Under Armour to Eliminate 3% of Workforce as Final Part of Restructuring, Demand Headwinds Remain

3:00 PM, Sep 20, 2018 — Under Armour (UAA) said in a statement Thursday that it will cut about 3% of its employees globally as part of a restructuring plan, but Wedbush analysts said demand headwinds will still plague the company.

The company said it expects about $200 million to $220 million pre-tax restructuring and related charges in 2018, up from a prior outlook for $190 million and $210 million in charges. About $10 million in cash severance charges were added to the total after the company decided to trim its workforce.

Job eliminations are expected to be completed by March 31, Under Armour said. The announcement represent the final component of its 2018 restructuring plan. Chief Financial Officer David Bergman said the company must make “difficult” decisions to ensure success.

“This redesign will help simplify the organization for smarter, faster execution, capture additional cost efficiencies, and shift resources to drive greater operating leverage as we move into 2019 and beyond,” Bergman said in the statement.

Shares jumped more than 5% Thursday after the layoffs were announced.

Operating losses are now forecast at $60 million, on the top end of the prior range of $50 million to $60 million, Under Armour said.

The company’s guidance for operating income, however, was raised to $140 million to $160 million versus prior expectations for $130 million to $160 million. Excluding the effect of restructuring, adjusted diluted earnings per share is now seen from $0.16 to $0.19 a share, up from the previous range of $0.14 to $0.19 per share, Under Armour said.

Wedbush analysts Christopher Svezia and Paul Nawalany said in a report that 3% of the company’s global workforce amounts to about 500 people. The analysts said their assessment of Under Armour remains unchanged despite the workforce reduction.

“Clearly the company is looking to rightsize its operating structure (up to $220 million in charges this year alone), with the final phase of the plan announced” on Thursday, Wedbush said. “However, there are still issues around product demand in North America and it remains uncertain how quickly an EBIT margin recapture story can develop. While the narrowing of the adjusted EPS outlook is encouraging, it is not a measured inflection for the brand, in our view. It is also questionable why the upper end of the range was left unchanged, possibly reflecting investments and caution around how the critical fourth quarter will unfold for the company.”

Companies: Under Armour, Inc.
Price: 19.78 Price Change: +1.02 Percent Change: +5.44

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KPMG, Partner Admit to Misconduct in UK Watchdog Investigation Into Bank of New York Mellon Reporting

10:05 AM, Sep 19, 2018 — KPMG and Richard Hinton, a partner with the firm, admitted to misconduct in connection with their reports to the Financial Conduct Authority concerning compliance by The Bank of New York Mellon (BK), the UK Financial Reporting Council said in a statement on Wednesday.

The parties admitted their conduct “fell significantly short” of standards that are expected of member firms and members of the Institute of Chartered Accountants in England and Wales as they failed to give adequate consideration as to whether the records of custody relationships maintained by the bank were compliant and failed to sufficiently audit the 2011 client asset reports made to the FCA.

The investigation, which started in 2015, is related to reports concerning The Bank of New York Mellon International Limited (MIL) and The Bank of New York Mellon London Branch (MLB) compliance with the FCA’s Client Assets Sourcebook (CASS) for the year that ended on Dec. 31, 2011. Assets held by the MIL and MLB, at their peak, were worth more than 1 trillion pounds ($1.31 trillion), the FRC said.

A formal complaint was delivery by the FRC’s executive counsel and a disciplinary tribunal will be convened to determine what sanctions will be imposed.

KPMG said in an e-mail to Reuters that the company accepts and regrets “that our work did not fully reflect all aspects of this new (CASS) guidance” and that further changes have been made to its CASS procedures and training to reflect further compliance.

The firm said it cooperated with the FRC, emphasized that no clients suffered financial loss and said the largest fine under current guidelines was 10 million pounds, according to Reuters.

