Dow set to rebound more than 100 points after Trump predicts a quick resolution to trade war

U.S. stock index futures rose on Friday after President Donald Trump said the ongoing trade war could be over quickly, but equities were still on pace to close lower for the week. Dow Jones Industrial Average futures rose 168 points, indicating a gain of 145 points at the open. Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei. The president’s comm


U.S. stock index futures rose on Friday after President Donald Trump said the ongoing trade war could be over quickly, but equities were still on pace to close lower for the week. Dow Jones Industrial Average futures rose 168 points, indicating a gain of 145 points at the open. Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei. The president’s comm
Dow set to rebound more than 100 points after Trump predicts a quick resolution to trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: fred imbert silvia amaro, fred imbert, silvia amaro
Keywords: news, cnbc, companies, quick, dow, futures, trump, war, rebound, tech, investors, trade, sp, set, stock, china, week, uschina, predicts, points, resolution


Dow set to rebound more than 100 points after Trump predicts a quick resolution to trade war

U.S. stock index futures rose on Friday after President Donald Trump said the ongoing trade war could be over quickly, but equities were still on pace to close lower for the week.

Dow Jones Industrial Average futures rose 168 points, indicating a gain of 145 points at the open. S&P 500 and Nasdaq 100 futures also pointed to solid gains at the open.

Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei.

The president’s comments lifted market sentiment at a time when investors are growing more convinced that the trade war will take longer than expected to conclude. The Dow and S&P 500 came into Friday’s session down more than 1% each for the week while the Nasdaq had lost 2.4%.

Crude prices are down more than 6% this week as trade worries spilled over to other markets. Investors also loaded up on Treasurys this week. On Thursday, the 10-year Treasury note yield fell to its lowest level since October 2017.

Energy and tech were the worst-performing sectors for the week coming into Friday. The energy sector is down 3.6% through Thursday’s close while tech — the largest S&P 500 sector by market weight — had lost 2.8%.

Chipmakers led tech down this week as the VanEck Vectors Semiconductor ETF (SMH) dropped 5.1%. Qualcomm and Broadcom are the worst-performers in the ETF this week, dropping 16.3% and 10.3%, respectively.

Apple shares also contributed to the tech losses as several analysts raised concern over the company’s exposure to China. The stock is down nearly 5% this week.

“The growing worries around a US/China elongated trade battle and its implications on the tech space are heavily weighing on the minds of both investors and the companies themselves caught in the cross hairs,” Dan Ives, analyst at Wedbush Securities, wrote in a note to clients. “The ‘poster child’ for the US/China trade wars continue to be Apple with the stock under heavy pressure as many competitors are yelling fire in a crowded theater around the potential China impact to Cupertino if this situation worsens.

In terms of data, the calendar is thin with only durable goods numbers out at 8:30 a.m. ET.


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: fred imbert silvia amaro, fred imbert, silvia amaro
Keywords: news, cnbc, companies, quick, dow, futures, trump, war, rebound, tech, investors, trade, sp, set, stock, china, week, uschina, predicts, points, resolution


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Asia markets mixed as investors worry over US-China trade tensions

Asia Pacific markets traded mixed Friday, as worries over trade tensions between the United States and China weighed on investor sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.67% in the afternoon. Mainland Chinese markets were mixed: The Shanghai composite closed flat while the Shenzhen composite fell 0.48%. Hong Kong’s Hang Seng index added about 0.4% in late afternoon trade. In Japan, the benchmark Nikkei 225 fell 0.16% to 21,117.22 while the Topix index was


Asia Pacific markets traded mixed Friday, as worries over trade tensions between the United States and China weighed on investor sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.67% in the afternoon. Mainland Chinese markets were mixed: The Shanghai composite closed flat while the Shenzhen composite fell 0.48%. Hong Kong’s Hang Seng index added about 0.4% in late afternoon trade. In Japan, the benchmark Nikkei 225 fell 0.16% to 21,117.22 while the Topix index was
Asia markets mixed as investors worry over US-China trade tensions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: weizhen tan saheli roy choudhury, weizhen tan, saheli roy choudhury
Keywords: news, cnbc, companies, tradein, index, weighed, fell, composite, worry, investors, trade, worries, mixed, markets, uschina, united, asia, japan, tensions


Asia markets mixed as investors worry over US-China trade tensions

Asia Pacific markets traded mixed Friday, as worries over trade tensions between the United States and China weighed on investor sentiment.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.67% in the afternoon.

