Newspaper Page Text
0D BUSINESS
Jeff Gill | Business reporter
770-718-3408 | jgill@gainesvilletimes.com
The Times, Gainesville, Georgia
Wednesday, December 5, 2018
Trade truce: Oil prices up
Confusion reigns
on US-China
MANEESH BAKSHII Associated Press
A gas production facility is seen at Ras Laffan, Qatar, April 4,2009. The tiny, energy-rich Arab nation of Qatar announced
on Monday, Dec. 3, it would withdraw from OPEC.
Long slump reversed with hope of production cuts by OPEC
BY DAVID KOENIG
Associated Press
A rally in oil prices
after a two-month slide
indicates traders are bet
ting that OPEC and its
allies including Russia
will agree to produce less
crude.
Representatives of oil-
producing nations will
conduct a highly antici
pated meeting Thursday
in Vienna, with analysts
predicting that they will
agree on a cut of at least
1 million barrels a day in
an effort to bolster prices.
Russian President
Vladimir Putin boosted
expectations for a deal
when he said at the G20
summit over last weekend
that Russia and Saudi Ara
bia have agreed to extend
an attempt by OPEC to
balance oil supply and
demand — although he
provided no figures.
Crude prices began fall
ing in October and contin
ued to plunge last month
because of oversupply and
fears that weaker global
economic growth would
dampen energy demand.
The price of both bench
mark U.S. crude and the
standard for internation
ally traded oil fell 22 per
cent in November.
On Monday, however,
oil prices rebounded by 4
percent. In midday trad
ing Tuesday, West Texas
intermediate was holding
steady at $52.95 a barrel,
and Brent international
crude was up another 35
cents to $62.04 a barrel in
London.
Analysts attribute the
turnaround to a truce in
the escalating trade dis
pute between the United
States and China. That has
raised hopes that, with a
cessation in further tit-for-
tat tariffs, short-term eco
nomic growth and energy
demand might be stronger
than feared.
Also, the Alberta pre
mier announced that the
Canadian province will
trim production by 8.7 per
cent because a shortage
of pipeline capacity has
caused a glut of Canadian
crude. Canada is the larg
est source of oil imported
by the U.S.
Finally, the small but
wealthy Persian Gulf
nation of Qatar said Mon
day that it will leave OPEC
in January. Qatar has
been feuding with Saudi
Arabia and three other
Arab nations that accuse it
of financing terrorism.
Qatar is one of the
smallest oil producers in
OPEC, so its departure
will have only a marginal
impact on the cartel’s
share of the world’s sup
ply. Still, the surprising
announcement by Qatar’s
energy minister under
scores the political ten
sion within OPEC, “which
doesn’t necessarily make
it easier to come to a
decision” on cutting pro
duction, said JBC Energy
analyst David Wech.
Some analysts expect
OPEC and Russia will
agree to even larger cuts,
about 1.5 million barrels
a day. Anything less, they
say, could set the stage for
continued global oversup
ply next year and send oil
prices lower.
OPEC must produce
“a credible agreement”
to cut output by about
1.5 million barrels a day
for oil prices to recover
their recent losses, Credit
Suisse analyst William
Featherston wrote in a
note Monday. The Saudis,
he said, will have to bear
the largest share of cuts.
Saudi Arabia seems
eager to reduce supply,
Featherston said, but the
kingdom’s decision is
complicated by President
Donald Trump’s desire for
lower prices and the Sau
dis’ wish to improve rela
tions with the U.S. after
the murder of journalist
and U.S. resident Jamal
Khashoggi.
Trump blamed OPEC
and Saudi Arabia ear
lier this year for high oil
prices. When U.S. crude
skidded to $54 on Nov. 21,
he tweeted, “Thank you to
Saudi Arabia, but let’s go
lower!” Trump might com
plain about cuts designed
to send prices higher.
trade cease-fire
BY CHRISTOPHER RUGABER
Associated Press
WASHINGTON — The Trump administration raised
doubts Tuesday about the substance of a U.S.-China trade
cease-fire, contributing to a stock market plunge and intensi
fying fears of a global economic slowdown.
Investors had initially welcomed the truce that the admin
istration said was reached over the weekend in Buenos Aires
between Presidents Donald Trump and Xi Jingping — and
sent stocks soaring Monday. But on Tuesday, after a series of
confusing and conflicting words from Trump and some senior
officials, stocks tumbled, with the Dow Jones sinking as much
as 800 points.
White House aides have struggled to explain the details
of what the two countries actually agreed on. And China has
not confirmed that it made most of the concessions that the
Trump administration has claimed.
