Good morning, traders. Here’s everything you need to know in Stock Market News Today June 27 2019, from The Stock Dork.
Asian markets were mostly up overnight, and pre-market futures trading is showing that markets will open positively.
Here’s the day’s biggest pre-market news:
China’s Xi Offers Ultimatum
The Wall Street Journal is reporting that Chinese President Xi Jinping is bringing a list of China’s conditions for a trade agreement to this weekend’s G20 summit. The most notable item on the list: Huawei.
Lifting the ban on the Chinese telecom giant is reported to be a non-negotiable condition of a trade deal. Beijing is also seeking the removal of all tariffs, and it doesn’t want the U.S. to insist that it makes large purchases of U.S. goods either; according to the Wall Street Journal.
The jury is out on whether this is a good sign or a bad sign for tariffs. I don’t think President Trump will react favorably to an ultimatum because of his track record as a tough negotiator. Therefore, I’m not convinced it is a good sign for negotiations. Time is on their side because their political system is not subject to voter approval.
However, he wants to get a deal done so, as long as both sides can save face, it’s possible that talks can get back on track.
However, I wouldn’t hold my breath waiting for a deal this weekend. Instead, look for talks to get back on track and the possible announcement of another meeting in the near future.
Boeing Finds Bug in 737 MAX Software
Boeing (BA) and federal regulators announced that they had discovered a software glitch on the 737 MAX. The software issue isn’t related to the plane’s flight computer but it’s still expected to delay flight approval for the MAX, which has been grounded since March.
It’s unclear how long the approval of the MAX will be postponed. If Boeing can resolve the issues using software patches, the delay could be as short as a few weeks but, if it requires hardware updates or other expensive remedies, it could become a more long-term issue.
Amazon Partners With Rite Aid
Amazon (AMZN) announced that it is expanding brick-and-mortar pickup options as part of an agreement with Rite Aid (RAD) pharmacies. Customers will be able to pick up their packages from over 1,5000 Rite Aid locations by the end of the year.
The specifics of the deal were not disclosed, but it’s a potential win-win for both companies. Ultimately, Amazon gains access to a nationwide delivery system and Rite Aid boosts its foot traffic with Amazon customers coming into stores to pick up their packages.
The free service succeeded at Kohl’s (KSS), who recently announced the expansion of the Amazon pickup to 200 stores after it completed a pilot program in 30 of its stores. The service is free and it’s planned to open in about 100 Rite Aid drugstores before expanding to the full network.
Ford Downsizes European Workforce
Ford (F) announced that it would shutter factories and downsize its workforce across Europe as part of its ongoing efforts to improve profitability. The reduction would impact roughly 12,000 European jobs, about 20% of Ford’s regional workforce. Ford will reduce its factory presence on the continent to 18 factories, from 24, by the end of next year.
Ford stated that the workforce reduction will help the company meet its goal of 6% margins on earnings.
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