Mainland Chinese markets were mixed: The Shanghai composite closed flat while the Shenzhen composite fell 0.48%.

Hong Kong’s Hang Seng index added about 0.4% in late afternoon trade.

In Japan, the benchmark Nikkei 225 fell 0.16% to 21,117.22 while the Topix index was fractionally higher at 1,541.21. South Korea’s Kospi fell 0.69% to 2,045.31.

Australia’s ASX 200 declined 0.55% to 6,456, with the financial subindex down 0.45%.


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: weizhen tan saheli roy choudhury, weizhen tan, saheli roy choudhury
Keywords: news, cnbc, companies, tradein, index, weighed, fell, composite, worry, investors, trade, worries, mixed, markets, uschina, united, asia, japan, tensions


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Oil plunges 5.7% to $57.91 as US-China trade war raises fuel demand worries

Brent crude futures sank $3.35, or 4.7%, to $67.64 per barrel around 2:20 p.m. U.S. West Texas Intermediate crude futures settled $3.51 lower at $57.91 per barrel, tumbling 5.7% to the lowest closing price since March 12. U.S. manufacturing activity grew at its slowest pace since September 2009 this month, according to IHS Markit. Economic forecasting firm Oxford Economics on Thursday warned that weak crude demand appears to be spreading from developed nations to developing economies. “We are cu


Brent crude futures sank $3.35, or 4.7%, to $67.64 per barrel around 2:20 p.m. U.S. West Texas Intermediate crude futures settled $3.51 lower at $57.91 per barrel, tumbling 5.7% to the lowest closing price since March 12. U.S. manufacturing activity grew at its slowest pace since September 2009 this month, according to IHS Markit. Economic forecasting firm Oxford Economics on Thursday warned that weak crude demand appears to be spreading from developed nations to developing economies. “We are cu
Oil plunges 5.7% to $57.91 as US-China trade war raises fuel demand worries Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-23  Authors: tom dichristopher
Keywords: news, cnbc, companies, activity, futures, crude, worst, fuel, war, 5791, raises, oil, worries, trade, manufacturing, uschina, week, demand, weak, plunges


Oil plunges 5.7% to $57.91 as US-China trade war raises fuel demand worries

A Petrobras oil platform floats in the Atlantic Ocean near Guanabara Bay in Rio de Janeiro.

Oil prices tumbled nearly 6% on Thursday, extending steep losses in the previous sessions, as the market braced for a prolonged U.S.-China trade war and digested disappointing manufacturing data. Some analysts also pointed to signs that Middle East tensions are moderating.

Brent crude futures sank $3.35, or 4.7%, to $67.64 per barrel around 2:20 p.m. ET (1820 GMT). The international benchmark for oil prices hit a nearly two-month low earlier in the session and is on pace for its worst week since December.

U.S. West Texas Intermediate crude futures settled $3.51 lower at $57.91 per barrel, tumbling 5.7% to the lowest closing price since March 12. WTI is on track to end the week 7.7% lower and post the worst weekly performance in five months.

“The $60 level is a critical support point,” said John Kilduff, founding partner at energy hedge fund Again Capital.

“After $60, really it’s right down around $58 or so. Theoretically, if this thing really becomes a washout, $52 is the downside objective,” he said, cautioning that the move would not happen overnight.

Crude futures fell with the stock market as the ongoing U.S.-China trade dispute entered a new phase. A wave of companies is suspending business with Huawei after the U.S. blacklisted the Chinese telecom giant.

Washington and Beijing are set to increase tariffs on hundreds of billions of dollars of one another’s goods, raising concerns about a global economic slowdown and weaker demand for oil.

U.S. manufacturing activity grew at its slowest pace since September 2009 this month, according to IHS Markit.

