FB.O), Apple, Amazon.com Inc (AMZN.O), Netflix Inc (NFLX.O) and the parent company Google Alphabet Inc (GOOGL.O), traded above.

Netflix jumped 9.7 percent after Goldman Sachs added streaming service to its "belief list.”

The number of advanced issues exceeded the number of recessions on the NYSE at a ratio of 7.64 to 1; on the Nasdaq, a ratio of 6.22 to 1 favored advancement.

The S & P 500 did not publish new 52-week highs and 1 new minimum; The Nasdaq Composite has recorded 5 new highs and 19 new lows.

Volume on US exchanges was 8.68 billion Shares compared with an average of 9.14 billion. Over the past 20 trading days.


U.S. sets new March 2 date for China tariff increases amid talks

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The change has been made to the federal register since the previously scheduled effective date of January 1, 2019, to increase to 25 percent from 10 percent.

The notice does not affect the 25 percent tariff rate already applied to Chinese technological products in the amount of $ 50 billion, including semiconductors, printed circuit boards and other electronic components, cars and vehicles.
This submission was added to documents related to the USTR "Section 301” investigation regarding intellectual property practices in China, which became the basis of US tariffs on Chinese goods, which led to retaliatory strikes from Beijing.

This is due to the change in the new US-China agreement "to achieve the elimination of the actions, policies and practices covered by the investigation" after the meeting on December 1 between US President Donald Trump and Chinese President Xi Jinping in Buenos Aires. ,

The USTR statement did not indicate any expected results of the negotiations. It referred to the goals set out in a statement published by the White House to negotiate China’s structural changes over a 90-day period regarding enforcement of technology, protection of intellectual property, non-tariff barriers, cyber-invasions and theft, services and agriculture.
The USTR notice did not mention China’s moves this week to resume suspended soybean purchases in the United States or suspend a 25% fine on American cars and auto parts.

The official delay in raising the tariff rate was of little comfort for the US technology sector.

The Consumer Technology Association said Friday that US tariffs on technology imports from China currently cost $ 1 billion a month, and duties on fifth-generation mobile technology products reach $ 122 million in October, compared with $ 65,000 a year earlier.


GoPro to move U.S.-bound camera production out of China

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Earlier, the company stated that it was "very actively” responding to the tariff situation, as the United States and China intensified their bitter trade war, in which both countries introduced tariffs for hundreds of billions of dollars in imports of each other.

GoPro said that the production of international cameras will remain in China.
"It is important to note that we own our own production equipment, while our production partner provides the equipment, so we expect to do this with relatively little cost,” said CFO Brian McGee.

In a statement on the company's income in November, GoPro stated that it has the opportunity to withdraw production in the United States from China in the first half of 2019, if necessary.

GoPro is trying to increase the demand for its brand-name action cameras — once mandatory for surfers, parachutists, and other action fans — as competition intensifies.
Last month, the company forecast revenue in the fourth quarter below analysts' estimates, as it struggles with declining demand for its products.

The forecast turned out to be disappointing, as the company released new low-cost models of its flagship camera Hero for the holiday season.

However, GoPro said it would be profitable in the fourth quarter, and expects that the "low inventory in the channel” will be well positioned in the first quarter.


U.S. to conduct additional Keystone XL pipeline review

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The so-called Supplemental Environmental Impact Statement was appointed by Judge Brian Morris of the US District Court in Montana in his November 8 ruling, which blocked the construction of a pipeline designed to deliver heavy Canadian oil sands to the United States.
Morris said in his ruling that Keystone XL's previous environmental analysis does not match the "hard look” on the cumulative effect of greenhouse gas emissions and the impact on land resources of Native Americans.

A pipeline worth $ 8 billion, which is supported by Canadian oil interests and US refineries, but opposes landowners and environmentalists, has been under review for a decade.

President Donald Trump announced permission for the project shortly after he took office. Former President Barack Obama condemned the construction of the gas pipeline, saying that little would help American consumers and will add greenhouse gases.

TransCanada spokesman Terry Cunha said that after the judge’s decision was announced, the State Department announced an additional review.

Earlier this week, TransCanada asked Morris, a district court judge, to allow him to resume some pre-project activities at the US level, blocked by the original ruling.
Morris’s decision on Thursday gave Calgary, an Alberta-based company permission to resume some pipeline project activities, including project development work and meetings with interested parties.

Cunha said it was not allowed to resume work on field conditions, such as moving pipes and equipment, preparing workplaces for campgrounds or carrying out road upgrades. Morris is going to decide on work after December 5th.

