Art Hogan’s Week in Review: May 10, 2019

May 10, 2019

You’re travelling through another dimension, a dimension not only of sight and sound but of mind; a journey into a wondrous land whose boundaries are that of imagination. That’s the signpost up ahead – your next stop, the Trade Tweet Zone! We had a week dominated by the apparent break down in trade negotiations between the US and China, brought to us by the good folks at Twitter. On Sunday night, President Trump blasted China for reneging on parts of the US-China trade deal, and threatened to raise tariffs on $200 billion of Chinese exports from 10% to 25%. That was basically the story for the week. Markets had been pricing in a successful trade deal in the first half of 2019, but as the administration made good on their threats on Friday morning, the markets headed lower. We finish the week in red with the Dow Jones Industrials and the S&P 500 down 2.11%, and 2.17% respectfully. The Nasdaq was off 3.04% for the week, while the Russell 2000 slipped 2.79%. Markets closed well off of their lows as late day constructive comments from both President Trump, and Treasury Secretary Mnuchin were enough to keep market participants engaged in stocks at the close.

Highlights for the week:

The US-China trade negotiations took a step backward and the US raised tariffs from 10% to 25%

National Security Advisor John Bolton said: “The United States is deploying the USS Abraham Lincoln Carrier Strike Group and a bomber task force to the US Central Command region to send a clear and unmistakable message to the Iranian regime that any attack on United States interests or on those of our allies will be met with unrelenting force.”

UBER priced its IPO at $45 and closed at $41.57 on the first day of trading , down about 7%.

So far, 88% of the S&P 500 have reported Q1 earnings, (almost done thank God,) and of those, 77% have beat estimates. RIP earnings recession.

The House Judiciary Committee voted Wednesday to advance a measure that would hold Attorney General William Barr in contempt of Congress after President Donald Trump asserted executive privilege over special counsel Robert Mueller’s unredacted report.

Disney delivered earnings that were magical, beat on both the top and bottom lines, shares were up 1.5%

Prince Harry and Meghan the Duke and Duchess of Sussex, named their baby Archie Harrison Mountbatten-Windsor on Wednesday. OK that one was a reach, but it beats the Starbucks cup on the Game of Thrones.

Next Week:

Monday- Fed speakers – (Rosengren, Clarida) and earnings – (BILI, LM, MIME, STNE, TME, and TTWO after the close).
Tuesday -US import/export prices for April (8:30 am ET), Fed speakers – (Williams and George), conferences – (BoA/ML healthcare, JPM homebuilders, JPM TMT, Keefe Bruyette European financial, and MoffettNathanson media).
Wednesday – US retail sales for, April (8:30 am ET), US Empire Manufacturing for May (8:30 am ET), US industrial production for April (9:15 am ET), US NAHB housing market index for May (10 am ET), Fed speakers – (Barkin),
Thursday -US housing starts/building permits for April (8:30 am ET), US Philadelphia Fed Business Outlook for May (8:30 am ET), Fed speakers – (Kashkari),
Friday – US Leading Index for April (10 am ET), Michigan Confidence readings for May (10 am ET), Fed speakers – (Williams)

 

The views and opinions expressed herein are those of the analyst Arthur Hogan and are current as of this report’s posting date. This commentary is general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Neither Art Hogan nor National Securities Corporation is affiliated with the issuers mentioned herein, and no part of this analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the analyst in the report. The views & and strategies may not be suitable for all investors and is are not intended to be relied on for legal or tax advice. Please note that any investment involves risk including loss of principal.