Kamis, 30 Mei 2019

Wall Street rises after trade-driven selloff - Investing.com

© Reuters. Traders work on the floor at the NYSE in New York © Reuters. Traders work on the floor at the NYSE in New York

By Amy Caren Daniel

(Reuters) - U.S. stocks rose for the first time this week on Thursday, as President Donald Trump said trade talks with China are doing well, offering a glimmer of hope to markets roiled by trade tensions.

A senior Chinese diplomat said that provoking trade disputes is "naked economic terrorism", even as Trump said Beijing wanted to make a deal with Washington.

The escalating trade war has weighed heavily on Wall Street, putting its main indexes on track for a monthly loss of more than 5% in May. The benchmark is now 5.7% away from its all-time high of 2954.13 hit on May 1.

"People are trying to figure out how much of the bad news is already priced in. The trade war looks like it might dampen growth but not enough to throw us into a recession," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

"There has been talk about the Fed possibly cutting rates and that is a little bit positive for the stock market."

Despite a tick up in U.S. treasury yields on Thursday, they were still at 20-month lows as investors sought safety in government bonds.

The yield curve between three-month bills and 10-year notes also remained inverted and money markets were pricing in roughly two U.S. rate cuts by the start of next year. [US/]

The technology sector, among the worst performing S&P sectors this month, rose 0.60%, and provided the biggest boost to markets.

The sector was helped by a 11% jump in shares of Keysight Technologies after the electronic measurement equipment maker's quarterly results topped estimates and the company announced a $500 million share buyback program.

Apple Inc (NASDAQ:), Microsoft Corp (NASDAQ:) and Intel Corp (NASDAQ:) rose between 0.3% and 1.3%, supporting the markets.

At 9:42 a.m. ET the was up 74.96 points, or 0.30%, at 25,201.37. The S&P 500 was up 12.02 points, or 0.43%, at 2,795.04 and the was up 32.96 points, or 0.44%, at 7,580.27.

Nine of the 11 major S&P sectors were trading higher, with only the energy and communication services sectors in the red.

Adding to the upbeat mood, the government confirmed domestic economic growth accelerated in the first quarter, but there are signs that the temporary boost from exports and inventory accumulation is already fading, and production at factories slowing.

Among other stocks, Citigroup Inc (NYSE:) rose 1.4% after Goldman Sachs (NYSE:) raised the bank's shares to "buy", as it expects the lender to achieve a higher return on equity in 2020.

Discount retailer Dollar General Corp (NYSE:) jumped 6.2% after the company reported quarterly same-store sales and profit above expectations.

PVH Corp (NYSE:) tumbled 12.1%, the most among S&P companies, after the Calvin Klein owner cut its annual profit forecast as it grapples with tariffs and slowing retail growth.

Advancing issues outnumbered decliners by a 3.25-to-1 ratio on the NYSE and by a 2.48-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week high and six new lows, while the Nasdaq recorded eight new highs and 26 new lows.

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https://www.investing.com/news/stock-market-news/futures-tick-higher-after-prior-sessions-selloff-1882964

2019-05-30 14:24:00Z
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Generate - May 30, 2019 - Axios

An electric ferry in France
An all-electric, zero-emission ferry in Lorient, France. Photo: Jean-Sebastien Evrard/AFP/Getty Images

Ships are the latest mode of transportation to see electric upgrades as the maritime industry faces increased pressure to reduce greenhouse gases, writes Axios Expert Voices contributor Maggie Teliska.

The big picture: Passenger ferries are ideal for electric propulsion using current battery technology, which can reduce water and air pollution while providing a quiet, vibration-free trip. Short routes with frequent stops along populated shorelines offer ample opportunities to charge the battery packs.

Where it stands: Globally, there were 185 battery-powered vessels operating or scheduled for delivery in 2018, 58 of which were passenger ferries. Norway introduced the first all-electric ferry, named the MF Ampere, in 2015 to shuttle passengers between villages in the fjords.

What's new: Maid of the Mist plans to launch 2 all-electric, zero-emission boats in September on the U.S. side of Niagara Falls — the first domestically built all-electric boats used for tourists in the U.S.

  • Washington State Ferries will introduce a 150-passenger hybrid ferry later this year in Puget Sound that runs on both diesel and battery power, using up to 60% less fuel than diesel counterparts. 
  • Also this year, New York City plans to introduce a 150-person ferry to shuttle commuters across the East River, from Brooklyn to Manhattan.

Read more

Teliska is a technical specialist at Caldwell Intellectual Property Law and CTO of Regent Power. She is also a member of GLG, a platform connecting businesses with industry experts.

