Articles by: cpdiver

  • DJI Mavic 2 Pro And Zoom Review Including Features, Specs With FAQS

    DJI Mavic 2 Pro And Zoom Review Including Features, Specs With FAQS

    Mavic 2 Pro And Mavic 2 Zoom ReviewThis DJI Mavic 2 Pro and Mavic 2 Zoom review looks at the outstanding features of these 2 new quadcopters. Both Mavic 2 drones are a tremendous feat of engineering, elegant design and new innovative technology from DJI. In our Mavic 2 Pro and Mavic 2 Zoom review, we give you a nice overview of…

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  • Auto Tariffs Cost American Jobs

    Love him, or hate him, you’ve got to hand it to Donald Trump. His trade and tariff strategy — risky as it is — seems to be working.


    The master negotiator is hammering out agreements — first with the Europeans and now with Mexico — that are better deals for American firms and workers. The threat of tariffs is leading to lower tariffs.

    The irony is that if Trump keeps winning this way, he may actually end up being one of the champions of freer trade.

    But Trump is still holding firm on his call for 20%-25% auto tariffs on all imported auto parts and cars.  These are said by the White House to be necessary for national security reasons, though this argument that the Nissans and BMWs on the roads are a national defense concern seems more than a little flimsy.

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    This tariff is about saving America auto jobs, and while that’s a defensible goal, will it work?

    History suggests that auto trade restrictions almost never deliver.  Back in the late 1970s and early 1980s the U.S. put trade restrictions on the surging Japanese auto companies — including Honda and Toyota.

    A landmark study by Robert Crandall of the Brookings Institution found that from 1982-85 those trade barriers led to a “$10-$15 billion welfare loss absorbed by U.S. consumers in 1982-85.”

    He argues that the benefits to the domestic auto industry from those policies (about 1.3 million more cars built) were unlikely to be “worth more than a fraction of the cost.”  The policies were a big net loser for the economy.   Most economists come to the same conclusion regarding the Bush steel tariffs in 2002.

    What is very different today from even the failed trade protectionist policies of the 1970s, 1980s and 2000s is that global supply chains make it increasingly difficult to determine what country made the car.

    The steel in a Ford truck may have come from Canada, the parts from Singapore, the electronic gadgetry from Germany and some of the assembly in Mexico.

    But the Trump tariffs are imposed not just on imported cars but on the auto parts, which makes manufacturing the car in the United States clearly more expensive.

    With $50 billion of annual sales abroad, America is the third largest exporters of cars, behind Germany and Japan. This means that America may end up losing many auto jobs due to the auto tariffs.

    This is one of the reasons most of the American auto companies oppose  the tariffs that are supposed to “protect” them from foreign competition.

    The employment impact of the proposed 25% tariff  could add significantly to the cost of cars made in America and result in a two percent drop in direct auto sector employment, rising to 5% and a total job loss of over 600,000 after expected in-kind retaliation by trading partners, according to an analysis by the Peterson Institute for International Economics.  This is the opposite result than what Trump had intended.

    That’s only the impact on manufacturers.  The Center for Automotive Research found the 25% tariff would slash dealer employment by over 100,000 — an average of seven employees per dealership.

    One study by the Trade Partnership predicted that tariffs could (in the absence of retaliation) boost employment in the auto sector by 92,000 auto workers.  But it also found that the tariffs would shave 0.1% off of overall GDP and destroy 250,000 jobs in the rest of the economy.[3]  If you are counting, that means a net loss of 158,000 American jobs.

    The tariffs would raise the cost of buying a new car by as much as $2,000, which is a big dent out of family incomes.  Many consumers would delay buying a new car and this in turn would mean more old cars on the road.

    Auto Tariffs As Negotiating Tool

    As Trump’s own Department of Transportation found in its excellent study on the cost of Obama-era fuel efficiency standards, delaying the purchasing of new cars — which are cleaner and safer — means more pollution and more traffic deaths.

    To his credit, Trump has won trade concessions from the Europeans and now the Mexicans with the threat of tariffs on cars and auto parts.  This is a case where the bark of Trump’s auto tariffs are a more effective strategy than the bite.

    But actually implementing the auto tariffs would be negative. History proves that the best way to boost the U.S. auto industry is not with protectionism, but by creating a level playing field that forces Ford and GM to compete on a level playing field.

    The booming economy is visible proof that this Trumpian strategy is working with every other American industry from potato chips to computer chips, from bourbon to blue jeans, why not cars?

    Moore is a senior fellow at the Heritage Foundation and an economic consultant with FreedomWorks.

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    The post Auto Tariffs Cost American Jobs appeared first on Investor's Business Daily.

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  • Dow Jones Futures: RH Nears Breakout With Earnings Due; Is Nike A Buy After This Ad Buy?