“The sense is that there’s less and less agreement between
the two sides about what actually took place,” said Willie Del-
wiche, investment strategist at Baird. “There was a rally in
the expectation that something had happened. The problem
is that something turned out to be nothing.”
Other concerns contributed to the stock sell-off, including
falling long-term bonds. That suggested that investors expect
the U.S. economy to slow, along with global growth, and pos
sibly fall into recession in the coming year or two.
Trump and White House aides promoted the weekend deal
as an historic breakthrough that would ease trade tensions and
potentially reduce tariffs. They said that China had agreed to
buy many more American products and to negotiate over the
administration’s assertions that Beijing steals American tech
nology. But by Tuesday morning, Trump was renewing his
tariff threats in a series of tweets.
“President Xi and I want this deal to happen, and it prob
ably will,” Trump tweeted. “But if not remember, I am a Tar
iff Man. When people or countries come in to raid the great
wealth of our Nation, I want them to pay for the privilege of
doing so.”
Trump added that a 90-day timetable for negotiators to
reach a deeper agreement had begun and that his aides
would see “whether or not a REAL deal with China is actually
possible.”
The president’s words had the effect of making the week
end agreement, already a vague and uncertain one, seem
even less likely to lead to a long-lasting trade accord.
“We expect the relationship between the world’s two largest
economies to remain contentious,” Moody’s Investors Service
said in a report. “Narrow agreements and modest concessions
in their ongoing trade dispute will not bridge the wide gulf in
their respective economic, political and strategic interests.”
Among the conflicting assertions that White House officials
made was over whether China had actually agreed to drop its
40 percent tariffs on U.S. autos.
In addition, Treasury Secretary Steven Mnuchin said Tues
day on the Fox Business Network that China agreed to buy
$1.2 trillion of U.S. products. But he added, “if that’s real” —
thereby raising some doubt — it would close the U.S. trade
deficit with China, and “we have to have a negotiated agree
ment and have this on paper.”
Many economists have expressed skepticism that very
much could be achieved to bridge the vast disagreements
between the two countries in just 90 days.
“The actual amount of concrete progress made at this meet
ing appears to have been quite limited,” Alec Phillips and
other economists at Goldman Sachs wrote in a research note.
Millennial money: How to get credit when you have none
BY MELISSA LAMBARENA
Associated Press
Trying to get your first credit card can be
as frustrating as trying to land your first job.
Employers want experience, but you can’t get
experience unless someone hires you. Simi
larly, a credit card is the quickest way to build
a good credit history, but without a good credit
history it’s hard to get a credit card.
How startups evaluate
new applicants
Among them is Deserve, which began
offering cards in 2017. The company has
three cards: the Deserve Classic for people
new to credit, the Deserve Edu for students
and the Deserve Pro for people with limited
credit. More startups have followed with their
own cards for people new or newer to credit,
including Petal and AvantCard.
These companies have their own under
writing standards to evaluate applicants’ cred
itworthiness based on factors such as income,
expenses, assets, debts and banking informa
tion. Depending on the company, you may
have to provide access to your bank account.
Cards offered by such companies are an
alternative to secured credit cards , which
require a cash security deposit that’s refunded
when you close or upgrade the card. Your
credit limit on a secured card will usually be
equal to your deposit. The unsecured cards
from alternative companies may offer credit
limits with more give, if you can qualify.
Startup credit card companies are still
evolving, so you may encounter difficulties
that you’re less likely to see with cards from
major issuers. There may not be a mobile app
to manage your account, for example, or you
may encounter technical issues or delays.
Deserve waives the usual Social Secu
rity number requirement for international
students.
Your future self may need credit
Unless you plan to pay cash for all future
purchases, big or small, your future self will
likely need good credit. Having it can save you
money later when you’re buying a home or a
car, for example.
Alternative credit cards generally report
payment information to major credit bureaus
—TransUnion, Equifax and Experian. These
companies gather the information used to cal
culate your credit scores. Payment history is
the biggest single component of credit scores.
Building credit with a credit card
Once you get a card, build good credit by
making only purchases you can afford. Aim
for a credit score of 690 or higher. There are
plenty of apps to track your progress. Here are
some tips to help you manage your first credit
card and use it to build credit:
-Pay on time and in full every month to
avoid interest.
-Use less than 30 percent of your available
credit limit.
