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Walmart Reports Fourth-Quarter Earnings, Revenue Topping Forecasts as Comp Sales, E-Commerce Jump

9:14 AM, Feb 19, 2019 — Walmart (WMT) on Tuesday reported fourth-quarter earnings and revenue that both topped forecasts as comparable sales and e-commerce surged.

The retailer reported earnings of $1.41 a share, topping the consensus on Capital IQ for $1.33 a share. Revenue came in at $138.8 billion, beating forecasts for $137.6 billion. Shares were up 3.7% in pre-market trading on Tuesday.

Comparable sales in the quarter grew 4.2% and e-commerce sales jumped 43%, the retailer said. US comparable sales rose 3.6% and e-commerce sales in the country jumped 40%. Sam’s Club comp sales rose 3.3% and its e-commerce sales grew 21%.

“Walmart US e-commerce continued to benefit from the expansion of grocery pickup and delivery and a broader assortment on Walmart.com,” the company said.

For the full year, revenue came in at $514.4 billion, an increase of 2.8%. Excluding currency, total revenue rose 3% to $515.1 billion. Operating cash flow was reported at $27.8 billion and $13.5 billion was returned to shareholders through dividends and share repurchases.

Fiscal 2020 earnings are expected to decline by low single-digits versus the previous year, the Walmart said. They may, however, increase by the low- to mid-single-digit percentage range when excluding Flipkart, which it acquired in August.

Walmart reiterated its guidance originally released on Oct. 16 for comp sales growth of 2.5% to 3%, excluding fuel, and e-commerce sales growth of around 35%, the company said. Consolidated net-sales growth is forecast at around 3% in constant currency, but should be positively affected by the Flipkart acquisition and negatively impacted by deconsolidation of Walmart Brazil and a planned reduction in tobacco sales at Sam’s Club.

Its effective tax rate is pegged from 26.5% to 27.5%. Capital expenditures are projected at about $11 billion with a “strong focus on store remodels, customer initiatives, e-commerce, technology and the supply chain.” Walmart US said it expects to open fewer than 10 stores in fiscal 2020, while Walmart International will open more than 300 stores primarily in Mexico and China.

Companies: Walmart Inc.
Price: 102.70 Price Change: +2.71 Percent Change: +2.71

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Weekly Commodities ETF Report: Crude Hits Highest Level So Far in 2019 on OPEC-Led Production Cuts; Gold Rises on Progress in US-China Trade Talks

(MT Newswires) – Crude prices ended Friday’s session higher and the week in positive territory, briefly hitting 2019 highs above $65 per barrel earlier in the week, helped by supply cuts led by The Organization of the Petroleum Exporting Countries (OPEC) and the announcement of an even deeper cut by Saudi Arabia. OPEC cut nearly 800,000 barrels of output per day in January, just short of its goal of cutting 812,000 bpd, in a bid to tighten the oil market. Top exporter and de facto OPEC leader Saudi Arabia said earlier in the week that it plans to produce around 9.8 million barrels per day of oil in March, over half a million bpd below its pledged production level. Oil prices also remained supported by the partial closure of Saudi Arabia’s Safaniya offshore oil fields, which affected production capacity of more than 1 million barrels per day (bpd). Neither the cause of the outage or the expected duration were immediately known, according to reports. There is also concern of a demand slowdown ahead of normal spring refinery maintenance. Energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US rose by three to 857. The combined oil and gas rig count in the US climbed by two to 1,051 as gas rigs fell by one to 194. Earlier in the week, the Energy Information Administration said crude inventories rose by 3.6 million from the previous week to reach 450.8 million barrels. That’s about 6% above the five-year average for this time of the year. On the other hand, the American Petroleum Institute said the weekly crude inventories were down 998,000 barrels.

Light, sweet crude oil for March delivery rose 5.73% for the week, settling at $55.59 per barrel at the end of Friday’s session. In other energy futures, gasoline rose 7.26% during the week and settling at $1.74 per gallon on Friday. Natural gas for April delivery rose 1.03% for the week at $2.66 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 1.16% higher for the week, compared with a decline of 0.34% in the previous week.

