173.92 0.00 (0.00%)
After hours: 5:03PM EDT
|Bid||173.52 x 900|
|Ask||174.16 x 1000|
|Day's Range||171.50 - 174.25|
|52 Week Range||128.32 - 174.25|
|Beta (3Y Monthly)||1.45|
|PE Ratio (TTM)||16.89|
|Earnings Date||Nov 27, 2019|
|Forward Dividend & Yield||3.04 (1.78%)|
|1y Target Est||169.84|
(Bloomberg) -- The clearest sign yet that America’s Coal County is headed for widespread job cuts: The amount of coal being produced per U.S. miner is at the lowest level in eight years.Productivity has slid 11% this year alone. The last time it was this low was in 2011, when coal companies ended up cutting almost half their workers in a downturn that lasted more than four years.It underscores the intense pressure facing U.S. coal producers. For years, they relied on exports and metallurgical coal used for steel making to offset shriveling demand from U.S. utilities. Now even those markets are suffering as the global economy slows, liquefied natural gas becomes cheap and plentiful in Asia and President Donald Trump’s trade war churns away. The bottom line: U.S. production is expected to slide 10% this year, and jobs are at risk.“It’s highly likely there will be more layoffs,” said Phil Smith, a spokesman for the United Mine Workers of America union. “I don’t think there’s any question.”The looming downturn comes as Trump, who vowed to rescue the coal industry by easing environmental regulations, begins his re-election campaign. Winning a second term will hinge in part on mining strongholds he carried in 2016, including West Virginia and Pennsylvania.“The president is committed to all Americans, including our great hardworking coal miners," White House spokesman Judd Deere said in an email. Cutbacks are already underway. On Monday, Peabody Energy Corp. said it plans to close an Illinois mine and lay off about 225 workers. Blackhawk Mining LLC idled four West Virginia mines last week and fired about 340 people. And in September, Murray Energy Corp. shut mines in West Virginia.“Most coal-mining companies will have to reassess production,” said Mike Dudas, an analyst with Vertical Research Partners.The number of U.S. coal jobs bottomed out at about 48,800 in 2016 as Arch Coal Inc., Peabody and other big miners worked their way through bankruptcy, according to the U.S. Bureau of Labor Statistics. Then, as exports picked up and Trump began his push to roll back environmental regulations, hiring followed suit. The industry added about 4,500 jobs through last month.Now the market has turned. Lower production means U.S. coal workers will each produce an average of about 12,700 tons this year, based on an analysis of production estimates from the U.S. Energy Information Administration and employment figures from the Bureau of Labor Statistics. That’s the second-lowest production rate in two decades.“People are going to have to get laid off,” said Andrew Cosgrove, a mining analyst for Bloomberg Intelligence. “They’re going to have to close mines.”The moves reflect the confluence of woes pummeling the industry. Electricity producers are shunning the fuel in favor of cheaper natural gas, wind and solar. Global prices for coal shipped to power plants have plunged by more than one-third in the past year in both Europe and Asia. Met coal prices fell last month to the lowest since January 2017, and there’s little sign of a recovery.“There are few positive catalysts that will lift met coal prices over the next few months,” Lucas Pipes, an analyst with B. Riley FBR, said in a research note Thursday.Weak demand in South America and Europe, coupled with port restrictions in China, led to an oversupply of steelmaking coal, and Pipes reduced his earnings estimates on several U.S. suppliers including Peabody and Arch.“People are going to start to hunker down,” said Dudas of Vertical Research. “They won’t ship product into a market that doesn’t need it.”(Michael R. Bloomberg, the founder and majority stakeholder of Bloomberg LP, the parent company of Bloomberg News, has committed $500 million to launch Beyond Carbon, a campaign aimed at closing the remaining coal-powered plants in the U.S. by 2030 and slowing the construction of new gas plants.)(Adds White House statement in sixth paragraph.)\--With assistance from Jennifer A. Dlouhy.To contact the reporter on this story: Will Wade in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Doan at email@example.com, Joe Ryan, Reg GaleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investors can deal with a minor earnings miss. But three S&P; 500 companies are making falling short a habit. And they've blown it four quarters in a row.
One strategist screened for companies that are expected to see earnings drop in the third quarter, and have had three or more “double misses” during the last eight quarters. Stocks that fit the bill include Walt Disney, Philip Morris International, and Deere.
The Unimil acquisition will back Deere's (DE) commitment to expand sugarcane business in Brazil and make investments to reduce customers' production costs for sugarcane.
