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Market Snapshot: Week of June 11 - 18, 2018

June 18, 2018
Juan Artiles
Newsroom Contributor

We believe that knowledge is power and we want you to have more of it. The best realtors can engage their customers in conversation on a wide-range of topics, from business trends and shifting political landscapes to the latest happenings in the world of sports, art, and pop-culture. We've summarized the biggest happenings from these sectors so that you don't have to.

Big players made big plays in week one of the World Cup, meanwhile big media mergers and bigger trade tariffs affected markets worldwide last week. These stories and more in this week’s Market Snapshot. 

Business

Market Snapshot (June 18, 2018)

  • Dow Jones: 25,090 (-0.98%)
  • S&P 500: 2,780 (-0.03%)
  • Nasdaq: 7,746 (+1.30%)
  • Bitcoin: $6,408 (-5.52%)
  • 10-Year US Treasury: 2.915%

Market Winners:

  • Restoration Hardware stock surged 31%. Apparently, earnings grew 27-times higher than last year because the house decoration company ironed out some of their logistical problems.
  • Etsy made a bold move by hiking up the fees it charges craft entrepreneurs that sell on its marketplace. Shares rose 26% following their decision.
  • Investors are very pleased with Fitbit after the fitness tracker launched a new kids product and a hedge fund upped its prediction of what the stock is worth. 

Market Losers:

  • At the latest E3 video game conference, Nintendo failed to impress annoyingly demanding gamer analysts. So Wall Street dropped the stock for a lack of creativity seems like Mario is getting lazy.
  • SiriusXM stock dipped after the latest court ruling stated that the satellite radio company must pay $150 million in overdue royalty fees to songs it played from pre-1972 recordings.

Other Market News:

  • Last Tuesday, after a six-week trial a federal judge handed AT&T a sweeping victory. Judge Richard Leon ruled that the government had failed to prove that the deal violates antitrust law, and approved its $85 billion acquisition of Time Warner, a deal that promises to reshape the media industry. The deal is set to close June 20, according to AT&T.
  • Overnight the MSCI Asia Pacific Index fell 0.7 percent, as many of the region’s largest markets were closed for a holiday, while Japan’s Topix index closed 1 percent lower amid rising trade tensions and following an earthquake in the important Osaka manufacturing region. In Europe, the Stoxx 600 Index was 0.7 percent lower at 5:45 a.m. as trade concerns hit industrial stocks. S&P 500 futures pointed to a lower open, the 10-year Treasury yield was at 2.913 percent and gold was higher according to Bloomberg

Real Estate

  • Argentine real estate developer Melo Group is changing the Miami landscape forever, says The Miami Herald. The family-run firm is behind some of the most exciting high-rise developments sprouting up in South Florida’s most attractive emerging neighborhoods, including the recently opened Aria on the Bay in the downtown Arts & Entertainment district.  Opening this month is Square Station, located at 1424 NE Miami Place, which will add 710 rental apartments to the district. Rents start at $1,650 for one-bedroom units and go up to $2,500 for three bedrooms. To read more, click here.
  • Plan to build Cuban museum on waterfront site behind AmericanAirlines Arena scrubbed – says The Real Deal South Florida. In its place, property could become what it was originally intended for more than 20 years ago: a waterfront park. 
  • Report: Flawed load-bearing design likely contributed to FIU bridge collapse -- The unusual pedestrian bridge at Florida International University had an undetected design flaw that probably contributed to its collapse in March, the Miami Herald reported, citing a review by three independent structural engineers.
  • After years of failed attempts, a Miami Beach Convention Center hotel is edging closer to reality with a proposal submitted by two South Florida real estate heavyweights, says Rene Rodriguez of The Miami Herald. David Martin, president of Terra Group, and Jackie Soffer, chairman and chief executive of Turnberry, have joined forces and filed a proposal under the entity name Miami Beach Connect. The bid is sealed. Under the terms of the Request for Proposal, the hotel would be located on a parking lot adjacent to the convention center.
  • The former home of South Beach real estate investor and party-circuit sensation Thomas Kramer, which hit the market in March at an asking price of $40 million, has sold for $33 million, reports The Miami Herald.
  • REITs fall out of favor as interest rates rise – reports The Real Deal, New York. As interest rates rise, investors are questioning whether they’d be better off parking their money in bonds than real estate investment trusts. Last week, the Federal Reserve announced that it would raise interest rates by a quarter percentage point. Following this news, S&P 500 real estate stocks fell 1.2 percent last week and are down 4.3 percent for the year — the worst performance of any S&P sector, the Wall Street Journal reported.