Gold wrapped up the Friday session higher, settling at $1,322.10 and ending the week up 0.49% as two days of US-Chinese trade talks concluded on a positive note. High-level talks between American and Chinese officials ended in Beijing and it remains unclear whether the two sides have made any progress in resolving the thorny issues. Gold prices also remain supported by uncertainties around Brexit and increasing political uncertainty in Europe after Spanish Prime Minister Pedro Sanchez called for a snap general election in April. The dollar fell on the back of weak US retail sales data released Wednesday, logging its worst showing since September 2009. The data fanned concerns of slowing economic momentum in the world’s largest economy and reinforced expectations that the Federal Reserve will not raise interest rates this year. Meanwhile, copper closed Friday’s session at $2.80 per pound, inching 0.20% higher for the week. The red metal also benefitted from optimism following progress in the US-China trade talks, but gains were tempered by reports that China’s factory-gate price growth fell below estimates. For the month of January, producer price inflation growth from the largest consumer of copper was at its weakest pace since early September. Nevertheless, the outlook on copper demand remains positive as China also reported that its copper import numbers were up sharply, with shipments of unwrought copper up 14% in January to 479,000 tonnes. Copper concentrate imports rose 17% year over year to 1.9 million tonnes.

In agriculture commodities, grains ended the week mostly lower, despite the developments in the US-China trade talks: corn edged 0.20% higher in the week and settled at $3.83 per bushel in Friday’s session; wheat dropped 2.74% lower and settled at $5.07 per bushel at the end of Friday’s session; and soybeans fell 0.94% for the week, but closed Friday in positive territory at $9.21 per bushel.  The US Department of Agriculture (USDA) reported that export sales showed net cancellations of US soybeans totaling 610,900 tonnes in the week ended Jan. 3. The agency is continuing to clear the backlog resulting from the recent US government shutdown. Other commodities were mixed: sugar had a weekly increase of 3.48% and settled at a price of $0.13 per pound on Friday; coffee was around $1.02 per pound at Friday’s close, down 4.26% for the week; and cocoa rose 4.65% higher for the week and closed Friday’s session at $2,339 per tonne. According to a Reuters survey of analysts and traders, cocoa prices are set to increase despite a slight global surplus. Forecasts were for cocoa to have a global surplus of 30,000 tonnes for the 2018/19 season — just above 2017/18 estimates of 22,000 tonnes, according to the International Cocoa Organization. Analysts and traders have cited these factors that could underpin cocoa prices: currency volatility due to Brexit and lower quality supplies of Cameroon cocoa, as well as uncertain weather and possible political turmoil in Ivory Coast, a top producer of cocoa.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was up 0.50% for the week, compared with a decrease of 1.09% in the prior week.

 

Copyright © 2019 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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Under Armour Quarterly Results Could Be ‘Lackluster’ Amid Losses to Nike, Lululemon, Canaccord Says

2:28 PM, Feb 11, 2019 — Under Armour (UAA) is believed to be losing North American market share to rivals Nike (NKE) and lululemon athletica (LULU), according to Canaccord Genuity, which is expecting Tuesday’s pre-market earnings report to be “lackluster”.

There’s a lack of compelling product or creative direction, while overall growth is “anemic” in North America, the largest market, analyst Camilo Lyon said in a note on Monday. Chief competitors including Nike, lululemon and Adidas “are outpacing UAA’s growth rate by a factor” of three to five times.

“It appears that UAA is still not ready to fully embrace the lifestyle trend (because it either can’t or just won’t) that consumers have been embracing,” Lyon said. “While we acknowledge the need for UAA to have a performance offering, the lack of a lifestyle point of view is disappointing and limiting.”

The sportswear company is poised to report fourth-quarter financials early Tuesday, with the consensus on Capital IQ for normalized earnings of $0.04 per share and revenue of $1.38 billion. A year ago, Under Armour said revenue was $1.4 billion and adjusted earnings were flat.