Meanwhile, data released overnight showed Japanese manufacturing activity fell into contraction in May. Manufacturing activity for the European Union and Germany also came in below expectations.

Economic forecasting firm Oxford Economics on Thursday warned that weak crude demand appears to be spreading from developed nations to developing economies.

“One particular surprise is that China was weak in March, with diesel demand acting as a significant drag,” Oxford said in a research note. “We are currently forecasting 4% oil demand growth for this year, but this assumes a significant acceleration in the remainder of 2019.”


Company: cnbc, Activity: cnbc, Date: 2019-05-23  Authors: tom dichristopher
Keywords: news, cnbc, companies, activity, futures, crude, worst, fuel, war, 5791, raises, oil, worries, trade, manufacturing, uschina, week, demand, weak, plunges


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UBS cuts Apple price target, citing smartphone slowdown and ongoing trade war

Slowing iPhone demand, trade war headwinds and possible ripple effects from a Huawei battle don’t bode well for Apple, according to a UBS analyst. The Swiss bank cut its 12-month price target on the iPhone maker to $225 — down from a previous $235. “We believe a slightly lower multiple is prudent given soft smartphone market and ongoing US/China trade issues,” Arcuri said. Apple shares have taken a beating in May as Washington and Beijing remain locked in a stalemate on trade. WATCH: As the US p


Slowing iPhone demand, trade war headwinds and possible ripple effects from a Huawei battle don’t bode well for Apple, according to a UBS analyst. The Swiss bank cut its 12-month price target on the iPhone maker to $225 — down from a previous $235. “We believe a slightly lower multiple is prudent given soft smartphone market and ongoing US/China trade issues,” Arcuri said. Apple shares have taken a beating in May as Washington and Beijing remain locked in a stalemate on trade. WATCH: As the US p
UBS cuts Apple price target, citing smartphone slowdown and ongoing trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: kate rooney
Keywords: news, cnbc, companies, smartphone, iphones, war, price, target, trade, citing, ongoing, china, cuts, apple, worth, huawei, uschina, headwinds, arcuri, iphone, slowdown, ubs


UBS cuts Apple price target, citing smartphone slowdown and ongoing trade war

Slowing iPhone demand, trade war headwinds and possible ripple effects from a Huawei battle don’t bode well for Apple, according to a UBS analyst.

The Swiss bank cut its 12-month price target on the iPhone maker to $225 — down from a previous $235. Apple closed at $186 Thursday.

UBS still has a “buy” rating on the stock but cited evidence from a survey of 8,000 people across six countries that suggests consumers are in no rush to upgrade their phones. For iPhones specifically, “purchase intention” looked to be stabilizing at a low level in all regions except China, UBS analyst Timothy Arcuri said in a note to clients Wednesday.

“We believe a slightly lower multiple is prudent given soft smartphone market and ongoing US/China trade issues,” Arcuri said.

Apple shares have taken a beating in May as Washington and Beijing remain locked in a stalemate on trade. Shares are down 7% for the month, as of Tuesday’s close. The U.S. raised tariffs to 25% on $200 billions worth of Chinese goods earlier in May, and China retaliated by upping levies on $60 billion worth of U.S. imports.

Most of Apple’s supply chain is in mainland China, including the iPhone’s final assembly by Foxconn. Apple’s China business accounted for more than $10 billion — more than 17% of sales — in its fiscal second quarter.

Arcuri also said the “Huawei situation” could indirectly impact Apple. On Thursday, the Wall Street Journal reported that a microchip company backed by Microsoft and Dell accused Chinese tech giant Huawei and one of its executives of stealing trade secrets. Last week, the U.S. Department of Commerce added the company to Entity List — meaning American companies would need a license to work with Huawei.

“Apple is not directly impacted, but relaxation of some sort is possible,” Arcuri said. “Negotiations between US/China are ongoing and an extension has been granted for some critical items, but we do think a nationalistic movement – similar to the one we saw at the time of the arrest of Huawei’s CFO in November – seems quite probable and would impact iPhone sales.”