"It’s too early to say what the injunction on the Keystone XL highway will mean, but we are still confident that the project will be built,” Cunha said.


eBay polishes plans for online second-hand luxury watch market

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"By the end of 2019, we hope that a full range of services will be available for all luxury watch sellers and buyers on the platform,” said James Hendy, in charge of eBay authentication services for luxury goods, in a recent interview with Reuters.

While sales of watches grew more slowly, the used market was reinforced by younger consumers buying online with pleasure, prompting Cartier Richemont (CFR.S) to buy a used Watchfinder.co.uk platform.
Hendy said that the volume of eBay transactions for used luxury watches will exceed $ 1 billion in 2018. This compares with a volume of about 1.3 billion euros expected from German rival Chrono24 by its co-CEO and founder Tim Strake.

eBay allowed approved professional retailers, such as Watchbox, to list watches on eBay with an authentication tag in September, expanding its eBay authentication program from bags to luxury watches.

And from the first quarter of 2019, eBay will allow consumers to instantly sell their luxury watches on the site, adding authentication services to cover all transactions between consumers and consumers (C2C) in the second half of the year.

Swiss luxury watch brands have not hesitated to sell online for a long time and are used to looking at platforms such as eBay or the specialized websites Chrono24 or Chronext as troubles, because watches that retailers find difficult to sell often turn out to be online at a discount.

However, eBay is now considering partnerships with luxury brands as it is aimed at a market that is estimated to cost about 17.6 billion Euros (20 billion US dollars) when jewelry is included, says a recent Bain & Company report.

The market used was reinforced by younger consumers who were happy to shop online, prompting watch manufacturers such as Richemont or Audemars Piguet to enter the market.
"I believe that in the next few years, the primary and secondary markets are coming together,” said Hendy, adding that brands working with eBay will be able to directly interact with customers through their platform.
(1 US dollar = 0.8748 euros)

(This story corrects the conclusion about deleting the link to "auction”, also deletes the link to Watchfinder, paragraph 5)


Oil slide, China worries send Wall Street tumbling

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Oil prices fell by almost 1.0 percent on Friday, and since 1984, the longest period of daily decline has been observed, growth in world supplies and evidence of a slowdown in the global economy.
This week, the United States officially imposed punitive sanctions on Iran, but granted temporary refusals to eight countries, which allowed them to continue to buy oil from the Islamic Republic.

"Oil scares the market. If oil prices fall, this is another sign that the global economy will slow down growth, ”said Chris Zakcarelli, chief investment officer of the independent adviser alliance in Charlotte, North Carolina.
The Dow Jones Industrial Average .DJI fell by 201.92 points, or 0.77 percent, to 25,989.3, the S & P 500.SPX lost 25.82 points, or 0.92 percent, to 2,781.01, and Nasdaq Composite .IXIC dropped 123.98 points, or 1.65 percent, to 7.406.90.

The S & P .SPSY energy index fell 0.4 percent after falling 2.2 percent in the previous session, when US oil prices LCOc1 confirmed a bear market, dropping 20 percent from their highest high. [OR]

"I think we are going to go lower than the October minimum. Economic growth is slowing, but it will not be slow enough to stop the Fed from hikes, ”said Jim Paulsen, chief investment strategist at Leuthold in Minneapolis.

Investors were risk averse, sending the S & P technology index. SPLRCT fell 1.7 percent as Apple Inc. (AAPL.O) fell 1.9 percent and semiconductor stocks .SOX fell 1.9 percent.

Eight of S & P's 11 major sectors closed the day lower.

Consumer goods index. SPLRCS was the biggest gain with a 0.5 percent increase, while other defensive sectors, such as utilities. SPLRCU and real estate. SPLRCR was digging a small profit.
Amid a trade policy dispute between Washington and Beijing, Chinese data showed that producer inflation fell for the fourth consecutive month in October amid falling domestic demand and manufacturing activity, while auto sales fell for the fourth consecutive month.
Chinese data turned global stocks into a tailspin and put pressure on sectors sensitive to trade and commodities. The US industrial sector .SPLRCI fell 1.0 percent, and .SPLRCM materials fell more than 1.4 percent.
US Federal Reserve policies left interest rates unchanged on Thursday, as expected, and her political statement signaled that interest rates are higher, even when he noted that business investment is moderate.
Recent data on producer price inflation in the United States did little to ease concerns about rising interest rates, which this year impeded inventory growth.

Shares of tobacco companies fell after the official said that the US Food and Drug Administration will ban the sale of electronic cigarettes with fruits and sweets in stores and gas stations.

The Altria Group (MO.N) fell 2.98 percent lower, while the British American tobacco company fell 4.2 percent.

Declining issues exceeded the ratios of 2.22 to 1 expected on the NYSE; on the Nasdaq, a ratio of 2.95 to 1 favored biases.