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https://www.axios.com/newsletters/axios-generate-381c9392-75df-476d-834f-f01e216b3a55.html

2019-05-30 12:33:50Z
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Investors Brace for a New Cold War That Will 'Last Our Careers' - Bloomberg

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  1. Investors Brace for a New Cold War That Will 'Last Our Careers'  Bloomberg
  2. Ray Dalio warns China restricting rare earth metals would be 'major escalation' of trade war  CNBC
  3. Stocks Have Had Enough Of The Bond Rally  Seeking Alpha
  4. Dalio Sees a 'Risky Time' Ahead in U.S.-China Trade Conflict  Bloomberg
  5. Ray Dalio says brinksmanship is pushing U.S.-China conflict to a ‘risky’ level  MarketWatch
  6. View full coverage on Google News

https://www.bloomberg.com/news/articles/2019-05-30/investors-brace-for-a-new-cold-war-that-will-last-our-careers

2019-05-30 09:10:00Z
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Safe Or Scary? The Shifting Reputation Of Glyphosate, AKA Roundup - NPR

John Draper pours glyphosate into the tank of his sprayer at the University of Maryland's Wye Research and Education Center. Dan Charles/NPR hide caption

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Dan Charles/NPR

John Draper and I are sitting in the cab of a tractor on the research farm he manages for the University of Maryland, alongside the Chesapeake Bay. Behind us, there's a sprayer.

"So, away we go!" Draper says. He pushes a button, and we start to move. A fine mist emerges from nozzles on the arms of the sprayer.

We're spraying glyphosate, killing off this field's soil-building "cover crop" of rye before planting soybeans.

Farmers have been using this chemical, often under the trade name Roundup, for about four decades now.

But now it's under fierce attack, accused of causing cancer. In three civil cases so far, U.S. juries have ordered Roundup's inventor, Monsanto, now owned by Bayer, to pay enormous damages to cancer survivors. Thousands more lawsuits have been filed.

For this chemical, and for Monsanto, it's a stunning change in fortunes.

Farmers felt that they could spray glyphosate with a clear conscience. It doesn't persist in the environment as much as, say, DDT did. It doesn't build up in groundwater like another widely used herbicide, atrazine. And it's certainly less toxic than some alternatives.

"If we were spraying Gramoxone [the trade name for paraquat, another herbicide], even for you to be standing next to the sprayer, you'd have to have a respirator on. I'd have to wear a respirator even in the tractor, spraying," says Draper.

Monsanto started selling Roundup in 1974. For 20 years, it didn't attract much attention. That was Act 1 of the glyphosate drama: the quiet years.

Act 2 began in the late 1990s.

In 1996, Monsanto started selling genetically modified crops, or GMOs. They were modified so they could tolerate glyphosate. This meant that farmers could now spray this chemical right over their "Roundup Ready" soybeans, corn and cotton, and the crops would be fine but the weeds would all die.

It was a farming revolution built on glyphosate. Monsanto quickly became the world's biggest seed company. And farmers started spraying a lot more Roundup. Sales of the chemical increased more than ten-fold.

It all happened so fast that it scared a lot of people. There were anti-GMO protests around the world, and glyphosate came under increasing scrutiny.

A pedestrian walks past anti-glyphosate art in Popayán, Colombia. Glyphosate has been deployed in Colombia to wipe out coca and poppy crops. Dan Charles/NPR hide caption

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Dan Charles/NPR

The International Agency for Research on Cancer, part of the World Health Organization, decided to carry out a new assessment of glyphosate's risks.

On March 20, 2015, IARC announced its conclusion: Glyphosate is "probably carcinogenic to humans."

That conclusion rests on three kinds of studies. First, IARC found "strong evidence" that glyphosate can damage DNA in cells. This kind of damage, inducing mutations, is the first step in causing cancer. Second, there are studies showing that when mice ate glyphosate, they got more tumors. Kate Guyton, a senior toxicologist at IARC, told reporters at a news conference that "these two studies gave sufficient evidence of cancer in animals."

Finally, IARC says there's "limited evidence" that people exposed to glyphosate had higher rates of a particular kind of cancer — non-Hodgkin lymphoma.

Guyton has been studying the causes of cancer for decades. Nothing she has ever done, she says, provoked as much of a reaction as the glyphosate announcement. "The Internet kind of exploded," she says.

Anti-GMO groups felt vindicated. Monsanto's top executives were furious and launched a public relations campaign attacking IARC and its report.

And in the small town of Orange, Va., a personal injury lawyer named Michael Miller started lining up clients — people with non-Hodgkin lymphoma who'd used Roundup. "I decided that these people needed a voice in the courtroom," he says.

The scientific picture got more complicated, though. Other government agencies, including the U.S. Environmental Protection Agency and the European Food Safety Authority, took a fresh look at glyphosate. And they concluded that it probably is not giving people cancer.