Under Armour “spoke vaguely” at its investor day about technologies that are being developed, but won’t come to market before 2020 and will not achieve scale before 2021, said Lyon, who has a sell rating on the stock and a price target of $13.

Under Armour “has to win in footwear” if it’s going to deliver on the long-term plan that it already laid out, Lyon said.

“Based on the company’s inconsistent performance in the category over the past 10 years, lack of visible innovation or new creative talent, and a surging product pipeline from Nike, we are skeptical the company can meet these growth targets.”

Companies: Under Armour, Inc.
Price: 20.94 Price Change: +0.19 Percent Change: +0.92

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Weekly Commodities ETF Report: Fears of Economic Slowdown, US-China Trade Talk Tensions Drive Most Commodities Lower

(MT Newswires) – Crude prices ended Friday’s session higher but ultimately ended the week in the red as concerns about a possible drop in energy demand due to a global economic slowdown and the ongoing US-China trade dispute continue to weigh on the commodity. Although prices have been moving up at times amid expectations the OPEC-led production cuts and US sanctions on Venezuela’s state-run oil company will tighten global crude supply, recent data showing higher crude output in the US held gains in check.  Energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US rose by seven to 854. The combined oil and gas rig count in the US climbed by four to 1,049 as gas rigs fell by three to 195. Earlier in the week, the Energy Information Administration said crude inventories increased by 1.26 million barrels last week, less than the 2.2 million-barrels gain expected. On the other hand, data from the American Petroleum Institute showed a build of 2.5 million barrels of US crude inventories last week.

Light, sweet crude oil for March delivery fell 4.77% for the week, settling at $52.72 per barrel at the end of Friday’s session. In other energy futures, gasoline rose during the week, up 0.76% and settling at $1.45 per gallon on Friday. Natural gas for March delivery slumped 4.50% this week at $2.58 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 0.34% lower this week, compared with an increase of 0.02% in the previous week.

Gold wrapped up the Friday session higher as global growth worries prompted traders to shun riskier investments like equities and seek the safe-haven asset, however the yellow metal ended the week slightly lower, down 0.32%, closing at $1,318.50. Meanwhile, these same concerns drove copper lower at Friday’s close, settling at $2.81 per pound, but the red metal ended the week up 1.43%. On Thursday, Germany reported an unexpected decline of 0.4% in its industrial output for December — the fourth consecutive monthly decrease. As well, the European Commission lowered its growth forecasts for Italy and Germany and the eurozone as a whole.  Meanwhile, the Bank of England said it sees its slowest economic growth in a decade and lowered its 2019 GDP growth forecast to 1.2% from 1.7%.

In agriculture commodities, grains ended the week lower: wheat dropped 1.24% lower and settled at $5.17 per bushel at the end of Friday’s session; corn slipped 1.06% in the week and settled at $3.74 per bushel in Friday’s session; and soybeans fell 0.11% for the week, but closed Friday in positive territory at $9.15 per bushel. It was the second weekly loss in a row for soybeans, even though the commodity started the week with modest gains. Prices for soybean futures rose on fears of a decline in crop yields from South American; however, those gains dissipated when Parana, the second largest producing state in Brazil, reported that crops had minimal damage from drought, and that the soybean harvest was ahead of the season. Separately, worries over the US-China trade deal resurfaced to weigh on commodities during the week after US President Donald Trump said there were no plans for a meeting with Chinese President Xi Jinping before the March 1 trade deal deadline.  Also, there have been reports that Trump will sign an executive order that would ban the use of Chinese-made wireless equipment in US networks — a move that aims to increase cyber security for the US but might exacerbate trade tensions.

Other soft commodities were mixed: sugar had a weekly increase of 1.03% and settled at a price of $0.13 per pound on Friday; coffee was around $1.03 per pound at Friday’s close, down 1.30% for the week; and cocoa inched 1.01% higher for the week and closed Friday’s session at $2,196 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was down 1.09% for the week, compared with a decrease of 0.52 in the prior week.