UBS isn’t the only one cautious on Apple. Earlier on Thursday, Goldman Sachs analyst Rod Hall said in a note to clients that Apple earnings could drop 29% if the company’s products were banned in mainland China.

To be sure, Arcuri said Apple would likely rebound in the event those headwinds ease.

“After a year that is impacted by China demand slowdown and elongating replacement cycles, we think iPhones can grow as these headwinds abate,” Arcuri said.

— CNBC’s Fred Imbert contributed reporting.

WATCH: As the US plays hardball with China, Stephen Roach warns odds of a trade deal are ‘rapidly receding’


Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: kate rooney
Keywords: news, cnbc, companies, smartphone, iphones, war, price, target, trade, citing, ongoing, china, cuts, apple, worth, huawei, uschina, headwinds, arcuri, iphone, slowdown, ubs


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Gold slips to over two-week low as stronger dollar, stocks weigh

Spot gold slipped 0.4% to $1,272.55 per ounce, having touched its lowest since May 3 at $1,268.97 earlier in the session. “One big reason is that the U.S. dollar remains pretty strong. “Also, we have little bit of risk appetite on the stock futures, so less of a reason to go into gold as a hedge,” he added. Gold is usually used as a safe store of value during times of uncertainty, however, investors are preferring the dollar as they did last year during the U.S.-China trade spat. Meanwhile, equi


Spot gold slipped 0.4% to $1,272.55 per ounce, having touched its lowest since May 3 at $1,268.97 earlier in the session. “One big reason is that the U.S. dollar remains pretty strong. “Also, we have little bit of risk appetite on the stock futures, so less of a reason to go into gold as a hedge,” he added. Gold is usually used as a safe store of value during times of uncertainty, however, investors are preferring the dollar as they did last year during the U.S.-China trade spat. Meanwhile, equi
Gold slips to over two-week low as stronger dollar, stocks weigh Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-21
Keywords: news, cnbc, companies, stronger, low, dollar, investors, appetite, recent, stocks, twoweek, trade, uschina, gold, policy, pointing, slips, reason, weigh


Gold slips to over two-week low as stronger dollar, stocks weigh

Gold prices dropped to a more than two-week low on Tuesday, as investors opted for the dollar and improved appetite for riskier assets dented the appeal of bullion, while markets awaited the release of minutes from the U.S. Federal Reserve.

Spot gold slipped 0.4% to $1,272.55 per ounce, having touched its lowest since May 3 at $1,268.97 earlier in the session.

U.S. gold futures settled $4.10 lower at $1,273.20.

“One big reason is that the U.S. dollar remains pretty strong. What we are seeing, in a strange way, money is flowing towards the dollar as a safe-haven,” said Bart Melek, head of commodity strategies at TD Securities in Toronto.

“Also, we have little bit of risk appetite on the stock futures, so less of a reason to go into gold as a hedge,” he added.

The dollar index climbed to its highest in nearly a month, supported by higher U.S. yields and as fears of the economic fallout from the U.S.-China trade row prompted investors to choose the safety of the U.S. unit over bullion.

Gold is usually used as a safe store of value during times of uncertainty, however, investors are preferring the dollar as they did last year during the U.S.-China trade spat.

Meanwhile, equity markets around the world gained momentum after the United States temporarily relaxed curbs on China’s Huawei Technologies, easing concerns over a further escalation in the U.S.-China trade war.

Investors now await Fed minutes due on Wednesday, which is expected to provide insights into the May 1 central bank meeting in which policymakers decided to keep interest rates steady and signaled little appetite to adjust them any time soon.

“Not much is expected to happen on the policy side. I think they might talk about potential downside risks from trade tensions but does not expect any significant and credible statements pointing to a rate cut this year,” Melek said.

On Monday, Fed Chair Jerome Powell said that it was premature to ascertain the impact of trade and tariffs on the trajectory of monetary policy, instead pointing recent economic data pointed towards a healthy supply side.

“From a technical point of view, a first positive signal (for gold) would be a recovery to $1,290, while a fall below the recent low of $1,266 could open space for a further decline,” said ActivTrades analyst Carlo Alberto De Casa.

