JakeNovakNews.com

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STOCKS/ECONOMY


-Stock futures are higher after Thursday's 221-point gain for the Dow and similar percentage gains for the S&P 500 and the Nasdaq. All three indices hit all time highs during the session on news that the U.S. and China have finally agreed to a so-called "phase one" trade deal. We get November retail sales and import price data later this morning.


-The yield on the 10-year Treasury bond is at 1.89 percent on the positive trade news, with the 2-year yield 25 basis points behind at 1.64 percent.

-Gold is at the $1,475 per ounce level. Bitcoin is at the $7,200 level.

TRADE WARS

-Several media outlets are reporting that U.S. and Chinese trade negotiators have reached a phase one trade deal, with President Trump also approving the deal. The White House is also reportedly offering to scrap new tariffs set to kick in on Chinese goods on Sunday, while also cutting existing tariffs by 50 percent. 

-Asian markets cheered the trade news as well, with Hong Kong's Hang Seng index and Japan's Nikkei index both closing more than 2.5 percent higher. 


UK ELECTION

-Boris Johnson's Conservative Party won a decisive victory in the British national elections. The Conservatives have their biggest majority since 1987 and the result would seem to clinch the Brexit process in the coming weeks. The British pound is sharply higher on the news.

-President Trump has congratulated Johnson on his victory and says the U.S. and the U.K. are now free to make a major trade deal.

OIL/ENERGY

-U.S. crude prices are up more than 1 percent on the positive trade news and at the $59 a barrel level.

-Gasoline prices are down to $2.56 a gallon, national average.

FACEBOOK FIASCO

-The Federal Trade Commission is reportedly considering a plan to block Facebook from encrypting all of its messaging apps, Facebook Messenger, WhatsApp, and Instagram. Law enforcement officials, including Attorney General William Barr, have said that could make those apps a safe haven for criminals. Facebook shares fell almost 3 percent on the news Thursday, but are up about 0.3 percent in premarket trading this morning.

BOEING MAX MESS

-The FAA has told Boeing that it may take until February for its 737 MAX jets to gain approval to begin flying again. Boeing shares closed down 1 percent on the news Thursday, but are up 0.6 percent in the premarket this morning.

BUDGET BATTLES

-Congressional negotiators have made a deal in principle to fund the government through the end of September and avoid any shutdown. It's not known if President Trump will sign off on the deal.

-The federal government received a record $470.7 billion in tax revenue in October and November, but near record spending still pushed the deficit to $343.3 billion during that period.

PLASTIC PAIN

-American credit card debt is set to hit a 10-year high.