 

Copyright © 2019 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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Hasbro Reports Lower-Than-Forecast Earnings, Revenue After Toys `R’ Us Bankruptcy

10:48 AM, Feb 8, 2019 — Hasbro (HAS) on Friday reported fourth-quarter adjusted earnings and revenue that missed forecasts as the Toys `R’ Us bankruptcy and subsequent liquidation hurt the toy manufacturer.

The company said earnings came in at $1.33 a share, down from $2.30 during the same period the previous year and behind consensus compiled by Capital IQ for $1.68 a share. Revenue was reported at $1.39 billion, down from $1.6 billion the prior year and short of estimates for $1.53 billion. Shares fell 4.2% in early trading.

“The lower revenues reflect lost Toys `R’ Us revenues throughout 2018 in the US, Europe and Asia Pacific, as well as a more meaningful impact than expected from the liquidation of Toys `R’ Us inventory into these markets,” Hasbro said in its earnings statement.

Revenue also declined internationally, notably in Europe, as the company addressed changing shopping habits, an evolving retail landscape and reduced retail inventory amid “challenging” economics, Hasbro said. Revenue in the UK last year took a $43 million hit from foreign exchange.

Full-year earnings were reported at $1.74 a share, down from $3.12 a share in 2017. Excluding after-tax charges, earnings came in at $3.85 a share. The company said after-tax charges that were excluded include a $0.76 impact from non-cash impairment charges related to Backflip Studios goodwill, a $0.61-per-share hit from severance costs due to “organizational actions,” a $0.42 impact from bad debt expense from Toys ‘R’ Us and a $0.32 hit from US tax reform.

Chief Executive Brian Goldner said 2018 was a “very disruptive year” due to the bankruptcy and liquidation of Toys ‘R’ Us across the world and mid a shifting consumer and retail landscape.

“During 2018, we diversified our retailer base, meaningfully lowered retailer inventories and delivered innovative new offerings to our global consumers,” he said. “We were not, however, able to recapture as much of the Toys `R’ Us business during the holiday period as we anticipated as the effect of its liquidated inventory in the market was more impactful than we and industry experts expected. It is an unprecedented yet finite event. In addition, as we discussed throughout the year, our European shipments declined as the teams successfully lowered retailer inventories amidst a declining toy and game market.”

Companies: Hasbro, Inc.
Price: 86.50 Price Change: -3.75 Percent Change: -4.16

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Twitter Beats Expectations in Fourth Quarter; Shares Drop Amid User Reporting Changes, Downbeat Outlook

9:28 AM, Feb 7, 2019 — Twitter (TWTR) reported better-than-expected results for the fourth quarter, but shares in the social-media company sank as it said it would stop disclosing monthly active user numbers and offered a downbeat view on first-quarter revenue.

Non-GAAP diluted net income rose to $0.31 per share from $0.19 a year ago, better than the consensus on Capital IQ for $0.24 a share. Revenue jumped 24% to $909 million, well ahead of the analysts’ expectations for $865 million.

In a statement Thursday, Twitter said monetizable daily active users — those who log in and access the platform on any given day through its website or other applications that are able to show ads — will be “the metric we use to show the side of our audience and engagement going forward.” Monthly active users, or MAU, won’t be given after the first quarter of 2019.

“This change in disclosure does not impact the objectives which bring advertisers to Twitter or the information to which they have access today,” the company said in a letter to shareholders. “Advertisers come to Twitter because we have one of the most valuable audiences when they are most receptive, and we generate a high return on investment against their campaign objectives.”

In the fourth quarter, MAU fell to 321 million from 330 million in the same period of 2017. Average US monthly users dropped to 66 million from 68 million a year ago, while international users were down to 255 million from 262 million.

Average monetizable daily active users rose to 126 million the fourth quarter from 115 million a year ago. The US figure was up to 27 million from 25 million and international climbed to 99 million from 89 million, Twitter said.

“We made a number of product improvements in the fourth quarter, including making it easier to see the latest Tweets when people want to see what’s happening in the moment,” Twitter said in the investor letter.

