Dow Jones Rallies After US Lifts Huawei Restrictions


The Dow Jones Industrial Average gained almost 200 points on Tuesday, reaching 25,877. The S&P 500 ended the day at 2,864, after growing by 0.9%. The tech sector did even better, posting a 1.2% climb for the day. Nasdaq also showed strong movement up, rising by 1.1% to 7,785.


Analysts believe the market was reacting to the decision by the Commerce Department on Monday night to allow Huawei to buy American products so they can maintain their existing networks and allow owners of Huawei phones to receive updates to their software. The agreement is only until August 19, but at least for now it means consumers with Huawei handsets will enjoy uninterrupted service.


Investors were worried that the original basket of restrictions was a sign that the trade war between China and the USA was getting worse.

Wine Consumption Growing Around the World

Image by Sharad Jadvani from Pixabay

According to the most recent Vinexpo/IWSR wine and spirits report, the world is expected to consume US $207 billion by the year 2022, drinking approximately 2.7 billion 9-liter cases. That represents growth in the industry of 2.15% between the years 2017 and 2022.
Due to the recent practice to “drink less but better,” value has out-paced volume in growth all over the world. This is especially true in North, South and Central America as well as in the Asia-Pacific region.


The United States is still the world’s most valuable market for wine with a value of US$34.8 billion in 2017. After the US France is rated the second most lucrative market worth about US$16 billion. China comes in at a close third with US$ 16.5 billion in sales.


Vinepress forecasts the China will overtake France as the second largest consumer of wine by the year 2020, with a value of over US$19 billion.


The top five markets for volume of sales did not seem to change in the last year with
• USA sold 318 million cases
• Italy sold 266 million
• France sold 250 million
• Germany 224 million
• China 156 million

Jobless Rate Lowest in Almost 50 Years

The United States has not seen a lower jobless rate than what it is experiencing now since December 1969, according to the US Department of Labor. The rate fell in April from 3.8% in March down to 3.6%.


There is a caveat, the drastic reduction was fueled to a great extent by the number of people who left the labor force in April; almost half a million.


US Labor Department data showed that the economy added an above-expected 236,000 jobs to the market. In addition, average earnings rose by a yearly rate of 3.2%.


Experts said that the numbers show that the economy is still doing well, but not so well that the US Federal Reserve might consider changing interest rates.


The job gains were in the following sectors:


• Construction: Increased by 33,000 jobs
• Healthcare: Increased by 27,000 jobs
• Social assistance: Increased by 26,000
• Financial activities: Increased by 12,000

The number that did not change by much is how many people are working part-time who would prefer to work full-time, but there hours were reduced, or they could not find full-time employment. That number stayed at 4.7 million people.

Three Relatively Unknown Companies Entering US Market

Two Canadian companies and one from Israel are on the verge of entering the large and lucrative US market, hoping to cash in.


Pembina

Pembina Pipeline is a NYSE listed company (PBA), is an energy infrastructure company relatively unknown to most US investors. The coming months will change their profile in the US, as they are aiming to make a positive final investment decision to purchase Jordan Cove liquid natural gas (LNG) export facility along the coast of Oregon, for $10 billion.
Pembina received conditional approval from the Federal Energy Regulatory Commission (FERC) if it adheres to strict rules about reducing its environmental impact.


Canada Goose
Canada Goose manufactures high-end winter clothing, and is already a popular brand in the US, but its direct retail presence in the lower 50 is minuscule. With only 4 stores in the US (and only 11 worldwide) the company is poised to make an impact on the US retail market.
The company is planning on opening its 5th store in the US at the Mall of America in Bloomington, Minnesota, the location picked because it is a key tourist destination. The store will even feature a “cold room” where customers can try the coats on in the environment they were meant to be worn in.


UroGen Pharma
Israeli-based UroGen Pharma (NASDAQ-URGN) plummeted 34% over the past 12 months, and 10% since the beginning of 2019, but investors should think of the price decline as a bargain and opportunity, and not necessarily a warning.
The company develops drugs to treat rare cancers of the urinary tract. UGN-101 is the company’s leading candidate for approval in the US, as it has built a good reputation leading up to approval by US regulators later in 2019.
Analysts say the drug should reach peak yearly sales of over $500 million. This might not seem like much compared to top selling pharmaceuticals that can make as much as $1 billion, but the company today is valued at only $800 million. Bottom line, most investors are in the dark about UroGen Pharma, but we expect that to change before 2019 ends.

Flight Centre Buys 25% Share in The Upside Travel Company

Photo courtesy of
Quintin Soloviev

Flight Centre, the world’s largest travel agency and ASX-listed company, purchased 25% of The Upside Travel Company. The company did not disclose how much they paid, but Flight Centre is now the largest single shareholder of Upside.


Flight Centre anticipates that Upside’s unique tech platform will add value to its Corporate Traveler brand. They look forward to using Upside to target customers in North, Central and South America immediately, and move on to customers in the UK at a somewhat later date.


“Upside … has the potential to disrupt traditional offerings in the [small and medium-sized enterprise] sector in the future,” said Graham Turner, Flight Centre managing director.


Dean Smith, Flight Center’s president, said the company would gain an edge over its competitors from Upside’s “cutting edge artificial intelligence” technology.


“Its use of machine-learning models to dynamically price business travel packages in real-time to save clients’ money while increasing traveler options is just one example of Upside’s best in class technology,” he said.


Flight Centre’s stock gained two percent after the announcement, trading at $44.07 in the afternoon.