    Dow Jones futures edged higher early Tuesday orning, along with S&P 500 futures and Nasdaq futures, after U.S. stock markets were closed Monday for the Labor Day holiday. Trump trade war news will be key, as President Donald Trump threatens to leave Canada out of a U.S.-Mexico trade deal and escalate the China trade war.  Dow Jones stock Nike (NKE), which is in a buy zone, embraced controversy by choosing ex-NFL QB Colin Kapernick as the key athlete of its new “Just Do It” campaign. Meanwhile, home furnishing retailer RH (RH) is near a buy point with earnings due Tuesday. Facebook (FB), Twitter (TWTR) and Alphabet (GOOGL) unit Google will testify before Congress regarding their responses to foreign interference in elections. Finally, (JD) will be in the spotlight after CEO and billionaire founder Liu Qiangdong was arrested and then released by Minneapolis police on a “criminal sexual misconduct” allegation.

    Dow Jones Futures Today

    Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures advanced 0.1%. Nasdaq 100 futures climbed nearly 0.2%. The major stock averages rallied last week, with the S&P 500 index and Nasdaq composite setting fresh all-time highs.

    Trump Trade War Vs. China, Canada

    The U.S. could impose tariffs on $200 billion worth of Chinese goods as soon as Sept. 6, after the public comment ends. That would be on top of 25% Trump tariffs on an initial $50 billion worth of Chinese imports. The China trade war escalation is expected. The big question is whether the $200 billion will face a 25% Trump tariff or 10%.

    Meanwhile, U.S.-Canada trade talks ended Friday without a deal, but with negotiations set to resume this week. But Trump signaled Saturday that he is ready to leave Canada out in the cold.

    There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out. Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off…

    — Donald J. Trump (@realDonaldTrump) September 1, 2018

    Nike Taps Colin Kapernick

    Nike is using Colin Kapernick as the main athlete in its latest “Just Do It” campaign. Kapernick sparked the ongoing take-a-knee protest by NFL players during the national athlete, dividing fans and inspiring outrage from President Trump. Nike must see an upside from courting supporters of the NFL protests and Trump opponents, but risks turning off millions of customers as well.

    Nike stock reclaimed an 81.10 buy point from a flat base on Aug. 20 in heavy volume. Nike stock closed Friday at 82.20.

    RH Earnings

    The luxury home-furnishings retailer formerly known as Restoration Hardware reports late Tuesday. Analysts expect RH earnings to surge 166% to $1.73 a share. Sales should grow 7.5% to $661 million. Investors will close attention to how the RH membership model is going, as well as its showrooms.

    RH stock is in a cup-with handle base with a 161.49 buy point. RH stock closed Friday at 159. The relative strength line, which tracks a stock vs. the S&P 500 index, is a little below the old high. It’s bullish to have the RS line moving into new high ground along with or ahead of a stock breaking out.

    RH stock skyrocketed 22.5% and nearly 31% after the last two RH earnings reports. Then again, investors may have already priced in good news.

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    Facebook, Twitter, Google On Capitol Hill

    Twitter CEO Jack Dorsey and Facebook Chief Operating Officer Sheryl Sandberg will testify before the Senate Intelligence Committee Wednesday morning on how their companies have responded to foreign disinformation campaigns in the wake of Russia’s use of social media to influence the 2016 election. Google CEO Sundar Pichai declined to attend but the Alphabet unit will have a representative to testify. Twitter’s Dorsey also will testify that afternoon before the House Energy and Commerce Committee.

    The social media giants are testifying before Congress as Trump has hammered Google, accusing the tech giant of “rigged” search results vs. conservatives. He’s also said that the power of Google, Facebook and Amazon (AMZN) represent a “very antitrust situation.” More broadly, there is growing support from the left and right for regulation of various kinds vs. internet giants.

    Facebook stock crashed in late July after warnings of slowing growth. Shares have risen slightly, but the Facebook RS line has edged lower, falling to a 16-month low on a weekly chart.

    Twitter stock also crashed in late July following its latest earnings report, though shares found support at the 200-day line. Twitter saw user levels fall vs. the prior quarter and said that could happen again in Q3. That’s due to Twitter suspending fake or suspicious accounts, a move that might mollify critics on Capitol Hill. Twitter stock has edged higher in the past several weeks, but its RS line has not made much headway.

    Google parent Alphabet is still in buy range from a 1,201.59 high-handle buy point cleared in July. Investors should probably turn their attention to a new flat base within a base-on-base pattern. The new Google stock buy point is 1,291,54, with shares closing Friday at 1,232.11. Google stock’s RS line is at consolidation lows, however. CEO

    Liu Qiangdong is back in China after a Friday night in Minneapolis. Local police released Liu without bail and put no travel restrictions on Chinese internet billionaire. But they are still investigating  the “criminal sexual misconduct” allegation involving a Chinese student at the University of Minnesota. Liu is a doctoral student at the university, and was in Minneapolis for his studies.

    It’s unclear how this will affect stock, which hit a 17-month low Friday. Chinese internet giant Tencent (TCEHY) owns a major stake in JD. Walmart (WMT) and Google also have JD stock holdings and partnerships.


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    The post Dow Jones Futures: RH Nears Breakout With Earnings Due; Is Nike A Buy After This Ad Buy? appeared first on Investor's Business Daily.

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