BREAKING: Trump Triggers Tariffs
Despite a strong move off the morning lows, the major averages finished lower for the fourth-straight session.
The Dow slipped 140 points Thursday to close below 25,900 for the first time since March. Meanwhile, the Nasdaq Composite and S&P 500 both posted small gains during a choppy session peppered by trade deal rumors.
Earlier this morning, it became clear that the U.S. and China would not reach an acceptable trade agreement by today’s deadline. Trump has attempted to soften the blow on Twitter, claiming the talks are continuing and the newly-enacted tariffs on $250 billion in Chinese goods are a net positive for the country.
The president explained what was happening in a series of tweets, including the one below that I was able to screen cap before it was mysteriously deleted:
Several media outlets have attempted to get the White House to comment on the removed tweet with no luck so far. My guess is the administration feared the markets might misinterpret the phrase “no need to rush” and assume no deal will take place in the foreseeable future.
UPDATE: Moments before I was ready to click send, Trump retweeted the deleted tweet. If that wasn’t confusing enough, he also “added a tweet taking a shot at Obama and ‘Sleepy Joe’ Biden, while warning China not to try and renegotiate a nearly finalized deal at the last minute,” ZeroHedge notes.
With all the back-and-forth and a still-evolving response from Team Trump, it’s not yet clear how investors feel about the situation. Futures continue to struggle for direction before the opening bell. As of right now, we’re headed for a small loss at the open. Whether buyers or sellers take control at 9:30 is anyone’s guess.
If stocks continue to slip during today’s session, this will turn into the worst-performing week of 2019 — and the S&P is down just about 2.6% since last Friday’s close!
Don’t let this week’s poor performance phase you. The market has been exceptionally forgiving so far this year during the extended snapback rally. We’re just shy of all-time highs and a quick pullback is just what the doctor ordered to keep traders honest — trade deal or no trade deal.
Maybe it’s not the tariffs that matter, but the memories we make along the way…
Enough trade talk — some stocks are managing to crank out some serious gains this week.
Roku Inc. (NASDAQ:ROKU) shares jumped nearly 30% yesterday after the company reported what one analyst called a flawless quarter.
The company trounced analyst expectations, revealing that it became the top-selling smart-TV operating system in the U.S. for the first time ever, MarketWatch reports, stealing the No.1 spot from Samsung and cornering a third of the smart TV market.
With new streaming services seemingly multiplying overnight, Roku isn’t worried about how customers are going to use their products, The Wall Street Journal reports. The company announced that it will discontinue plug-in hardware and fully pivot to good old fashioned ad revenue in addition to smart-TV operating systems.
The stock could very well continue its winning streak over the next several quarters as services like Apple TV + and Disney Plus pop up on Roku platforms. It doesn’t get much more bullish than that…