Politics

Americas:

  • President Trump met with North Korean leader Kim Jong Un last week in Singapore for a historic summit and agreed to work toward de-nuclearization of the Korean Peninsula. While some critics of President Trump believe that too many concessions were made by the U.S., supporters point to positive progress on the path to peace.
  • The Senate Judiciary Committee heard testimony Monday from Justice Department Inspector General Michael Horowitz and FBI Director Christopher Wray about the inspector general's scathing report – released last Thursday – on the FBI's mishandling of the Hillary Clinton email investigation in 2016. President Trump claims the report "totally exonerates" him of Trump-Russia collusion, says Real Clear Politics, though the report is technically about the Clinton email investigation. Click here to read the 600-page report or watch the full replay of testimony below.

  • Colombia Elects Right-Wing Populist Ivan Duque As President -- On Sunday, Colombia elected a new president, Ivan Duque, a conservative former senator who's pledged to rewrite a divisive peace treaty that ended the country's 50-year-old guerrilla war, reports NPR. In the second and final round of elections, Duque won 54 percent of the vote, defeating former guerrilla fighter and onetime Bogota Mayor Gustavo Petro, 58, who captured about 42 percent in the runoff. Duque will be sworn-in as president on Aug. 7 for a four-year term.

Europe:

  • German Chancellor Angela Merkel's position has come under threat from her party’s sister Christian Social Union party over immigration policy, Bloomberg reports. The CSU will give the chancellor two weeks to overhaul the country’s asylum system, according to local media reports, as Merkel attempts to find a wider EU solution to the thorny issue. The internal wrangling risks eroding German influence at this month’s EU summit where immigration, as well as any progress on Brexit talks, are set to be discussed. 

Asia

  • China Trade War Escalation: Analysts are increasingly expecting the U.S./China trade dispute to turn into a war of attrition, with neither side willing to bow to pressure from the other, according to Bloomberg. “The country that wins a trade war is the country that can endure most pain,” said Andrew Polk, co-founder of research firm Trivium China in Beijing, adding that China, “thinks it can outlast the U.S.” because it doesn’t have elections to worry about. With President Donald Trump under pressure to appease his base ahead of the November mid-terms, President Xi Jinping determined to stick to his plan to make China a global technology leader, and neither side willing to appear weak by compromising first, a significant increase in tensions still seems the most likely outcome, says Bloomberg. 
  • Inter-Korean Relations: Among the developments since last week’s landmark summit, include:
  • Seoul says the two Koreas have agreed to have their athletes march together during the opening and closing ceremonies of the upcoming Asian Games in Indonesia. According to South Korea's Sports Ministry, the Koreas also agreed to form combined teams for some unspecified events in the Asian Games in August.
  • Kim Jong Un extended a temporary detente on the Korean Peninsula.
  • The two Koreas plan to hold a series of talks in the coming days on resuming reunions of families divided by the 1950-53 Korean War; reconnecting severed cross-border railway and road connections; and establishing a liaison office in the North.
  • Generals of the Koreas met last Thursday and agreed to restore military hotline communication channels.