David Eastmond, a toxicologist from the University of California, Riverside, helped conduct one of these glyphosate reviews for another part of the World Health Organization, the Joint FAO/WHO Meeting on Pesticide Residues.

"From my reading of things, if glyphosate causes cancer, it's a pretty weak carcinogen, which means that you're going to need pretty high doses in order to cause it," he says.

Eastmond says that there are several reasons for this apparent disagreement between IARC and the other agencies.

First, IARC just looks at whether glyphosate can cause cancer; regulators, on the other hand, have to decide whether it actually will, considering how much of it people are exposed to.

Second — and most important, according to Eastmond — different agencies considered different evidence. Eastmond's committee and regulatory agencies like the EPA considered a large number of studies that aren't publicly available because Monsanto paid for them and submitted them to the agencies. "I have never seen a chemical with as many animal cancer studies as glyphosate," Eastmond says.

IARC, however, didn't look at most of this research because it accepts only studies that are publicly available. This allows any other scientist to see exactly what IARC's conclusions are based on.

Eastmond, for his part, thinks company-financed studies are credible and valuable, despite the potential conflict of interest for companies carrying out those studies. The labs, he says, have to follow strict guidelines.

Finally, scientists sometimes look at the same data and disagree about what it means. Eastmond says that he and Guyton had "animated discussions" about some of the data. "We just evaluated the evidence differently, but, you know, these are honest disagreements [among] people who I think are well-meaning," Eastmond says.

Then Act 3 arrived. Glyphosate went to court. There were three civil trials in or near San Francisco.

Lawyers for Bayer, which now owns Monsanto, repeatedly reminded jurors that regulatory agencies had concluded that glyphosate is not a cancer risk.

Lawyers for the cancer victims, though, suggested that those same regulators couldn't be trusted because they'd been manipulated or fooled by Monsanto.

Miller and his legal team showed the juries a whole collection of internal Monsanto emails. In one, company executives described phone calls with an official at the EPA. As Miller describes it, the official said, "I don't need to see any more studies. I'm going to declare Roundup safe, and I'm going to stop another agency from looking at it."

Another Monsanto executive discussed ghostwriting papers on glyphosate's safety that scientists could publish under their own names.

"I think the jury was rightfully offended," Miller says.

All three trials ended with resounding verdicts in favor of the cancer victims. The juries ordered Bayer to pay huge punitive damages. In the most recent case, the damages totaled $2 billion.

Bayer is appealing these verdicts — and the damages probably will be reduced. But more lawsuits are waiting. The total value of Bayer's stock has fallen $40 billion since the first verdict was announced.

Alexandra Lahav, a professor at the University of Connecticut School of Law, says that one lesson of this case so far is that attempts to get favorable decisions from regulators can backfire in court.

"They then open themselves up for the jury to say, 'Wait a minute — you're trying to convince the regulator not to regulate you, and now you want me to believe that the regulator is completely objective,' " Lahav says.

When regulators are seen as weak or ineffectual watchdogs, she says, their seal of approval also carries less weight with the public — and with juries.

The next glyphosate trial is set for August in St. Louis.

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https://www.npr.org/sections/thesalt/2019/05/30/727914874/safe-or-scary-the-shifting-reputation-of-glyphosate-aka-roundup

2019-05-30 09:00:00Z
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'Molecules of freedom': US Energy Department tries rebranding natural gas - ABC News

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https://abcnews.go.com/Politics/molecules-freedom-us-energy-department-rebranding-natural-gas/story?id=63366255

2019-05-30 07:47:00Z
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Rabu, 29 Mei 2019

Apparel retailers Canada Goose, Abercrombie & Fitch and others are getting whacked - CNBC

Customers exit an Abercrombie & Fitch store in San Francisco, California.

David Paul Morris | Bloomberg | Getty Images

Retail stocks are taking a beating Wednesday, hurt by a handful of poor earnings reports and the looming threat of tariffs on clothing imported from China.

Canada Goose shares lost more than a quarter of their value after the company said sales growth in the coming three years wouldn't be as robust as in the past. Abercrombie & Fitch shares were down nearly 25% as momentum cooled off at its Hollister brand during the latest quarter. That news also sent shares of rival teen apparel retailer American Eagle down about 5%. And Michael Kors owner Capri Holdings' stock fell about 10% as it's suffering from poor demand for its handbags.

"This is not a space deemed to be very healthy in terms of long-term outlooks for investors," Wells Fargo retail analyst Ike Boruchow said. "You've got a group where the fundamentals are weakening."

Then you throw in the idea of 25% tariffs on apparel and footwear, as the White House has proposed in its ongoing trade war with China, "and that's a real earnings problem," he said.