MOLINE, Ill. , Oct. 14, 2019 /CNW/ -- Deere & Company (DE) has signed an agreement to acquire Unimil, a privately-held Brazilian company in the aftermarket service parts business for sugarcane harvesters. "The decision to acquire this company in the aftermarket parts business emphasizes our commitment to customers," said Cory Reed , president of Deere's Worldwide Agriculture and Turf Division in the Americas. Unimil, located in Piracicaba, Sao Paulo, Brazil , was founded in 1999 and has become a well-recognized provider of sugarcane harvester parts.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The U.S. and China agreed on the outlines of a partial trade accord Friday that President Donald Trump said he and his counterpart Xi Jinping could sign as soon as next month.As part of the deal, China would significantly step up purchases of U.S. agricultural commodities, agree to certain intellectual-property measures and concessions related to financial services and currency, Trump said Friday at the White House. In exchange, the U.S. will delay a tariff increase due next week as the deal is finalized, though new levies scheduled for December haven’t yet been called off.The agreement marks the largest breakthrough in the 18-month trade war that has hurt the economies of both nations. Importantly, Trump said the deal was the first phase of a broader agreement. The president indicated he could sign a deal with Xi at an upcoming November summit in Chile.While the limited agreement may resolve some short-term issues, several of the thorniest disputes remain outstanding. U.S. goals in the trade war center around accusations of intellectual-property theft, forced technology transfer and complaints about Chinese industrial subsidies.Xi told Trump in a letter -- which the White House distributed on Friday -- that it’s important the countries work together to address each others’ concerns. “I hope the two sides will act in the principle and direction you and I have agreed to, and work to advance China-U.S. relations based on coordination, cooperation and stability,” the letter said.Chinese state news agency Xinhua said negotiators made efforts toward a final agreement, but stopped short of calling Friday’s outcome a deal. The Editor-in-Chief of China’s most prominent state-run newspaper Global Times, Hu Xijin, noted on Twitter that official reports from China didn’t mention Trump’s goal of signing the deal next month, which indicates Beijing wants to keep expectations low.Phase TwoThe Trump administration also said issues related to Huawei Technologies Co. aren’t part of Friday’s deal and will be a separate process. The Chinese telecommunications equipment maker, which was placed on an export blacklist in May, will be discussed in a second phase of the negotiations, the president told reporters later Friday.Equities advanced globally Friday amid growing conviction that the world’s two biggest economies would negotiate a trade truce, though U.S. stocks pared gains after Trump’s announcement near the close of trading. Trump tweeted earlier Friday that if the countries did reach an agreement, he would be able to sign it without a lengthy congressional approval process.Trump’s announcement drew a wary welcome from even Republicans on Capitol Hill.“After so much has been sacrificed, Americans will settle for nothing less than a full, enforceable and fair deal with China,” Senate Finance Committee Chairman Chuck Grassley said in a statement after the announcement. “Farmers in Iowa know far too well that the trade war has caused real financial pain in the heartland. But we need to know more about this deal and follow-through from China will be key.”On Thursday and earlier Friday, Liu and U.S. Trade Representative Robert Lighthizer held the first senior-level discussions between Washington and Beijing since a previous agreement fell apart in May and tariffs were raised in the months after.What Our Economists Say“Past experience is that U.S.–China trade agreements aren’t worth the paper they are written on, and this one hasn’t even been written down. For now, though, indications on trade are a little more positive. If that persists, it could help put a floor under sliding global growth.”Tom Orlik and Yelena Shulyatyeva, Bloomberg EconomicsClick here for the full noteThe U.S. was threatening to increase tariffs on Tuesday on about $250 billion of Chinese imports to 30% from 25%. More duties on $160 billion of Chinese products were targeted for Dec. 15.The threat of those import taxes on U.S. consumers, falling around the holiday season, raised the prospect that the U.S. economy would slide toward a recession heading into Trump’s 2020 reelection bid. The American manufacturing industry, which Trump vowed in 2016 to revitalize, is already contracting in part because of the trade war.The Trump administration said that as part of the deal, China would scale its purchases of U.S. farm goods over two years to an annual total of $40 billion to $50 billion. Trump encouraged U.S. farmers to buy more land and Deere & Co. tractors in response.China in recent weeks had already discussed buying more U.S. products such as soybeans, pork and wheat. Some traders remained skeptical that buying soybeans from the U.S. represented a significant breakthrough in the overall trade talks, Bloomberg reported Friday.Earlier Friday, Trump indicated in a Twitter post that if the countries did reach an agreement, he would be able to sign it quickly.Senator Ronald Wyden, the ranking Democrat on the Finance Committee that has jurisdiction over trade policy, pushed back on Trump’s tweet in a statement Friday to Bloomberg News: “Donald Trump should know that any meaningful trade deal is only legitimate because of the authority granted to him by Congress, and that authority can be taken away,” he said.Under the U.S. Constitution, Congress holds power over international trade. For decades, it has legally delegated trade-negotiating authority to the executive branch. Lawmakers in recent months have grown increasingly wary of what they see as Trump’s abuse of that authority and discussed ways to claw it back, citing the president’s many unilateral tariff measures and a lack of transparency in negotiations.