Companies: Bank Of New York Mellon Corporation (The)
Price: 52.38 Price Change: +0.93 Percent Change: +1.80

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Apple Deposits Almost $17 Billion in Escrow as European Commission Fine Works Way Through Courts

10:02 AM, Sep 18, 2018 — Apple (AAPL) has deposited 14.3 billion euros ($16.7 billion) in an escrow account to satiate the European Commission, which in 2016 ruled that the company had received unfair tax incentives from the government of Ireland, Irish Minister for Finance and Public Expenditure and Reform Paschal Donohoe said.

The company deposited the money — 13.1 billion euros in penalties and 1.2 billion in interest — into the account in the second and third quarters, Donohoe said. Apple and the government of Ireland are both appealing the ruling from the European Commission, but had agreed to put the money into escrow until a decision could be finalized.

“While the government fundamentally disagrees with the commission’s analysis in the Apple State Aid decision and is seeking an annulment of that decision in the European Courts, as committed members of the European Union, we have always confirmed that we would recover the alleged state aid,” Donohoe said in a statement on Tuesday. “We have demonstrated this with the recovery of the alleged state aid which will be held in the Escrow Fund pending the outcome of the appeal process before the European Courts.”

The Irish government said there was “continuous and extensive” talks with the commission including how much Apple would pay and the relevant interest. The money in the escrow fund will be released only after a determination is made by the European courts over the validity of the European Commission’s decision, the government said.

The appeal is pending before the courts in the form of an application to the General Court of the European Union (GCEU), asking it to annul the commission’s decision, Ireland’s government said. The case has been granted priority status and is progressing through the various stages. The court will decide whether there will be oral proceedings and if the case will be heard in public or private.

“It will likely be several years before the matter is ultimately settled by the European courts,” the government statement said.

Companies: Apple Inc.
Price: 220.63 Price Change: +2.75 Percent Change: +1.26

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Weekly Commodities ETF Report: Metals, Soft Commodities Lower on Inflation Data, Deteriorating US-China Trade Talks; Crude Bucks Downward Trend on Drop in US Supplies

(MT Newswires) – Most commodities were in the red amid tame inflation data released Friday as well as mixed developments in the ongoing trade war between the US and China. On Wednesday, US Treasury Secretary Steven Mnuchin reportedly sent an invitation for talks to senior Chinese officials, proposing a meeting in the next few weeks. However, a tweet from President Donald Trump on Thursday denied claims made in the Wall Street Journal that the US is under pressure to make a deal with Beijing. Trump added that the US “will soon be taking in billions in tariffs.” By Friday, Trump had told aides to go ahead with the latest round of trade restrictions — $200 billion in tariffs against Chinese imports — dimming the possibility for productive trade talks to proceed.

Gold ended the Friday session lower, and settling at $1,201.10; likewise, it ended the week 0.23% lower, reversing gains from earlier in the week. Gold had reached one-month highs as the US dollar turned weak after data released by the Labor Department showed a modest increase in US consumer prices in the month of August. The lower-than-expected increase in inflation may prompt the Federal Reserve to stop with just one more rate hike this year, meaning there may not be a rate hike in December. However, the dollar subsequently recovered some lost ground and the yellow metal pared its gains. On the other hand, copper ended Friday’s session lower at $2.65, and was down 0.08% for the week, as the uncertainty surrounding the trade talks between Washington and Beijing continued to spark fears that metals demand from China would decline more than expected. Despite an increase in Chinese industrial output, traders are concerned that the trade dispute would affect China’s growth. These fears have helped push copper prices lower — down about 20% from June highs. China is the largest metals consumer, and copper is extensively used in power and construction industries.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) edged 0.10% higher this week, from a decline of 1.14% in the previous week.

Agriculture commodities ended the week mostly lower, led by grains. Sugar had a weekly increase of 0.18% and settled at a price of $0.11 on Friday; coffee was around $1 per pound at Friday’s close, ending the week down 2.44%; and cocoa fell 1.73% lower for the week and closed Friday’s session at $2,219.  Among grains, corn was down 4.35% in the week and settled at $3.52 per bushel in Friday’s session; and soybeans fell 1.72% for the week, closing at $8.31 per bushel on Friday. Meanwhile, wheat declined 0.24% and settled at $5.12 per bushel at the end of Friday’s session. This is the second weekly drop for wheat after the US Department of Agriculture raised its monthly supply and demand report forecast for the Russian wheat harvest to 71 million tonnes, from the prior forecast of 68 million tonnes. The increase in the USDA’s expectations came as no surprise for traders, as a drought in Europe has sparked fears of export curbs.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 1.20% for the week, compared with a decline of 0.51% in the prior week.