In the S & P 500, 29 new 52-week highs and 8 new lows were published; The Nasdaq Composite has recorded 46 new highs and 113 new lows.

On the US stock exchanges 7.93 billion. Shares have changed in comparison with 8.39 billion. On average over the last 20 sessions.


Global oil pricing worries hit U.S. energy shares as earnings loom

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In the third quarter, the profit of oil producers as a whole should be higher than a year ago, since the average price per barrel increased by about 44 percent compared to the same period last year. But oil prices on Friday recorded a third week-long recession, expanding weaknesses about the fact that slow global economic growth and the US trade war could trigger demand.

U.S. crude CLc1 is on the way to decline by about 8 percent per month, while the S & P 500 .SPNY index in October fell by 12.2 percent compared to the S & P 500 .SPX index by 8.8%. [.N]

In the third quarter, oil prices in the US of CLc1 were $ 69.43 per barrel, which rose sharply from $ 48.20 a year earlier. Analysts expect this to help increase the S & P 500’s quarterly profit by 102.9 percent, which is the largest annual growth expected by sector, according to I / B / E / S from Refinitiv.
This will be the largest annualized expected percentage growth in any sector in a quarter. However, some investors say that this may not be enough to reverse the trend in stocks, taking trade and other concerns into account.

"I expect that profits will be good because prices in the last quarter were good," said Rick Mekler, a partner at Cherry Lane Investments, a family investment office in New Vernon, NJ.

But "it was very difficult for these companies to predict pricing because it was so volatile,” he said. Companies that provide drilling and other work for US producers accuse of short-term slowdown in demand for services due to the pipeline and other constraints, especially in West Texas fields.

While US sanctions against Iranian oil exports may support prices in the coming months, the largest exporters of Saudi Arabia and Russia signal that they expect an increase in production, which should limit growth.
Upcoming profit and loss statements from Exxon Mobil (XOM.N) and Chevron (CVX.N), due on November 2, may reflect these problems. Exxon fell by almost 9 percent in the current month, while Chevron also fell by almost 9 percent.

"We have seen oil prices being sold here throughout the correction we had in the broad market. Competition in the sale, of course, is global growth, and this immediately affected the price of oil, ”said Tim Grisky, chief investment strategist at Inverness Counsel in New York.

UBS analysts expect oil demand to grow more slowly in 2019, at higher oil prices and weaker economic growth.

Another producer, Hess Corp (HES.N), has to report on Wednesday, while ConocoPhillips (COP.N), the largest independent producer of oil and gas in the world, beat analyst estimates for profit in the third quarter, when it reported on Thursday , quoting higher oil prices, but also reducing costs.

Recent losses aside, some capital analysts believe that oil is in a bullish cycle and expects prices to rise next year.
This year, energy stocks sharply outpaced oil prices, which suggests that there is room for further growth in stocks.

"People still think that we are worth $ 40 a barrel. We're not, ”said Robert Luts, president and chief investment officer of Cabot Wealth Management in Salem, Massachusetts, who owns diamondback energy shale maker Diamondback (FANG.O) and other names.

"People misjudge the balance between supply and demand,” said Lutts, who sees oil prices during the year from $ 80 to $ 90 per barrel. Crude oil settled at $ 67.59 on Friday.

Even with the recent sale of the price of CLc1 oil in the United States this year rose by about 11 percent, while the energy consumption index S & P 500 fell by about 8 percent in 2018, and market leader Exxon fell by about 7 percent.

Some money managers also believe that energy stocks are now more attractive, and investors are fleeing high-tech technologies and Internet names in a recent stock market sale and are looking for value names.
Others say it's too early for a bull call for energy.

"To achieve sustainable growth in oil reserves, where they consistently outperform other sectors and where the sector is actually growing as a component of the S & P 500, you need a lot of things, such as limiting supply and global growth.

We are not there now, ”said Bucky Hellwig, senior vice president, BB & T Wealth Management in Birmingham, Alabama.


Pfizer to cut around 2 percent of jobs through early next year

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Pfizer employs around 90,000 people worldwide.

Pfizer spokeswoman Sally Beatty said job cuts were "creating a simpler, more efficient structure and not achieving cost savings.”

Job cuts were originally reported by CNBC.

The move follows the announcement earlier this month that Albert Burla, Chief Operating Officer, will perform Jan Red as Executive Director in January. The company also added new responsibilities for many of its top managers and hired a new chief specialist officer.

Pfizer shares rose 1.8 percent to $ 44.70 in early trading on the New York Stock Exchange. Its shares rose about 20 percent this year, ahead of the Standard & Poors 500 index, which is about 4 percent in the same period.


