Tuesday 7/2/19=DJIA +28 NASDAQ +1
It was a sleepy day in the overall market today, but there were some nice moves in some individual stocks today, however. We are currently in a quiet period before earnings season kicks into gear in a little under two weeks from now. In addition to this, it seems that a lot of traders have taken this holiday week off.
Here was the mood of the market as we began a new trading day.
• U.S. stock index futures edged lower overnight as investors cheered progress in trade talks between Beijing and Washington but kept optimism in check amid a fresh U.S.-Europe tariff dispute.
• Contracts tied to the DJIA pointed to an opening decline of 50 points, while those linked to the S&P 500 – which hit an all-time intraday high on Monday – as well as the Nasdaq are down 0.2%.
• Also weighing on sentiment: President Trump announced that any trade deal with Beijing would be “somewhat tilted” in favor of Washington and said Iran was “playing with fire” after the Islamic Republic breached its nuclear deal limit.
This hurt the market a bit on both Monday and Tuesday.
Unexpected decline in construction spending
• May Construction Spending: -0.8% M/M vs. +0.1% consensus, +0.4% prior (revised).
• Construction spending -2.3% vs. -1.2% prior Y/Y.
Another tariff war brewing?
U.S. proposes more tariffs on EU goods
• Just days after reaching a temporary truce in the U.S.-China trade war, Washington has turned its attention back to the EU.
• The U.S. Trade Representative has released a $4B list of additional goods that may be targeted with retaliatory tariffs as part of a long-running battle at the WTO over subsidies given to Airbus and Boeing.
• The list, which includes Italian cheese, Scotch whiskey, chemicals and metals, adds to products valued at $21B that the USTR had identified in April as facing possible tariffs.
Should we cancel the American Flag on the Fourth of July too?
Nike pulls ‘Betsy Ross’ sneaker after Kaepernick intervenes
• Nike (NYSE:NKE) is pulling its new “Air Max 1 USA” sneaker featuring the so-called Betsy Ross flag, which was slated to go on sale this week in celebration of the July Fourth.
• Endorser Colin Kaepernick reportedly told the company it shouldn’t sell a shoe with a symbol that he and others consider offensive because of its connection to an era of slavery.
• Last year, Nike tapped Kaepernick for the 30th anniversary of its “Just Do It” campaign, giving a significant boost to its stock price.
Big year for IPO’s!
Nasdaq says 97 IPOs raised $17.7B in H1 2019
• Nasdaq (NASDAQ:NDAQ) says 97 initial public offerings listed on its exchange in H1 2019, raising $17.7B, more than the same period in 2018.
• IPOs included Lyft, which raised $2.3B and Zoom Video Communications, which raised $751M.
• Seven companies switched to Nasdaq from NYSE during H1, including healthcare company Sanofi.
I featured Anaplan (PLAN) on my show today. I sent out tweets today on the following stocks that caught my eye: EGO, MSCI, HTHIY, COUP, SHOP, PI, BZUN, GLPG, FCFS & KL.