Bucking the downward momentum of most commodities, crude ended Friday’s session higher, following the Energy Information Administration’s report of a notable drop in crude inventories in the US. It reported that crude oil inventories dropped by 5.296 million barrels in the week ended Sept. 7, much more than what analysts had expected. This compares with the American Petroleum Institute’s report last Tuesday that showed crude inventories decreased by 8.636 million barrels last week. Meanwhile, it is feared that hurricane Florence, which is striking South and North Carolina and causing flooding and power interruptions, may result in the shutting down of Colonial Pipeline. As people stocked up gasoline ahead of the storm, demand for crude shot up. To make up for the shortfall in supply due to sanctions against Iranian oil, US President Donald Trump has been encouraging Russia and Saudi Arabia to increase crude output. On the other hand, the International Energy Agency reported that global oil supply reached a record high of 100 million barrels per day in August. Output from OPEC countries and Russia rose to a nine-month high. However, the agency noted that production may drop going forward due to falling output from Iran and Venezuela. The last bit of data come from Baker Hughes (BHGE), which reported Friday that active US rig count was at 867 in the week, up from 860 a week earlier and compared with 749 in the same period of 2017.

Over the last five days, light, sweet crude oil for October delivery rose 1.61% higher, settling Friday at $68.99 per barrel. In other energy futures, gasoline rose during the week, up 0.30% and settled at $1.96 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 1.36% this week and was down in Friday at $2.75 per 1 million British thermal unit.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHNor CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Tesla Shares Drop Early Monday After Musk Abandons Plan to Take Company Private

8:56 AM, Aug 27, 2018 — Tesla (TSLA) shares were down 2.6% in pre-bell trading after Chief Executive Elon Musk said in a blog post on Friday that he will not attempt to take the company private.

He said in the post that it was “important” for him to understand whether investors agreed with the idea and thought it was a good move. Musk said after working with Silver Lake, Goldman Sachs (MS) and Morgan Stanley (MS) and listening to shareholders, he decided to keep Tesla a publicly traded entity.

“Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company,” he said. “Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was “please don’t do this.””

Musk earlier this month said in a Twitter post that he had the funding to make the company closely held, and hired Goldman and Morgan Stanley as advisers. The company would have had a valuation of somewhere around $72 billion. That Twitter post is now the subject of an SEC investigation and several investor lawsuits.

The company needs to focus on increasing Model 3 production, he said. Musk said he and his team will now focus on making Tesla a profitable company.

“Moving forward, we will continue to focus on what matters most: building products that people love and that make a difference to the shared future of life on Earth,” he said. “We’ve shown that we can make great sustainable energy products, and we now need to show that we can be sustainably profitable. With all the progress we’ve made on Model 3, we’re positioned to do this, and that’s what the team and I are going to be putting all of our efforts toward.”

Companies: Tesla, Inc.
Price: 314.30 Price Change: -8.52 Percent Change: -2.64

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Weekly Commodities ETF Report: Crude Higher on Risk of Supply Disruptions; Gold Rallies on Weaker Dollar as Fed Reiterates Plans for Interest Rate Hikes

(MT Newswires) – – Crude ended Friday’s session in positive territory as investors assessed the risk of supply disruptions amid a strike in the North Sea oil and gas fields. A scheduled industrial action over working rotas will go ahead, UK union Unite said in a statement, after talks between French oil refiner total and workers on three of its North Sea oil and gas platforms broke down on Thursday. Supply concerns have also mounted, with US sanctions against Iranian oil exports set to take full effect in November. It is expected the sanctions could significantly impact global supply and exhaust the world’s spare oil capacity. Prices have also been supported by shrinking US crude inventories. Supply data from the Energy Information Administration showed domestic crude supplies fell by 5.8 million barrels for the week ended Aug. 17. This compares with the American Petroleum Institute’s report last Tuesday that U.S. crude supplies fell by 5.2 million barrels. And, Baker Hughes (BHGE) reported active US rigs count fell by nine to 860 — the biggest drop in more than two years. This compares with 869 in the prior period, and 759 in the same period of 2017. Overall US count, including gas rigs, contracted by 13 to 1,044, but that’s still above the year ago tally of 940.