Stock Exchange Highlights
■ NYSE
W' 12,221.98 -355.56
V Nasdaq
W 7,158.43 -283.09
Gainers ($2 or more)
Gainers ($2 or more)
Name Last Chg %Chg
Name Last Chg %Chg
Movado 41.51
RH 137.13
Acornlnt rs 27.93
GranaMon 3.42
AutoZone 880.07
AvayaHI n 16.77
Drdgold 2.12
Cementos 9.91
LeafGrp 8.12
XinyuanRE 4.45
+4.63
+13.48
+2.66
+.27
+55.61
+1.02
+.12
+.41
+.33
+.18
+12.6
+10.9
+10.5
+8.6
+6.7
+6.5
+6.0
+4.3
+4.2
+4.2
Losers (S2 or more)
Name
Last Chg %Chg
B&N Ed n 4.47
Aphria n 4.51
DrxRBkBull 45.22
Skyline 18.35
DxBiotBII rs 48.32
DxSOXBIIs 98.68
DrxHmbBull 27.62
AspenAero 2.70
DrxTmBI n 28.15
Dirxlnds n 25.93
-1.98 -30.7
-1.54 -25.5
-8.84 -16.4
-3.59 -16.4
-8.64 -15.2
-16.85 -14.6
-4.66 -14.4
-.45 -14.3
-4.45 -13.7
-4.10 -13.7
Most Active ($1 on more)
Name Vol (00) Last Chg
GenElec 1315825
BkofAm 1034514
FordM 574929
AT&T Inc 447564
ChesEng 368607
WellsFargo331839
Square n 310562
Aphria n 297693
Citigroup 269761
Vale SA 265421
7.28
26.99
9.18
30.73
2.89
51.78
63.51
4.51
62.26
13.60
-.53
-1.55
-.42
-.98
-.20
-2.46
-8.44
-1.54
-2.90
-.48
Diary
Advanced
Declined
Unchanged
Total issues
New Highs
New Lows
Volume
449
2,413
31
2,893
71
335
4,398,864,679
RevanceTh 24.91
CIM CT pfL 27.50
IterumTh n 7.06
MarinSft rs 2.98
FuweiF rs 2.30
NetElem rs 8.83
Immuron n 8.79
CSVixSTrs 15.57
Arvinas n 17.00
PShtQQQ rs14.29
+4.06 +19.5
+4.29 +18.5
+1.10 +18.5
+.44 +17.3
+.30 +15.0
+1.10 +14.2
+1.05 +13.6
+1.82 +13.2
+1.71 +11.2
+1.43 +11.1
Losers ($2 or more)
Name
Last Chg %Chg
SmaashEnt
JerashHI n
AridisPh n
EloxxPh n
BldrFstSrc
Ovid Th n
Conns
Manitex
Uxin Ltd n
Amyris rs
2.67
6.50
8.50
12.93
12.25
3.49
24.79
6.31
2.86
4.21
-.65 -19.6
-1.25 -16.1
-1.45 -14.6
-2.21 -14.6
-2.04 -14.3
-.58 -14.3
-4.09 -14.2
-1.03 -14.0
-.45 -13.6
-.62 -12.8
Most Active ($1 or more)
Name Vol (00) Last Chg
AMD 1269913
Microsoft 445719
Apple Inc 411376
MicronT 365512
Intel 333744
SiriusXM 317557
Cisco 306817
Facebook 302277
AmEITech 300966
Comcast s 293981
21.12 -2.59
108.52 -3.57
176.69 -8.13
36.88 -3.15
47.75 -2.38
6.19 -.13
47.35 -1.39
137.93 -3.16
1.49 +.41
37.69 -1.46
Diary
Advanced
Declined
Unchanged
Total issues
New Highs
New Lows
Volume
407
2,536
128
3,071
40
243
2,551,047,130
Stocks of Local Interest
Name Ex Div Yld PE Last
YTD
Chg %Chg
AFLAC S
1.04
2.3
14
44.29 -1.78 0.0
Hershey
2.89
2.7
24
108.10
-.83
-4.8
AT&T Inc
2.00
6.5
6
30.73 -.98 -21.0
HomeDp
4.12
2.4
19
175.30 -6.44
-7.5
AbbottLab
1.12
1.6
30
71.50 -2.77 +25.3
Intel
1.20
2.5
18
47.75 -2.38
+3.4
ActivsBIiz
.34
.7
27
46.52 -.08 -26.5
IBM
6.28
5.2
9
121.60 -3.71
-20.7
AMD
21.12 -2.59+105.4
JPMorgCh 2.24
2.1
14
107.23 -5.01
+.3
Altria
3.20
5.9
17
54.40 -1.33 -23.8
JohnJn
3.60
2.5
20
146.03
-.18
+4.5
AmEITech
1.49 +.41 -.7
Kinross g
22
2.80
-.03
-35.2
Aphria n
4.51 -1.54 -63.2
Lowes
1.92
2.1
20
90.33 -3.96
-2.8
Apple Inc
2.92
1.7
18
176.69 -8.13 +4.4
McDnlds
4.64
2.5
28
185.04
-.33
+7.5
ATMOS
1.94
2.0
18
97.56 -.05 +13.6
Merck
2.20
2.8
29
78.21
