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Economy Report February 7, 2019

FED to Hold Interest Rates Slowing global growth-China S & P responds To hold between 2.25 and 2.5% S & P increases by 8% in January, 2.5% in final two days largely due to this decision

How did the shutdown effect the economy? 800,000 government employees not receiving pay Airlines 7% employee absence, up from 3% average Costs Southwest $10-$15 million, Delta $25 million Housing market slows Overall, stock market was not effected Larger players effecting the stock market than the shutdown

PG & E Bankruptcy Largest utility company in California Liabilities from California Wildfires Declared for bankruptcy Jan. 29 Stock surges Jan. 30-31 PG & E Bankruptcy Largest company to declare bankruptcy since CIT in 2009 To blame for the cause of the several of California’s devastating wildfires over the last three years Declining customer base in the past decade 71.4 billion in assets, 51.7 billion in liabilities-> 6th largest bankruptcy ever Investors hopeful, are more sure what the future holds after filing confinmed

Chinese impact on US stock market Intel expects slowing demand for data-center chips Caterpillar, Nvidia, Apple, McCormick among many reducing 2019 outlook Apple cannot sell iPhone, may need new plan for China Chances of recession are rising Strong dollar worrying for growth

Positive Q4 results Substantial growth after releasing Starbucks sales grow in U.S., China Railroads expect increase in volume (CSX, Union-Pacific) Boeing sales to increase 10% in 2019 BP, oil companies profits increase 60 % of companies had substantial increase in stock price after releasing results Starbucks sales surpass forecasts, overall earnings and revenue beat expectations, same store sales growth of 4% in U.S. Markets Promise to continue to buyback shares and increase dividends Railroads expect growing shipments of grain, oil, and e-commerce packages to offset worries of trade policies and volatile stock markets Railroads are a good indicator of economic health as they show movement of both raw materials and finished products Oil producers resort to trains in U.S.-> more expensive than pipelines, but pipelines cannot keep up with demand Exxon-Mobile, Chevron, Royal Dutch among those lifting profits in 2018, benefiting from their newly streamlined operations

Job Market Added 304,000 in January, unemployment rises to 4% Markets responded positively In January Report

Other news Tesla (Musk) appoints new Financial Chief, Zack Kirkhorn Ford Motors faces cash-flow pressure, junk credit potential Papa Johns appoints new CEO, plans to invest $200 million in struggling chain Superbowl not viewed as much as expected, largely due to the score of the game Lowest viewing since 2009 Robot ads rule: Sprint, Michelob Ultra, Intuit, Simplesafe among those to use robots in ads

Sectors Blackrock economic outlook 2019 Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials REIT Telecommunications Utilities Blackrock economic outlook 2019

UPCOMING MEETINGS February 21 March 7 @ 8 PM w/ Kristen Sanhurst