World stocks wobble as Wall St. cuts losses; oil off after U.S. data

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Crude oil futures fell four times in the first session after data from the US government showed much larger-than-expected crude oil reserves. WTI touched the lowest price in a month.

The US dollar rose as the market expected minutes from the last meeting in the Federal Reserve System. Lower than expected UK-weighted inflation data reduced previous day's earnings.

On Wall Street, IBM fell 6.2 percent, dragging blue chips the day after the company missed its expected earnings. On Tuesday, the S & P 500 posted the largest daily increase since the end of March.

Stocks increased losses when oil prices fell even more, but the steady growth in stocks in the financial sector had the S & P 500 almost break even.

"It’s too early to say that Tuesday’s rally was a" dead cat's rebound ”or market setting base,” said Jorge Kinahan, chief market strategist at TD Ameritrade. "We are going on an incredible day, so it would be unusual to see that some have arrived."
The Dow Jones Industrial Average fell by 29.27 points, or 0.11 percent, to 25,769.15, the S & P 500 fell to 2.61 points, or 0.09 percent, to 2,812.53, and the Nasdaq Composite fell by 3.59 points, or 0.05 percent, to 7,641.90.

European stock indexes reached a one-week high at the start of trading, but then were lowered by 1.9% in the auto stock index. Goldman Sachs said that slow demand in China could affect revenues in this sector.

The pan-European STOXX 600 lost 0.40 percent, while the MSCI reserves index worldwide fell by 0.01 percent.

Shares in emerging markets rose by 0.05 percent. The largest MSCI index in the Asia-Pacific region outside Japan closed at 0.27 percent, and the Japanese Nikkei - at 1.29 percent.
US oil futures fell below $ 70 per barrel after data showed that US stocks rose 6.5 million barrels, which is almost three times higher than analysts' forecasts, while exports fell.

WTI fell by 2.34 percent to $ 70.24 per barrel, and Brent fell by $ 80.28, which is 1.39 percent less than on the same day.
The euro fell 0.39 percent to $ 1.1528, while sterling was last traded at $ 1.314, a decrease of 0.33 percent on the same day.

The Japanese yen weakened 0.03 percent against the US dollar by 112.31 US dollars. The dollar index rose 0.37 percent.

The minutes of the last Fed meeting, to be held on Wednesday, should fuel expectations of further tightening.

The Brazilian real rose against the dollar after data showed that economic activity rose more than expected in August.

US Treasury revenue continued to trade in the range after a massive take-off last week.

The benchmark of 10-year notes fell by 4/32 in price, reaching 3.1709 percent, from 3.156 percent until the end of Tuesday.

The 30-year bond in the past fell by 6/32 in price, which made it possible to get 3.3399 percent, from 3.33 percent at the end of Tuesday.


Most U.S. states lack reserves to weather next recession: S&P

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S & P said that only 20 states have the reserves needed for the first year of the economic recession, without cutting budgets or raising taxes.

"In their fight against recessions, budget reserves are what the states are sending to the front," the report says. "They are an internal source of immediate liquidity and can provide transitional funding to agencies before the budget cuts come into effect."
According to S & P, states faced the worst income deficit in the next recession compared to the Great Recession. This is due to the fact that states rely more on personal income taxes as a percentage of total revenues to the fund than they did ten years ago, with taxes currently contributing 55% of funds to funds, compared to 49% in 2008, says S & P.

In addition to the lack of reserves, states that are at risk of severe financial stress in the first year of the next recession also have higher income volatility and higher fixed costs, including debt payments and pension contributions, S & P. ​​says.

He said an increase in social spending, such as Medicaid, could also help reduce budget deficits.

In the first year of the recession, there are 15 states facing a large income shortfall, 21 states with moderate deficits and 14 states that are expected to have a low deficit.

In the case of a moderate recession, states can see the total deficit of the fund from 9.9% to 11.8% year on year, compared to 8.1% in 2008-2009, S & P. ​​said.

Nevertheless, the state of financial health in the current year has improved compared to last year, and the probability of an economic recession starting from the next 12 months is only 10-15%, S & P. ​​says.
The Moody's Analytics report, also published on Monday, said that the number of states with sufficient reserves to withstand the recession increased to 23 from 16 last year.

There is also a larger number of states that are not significantly ready for even a slight decline: 17 states hold much less money than they need, compared to 15 in 2017, Moody said.

These states are in the order of the least prepared - Louisiana, Oklahoma, North Dakota, New Jersey, Montana, Kentucky, Virginia, Missouri, Arizona, Illinois, Pennsylvania, Wisconsin, Kansas, New Hampshire, Mississippi, Michigan and Arkansas.