Among other precious metals, silver eased 0.1% to $14.44 an ounce.

Platinum rose 0.3% to $813.90 an ounce and palladium was mostly unchanged at $1,328.70.


Company: cnbc, Activity: cnbc, Date: 2019-05-21
Keywords: news, cnbc, companies, stronger, low, dollar, investors, appetite, recent, stocks, twoweek, trade, uschina, gold, policy, pointing, slips, reason, weigh


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Oil dips 11 cents, settling at $62.99, as US-China trade war offsets Middle East tension

Oil futures were little changed on Tuesday, supported by U.S.-Iran tensions and expectations of ongoing OPEC supply cuts but under pressure from concerns about a drawn-out trade war between Washington and Beijing. “The two powerful countervailing forces in the market right now are the Iran tensions versus the deteriorating U.S.-China trade war situation,” said John Kilduff, a partner at Again Capital in New York. The trade war “really hits the Asian economies and the demand outlook, and this sit


Oil futures were little changed on Tuesday, supported by U.S.-Iran tensions and expectations of ongoing OPEC supply cuts but under pressure from concerns about a drawn-out trade war between Washington and Beijing. “The two powerful countervailing forces in the market right now are the Iran tensions versus the deteriorating U.S.-China trade war situation,” said John Kilduff, a partner at Again Capital in New York. The trade war “really hits the Asian economies and the demand outlook, and this sit
Oil dips 11 cents, settling at $62.99, as US-China trade war offsets Middle East tension Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-21
Keywords: news, cnbc, companies, washington, settling, prices, iran, oil, uschina, trade, dips, futures, tension, crude, east, offsets, opec, middle, market, war


Oil dips 11 cents, settling at $62.99, as US-China trade war offsets Middle East tension

A truck used to carry sand for fracking is washed in a truck stop in Odessa, Texas.

Oil futures were little changed on Tuesday, supported by U.S.-Iran tensions and expectations of ongoing OPEC supply cuts but under pressure from concerns about a drawn-out trade war between Washington and Beijing.

“The two powerful countervailing forces in the market right now are the Iran tensions versus the deteriorating U.S.-China trade war situation,” said John Kilduff, a partner at Again Capital in New York.

The trade war “really hits the Asian economies and the demand outlook, and this situation with Iran has the market on tenterhooks at the same time,” Kilduff said.

Brent crude futures, the international benchmark for oil prices, rose 6 cents to $72.03 per barrel around 2:35 p.m. ET (1835 GMT). U.S. West Texas Intermediate crude futures settled 11 cents lower at $62.99 per barrel.

The prolonged tariff fight between the United States and China raised concerns about a global economic slowdown and dampened market sentiment.

Signs that Asian economies were already getting hit by the trade conflict helped to boost the U.S. dollar, making crude more expensive.

On Monday, U.S. President Donald Trump threatened Iran with “great force” if it attacked U.S. interests in the Middle East. Washington suspects that militia with ties to Iran organized a rocket attack in Iraq’s capital Baghdad.

On Tuesday, Iran said it would resist U.S. pressure, declining further talks under current circumstances.

Iraq’s oil minister said growing tension in the Middle East poses a challenge to the stability of global crude oil markets and said OPEC must pave the way for a “new agreement” to help stability and support prices. He did not elaborate.

Tensions have mounted during an already tight market as the OPEC, Russia and other producers have with held supply to support prices. Saudi Arabia has signaled its willingness to continue curbing output until the end of the year.


Company: cnbc, Activity: cnbc, Date: 2019-05-21
Keywords: news, cnbc, companies, washington, settling, prices, iran, oil, uschina, trade, dips, futures, tension, crude, east, offsets, opec, middle, market, war


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Stocks in Asia mostly turn around as US-China trade tensions take a breather

Stocks in Asia were mostly higher on Tuesday as a temporary reprieve in U.S.-China trade tensions provided a breather. Mainland Chinese shares rose on the day, with the Shanghai composite gaining 1.23% to 2,905.97 and the Shenzhen component adding 1.92% to 9,087.52. The Shenzhen composite advanced 1.771% to 1,548.68. The Topix index also declined 0.3% to finish its trading day at 1,550.30. The Hang Seng index in Hong Kong declined around 0.5%, as of its final hour of trading.


