All eyes are trained on the looming deadline for a US China phase one trade deal which is expected to be signed in the next 10 days to avoid further tariff hikes by the US. While it seems the deal will go through it is important to remember given the history of negotiations anything can happen. Also on the radar is tomorrow’s labor report for the month of November and the gurus are expecting around 200,000 jobs being created. The Dow closed the day up 28 points on mild trading volume at 27,678. IBD and BTS indicators remain positive for now.
General Motors announced it was teaming up with South Korean firm LG Chem to mass produce battery cells for future electric vehicles. The planned venture will invest $2.3 billion by the year 2023 and establish a battery cell assembly plant in Lordstown, Ohio. The JV is expected to create 1,100 jobs and battery packs coming out of the facility will be used in EV’s that GM is planning to roll out in the next couple of years to include an electric Cadillac and a pickup. When will we see the E-Corvette?
In the largest IPO in history Saudi Aramco was priced at 32 riyals per share or about $8.53 per share in dollars. This puts the IPO at $25.6 billion and since this is only a 1.5% stake in the company it values the entire company at a whopping $1.7 trillion dollars or roughly 5.8 times bigger than Exxon Mobile. Another way to look at this is that Saudi Aramco is two times bigger than Exxon, Chevron, British Petroleum and Royal Dutch Shell put together. The bulk of Saudi Aramco is owned by the House of Saud and Saudi Crown Prince Mohammed bin Salman. News like this makes you think seriously about buying a Tesla.