Over the last five days, light, sweet crude oil for October delivery jumped 5.09%, at $68.72 per barrel. In other energy futures, gasoline rose during the week, up 4.67% and settled at $1.98 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 1.22% this week and was down Friday at $2.91 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) rose 0.84% this week, from an increase of 0.44% in the previous week.

Gold ended the Friday session higher, settling at $1,213.30. Except for modest losses in Thursday’s session, the yellow metal saw positive momentum to end the week higher, up 1.69% on the back of the dollar’s decline. The US dollar sank to a three-week low as market participants digested US Federal Reserve Chairman Jerome Powell’s Jackson Hole, Wyo. speech. Powell said more increases in the benchmark US lending rate were likely if the recent strong pace of growth in wages and jobs continued. The Federal Open Market Committee’s consensus is the “gradual process of normalization remains appropriate” as marked by rate hikes and a decline in the assets bought during the financial crisis to shore up the world’s biggest economy, Powell said. Earlier this week, US President Donald Trump reiterated his criticism of the Fed’s monetary policy, saying he was “not thrilled” with the Fed for raising rates. It remains to be seen whether Powell would respond to Trump’s criticism. On the other hand, copper ended Friday’s session higher at $2.72 and closed the week up 1.31% — its best weekly end since the end of July, with traders shrugging off the lack of progress in the US-China trade negotiations. The optimism generated by the trade talks between the two largest global economies earlier this week fizzled, as another round of tariffs from both countries were implemented.

Agriculture commodities ended the week mixed. Sugar had a weekly increase of 0.69% and settled at a price of $0.10 on Friday; coffee was at $1.04 per pound at Friday’s close, ending the week mostly flat; and cocoa jumped 9.96% higher for the week and closed Friday’s session at $2,364.  Among grains, corn was down 4.22% in the week and settled at $3.62 per bushel in Friday’s session; and soybeans fell 4.82% for the week, closing at $8.55 per bushel on Friday. Meanwhile, wheat fell 7.64% for the week — its worst week in the last two years — and settled at $5.36 per bushel at the end of Friday’s session. U.S. export sales of wheat have slowed down, with the U.S. Department of Agriculture reporting that exports were at 239,800 tons, below a range of trade expectations for 450,000 to 850,000 tons. Despite this, some traders have projected a lift in wheat prices due to global supply risks. Hot weather in other wheat-producing countries could affect wheat harvests and production.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 1.74% for the week, compared with an increase of 1.88% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Justin Hillstrom is a registered representative of ALPS Distributors, Inc.

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:  USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHNor CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

We advise you to consider a fund’s objectives, strategies, risks, charges and expenses carefully before investing. The Prospectus contains this and other information. Download a copy of a fund’s Prospectus by clicking the following: SDCI. Please read any Prospectus carefully before investing

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc.

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Fed’s Powell Sees More Rate Hikes as Likely if US Economy Keeps on Growth Path

11:13 AM, Aug 24, 2018 — Federal Reserve Chairman Jerome Powell said more increases in the benchmark US lending rate are likely if the recent strong pace of growth in wages and jobs continues.

The Federal Open Market Committee’s consensus is that the “gradual process of normalization remains appropriate” as marked by rate hikes and a decline in the assets bought during the financial crisis to shore up the world’s biggest economy, Powell said on Friday at the annual Kansas City Fed symposium in Jackson Hole, Wyoming.

“The economy is strong,” Powell said in his speech. “Inflation is near our 2% objective, and most people who want a job are finding one.”