Stocks in Asia were mostly higher on Tuesday as a temporary reprieve in U.S.-China trade tensions provided a breather. Mainland Chinese shares rose on the day, with the Shanghai composite gaining 1.23% to 2,905.97 and the Shenzhen component adding 1.92% to 9,087.52. The Shenzhen composite advanced 1.771% to 1,548.68. The Topix index also declined 0.3% to finish its trading day at 1,550.30. The Hang Seng index in Hong Kong declined around 0.5%, as of its final hour of trading.
Stocks in Asia mostly turn around as US-China trade tensions take a breather Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-21  Authors: eustance huang
Keywords: news, cnbc, companies, turn, stocks, asia, uschina, trade, shares, tensions, trading, rose, index, higher, declined, day, breather, composite, shenzhen, close


Stocks in Asia mostly turn around as US-China trade tensions take a breather

Stocks in Asia were mostly higher on Tuesday as a temporary reprieve in U.S.-China trade tensions provided a breather.

Mainland Chinese shares rose on the day, with the Shanghai composite gaining 1.23% to 2,905.97 and the Shenzhen component adding 1.92% to 9,087.52. The Shenzhen composite advanced 1.771% to 1,548.68.

Over in South Korea, the Kospi rose 0.27% to close at 2,061.25 as shares of Samsung Electronics surged 2.74% following earlier news of Google suspending business activity with Huawei.

Australia’s ASX 200 was 0.37% higher to close at 6,500.10.

The Australian dollar last changed hands at $0.6877, off highs above $0.696 seen in the previous week. Australia’s central bank will consider the case for lower interest rates at its June policy meeting, Governor Philip Lowe said on Tuesday.

Elsewhere in Asia, however, the Nikkei 225 in Japan lost 0.14% to close at 21,272.45. Shares of Tokyo Electron fell 1.88%. The Topix index also declined 0.3% to finish its trading day at 1,550.30.

The Hang Seng index in Hong Kong declined around 0.5%, as of its final hour of trading.


Company: cnbc, Activity: cnbc, Date: 2019-05-21  Authors: eustance huang
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Stocks fall following a sell-off in the final hour on news US-China trade talks have stalled

Stocks closed lower on Friday after CNBC reported that trade talks between China and the U.S. have stalled. The Dow Jones Industrial Average ended the day down 98.68 points at 25,764 while the S&P 500 fell 0.6% to 2,859.53. The report sent the Dow back into negative territory in the final hour of trading, erasing a gain of about 30 points. Apple shares fell 0.6%, bringing its weekly losses to 4.1%. Shares of Huawei U.S. suppliers like Qualcomm, Qorvo and Micron Technology fell 1.6%, 6.1% and 3.4


Stocks closed lower on Friday after CNBC reported that trade talks between China and the U.S. have stalled. The Dow Jones Industrial Average ended the day down 98.68 points at 25,764 while the S&P 500 fell 0.6% to 2,859.53. The report sent the Dow back into negative territory in the final hour of trading, erasing a gain of about 30 points. Apple shares fell 0.6%, bringing its weekly losses to 4.1%. Shares of Huawei U.S. suppliers like Qualcomm, Qorvo and Micron Technology fell 1.6%, 6.1% and 3.4
Stocks fall following a sell-off in the final hour on news US-China trade talks have stalled Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: fred imbert, arjun kharpal
Keywords: news, cnbc, companies, fall, stalled, final, talks, stocks, uschina, trade, shares, week, chinese, china, weekly, worth, tom, selloff, hour, huawei, fell, following


Stocks fall following a sell-off in the final hour on news US-China trade talks have stalled

Stocks closed lower on Friday after CNBC reported that trade talks between China and the U.S. have stalled.

The Dow Jones Industrial Average ended the day down 98.68 points at 25,764 while the S&P 500 fell 0.6% to 2,859.53. The Nasdaq Composite was down 1% at 7,816.28. It was also the fourth straight weekly drop for the Dow.

Sources told CNBC’s Kayla Tausche that scheduling discussions for further trade talks have been put on hold since the Trump administration has increased scrutiny of Chinese telecom companies. A U.S. delegation had been invited to Beijing earlier this week.

The report sent the Dow back into negative territory in the final hour of trading, erasing a gain of about 30 points. The S&P 500 and Nasdaq were further knocked down.

Apple shares fell 0.6%, bringing its weekly losses to 4.1%. Caterpillar shares also closed lower.

Earlier this week, the administration made it harder for U.S. companies to do business with Huawei, a giant telecommunications company in China. U.S. firms that want to do business with Huawei must now have a license. Shares of Huawei U.S. suppliers like Qualcomm, Qorvo and Micron Technology fell 1.6%, 6.1% and 3.4%, respectively.

“Through any lens, this is a broadside against the Chinese government, which is generally considered to be the beneficial owner of Huawei,” said Tom Essaye, founder of The Sevens Report, in a note. “This obviously ups the ante in the US-China trade war as the stakes are growing. At this point, it’s unclear how China will respond, but some sort of response is expected.”

China has also ratcheted up its rhetoric on trade with the U.S.

Chinese Commerce Ministry spokesman Gao Feng said Thursday, according to state-run news agency Xinhua, that the U.S. is exhibiting “bullying behavior” with its latest moves on the trade front, noting it is “regrettable that the U.S. side unilaterally escalated trade disputes, which resulted in severe negotiating setbacks.”

The U.S. hiked tariffs on $200 billion worth of Chinese goods last week while China retaliated Monday with higher levies on $60 billion worth of U.S. products.

“People are now coming to grips with the fact that this is going to take a long time,” said Tom Martin, senior portfolio manager at Globalt. “I think we’re going to get more volatility, but generally it makes sense for the market to be where it is right now.”


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: fred imbert, arjun kharpal
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US-China trade war worries caused analysts to bail on these stocks

The ramifications of the U.S.-China trade war are being felt far and wide. Now, the dispute is causing Wall Street analysts to take drastic measures and remove their buy ratings on stocks in their coverage universes. They include stocks like Owens Corning, American Eagle, Melco Resorts, Duke Realty, G-III, Steven Madden and China Southern Airlines. This week Piper Jaffray decided it had seen enough and downgraded Steven Madden and G-III Apparel over the dispute. The feeling was mutual over at We


The ramifications of the U.S.-China trade war are being felt far and wide. Now, the dispute is causing Wall Street analysts to take drastic measures and remove their buy ratings on stocks in their coverage universes. They include stocks like Owens Corning, American Eagle, Melco Resorts, Duke Realty, G-III, Steven Madden and China Southern Airlines. This week Piper Jaffray decided it had seen enough and downgraded Steven Madden and G-III Apparel over the dispute. The feeling was mutual over at We
US-China trade war worries caused analysts to bail on these stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: michael bloom
Keywords: news, cnbc, companies, tariff, trade, worries, madden, stocks, wide, week, uschina, american, caused, bail, analysts, eagle, giii, war


US-China trade war worries caused analysts to bail on these stocks

The ramifications of the U.S.-China trade war are being felt far and wide. Now, the dispute is causing Wall Street analysts to take drastic measures and remove their buy ratings on stocks in their coverage universes.

Companies feeling the heat cover a wide range of sectors and it appears almost no one is being spared. They include stocks like Owens Corning, American Eagle, Melco Resorts, Duke Realty, G-III, Steven Madden and China Southern Airlines.

While the S&P 500 hit an all-time closing high in April, it’s now down more than 2% this month due to the ongoing trade escalation.

The retail sector is one group widely believed to be among the most vulnerable to tariffs, according to many analysts.

This week Piper Jaffray decided it had seen enough and downgraded Steven Madden and G-III Apparel over the dispute. “We are downgrading SHOO & GIII from OW to Neutral as tariff rhetoric accelerates across our group weighing on names that have large U.S. businesses & a disproportionate share of production in China,” analyst Erinn Murphy said.

“Even if there is tariff relief in the next month–we are not certain we’ll see a full recovery of the multiples,” she said.

Steven Madden is down more than 2% while G-III has fallen more than 13% this week.

The feeling was mutual over at Wedbush where analyst Jen Redding downgraded American Eagle Outfitters.

“Although we continue to remain bullish on American Eagle over the long term, we now have less conviction in runway for shares as we approach our price target in what we view as an increasingly volatile retail environment, until investor visibility into a US-China trade settlement improves, and are stepping to the sidelines for now,” she said.

Shares are down more than 6% this week.


Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: michael bloom
Keywords: news, cnbc, companies, tariff, trade, worries, madden, stocks, wide, week, uschina, american, caused, bail, analysts, eagle, giii, war


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Goldman Sachs cuts exposure to emerging markets on US-China trade tensions

The investment management arm of Goldman Sachs scaled back its “overweight” exposure to emerging market assets Thursday, amid rising trade tensions between the U.S. and China. High risk may lead to higher returns, but for now the MSCI emerging markets index has fallen more than 11% over a 12-month period. Last week, the U.S. raised tariffs on $200 billion worth of imports from China from 10% to 25%. China retaliated with tariffs worth $60 billion of goods imported from the U.S. from June 1. “The


The investment management arm of Goldman Sachs scaled back its “overweight” exposure to emerging market assets Thursday, amid rising trade tensions between the U.S. and China. High risk may lead to higher returns, but for now the MSCI emerging markets index has fallen more than 11% over a 12-month period. Last week, the U.S. raised tariffs on $200 billion worth of imports from China from 10% to 25%. China retaliated with tariffs worth $60 billion of goods imported from the U.S. from June 1. “The
Goldman Sachs cuts exposure to emerging markets on US-China trade tensions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: spriha srivastava
Keywords: news, cnbc, companies, sachs, exposure, trade, tensions, billion, trump, cuts, uschina, worth, tariffs, markets, security, goldman, emerging


Goldman Sachs cuts exposure to emerging markets on US-China trade tensions

The investment management arm of Goldman Sachs scaled back its “overweight” exposure to emerging market assets Thursday, amid rising trade tensions between the U.S. and China.

“We have scaled back overweight exposure to EM (emerging market) currencies and EM debt until we gain clarity on the direction of travel for both U.S.-China trade relations and global growth, with the two being interconnected,” Goldman Sachs Asset Management (GSAM) said in a note published Thursday.

Flows into emerging markets can be dependent on cheap capital from the Federal Reserve and are very sensitive to a change in monetary policy in the U.S. Add to that domestic factors such as high current account deficits, weak currencies and a dependence on commodities, these markets can make for a risky investment.

High risk may lead to higher returns, but for now the MSCI emerging markets index has fallen more than 11% over a 12-month period. Meanwhile, the major stock indexes stateside are all down more than 3% this month.

Last week, the U.S. raised tariffs on $200 billion worth of imports from China from 10% to 25%. In addition to this, President Donald Trump indicated that more tariffs will be applied to roughly $300 billion worth of goods imported from China.

China retaliated with tariffs worth $60 billion of goods imported from the U.S. from June 1. “These events mark an abrupt escalation in U.S.-China trade tensions after a period of relative calm since the fourth-quarter of 2018,” GSAM said in a note.

Trade worries were eased slightly on Wednesday after CNBC reported Trump’s plans to postpone auto tariffs by up to six months. The White House faces a Saturday deadline to decide whether to slap duties on car and auto part imports over national security concerns.

However, this didn’t last long as Trump declared on Wednesday a national emergency over threats against American technology. The U.S. Department of Commerce announced the addition of Huawei Technologies and its affiliates to the Bureau of Industry and Security (BIS) Entity List, making it more difficult for the Chinese telecom giant to conduct business with U.S. companies.


Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: spriha srivastava
Keywords: news, cnbc, companies, sachs, exposure, trade, tensions, billion, trump, cuts, uschina, worth, tariffs, markets, security, goldman, emerging


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