Sports

FIFA World Cup:

The long-awaited 2018 FIFA World Cup in Russia is upon us, so it is time to go to your closet, pull out your favorite national team jersey and join the festivities. If you haven’t been able to keep up with the games, here’s Jose Mourinho, former Real Madrid head coach, with his top picks for the tournament, followed by a recap of week one and a look ahead at next week's action. 

World Cup Highlights – Week 1:

  • In the opening match of the tournament, Russia showed its power by completing dominating Saudi Arabia beating them 5 – 0. The Russians have a very strong team and are definitely feeding off of the home field advantage.
  • Uruguay was able to defeat Egypt 1-0. Uruguay is part of Group A and is expected to advance with Russia in the next round.
  • Iran and Morocco had a very close match but Iran won in the final minutes of their match due to an own goal by a Moroccan defender. Iran plays Spain in their next match.
  • Portugal and Spain faced each other in a Group B matchup Friday, which ended up in a 3 – 3 draw. Portugal forward and superstar Cristiano Ronaldo scored a hat-trick to keep his team in the game.
  • France was able to get their 3 points by defeating Austria thanks to a last-minute goal. French forward Paul Pogba’s late goal gave France the 2-1 win. 
  • Iceland is proving that it is a force to be reckoned with holding off Lionel Messi and the Argentine national team 1-1. Messi was knocking on the door throughout the entire match, but he missed a penalty kick in the second half.
  • Despite the Peruvian national team’s star, Yoshi Yotun’s, strong performance, “La Blanquirroja” were not able to beat Denmark losing 0-1. Yotun lead his team in multiple categories including touches, passes attempted and passes completed.
  • Croatia was able to defeat Nigeria 2-0; this victory puts them at the top of Group D.
  • Costa Rica was not able to defeat Serbia, losing 1-0.
  • Mexico stuns Germany, the defending World Cup champions, by beating them 1-0 Sunday afternoon EST. Supporters in Mexico City watching the game caused two ‘artificial’ quakes during their team’s seismic win.
  • Brazil, one of the tournament favorites, drew Switzerland 1-1 on Sunday despite creating several chances to secure three points. The South Americans had 20 shots but could only put four on frame, seeing the Swiss hold them in the second half to split one point apiece. 
  • Sweden was able to defeat South Korea in their matchup 1-0. Currently putting them on the top of Group F with 3 points.
  • Belgium was able to dominantly beat Panama early Monday morning 3-0. The Belgium team received a lot of help from the star Dries Mertens,
  • England was able to defeat Tunisia 2 – 1 with a last-second goal. This victory gives the England 3 points and ties them with Belgium at the top of Group G. 

To view, all upcoming 2018 FIFA World Cup matches click here.

National Basketball Association (NBA):

  • Once again LeBron James is set to be a free agent and with that comes sports wide mass speculation of where the basketball superstar might land this off-season. James already took his talents to South Beach once before, winning two MVP awards and two titles, so could we be in for a Heat reunion?

Entertainment

  • Over the weekend, The Incredibles 2, Pixar’s 14-years-later sequel to the Oscar-winning superhero family adventure, set a new record for the biggest opening weekend of all time (for an animated film).  It bested the previous record-holder, Finding Dory, making $180 million to Finding Dory’s $135 million. 
  • Beyoncé remains queen of the surprise music drop after she and her husband, Jay-Z, released a joint album titled “Everything Is Love” Saturday on the Tidal music streaming service. 
  • The latest episode of “Anthony Bourdain: Parts Unknown” aired earlier this month on CNN as part of a weekend of tributes to the very popular CCN host, who took his own life on June, 8 in France. Bourdain’s shows resonated with a lot of people showing them different cultures, food, and travel. One of Bourdain’s fans Alyson said she didn't get her passport until she saw Bourdain's show when she was 24. You can currently see “Anthony Bourdain: Parts Unknown” on Netflix.

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All the opinions expressed by Juan Artiles in this newsletter are solely his opinions. You should not treat any opinion expressed by his as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinions.

 

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