Recent statements from the Trump administration suggest that the United States (SPY) and China (FXI) might resolve their trade disputes. The two sides have held four rounds of talks since US President Donald Trump and Chinese President Xi Jinping agreed on a 90-day truce last year. Trump has also postponed the proposed tariff hike that was scheduled this month.
To be sure, getting favorable deals from trading partners was among Trump’s key pre-election platforms. The Trump administration has already renegotiated NAFTA and KORUS (United States-Korea Free Trade Agreement). Last year, Trump adopted a carpet-bombing strategy with Section 232 tariffs that targeted all trading partners. However, after those tariffs, the administration’s energy was focused on the China trade deal (BABA) (BIDU).
Now, as the China trade deal looks likely this month, Trump is looking at new targets. Trump is planning to end preferential trade treatment for India (EPI) (EEM). In a letter to congressional leaders, Trump said, “I am taking this step because, after intensive engagement between the United States and the government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India.”
The European Union (VGK) (EZU) and Japan (EWJ) could be next on Trump’s radar. Last month, the Commerce Department submitted its investigation into automotive imports to Trump. If Trump decides to impose tariffs on automotive imports (F) (TSLA) (NIO), Japanese (TM) and European automotive companies could be hit.
Meanwhile, US equity markets have looked strong so far. Apple (AAPL), NVIDIA (NVDA), Advanced Micro Devices (AMD), General Electric (GE), and Boeing (BA) have respectively gained 11.9%, 17.6%, 26.6%, 42.6%, and 34.8% year-to-date based on their closing prices on March 4.
In the second half of 2018, concerns about China's slowing economic growth started to take a toll on investors' sentiments across the world.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.