Abercrombie CFO Scott Lipesky told analysts on a post-earnings conference call the retailer hasn't yet baked additional tariffs into its earnings outlook. Abercrombie imported about 25% of its merchandise receipts from China to the U.S. in fiscal 2018.

"We're still dealing in the world of hypothetical here," he said. "We remain very engaged with our sourcing partners. ... We have a playbook in place if the hypothetical becomes reality."

With all of the losses in the space, the S&P 500 Retail ETF (XRT) was down nearly 3% by Wednesday afternoon, on pace for its fifth consecutive day of declines for the first time since Nov. 20. This also makes an eight-day-long losing streak for the XRT and puts it on pace for its worst day since May 13, when it lost 3.76%.

Boruchow said there are less signs that consumers are pulling back but more that "parts of the industry" are weakening. High-end handbag makers are struggling as tourism drops off, for example, and some mall-based apparel retailers are seeing sales slow as more women opt to shop on platforms like Stitch Fix and Rent the Runway.

Department store chains Kohl's, J.C. Penney and Nordstrom recently showed they aren't immune to these trends, either, sparking a sell-off in the space just last week with their dismal quarterly earnings reports.

Dick's Sporting Goods was one bright spot of Wednesday morning, reporting fiscal first-quarter earnings that topped Wall Street estimates and raising its outlook for the full year. But its stock reversed course from earlier gains and was last down more than 5%, falling with the rest of the industry.

Looking at the 20 worst performing stock among the S&P 500 year to date, a whopping seven are retailers: Nordstrom shares are down 30%, Macy's stock has dropped 29.5%, Walgreens shares have lost 25.3%, Kohl's stock is down 23%, Foot Locker's stock has dropped 21.6%, CVS shares are down 20% and Gap shares have lost 19.3% so far this year.

— CNBC's Gina Francolla contributed to this reporting.

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https://www.cnbc.com/2019/05/29/apparel-retailers-are-getting-whacked.html

2019-05-29 17:48:33Z
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Why Abercrombie & Fitch is 110% right to close its massive flagship stores - Yahoo Finance

Abercrombie & Fitch’s latest decision to wave goodbye to hulking shrines to apparel is 110% right.

Although, Mr. Market may need some convincing on that one. Abercrombie & Fitch shares (ANF) declined about 20% on Wednesday as it revealed first quarter same-store sales at its namesake brand and Hollister that were slightly below many Wall Street forecasts. Gross profit margins of 60.5% also came in a shade short of the 60.6% analyst consensus.

The company delivered a net loss of 29 cents a share, better than the 43 cents a share analysts feared.

But it was Abercrombie’s disclosure that it will close three more flagship stores that also likely weighed on investor sentiment.

“Big flagship stores are not the future of the brand,” Abercrombie & Fitch CEO Fran Horowitz tells Yahoo Finance.

Abercrombie & Fitch exits flagships

Abercrombie & Fitch said it will soon exit three flagship locations: a Hollister in New York City; an Abercrombie & Fitch in Fukuoka, Japan; and an Abercrombie & Fitch in Milan, Italy. All of these stores were opened (2009-2010) under the leadership of former controversial Abercrombie CEO Mike Jeffries, who bordered on obsessed with showing off the brand via massive flagship stores... even at the detriment of profits.

The three stores account for 140,000 in total square feet and according to Abercrombie & Fitch, have had below company average productivity.

The apparel retailer previously closed flagship stores in Hong Kong (first quarter 2017 closure) and Denmark (first quarter 2019 closure).

Investors probably read the news as the Abercrombie & Fitch brand will be less out in front of consumers globally. Less visibility, less sales potentially. Or that the brand itself no longer has the cache to keep flagships open, which may eventually hurt stores in malls.

But that cohort is probably missing the point — what attention-span light Snapchat-using teen wants to walk up five floors looking for clothes? Nowadays it’s all about mobile ordering and getting in and out of stores as quickly as possible wearing something cool to take a picture in for an Instagram post.

(AP Photo/Mary Altaffer)

So if you are Abercrombie & Fitch, why not shutter some lagging flagships and redeploy capital to more productive uses. SW Retail Advisors Stacey Widlitz reminded me on Twitter that flagships are often “big money pits.” Abercrombie & Fitch Chief Financial Officer Scott Lipesky tells Yahoo Finance the latest flagship closures should help the bottom line over time.

Horowitz, who has been leading an aggressive shrinking of the company’s store fleet since joining in 2015 in a bid to preserve margins, says her team remains focused on smaller stores that better engage consumers. Horowitz says she continues to be a “big believer” in stores.

The company plans to open more stores than it closes in 2019, mostly smaller locations.

Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter @BrianSozzi

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https://finance.yahoo.com/news/why-abercrombie-fitch-is-110-right-to-close-its-massive-flagship-stores-153222297.html

2019-05-29 15:32:00Z
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