Stocks Erase Weekly Gains After Trump Reacts to China Retaliatory Tariffs

Trade headlines drove price action in U.S. stock markets this week

Aug 23, 2019 at 2:07 PM
facebook X logo linkedin


Trade headlines and retail earnings drove price action on Wall Street this week, with most of the early week moves occurring to the upside. However, stocks swung lower after another brief yield-curve inversion and news of China's retaliatory tariffs on the U.S. sparked a tweetstorm from President Donald Trump. As of this writing, the Dow, S&P 500 Index (SPX), and Nasdaq Composite (IXIC) are all on pace for a fourth straight weekly loss.

Home Depot Headlines Strong Retail Earnings

It was another busy week for retail earnings. While Home Depot (HD) stock caught options bears off guard after earnings, fellow home improvement retailer Lowe's (LOW) also impressed on the earnings front, as did Target (TGT) and Nordstrom (JWN). Kohl's (KSS), on the other hand, dropped on a same-store sales miss, while Foot Locker's (FL) post-earnings slide dragged on Nike (NKE). And while Pivotal Research said it's buying Deckers Outdoor's (DECK) post-earnings dip, GameStop (GME) popped after a famous investor took a long position on the stock.

Huawei Reprieve Sends Chip Stocks Higher

Semiconductors kicked off a strong week for chip stocks, thanks to news of a Huawei reprieve for U.S. suppliers -- though Cree (CREE) shares spiraled after a warning about the Chinese telecom giant. New "buy" ratings from Raymond James sparked bigger tailwinds for these two chipmakers, while elsewhere in the tech sphere, Apple (AAPL) shares edging higher as Apple TV+ details emerged. Software stocks also had a big week, with cloud firm Salesforce.com (CRM) and tax preparation name Intuit (INTU) climbing the charts after earnings.

PG&E, Beyond Meat Made Big Moves This Week

Big moves weren't confined to retail and tech stocks this week. Bankruptcy buzz sent the shares of utility name PG&E (PCG) spiraling, while Beyond Meat (BYND) popped on a big bull note from J.P. Morgan Securities. Meanwhile, a Russia probe revelation sent Overstock.com's (OSTK) CEO packing -- and had options traders bet on bigger gains -- while a reliable Shake Shack (SHAK) buy signal points to new highs for the burger chain. Elsewhere, SVB Leerink thinks this drug stock can triple, and one options trader initiated a seven-figure trade to bet on a major move for oil.

GDP, More Retail Earnings on  Tap

Wall Street will continue to watch the 2-year and 10-year Treasuries, and data from Schaeffer's Senior Quantitative Analyst Rocky White suggests it's best to sell stocks ahead of this yield-curve signal. A busy batch of economic data -- including the latest reading on second-quarter gross domestic product -- will also be in focus next week, while retail earnings continue to roll in.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI