Art Hogan’s Week in Review: May 24, 2019

Week in Review

The growing concerns over the elongated US-China Trade war and its implications on the tech space, continues to weigh on stocks. The Dow Jones Industrial Average was down about 1% this week and posted its fifth consecutive weekly decline, its longest since 2011. The S&P 500 and Nasdaq Composite were down for a third straight week, their longest since December 2018. Crude prices are down more 7.73% this week as trade worries spilled over to other markets. Investors also loaded up on Treasury’s this week. On Thursday, the 10-year Treasury note yield fell to its lowest level since October 2017. If China is selling US Treasury’s, they have a great broker.

Highlights for the week:

President Donald Trump effectively bans Huawei from doing business with US companies. President Trump signed an executive order that declares foreign adversary threats to communications networks, technology and services a national emergency.
Trump’s order, called Securing the Information and Communications Technology and services a national emergency

Commerce Department will allow Huawei Technologies Co Ltd to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets for 90 days.

We got a look at the minutes of the last Fed meeting, and if investors were looking for a hint of a possible “insurance rate cut,” they didn’t get it. The Fed looks comfortable with the “year of living patiently.”

A U.S. judge ruled the chipmaker Qualcomm violated antitrust law by unlawfully suppressing competition in the cellphone chip space.

Crude oil had a rough week, as it relinquished the $60 handle, closing down $4.85 or 7.73%, and bringing its one-month slide to 12.23%.
U.S. durable goods orders dropped 2.1% last month amid a slowdown in exports and a buildup in inventories. This is the latest economic data set showing cracks in the economy while the world’s largest economies engage in a trade war.

Theresa May to Resign as Prime Minister as Brexit Pressure Rises

Next Week’s catalysts:

Monday

US Markets Closed
China industrial profits for April (Sun night/Mon morning).
Hong Kong exports/imports for April. 4:30 am ET.

Tuesday

US FHFA and Case-Shiller home prices for March 9 am ET.
US Conference Board sentiment for May. 10 am ET.
US Dallas Fed for May. 10:30 am ET.
Deutsche Bank Financial Services Conf. May 28-29. NYC.

Wednesday

Bank of Canada rate decision. 10 am ET.
Deutsche Bank Financial Services Conf. May 28-29. NYC.
Earnings before the open: KEYS.

Thursday

US advance goods trade balance for April. 8:30 am ET.
US GDP revisions for Q1.
US wholesale/retail inventories for April. 8:30 am ET.
US pending home sales for April. 10 am ET.
Fed’s Clarida speaks to the Economic Club of New York. 12 pm ET.
Earnings after the close: COO, COST, GPS, ULTA.

Friday

China NBS PMIs for May (Thurs night/Fri morning).
US personal income/spending for April. 8:30 am ET.
US PCE for April. 8:30 am ET.
US Chicago PMI for May. 9:45 am ET.
US Michigan for May. 10 am ET.

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.