|Bid||184.71 x 900|
|Ask||184.72 x 900|
|Day's range||183.52 - 184.91|
|52-week range||142.10 - 187.52|
|PE ratio (TTM)||10.39|
|Expense ratio (net)||0.20%|
Initial Jobless Claims reached a near-49-year low to 201K -- down another 3000 claims from the previous week's slightly upwardly revised 204K and 213K from the previous week.
President Trump has taken a hard stance on several issues including trade, Iran, and North Korea. President Trump has lashed out against existing trade deals that he says aren’t favorable to the US. He’s more comfortable with bilateral trade deals compared to multilateral trade deals.
The Dow Jones Industrial Average hit its first record high since January on Thursday as gains in Apple and a decrease in trade fears lifted the 30-stock index.
New economic data crosses the tape. These findings will be of particular importance to Fed members who reconvene next week to decide on new interest rate policy.
BAML (Bank of America Merrill Lynch) conducted a survey that polled 244 global investors with $742 billion in total assets under management from September 7–13. The divergence theme in equity markets was quite evident in the allocations in September. The equity allocations to emerging markets (EEM) fell to 10% underweight in September compared to 1% underweight in August.
Shares of online streaming giant Netflix (NFLX) rose 5% on September 18. The stock is currently trading at $367.65, 108% above its 52-week low of $176.55 and 13% below its 52-week high of $423.21.
Stocks mostly rose on Wednesday bank shares got a lift from higher interest rates. Sentiment on Wall Street was also boosted as investors bet that a trade war between the U.S. and China will not be as bad as previously feared.
US markets have been quite resilient for the most part in 2018—even in the face of escalating trade tensions between the United States and the European Union, Canada, Mexico, and China. The markets have tended to dive initially only to erase most of the losses later on—probably because the markets believe that the United States has the upper hand in the trade situation and has less to lose. In contrast, China’s major indexes have plunged ~25.0% from their highs this year, and its economic growth is also feeling the pressure from these escalating trade tensions.
As we noted in US Businesses Push Back against Trump’s Tariffs and How the Next Round of Tariffs Could Affect the US Holiday Season, both US (SPY) (IVV) businesses and consumers are expected to be negatively affected by the most recent round of trade tariffs.
Which Sectors Are Worried about Rising US–China Trade Tensions? The business groups are led by the National Retail Federation and an agricultural group known as Farmers for Free Trade. As Reuters reported, “After months of waging a behind-the-scenes war against President Donald Trump’s trade tariffs that have escalated far beyond what business groups once imagined, more than 85 U.S. industry groups are launching a coalition on Wednesday to take the fight public.” These groups include Amazon (AMZN), Apple (AAPL), Walmart (WMT), and Alphabet (GOOG).
The US-China trade spat intensified after President Trump imposed additional 10% tariffs on $200 billion worth of goods from China. Some market participants believe that since China exports much more to the United States, the country is more likely to be negatively impacted in the trade war as compared to the US.
Yesterday, President Trump imposed a 10% tariff on $200 billion worth of goods from China. For now, tariffs don’t yet cover Apple (AAPL) smartwatches and some other consumer products. While the tariffs are a somewhat toned-down version of what Trump previously threatened, they have nevertheless hurt sentiments. Trump also warned China that “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports” if the country retaliated against the tariffs. China has previously retaliated against US tariffs with tit-for-tat measures.
ServiceNow (NOW), an enterprise cloud computing solutions company, fell 5% on September 17. The stock is currently trading at $192.82, which is 75% above its 52-week low of $110.17 and 6.5% below its 52-week high of $206.30. ServiceNow stock has risen an impressive 48% in 2018.
September marks a decade since Lehman Brothers collapsed. After ten years, some economists are contemplating whether we’re heading towards another recession. Some analysts see a flattening yield curve as a recession indicator. Leaving aside the yield curve, macro data look encouraging. Asset prices aren’t really inflated like in 2007. However, the trade war and sanctions could depress sentiments.
Which Sectors Are Worried about Rising US–China Trade Tensions? President Trump is taking a tough stance against China (FXI) on trade tariffs and other concessions for access to its markets. China’s major stock indexes have plunged ~25.0% from their highs this year, and its economic growth is also feeling pressure from these escalating trade tensions.
The Nasdaq led stocks lower Monday afternoon as many of its leading sectors were the poorest performers of the day.
Which Sectors Are Worried about Rising US–China Trade Tensions? The ongoing trade disputes between the United States and China (MCHI) have been widely discussed with respect to their potential impact on world trade and the relationship between the world’s two largest economies. The United States has imposed tariffs on $50.0 billion in Chinese imports, and China has retaliated in kind.
Amid the US-China (MCHI) trade tension, investors should note that bilateral trade between the countries is lopsided—China imports far fewer goods from the United States than it exports. Therefore, China will likely not be able to retaliate dollar-for-dollar to tariffs on $200 billion in Chinese goods. However, it may explore other ways to respond.
Lehman Brothers collapsed a decade ago. Since then, global markets have recouped their losses and equity markets have risen above their 2007–2008 highs. Broader markets have been hitting fresh highs this year. The PowerShares QQQ ETF (QQQ) has risen 18.6% for the year based on the closing prices on September 14. Two US companies hit the coveted market capitalization of $1 trillion this year. While Apple (AAPL) is still holding onto that feat, Amazon (AMZN) pared its gains after momentarily exceeding a market capitalization of $1 trillion.
Stocks traded lower on Monday as increasing tensions between the U.S. and China, the two largest world economies, puts potential trade talks in doubt.
Today, the markets kept a watchful eye on hints of an additional round of tariffs against China. A Bloomberg report notes that sources close to President Trump indicated that he wants to move ahead with $200.0 billion in tariffs on Chinese imports despite his administration’s attempts to resume trade talks with China. The markets were also nervous following President Trump’s comments on September 7.
Is Tesla Stock 'No Longer Investable'? Since its inception, Tesla (TSLA) has changed the way the auto industry looks to a great extent by making EVs (electric vehicle) popular. As of September 12, Tesla stock has fallen 15.3% so far in the third quarter.
Apple (AAPL) stock has been affected by the trade tariff war between the United States and China. However, it’s risen 32% in 2018. The stock has generated returns of 37% in the last 12 months, 6.8% in the last month, and -2% in the last five trading days. It rose 11.0% in 2016 and ~48.0% in 2017.