(Updates with remarks from Chinese officials in sixth paragraph)\--With assistance from Jennifer Jacobs, Ye Xie, Isis Almeida, Scott Lanman, Sophie Caronello and Sarah McGregor.To contact the reporters on this story: Jenny Leonard in Washington at firstname.lastname@example.org;Saleha Mohsin in Washington at email@example.com;Josh Wingrove in Washington at firstname.lastname@example.org;Shawn Donnan in Washington at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org, Kevin WhitelawFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Chinese and American negotiators are set to start meeting again in Washington on Thursday in the latest round of their so-far fruitless talks to strike a trade deal. If no agreement is reached, the already slowing global economy will face another hurdle, with the U.S. set to raise tariffs on China on Oct. 15 and then on the European Union on Oct. 18.Both China and the U.S. have scheduled further tariff increases for December, and Europe is considering retaliation against any U.S. action. With close to $2 trillion in global trade flows at risk from greater protectionism, according to a Bloomberg analysis, those protectionist actions would depress trade, make businesses more cautious and further damage global demand.Investors are underlining what’s at stake: U.S. stock futures slid after a report in the South China Morning Post suggested Chinese negotiators led by Liu He could cut short their stay -- a report refuted by the White House.“We are not aware of a change in the Vice Premier’s travel plans at this time,” White House spokesman Judd Deere said late on Wednesday in Washington, referring to Liu.Chinese state-media had said Wednesday night that the schedule was still on track.ChinaChina’s economy would be slowing with or without the trade war. But that conflict, which over the last 18 months has broadened to other contentious areas such as technology, state subsidies, human rights, Taiwan and the Hong Kong protests, is also damaging to the economy, as it cuts demand for Chinese exports, damages business confidence and undermines investment.The tit-for-tat tariffs have driven down commerce, with Chinese exports down 9% in the first eight months of this year, and imports from the U.S. falling almost 28% for the same period. China’s total exports over the same timeframe have been basically unchanged, meaning it’s been able to find other countries to sell to, but its imports dropped 5%, with that fall in demand weighing on other nation’s economies.And the uncertainty is hitting Chinese companies, with manufacturers seeing their business contracting for the past five months, and new export orders contracting for 16 months.EuropeThe China-U.S. dispute is just one of the risks facing the global economy, with Brexit and the ongoing dispute between the U.S. and Europe over cars and industrial subsidies also posing a threat to trade flows. The U.S. will put tariffs on as much as $7.5 billion of Scotch whisky, French wine, cheese, planes and other European exports from next week. EU officials hope that won’t happen, but have also drafted retaliatory measures just in case.That threat and the possibility of a no-deal Brexit are some of the factors dragging down European growth, with a sharp slowdown in German services suggesting the pain from its industrial crisis is spreading, and manufacturing contracting across the Eurozone. That German outlook went from bad to worse in September, an unpleasant surprise that marks the latest dismal reading on Bloomberg’s Trade Tracker.The U.SThe global economic slowdown and trade policy are working against the world’s largest economy as well. Manufacturing has slipped into a recession, with factory output declining in the first two quarters of the year, and data last week indicate a further softening as companies tighten up capital spending budgets. At the same time, U.S. economic growth is above trend thanks to steady household spending and the lowest jobless rate in five decades.Meanwhile, supply-chain complications have emerged from the trade war, prompting companies to adapt and avoid tariffs. In the year through August, U.S. imports from China have declined 12.5%, or more than $43 billion, while purchases from Mexico -- the second-biggest supplier of goods to America -- posted the largest increase.(Updates with stock futures in 3rd paragraph.)To contact Bloomberg News staff for this story: James Mayger in Beijing at email@example.comTo contact the editors responsible for this story: Jeffrey Black at firstname.lastname@example.org, Vince Golle, Sarah McGregorFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Benchmarks closed in the negative territory on Tuesday as U.S. blacklisted 28 Chinese companies and imposed visa restrictions on Chinese officials, dampening hopes on trade negotiations.
We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always […]
Low commodity prices, sluggish farm incomes and the trade war is affecting U.S farmers' equipment purchases, which in turn is weighing down Deere's (DE) results.
Concerns over rising interest rates and expected further rate increases have hit several stocks hard during the fourth quarter of 2018. Trends reversed 180 degrees during the first half of 2019 amid Powell's pivot and optimistic expectations towards a trade deal with China. Hedge funds and institutional investors tracked by Insider Monkey usually invest a […]
On October 1, the ISM released the PMI data for September. At 47.8, the reading pointed to a contraction. President Trump again blamed the Fed.
Deere & Co on Tuesday announced indefinite layoffs for 163 U.S. manufacturing workers at plants in Illinois and Iowa that make agricultural, forestry and construction equipment, citing decreased customer demand. The layoffs come week after the company said it would reduce production by 20% at its facilities in Illinois and Iowa in the second of half of the year to keep inventory in line with retail demand. The world's largest farm equipment maker is reeling from the fallout of the U.S.-China trade war that has slowed purchases from farmers.