Stocks were lower to start the week. The Dow closed off 84 points to 25,679 on lighter trading volume. As per usual, trade worries top the list of worries. Morgan Stanley thinks that if current trade talks fail and tariffs become long lasting it could cause a recession.
In the tech/telecom space, Chinese based Huawei is being cut off from US markets and this is pressuring US chip companies that supply products to them. While the news pressured chip stocks it boosted companies like Ericsson and Nokia which years ago fought a battle with Huawei over technology theft. In other news the FCC approved of the merger between telecom and Seattle Mariners “Pink Park” sponsor T-Mobile with Sprint. The news sent these two telecoms shares higher along with Ma Bell and Verizon.
Ford CEO Jim “Hack Saw” Hackett announced today that the company is “redesigning” 7,000 salaried workers from its global workforce with about 800 of those “redesigns” happening in the US. Ford hopes to cut its management layers from 14 to 9 and reduce the overall management structure by 20%. This comes amid disruption in the global auto industry as a combination of trade wars affecting supply chains and new vehicles taking share from legacy companies. Meanwhile the main disruptor in the industry aka Tesla saw its shares fall briefly below $200 after Wedbush cut its rating on the stock to sell over concerns of slowing Model 3 demand. Oppenheimer on the other hand thinks Tesla can hit its guidance targets for sales and production.
The 2019 Aurora District Camporee is in the books and Troop 100 once again got honor troop. We had six patrols (5 boy patrols and 1 girl patrol) and about 50 kids taking part. The weather was unexpectedly good. One kid in our troop cleaned up on the iron chef award with a mean stir fry plus we nailed down 3 of the top 5 spots in the patrol competition. One of our top patrols was the girls patrol which also won the patrol flag competition. The boys were excited because they did not swamp the canoe this year. On a troubling note, the kid who swamped the canoe last year wants to join the Navy! Go figure!