Retail Earnings, China Trade Headline Hectic Week

We shared a list of 25 stocks you should avoid after Memorial Day

by Emma Duncan

Published on May 24, 2019 at 3:41 PM

It was another rough week for stocks, as trade drama between the U.S. and China continued to drag out. Although President Donald Trump temporarily relaxed restrictions on China's Huawei, a myriad of chip and tech companies began cutting ties with the Chinese firm. Further, a spokesperson for China's Ministry of Commerce said the U.S. should "adjust its wrong actions" if it would like to continue trade negotiations. Against this backdrop, the Dow Jones Industrial Average (DJI) is pacing for its longest weekly losing streak in years.

Huawei Hits Tech Once Again

Among the stocks that made Huawei-related noise this week: Google parent Alphabet (GOOGL) was among the first to cut the proverbial cord with the Chinese telecom. In addition, Lumentum (LITE) shares got crushed for the same reason, and analysts issued a word of warning for this chip stock. Looking ahead, though, this semiconductor concern could be ripe for a rebound.

Retail Earnings Make Headlines

Retail stocks also made noise. Foot Locker (FL), Lowe's (LOW), and Urban Outfitters (URBN) were among the many to suffer post-earnings blows. On the flip side, however, Target (TGT) surged and Victoria's Secret parent L Brands (LB) saw its best day in a decade, after posting better-than-expected quarterly results. Three names also seeing extreme post-earnings moves were Nordstrom (JWN), J C Penney (JCP), and TJX (TJX), all stocks at the forefront of major analyst attention.

FAANG Stocks Pull Investor Focus

Just over a week after it was revealed Warren Buffett's Berkshire Hathaway (BRKA) took a roughly $904 million stake in Amazon (AMZN), the stock received an impressive bull note out of Piper Jaffray, which said it expects the FAANG concern to reach $3,000 no later than 2022. Already in focus amid ongoing trade tensions, Apple (AAPL) supplier Qualcomm (QCOM) was slammed by U.S. District Judge Lucy Koh for violating antitrust law. Meanwhile, fellow Apple supplier Broadcom (AVGO) could be one of the 25 best stocks to own after the Memorial Day holiday.

25 Stocks to Avoid After Memorial Day

Next week will be a short one, with U.S. markets closed on Monday for Memorial Day. If history is any indicator, the stock market could be in for a rough week -- and these are 25 stocks to avoid after the holiday. Data on gross domestic product (GDP), consumer sentiment, and inflation are expected. A small handful of earnings will also take the stage, including reports from retailers Abercrombie & Fitch (ANF), Costco Wholesale (COST), Gap (GPS), and Ulta Beauty (ULTA).

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