Wall Street down even as US steel stocks jump on tariff expectations

Wall Street's main indexes fell on Thursday as industrial stocks, including heavyweights Boeing and Caterpillar, took a beating on fears that potential tariffs on steel imports could hit profits.

US President Donald Trump tweeted on Thursday that the US steel and aluminum industries need "free, fair and smart trade". CNBC reported that Trump will make an announcement on tariffs at 11 a.m. ET (1600 GMT).

Trump has vowed to take steps to crack down on imports of steel and aluminum and has been considering imposing hefty tariffs or quotas on imports of the metals from China and other countries under a national security law.
"I think the industrials are down as they use a lot of steel, and the uncertainty of what the tariff announcement could mean for them," said Ryan Detrick, Senior Market Strategist for LPL Financial.

New orders for US-made goods up 3%, hit 8-month high

New orders for US-made goods rebounded in June, recording their biggest increase in eight months, but manufacturing is expected to continue to grow at a moderate pace as the boost from the energy sector fades.

Factory goods orders jumped 3.0 per cent, the Commerce Department said on Thursday. That was the largest gain since October 2016 and followed two straight monthly declines. May's data was revised to show orders falling 0.3 per cent instead of the previously reported 0.8 per cent drop.

Economists had forecast that factory orders would surge 2.9 per cent in June. Manufacturing, which makes up about 12 per cent of the US economy, has been buoyed by a surge in oil and gas drilling.

But the energy stimulus is easing as ample supplies restrain crude oil prices. At the same time, motor vehicle production is declining as the industry struggles with falling sales, which have created an inventory glut.

Motor vehicle production has decreased for three straight quarters. General Motors Co and Ford Motor Co have both announced they will cut production in the second half of this year. US auto sales fell 6.1 per cent in July from a year ago to a seasonally adjusted rate of 16.73 million units.
READ MORE

Japan manufacturing PMI falls to 8-month low as export orders stall

Growth in Japan's manufacturing activity slowed for the second straight month in July, a preliminary private survey showed on Monday, as export demand stagnated.

The Markit/Nikkei Japan Flash Manufacturing Purchasing Managers Index (PMI) fell to 52.2 in July on a seasonally adjusted basis from a final 52.4 in June.

The reading was an eight-month low, but remained well above the 50 threshold that separates expansion from contraction for the 11th consecutive month.

"The slowdown was driven by stagnation in export orders, amid reports of weaker demand from South East Asia markets," said Paul Smith, senior economist at IHS Markit, which compiles the survey.

"Nonetheless, the sector continues to add jobs, with employment growth remaining amongst the best since the financial crisis."

The preliminary index for new export orders fell to 50.0 from 53.4 in June.

The output component fell to 51.4 from a final 52.2 in June.

On the positive side, the employment index rose to a preliminary 53.4 from 53.2 in the previous month.

The index measuring expectations for future output also rose to a preliminary 63.0 in July, which is the highest since Markit began collecting this data almost five years ago.

The Bank of Japan (BOJ) and the government have been upgrading their economic assessments recently due to growing exports, a turnaround in consumer spending and rising capital expenditure.

Private-sector economists have also expressed more confidence in the economic outlook, but the improving outlook has been slow to translate into the acceleration in inflation that the BOJ is hoping for.
READ MORE

Xiaomi launches Amazon exclusive VoLTE ready Redmi 4A, priced at Rs 5,999

China’s smartphone manufacturer Xiaomi on Monday launched Redmi 4A -- a latest entrant in Xiaomi’s entry-level Redmi series. The Xiaomi Redmi 4A will be available exclusively on Amazon and will be sold at a jaw-dropping price of Rs 5,999.

The latest Xiaomi Redmi 4A, being an entry-level budget smartphone, offers spectacular features. The device flaunts 5-inch HD display, which is enclosed in a polycarbonate body. The dual-sim smartphone is powered by Qualcomm Snapdragon 425, 64-bit quad-core processor and sports 16 GB internal storage – expandable up to 128 GB via microSD card – coupled with 2 GB of RAM.

The Redmi 4A boots Android 6.0 out of the box covered under Xiaomi’s MIUI 8 theme. On the camera front, the smartphone features 13-megapixel (MP) rear camera and 5 MP front-facing selfie camera. The device is powered by 3,120 mAh battery that keeps the show running.

Xiaomi has been quite successful in India and to cement its position even further, the company is commencing operations at its second manufacturing plant in India.

The company claims to employ 5,000 employees in the manufacturing plant that produces  one smartphone every second. Manu Jain, managing director, Xiaomi India claimed that more than 95 per cent of Xiaomi smartphones sold in India come from its Sri City unit manufacturing plant. (READ MORE)