-1.01
+39.0
AutoZone
19
880.07+55.61 +23.7
MicronT
3
36.88 -3.15
-10.3
AveryD
2.26
2.4
27
93.67 -2.00 -18.4
Microsoft
1.84
1.7
45
108.52 -3.57
+26.9
BB&T Cp
1.62
3.3
14
48.37 -2.36 -2.7
NorflkSo
3.20
1.9
25
165.89 -6.29
+14.5
BP PLC
2.38
5.8
12
40.95 -.24 -2.6
OfficeDpt
.10
3.2
9
3.14
-.11
-11.3
BkofAm
.60
2.2
13
26.99 -1.55 -8.6
Oracle
.76
1.6
52
48.75 -1.08
+3.1
BarnesNob
.60
8.6
6.94 -.48 +3.6
Penney
1.36
-.08
-57.0
Boeing
6.84
2.0
32
342.50-17.46 +16.1
PepsiCo
3.71
3.1
34
117.80 -1.18
-1.8
BrMySq
1.60
3.1
52
52.03 -1.25 -15.1
Pfizer
1.36
3.0
18
45.14
-.85
+24.6
CSX
.88
1.2
10
70.60 -2.55 +28.3
PhilipMor
4.56
5.3
21
85.43 -1.65
-19.1
CampSp
1.40
3.6
14
38.59 -.17 -19.8
Primerica
1.00
.9
13
110.39 -7.50
+8.7
Caterpillar
3.44
2.7
12
129.32 -9.63 -17.9
ProctGam
2.87
3.1
23
93.31
-.01
+1.6
ChesEng
5
2.89 -.20 -27.0
RegionsFn
.56
3.6
13
15.59 -1.04
-9.8
Chevron
4.48
3.8
24
117.24 -3.43 -6.4
SiriusXM
.05
.8
34
6.19
-.13
+15.5
Cisco
1.32
2.8
24
47.35 -1.39 +23.6
SouthnCo
2.40
5.1
22
47.24
-.25
-1.8
Citigroup
1.80
2.9
11
62.26 -2.90 -16.3
SwstnEngy
5
4.51
-.13
-19.2
CocaCola
1.56
3.1
94
49.58 -.11 +8.1
Square n
63.51 -8.44
+83.2
Comcast s
.76
2.0
18
37.69 -1.46 -5.5
SunTrst
2.00
3.4
10
58.67 -3.64
-9.2
ConAgra
.85
2.6
15
32.08 -.35 -14.8
SynovusFn 1.00
2.8
13
35.45 -2.75
-26.1
CronosGp n ...
10.74 +.57 +40.9
3M Co
5.44
2.7
28
202.20 -6.56
-14.1
Cummins
4.56
3.1
41
146.37 -6.10 -17.1
Torchmark
.64
.8
6
82.22 -4.33
-9.4
Disney
1.76
1.6
15
112.87 -2.87 +5.0
Twitter
32.56 -1.10
+35.6
DowDuPnt
1.52
2.7
18
56.49 -2.67 -20.7
Tyson
1.20
2.1
11
58.24 -2.03
-28.2
EnCanag
.06
.9
11
6.75 -.36 -49.4
UtdCmBks
.64
2.7
14
23.77 -1.78
-15.5
Equifax
1.56
1.6
17
99.28 -3.70 -15.8
UPS B
3.64
3.4
18
106.77 -8.50
-10.4
ExxonMbl
3.28
4.1
15
79.43 -1.79 -5.0
VerizonCm
2.41
4.1
7
58.09
-.07
+9.7
Facebook
26
137.93 -3.16 -21.8
Vodafone
1.74
8.4
20.72
-.54
-35.0
FordM
.60
6.5
5
9.18 -.42 -26.5
WalMart
2.08
2.2
55
95.81 -2.94
-3.0
GenElec
.48
6.6
7.28 -.53 -58.3
Weathflntl
.55
-.04
-86.8
GenuPrt
2.88
2.8
22
103.24 -.96 +8.7
WeisMk
1.24
2.7
11
45.14
-.93
+9.1
HP Inc
.64
2.8
7
23.24 -.71 +10.6
WellsFargo 1.72
3.3
13
51.78 -2.46
-14.7
Haverty
.72
3.6
21
20.06 -1.17 -11.4
YumBrnds
1.44
1.6
32
90.68 -1.39
+11.1
Name Ex Div Yld PE Last
YTD
Chg %Chg
Stock Footnotes: g = Dividends and earnings in Canadian dollars, h = Does not meet continued-listing standards. If = Late filing
with SEC. n = New in past 52 weeks, pf = Preferred, rs = Stock has undergone a reverse stock split of at least 50 percent within the
past year, rt = Right to buy security at a specified price, s = Stock has split by at least 20 percent within the last year, un = Units, vj
= In bankruptcy or receivership, wd = When distributed, wi = When issued, wt = Warrants. Fund Footnotes: m - Multiple fees are
charged, usually a marketing fee and either a sales or redemption fee. Source: The Associated Press. Sales figures are unofficial.
