What the heck happened? In the last month the CSI 300 is down 11.5%, much more than US indices (SPY) (QQQ). And on Friday some big Chinese ADRs got pounded on earnings with Baidu down 16% and Weibo down 10%. Look, even the panda is depressed.
What is our take? No doubt the trade war, at this point, is hurting China more than the U.S. Plus China has been pumping capital into their own system with little effect recently. And China’s timeline seems a bit different than President Trump’s. But I do think most trade policy experts either believe or hope that a deal will get done by the end of the summer at least. Right now, there doesn’t seem to be much going on, but the G20 is June 28-29, and we could see a Trump-Xi meeting there. Look, this seems like it will get uglier before it gets better. But keep your eye on these Chinese ADRs like BABA, BIDU, JD, and WB. They will scream higher if (and hopefully when) a deal gets done. Until then, be nice to the panda, he needs a hug.
What is the 411 on your 401K? Chinese ADRs are somewhat niche-y, but keep them in mind.
Will this affect you personally? It could if the trade war rages on.
Stocks to watch? BABA, BIDU, WB, JD, IQ, and HUYA.
How big a deal is this? We want a deal!
Song for this article? China Girl by David Bowie was actually a song that seemed racist but was pointing out racism. Read what Bowie said about it HERE.
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JCPenney (JCP) stock currently doesn't have a “buy” recommendation from any analysts covering the stock, given its persistent weakness.
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.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.