The FOMC has been raising rates since December 2015, with two hikes of 25 basis points each already this year, and many analysts expecting another two for 2018. That’s as the US unemployment rate drops and economic growth surged to 4.1% in the second quarter.

The chairman’s speech comes after President Donald Trump offered a rare rebuke from the White House to the central bank, telling Reuters this week that he was “not thrilled” with the Fed’s hikes under Powell, whom Trump nominated for the job. That followed similar criticism made last month.

“With solid household and business confidence, healthy levels of job creation, rising incomes, and fiscal stimulus arriving, there is good reason to expect that this strong performance will continue,” Powell said.

Still, he noted that the US economy faces challenges “beyond the reach of monetary policy” including slow growth in real wages, declining economic mobility and a federal budget that’s “long been on an unsustainable path.”

Discussions at the FOMC have been focused on the debate about navigating the risks between moving too fast and “needlessly shortening” the current period of economic expansion, or going too slowly and “risking a destabilizing overheating,” Powell said.

“I see the current path of gradually raising interest rates as the FOMC’s approach to taking seriously both of these risks,” the chairman said. “My colleagues and I are carefully monitoring incoming data, and we are setting policy to do what monetary policy can do to support continued growth, a strong labor market, and inflation near 2%.”

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Target - $TGT

Target Reports Second-Quarter Financials That Top Expectations as Comp Sales Jump Most in 13 Years

8:02 AM, Aug 22, 2018 — Target (TGT) reported second-quarter financials on Wednesday morning that topped expectations, pushing shares higher in pre-market trading.

The company said second-quarter GAAP earnings from continuous operations jumped 23% from a year earlier to $1.49 a share, and adjusted earnings surged 20% to $1.47 per share. Consensus compiled by Capital IQ was for $1.40 a share.

Sales rose 6.9% to $17.8 billion, beating expectations for $17.3 billion. Comparable sales increased 6.5% — the most in 13 years — with same-store sales rising 4.9% and comparable digital sales jumping 41%, topping the year-earlier gain of 32%, Target said.

Traffic growth was reported at 6.4%, “by far” the strongest since the company started reporting the metric in 2008.

“We are extremely pleased with Target’s second-quarter results,” Chief Economist Brian Cornell said in a statement on Wednesday. “We laid out a clear strategy at the beginning of 2017, and throughout this year we’ve been accelerating the pace of execution.

Shares were up 5.6% in pre-bell trading.

Third-quarter earnings are seen between $1 and $1.20, in line with forecasts for $1.08 per share on a GAAP basis and $1.09 normalized. Management said it expects third-quarter comp sales growth in line with the 4.8% improvement the company saw in the first half of the year.

For the full year, the company said it expects GAAP earnings from continued operations from $5.30 to $5.50, mostly above forecasts for $5.31 GAAP and $5.30 normalized.

Companies: Target Corporation
Price: 87.90 Price Change: +4.63 Percent Change: +5.56

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Weekly Commodities ETF Report: Crude Lower After US Stockpiles Surge, Trade Tensions Dent Global Outlook; Gold Posts Sixth Weekly Loss as Uncertainty Sends US Dollar Higher

(MT Newswires) – – Crude ended Friday’s session higher but marked a loss on the week that saw a bigger-than-expected rise in US stockpiles of the key commodity in Wednesday’s data, raising concerns about supplies even as investors looked ahead to the resumption of trade talks between the US and China that could cool geopolitical tensions. But the US-China trade dispute has weighed on sentiment amid concerns about slower growth and demand in the world’s second-biggest economy. Underpinning the weakness is the prospect of more sanctions on Iran after the US hit the country with a round of penalties recently. And new protests by workers at Libya’s Zawiya oil export terminal are threatening again to hinder production at a time when crude output from the North African nation is at a two-month high of over one million barrels a day, according to a report from S&P Global Platts. Back in the US, Baker Hughes (BHGE) reported that the active rig count was unchanged week on week at 869, a level that’s the highest since early March 2015. With the gas rig tally also flat, the US count overall was at 1,057. A year ago, the oil count was at 763 and the overall US tally was at 946.