Stock Market Indexes
Dow Jones industrials
Close: 25,027.07
Change:-799.36 (-3.1%)
27,200
26,400
25,600
24,800
26,000 10 DAYS
25,120 J
24,240
J
J A
S
O
N
52-Week
Net
YTD
12-mo
High
Low
Name
Last
Chg %Chg
%Chg
%Chg
26,951.81
23,344.52
Dow Industrials
25,027.07
-799.36 -3.10
+1.25
+3.50
11,623.58
9,757.50
Dow Transportation
10,374.07
-476.37 -4.39
-2.24
+1.42
770.08
647.81
Dow Utilities
749.84
+1.28 +.17
+3.66
-.10
13,637.02
11,820.33
NYSE Composite
12,221.98
-355.56 -2.83
-4.58
-2.75
8,133.30
6,630.67
Nasdaq Composite
7,158.43
-283.09 -3.80
+3.69
+5.86
1,309.73
1,118.69
S&P 100
1,197.48
-41.15 -3.32
+1.21
+3.00
2,940.91
2,532.69
S&P 500
2,700.06
-90.31 -3.24
+.99
+2.68
2,053.00
1,769.25
S&P MidCap
1,826.62
-68.70 -3.62
-3.89
-2.79
30,560.54
26,293.62
Wilshire 5000
27,796.93
-971.64 -3.38
+.01
+1.85
1,742.09
1,436.43
Russell 2000
1,480.75
-68.21 -4.40
-3.57
-2.37
Mutual Funds
Name
Total Assets
Obj ($Mlns) NAV
Total Return/Rank
4-wk 12-mo 5-year
Pet
Load
Min Init
Invt
Vanguard 500ldxAdmrl
LB 253,238
250.23
-0.6
+4.2/A
+10.7/A
NL
3,000
Vanguard TtlSMIdxAdmrl
LB 203,888
67.29
-0.9
+3.6/B
+10.3/A
NL
3,000
Fidelity 500ldxlnsPrm
LB 164,099
94.69
-0.6
+4.3/A
+10.8/A
NL
0
Vanguard TtlSMIdxInv
LB 129,896
67.26
-0.9
+3.5/B
+10.1 /B
NL
3,000
Vanguard TtlnSIdxInv
FB 128,269
15.98
-1.4
-8.4/B
+2.4/B
NL
0
Vanguard TtlSMIdxIns
LB 123,279
67.30
-0.9
+3.6/B
+10.3/A
NL 5
000,000
Vanguard Insldxlns
LB 116,738
246.87
-0.6
+4.2/A
+10.8/A
NL 5
000,000
Vanguard InsIdxInsPlus
LB 104,731
246.89
-0.6
+4.3/A
+10.8/A
NL100,000,000
Vanguard TtlnSIdxInsPlus
FB 95,758
106.92
-1.3
-8.3/B
+2.5/A
NL100,000,000
Fidelity Contrafund
LG 91,616
12.53
-1.9
+6.1/C
+11.3/B
NL
0
Vanguard TtBMIdxAdmrl
Cl 86,606
10.33
+1.3
-1.3/C
+2.1/C
NL
3,000
Vanguard WlngtnAdmrl
MA 86,207
71.45
+0.7
+1.4/A
+7.6/A
NL
50,000
Cl -Intermediate-Term Bond, FB -Foreign Large Blend, IH -World Allocation, LB -Large Blend, LG -Large Growth,
LV -Large Value, MA -Moderate Allocation, WS -World Stock, Total Return: Chng in NAV with dividends reinvested.
Rank: How fund performed vs. others with same objective: A is in top 20%, E in bottom 20%. Min Init Invt: Minimum
$ needed to invest in fund. Source: Morningstar.