The company said it sees first-quarter revenue between $715 million and $775 million, while the consensus on Capital IQ was for $768.7 million. For 2019, the company said it sees GAAP and cash operating expenses to be up approximately 20% year-over-year “as we support our existing priorities of health, conversation, revenue product and sales, and platform.” Shares in the company sank more than 7% in early trading Thursday.

“Our efforts to improve health have delivered important results, and new product features like a single switch to move between latest and most relevant Tweets have been embraced by the people who use Twitter,” said Chief Executive Jack Dorsey. “We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service.”

Companies: Twitter, Inc.
Price: 31.32 Price Change: -2.84 Percent Change: -8.31

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General Motors Reports Better-Than-Expected Fourth-Quarter Results as Pricing Hits Record High

10:07 AM, Feb 6, 2019 — General Motors (GM) reported fourth-quarter results that came in ahead of expectations on Wednesday as the car maker benefited from “strong pricing” for new pickup trucks and a record high in transaction prices.

Revenue rose 1.8% year-on-year to $38.4 billion, well ahead of the consensus on Capital IQ for $36.3 billion. Adjusted earnings fell to $1.43 a share from $1.65 a year ago, but that was still better than expectations on Wall Street for $1.21 a share.

“Fourth quarter results were led by strong performance in GM North America, driven by a rich vehicle mix and strong pricing for GM’s all-new full-size pickup trucks: the Chevrolet Silverado and GMC Sierra,” the automaker said in a statement.

In 2018, average transaction prices hit a record high of almost $36,000 and incentives as a percent of the prices fell 0.3% year-on-year, GM said. Combined Silverado and Colorado sales, as well as the Sierra and GMC Canyon, rose 3% annually. On the year, total sales and revenue rose to $147 billion from $145.6 billion in 2017, the company said.

GM North America’s net sales and revenue rose to $29.8 billion in the three months ended Dec. 31 from $28.8 billion a year earlier. GM International fell to $4.96 billion from$5.69 billion in the same period of 2017.

Total vehicle sales, including dealership purchases, fleet sales and cars used by dealers such as courtesy vehicles, fell to 2.24 million in the quarter from 2.59 million a year earlier. In the US, Chevrolet sold more crossovers, while trucks and cars decreased. Cadillac and Buick brands also saw slower sales, while GMC rose to 160,000 from 155,000 a year earlier.

In the quarter, GM announced plans shut three assembly plans and five propulsion facilities to “increase capacity utilization.” Wall Street cheered the Nov. 26 announcement, sending the shares to a three-month high that day. On Wednesday, GM said about “950 hourly employees have been placed into US plants with products in key growth segments.”

Chief Executive Mary Barra said in the statement that GM will “continue to make bold decisions to lead the transformation of this industry and drive significant shareholder value.”

Companies: General Motors Company
Price: 40.16 Price Change: +0.86 Percent Change: +2.19

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Weekly Commodities ETF Report: Sanctions on Venezuela, Tighter Production Boost Crude Prices; Gold, Soybeans Gain on Strong Economic Data, Progress in Trade Talks

(MT Newswires) – Crude prices ended Friday’s session higher as tighter US sanctions on Venezuela’s access to the global financial system and reduced exports by Saudi Arabia to the US combined for unexpected tightness in supplies for US refiners.  The Organization of the Petroleum Exporting Countries (OPEC) and its allies also appear to be making headway in plans to trim nearly 1.2 million barrels per day from the market in the first six months of the year. Reuters reported that crude oil production from OPEC dropped by a massive 890,000 bpd in January from the previous month. That marked the largest month-on-month drop since January 2017. Meanwhile, the US oil rig count, an indicator of crude output, fell by 15 in the week to 847, posting the steepest decline in three weeks, according to data from energy services firm Baker Hughes (BHGE). The North American total was down by three in the week to 1,288 — unchanged from a year ago.  Earlier in the week, the Energy Information Administration said that US stockpiles of commercial crude rose by 919,000 barrels to 445.9 million, much less than an expected increase of more than 3 million barrels but still 7% above the five-year average for this time of year. On the other hand, the American Petroleum Institute said US crude oil inventories rose 1.1 million barrels to 445.7 million last week, less than the expected increase of 3.2 million barrels in the weekly estimates.