Over the last five days, light, sweet crude oil for September delivery fell 2.80% and settled at $65.91 per barrel. In other energy futures, gasoline declined during the week, down 3% and settled at $1.98 per gallon at the close of Friday’s session. Meanwhile, natural gas rose 0.4% this week and was up in Friday’s session at $2.95 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.04% this week, from a drop of 0.27% in the previous week.

Gold rose 0.6% on Friday to $1,184, but ended the week down 2.3% — the sixth straight weekly decline as the rallying US dollar has made prices for the precious metal more expensive for buyers using other currencies. The dollar has jumped and earned status among investors as a haven in turbulent times over gold as Turkey’s financial crisis sent its lira currency spiraling and spread worries that the upheaval could extend into other emerging markets.

Copper ended Friday’s session higher at $2.68 but closed with a weekly loss of about 3% after it entered a bear market at midweek, according to CNBC. The strength in the US dollar was hitting that commodity too, along with worries about how the global trade wars could impact international growth. Prices seemed to take little comfort from reports that a strike at the giant Escondida mine in Chile might be averted when managers at the world’s biggest copper mine, run by BHP Billiton, said they had reached a deal with union officials, according to Reuters.

Agriculture commodities ended the week on a mixed note. Sugar had a weekly decline of 3.23% and settled at a price of $0.102 on Friday as India ramps up production of the sweetener. Coffee was at $1.047 per pound at Friday’s close, with a weekly decrease of 5%; and cocoa rose 1.2% in the week and closed Friday’s session at $2,149 as Bloomberg reported on an outbreak of caterpillars in part of Ghana, the world’s second-biggest cocoa producer. Among grains, corn was up 2.1% in the week and settled at $3.79 per bushel Friday; and wheat rose 1.8% for the week to end at $5.79 per bushel by Friday’s close. Meanwhile, soybeans jumped 4.3% for the week, closing at $8.98 per bushel on Friday amid optimism about the restart of US-China trade talks, although S&P Global Platts said Chinese buyers can’t benefit from the renewed talks until the market starts pricing in a better trade relationship that would allow US soybeans to again be competitive in the Chinese market. US soybeans have been subject to Chinese tariffs in a retaliatory move taken by the Asian nation.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 1.68% for the week, compared with a fall of 2.74% in the prior week.

 

Copyright © 2018 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Deere Reports Higher Fiscal Third Quarter Results But Earnings Miss Street as Costs Rise

10:43 AM, Aug 17, 2018 — Deere & Company (DE) reported higher results for the fiscal third quarter but earnings missed expectations as the equipment maker said it’s facing rising costs for raw materials.

Earnings after adjustments came in at $2.59 a share, beneath the consensus on Capital IQ for $2.75 a share. A year ago, net income was $1.97. Net sales rose 36% to about $9.3 billion, topping the consensus on Capital IQ for $9.2 billion, while the cost of sales was also up, hitting $7.15 billion from $5.25 billion a year earlier, the company said on Friday.

“Farm machinery sales in North America and Europe made solid gains, while construction equipment sales move sharply higher and received significant support from our Wirtgen road-building unit,” said Deere’s chief executive, Samuel Allen. “At the same time, we have continued to face cost pressures for raw materials and freight, which are being addressed through a combination of cost management and pricing actions.”

Equipment makers have been facing higher input costs in the wake of the trade dispute that has seen the US hit global partners like China, Mexico and Canada with increased tariffs on imports including metals.

Still, Allen said Deere is “well-positioned to capitalize on growth in the world’s agricultural and construction equipment markets.”

The company is projecting equipment sales increasing about 30% for fiscal 2018 and 21% in the fourth quarter, with Wirtgen adding about 12% to Deere’s sales for both periods. Adjusted net income attributable to Deere is seen at $3.1 billion for the year.

“Replacement demand for large agricultural equipment is driving sales even in the face of tensions over global trade and other geopolitical issues,” Allen said. “We’re confident Deere is on track to continue its strong performance.”

Companies: Deere & Company
Price: 138.95 Price Change: +1.60 Percent Change: +1.16

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