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A Week of Fresh Highs Amid U.S.-China Developments

Disney's streaming release and retail stocks were in focus, too

Digital Content Manager
Nov 15, 2019 at 3:26 PM
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It was a wild trading week for stocks, as Wall Street closely monitored developments on the trade agreement between the U.S. and China. U.S. President Donald Trump, in particular, was quite vocal about the state of the trade deal, with comments on Tuesday over how China has "cheated" the U.S. in the past spooking traders early in the week. Despite this, a huge win from Boeing (BA) on Monday and news of Disney's (DIS) successful new streaming service helped all three major indexes clock fresh highs throughout the week. In fact, by the end of the week, the Dow, Nasdaq and S&P had all notched yet another all-time peak. 

Also on investor's radars were several speeches from Fed Chair Jerome Powell, in which the central bank leader hinted at holding monetary policy steady for the time being, and spoke positively about the U.S. economy. Earnings are still on the forefront of traders' minds too, and this week blue chips Walmart (WMT) and Cisco Systems (CSCO) were both in the spotlight -- the former giving the retail sector a boost on a well-received report -- and the latter spiraling on a negative earnings reaction. 

Stocks Swinging on Disney+ Debut 

Walt Disney's (DIS) highly anticipated streaming service Disney+ made its debut on Tuesday this week, but not without some hiccups. Several users took to Twitter (TWTR) to complain about glitches plaguing the new platform on its opening day. The blue chip was able to brush off most of these complaints though, and gave the Dow a boost through Wednesday after a strong numbers report

The release had several other stocks making big moves. Roku (ROKU) in particular saw a surge in shares, with options bulls piling on at the beginning of the week, while CBS (CBS) fell in the other direction over increased competition concerns. Entertainment name AMC (AMC) struggled ahead of the Disney+ release, too, with technical trouble nipping at its heels on Monday.  

Retail Stocks in the Spotlight as Earnings Season Chugs Along

There were several huge retail names on the docket this week. Perhaps most prominently in view was Walmart (WMT), which posted a well-received earnings and revenue beat -- giving several other sector peers, including Macy's (M), a halo lift. 

Earlier in the week, apparel company Canada Goose (GOOS) stepped into the earnings confessional, with a little less luck, sinking over 10% on Wednesday after trimming its third-quarter forecast. Dillard's (DDS) on the other hand, followed up with a big earnings beat, and what its CEO called a "substantial improvement over the second quarter." 

Retail Earnings, Fed Activity Remain on Wall Street's Radar

The final full week of trading in November is coming up next, and retail earnings will continue to take the spotlight as Wall Street prepares for a busy holiday season. Home Depot (HD) will headline the retail roll, with quarterly report from Macy's (M) and Target (TGT) also in the spotlight.

The Fed will also remain in focus, with the latest Federal Open Market Committee (FOMC) meeting minutes due out next Wednesday, along with several Fed speeches which will trickle in throughout the week. 

 

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