Light, sweet crude oil for March delivery rose 3.27% for the week, settling at $55.26 per barrel at the end of Friday’s session. In other energy futures, gasoline jumped during the week, up 2.09% and settling at $1.44 per gallon on Friday. Natural gas for March delivery slumped 10.26% during the week, closing at $2.73 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 0.02% higher this week, compared with a decline of 0.06% in the previous week.

Gold wrapped up the Friday session slipping lower but ended the week up 1.05%, closing at $1,322.10. At one point during the week the yellow metal hit eight-month highs following the Federal Reserve’s decision to leave interest rates unchanged on Wednesday. The Fed also removed a sentence describing the risks to the economic outlook as “roughly balanced” with Fed Chair Jerome Powell saying “the case for raising rates has weakened somewhat.” With bond yields turning lower and the dollar staying somewhat subdued, the demand for the safe-haven yellow metal increased yet again. Strong US economic data also pushed gold to weekly gains, as fairly upbeat US jobs data and acceleration in manufacturing activity eased concerns about US economic growth. According to the data released by the Labor Department, nonfarm payroll employment surged by 304,000 jobs in January compared with economist estimates for an increase of about 165,000 jobs. A separate report from the Institute for Supply Management showed growth in the manufacturing sector unexpectedly reaccelerated in January after seeing a substantial slowdown in December. The ISM said its purchasing managers index climbed to 56.6 in January from a revised 54.3 in December, with a reading above 50 indicating growth in the manufacturing sector. Copper ended the week up 1.41% and settled at $2.77 per pound, but weak data out of China’s manufacturing sector has kept those gains in check. China’s manufacturing activity fell at the sharpest pace in nearly three years in January, due to declines in both new work and production, survey data from IHS Markit showed on Friday. The Caixin/Markit Manufacturing Purchasing Managers Index (PMI) for January fell a second straight month, reaching 48.3 – its worst reading since February 2016 – from 49.7 in December and well below the 49.5 level expected.

Agriculture commodities ended the week mixed: among grains, wheat edged 0.67% higher and settled at $5.24 per bushel at the end of Friday’s session; corn slipped 0.53% in the week and settled at $3.78 per bushel in Friday’s session; and soybeans fell 0.65% for the week, but closed Friday in positive territory at $9.17 per bushel. Friday’s gains were sparked by optimism that the US and China might reach a trade deal before the March 1 deadline. The two-day US-China trade talks ended without concrete results, but China had promised to “substantially” expand purchases of US soybeans. US President Donald Trump said he hopes to accommodate China and reach a deal by the March 1 deadline. He also said he would meet Xi Jinping soon to try to seal a comprehensive trade deal. Meanwhile, other commodities such as sugar had a weekly increase of 1.61% and settled at a price of $0.13 per pound on Friday; coffee was around $1.04 per pound at Friday’s close, down 2.90% for the week; and cocoa fell 2.29% for the week and closed Friday’s session at $2,168 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was down 0.52% for the week, compared with a decrease of 0.19% in the prior week.

 

Copyright © 2019 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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Amazon’s Slowing Growth Indicates How Difficult, Expensive Expansion is in E-Commerce, Morgan Stanley Says

8:08 AM, Feb 1, 2019 — Amazon.com (AMZN) growth slowed in the fourth quarter, an indicator of how incremental expansion in the world of e-commerce is becoming more difficult and expensive, Morgan Stanley analysts said in a note to clients the day after the marketplace giant released its earnings report.

The company after the close of trading on Thursday reported earnings of $6.04 a share, up from $3.75 during the same quarter a year earlier and well ahead of consensus compiled by Capital IQ for $5.51 a share. Sales jumped to $72.4 billion, up from $60.5 billion last year and topping the Street view of $71.94 billion.

First-quarter sales, however, are pegged from $56 billion to $60 billion, up between 10% and 18% from the same quarter in 2018, but below expectations for $61 billion. Operating income is seen between $2.3 billion and $3.3 billion, Amazon said. Operating cash flow jumped by two-thirds from the previous year to $30.7 billion in the 12 months that ended on Dec. 31, the company said. Free cash flow rose to $19.4 billion versus $8.3 billion the previous year.

Morgan Stanley analysts including Brian Nowak and John Colantuoni said in their report that fourth-quarter revenue was about 1% higher than they expected while GAAP earnings was about 16% lower than their above-consensus estimate. First-quarter revenue guidance was 2% below Morgan Stanley’s expectations and the top end of earnings was 7% below the bank’s outlook.

“Looking at the drivers, profits were pressured by lower gross margin (discounting/deals and higher mix of device revenue) and incremental investment in AWS (Amazon Web Services) salespeople, which more than offset lower fulfillment and shipping costs,” the analysts said. “While first-quarter revenue was light and fourth-quarter deals/discounting speak to a competitive holiday space, the other sources of downside are essentially investment.”

Shares were down 4.3% in pre-bell trading.

Amazon will not stop investing and plans to spend on headcount, fulfillment capacity and data centers this year, Morgan Stanley said. A slower growing top line, however, with the investment pressure is going to weigh on near-term profitability. The bank lowered its 2019 and 2020 GAAP earnings before interest and taxes by 5% and 12%, respectively.

Prime subscriber growth also is slowing as the tailwinds from 2017 and 2018 have “lost some luster,” the analysts said.

“Amazon is already driving (about) 70% of every incremental dollar of growth within its core addressable US PCE,and (its) international business hasn’t been able to grow as quickly as hoped — in particular beyond UK/Germany/Japan,” Morgan Stanley said. “But this doesn’t change our view of Amazon’s ability to drive higher long-term gross profit and EPS growth with the key being (the company’s) ability to scale and gain traction in new US categories (including grocery), countries (Western Europe, India, ASEAN) and business lines (more advertising, logistics and healthcare).”

Companies: Amazon.com, Inc.
Price: 1,645.15 Price Change: -73.58 Percent Change: -4.28

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Boeing

Boeing Reports Record Fourth-Quarter Results as Commercial Plane Deliveries Climb 14%

10:09 AM, Jan 30, 2019 — Boeing Company (BA) shares rallied on Wednesday as the airplane maker easily beat Wall Street’s expectations with its fourth-quarter results and offered a view for a stronger 2019.

The company said core earnings per share jumped to $5.48 from $5.07 a year earlier, well ahead of the consensus on Capital IQ for $4.55. Revenue climbed 14% to $28.3 billion, also beating analysts’ views for $26.8 billion.

The results were a high for the Chicago-based company, and came amid record commercial deliveries, higher volume in defense and services, and a strong operating performance that outweighed a favorable tax impact in the prior year’s quarter.

Boeing’s shares jumped 4.9% in early trading, adding to an upbeat day for the blue-chip Dow Jones Industrial Average.

Commercial airplane deliveries rose 14% in the quarter to 238, and were up 6% over the full year to 806. Revenue in the segment was up 12% while defense, space and security revenue rose 16% and global services surged 29%.

“Across the enterprise our team delivered strong core operating performance and customer focus, driving record revenues, earnings and cash flow and further extending our global aerospace industry leadership in 2018,” said Dennis Muilenburg, Boeing’s chief executive.

Boeing is expecting 2019 revenue of $109.5 to $111.5 billion, which would be up from 2018’s total revenue of $101.1 billion. Core earnings per share are seen between $19.90 and $20.10, compared with $16.01 in 2018. The company also sees between 895 to 905 commercial airplane deliveries this year.

“Our One Boeing focus, clear strategies for growth, and leading positions in large and growing markets, give us confidence for continued strong performance, revenue expansion and solid execution across all three businesses, which is reflected in our 2019 guidance,” Muilenburg said.

Companies: Boeing Company (The)
Price: 388.31 Price Change: +23.40 Percent Change: +6.41

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