Stocks Tumble on One-Two Punch from Fed, Trump

Apple stock's post-earnings rally was short-lived

by Andrea Kramer

Published on Aug 2, 2019 at 1:41 PM

It was a rough week on Wall Street, to say the least. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are pacing for a fifth straight loss and their longest losing streaks since early March, as the Fed and trade developments rattled markets. Following the Fed's first (and widely expected) rate cut since the financial crisis, stock traders had a knee-jerk reaction to comments from Fed Chair Jerome Powell, with markets tanking late Wednesday. That sell-off continued in the latter half of the week, too, after President Donald Trump said the U.S. will impose new tariffs on Chinese goods.

Big Blue-Chip Earnings

It was busy on the earnings front, too. Pfizer (PFE) made noise after lowering its full-year guidance and announcing plans to merge its off-patent medicines division with generic drugmaker Mylan (MYL). Fellow big-cap pharma name Merck (MRK) also stepped into the earnings spotlight. Blowout earnings reports from Procter & Gamble (PG) and Apple (AAPL) were also celebrated early in the week.

Tech Stocks Make Noise

Several chip stocks were also in focus last week. Advanced Micro Devices (AMD) shares were rattled on a weak revenue forecast. On the other hand, this chip stock sailed to new highs after earnings, and this software stock flashed a buy signal. Also, call volume popped on IBM (IBM) after an analyst note.

Big Bets on Healthcare

Along with Pfizer and Merck, several smaller-cap healthcare stocks captured attention. Spruce Point labeled this healthcare stock a "strong sell", while Citron thinks this healthcare stock could quadruple. A Food & Drug Administration (FDA) win bolstered Nektar Therapeutics (NKTR) shares, and history suggests Humana's rally isn't over yet. In the options pits, meanwhile, one trader placed a seven-figure bet ahead of CVS Health (CVS) earnings next week.

Steer Clear of These Oil Stocks

Exxon Mobil (XOM) made the list of worst stocks to own in August, and this fellow energy stock sounded a sell signal after earnings. We also outlined two reasons to short this oil stock in August. For traders seeking bullish opportunities this month, here are the best stocks to own in August, historically.

Disney, Ride-Share Companies Report Next Week

Amid a relatively light economic calendar, Wall Street will be watching another big dose of corporate earnings reports next week. While ride-hailing names Lyft (LYFT) and Uber (UBER) will each make their second appearances on the earnings stage since going public earlier this year, blue chip Walt Disney (DIS) will step up to the plate, as will this video game maker.

a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
Bull Notes For Aramark Stock After Activist Investor Stake
Aramark is one of the best stocks on the NYSE today
Big Sale Boosts TLRD Stock
The company is selling its corporate apparel business for $62 million
IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.