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American Icon Makes Major Announcement Today

Dear Rundown Reader,

First, a number of incredible response from followers last week. Thank you for writing in. Each letter is appreciated.

Now… More of your responses on Trump’s farm bill:

“I’ve been president of a company for more than 40 years and never needed welfare. Now it’s welfare for farmers, welfare for miners, welfare for drillers, welfare for oil companies, welfare for big corporations and finally welfare for the rich.”

“POTUS has taken a page from Ronald Reagan’s play book, only he did it in record time. Poor democrats still don’t know what hit them.”

“The fact is that Trump inherited most of his money, and his first wife Ivanka helped him make most of the rest… Tariffs are a bad idea, and are destabilizing the stock markets.”

“Don’t you guys get it? He’s crazy as a jaybird and wiley as a fox… Why does he tweet dumb stuff like that? What are you talking about at breakfast? TRUMP’s tweets.”

Thanks again for writing in.

Now, with threats of a government shutdown looming, you can bet we’ll have lots to circle back on later this week.

But for today we look at one of Trump’s reported trade war victims… Harley Davidson.

Harley’s under a lot of pressure. But, a swath of new changes are coming.  Today’s Rundown shows you if they’ll work.

Your Rundown for Monday, July 30, 2018…

HOG’s Upending Its Entire Business Model

Big changes are coming to Harley Davidson (NYSE: HOG) and their operations.

You could say they’re throwing everything, AND the kitchen sink at their problems.

The hope is the changes will shake HOG out of its current slump and help the company navigate new tariff pressures.

It’s no secret domestic sales are sliding. HOG’s target demographic is moving into their golden years, consumer tastes are changing and operation costs are soaring.

On top of that HOG “expects tariffs will cost them $45-$50 million this year,” as reported by CNBC.

We’ve wondered before, how much gas HOG has left in its tank…

The answer may turn out more surprising than originally expected.

This morning HOG announced sweeping changes to its operations. Reuters reporting, these changes will include a new line of smaller light-weight motorcycles and revamping its dealer network to revive “flagging sales in the face of rising global tariffs.”

We’ll see how the Street takes the news throughout the trading day.

Pre-market shares are down slightly, but scaling back we can see the stock is nearing its 3-month high. Here’s the chart:

Signs

A decent earnings call helped shares, as well as other cost cutting moves like moving some production overseas.

But the newly announced changes are massive. They represent a complete reorganization of what HOG is as a brand.

HOG makes big, loud, shiny chrome laden beasts. They don’t make zippy, low CC street bikes…

But they soon will. We think it’s a great idea.

The great Wayne Gretzky said, “skate to where the puck is going.”

HOG’s doing that with these moves.

Now, turning to the markets this morning…

Market Rundown for Mon., July 30

Yield on the 10-Year Treasury sits at 2.986% this morning, up 0.024.

S&P 500 futures are flat at 2,817.

Oil’s up a $1.38 to $70.07.

Gold’s down $1.70 to $1,231. Hard to peg the yellow stuff right now. Last week up, the past two days down.

Bitcoin goes for $8,136 this morning, according to CoinDesk. Good sign for owners to start the week.

We’ll talk again on Tuesday.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown. Aaron’s been with Agora Financial/Seven Figure Publishing for 13 years. He's been covering technology and markets for over a decade.

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