(Friday Market Open) Tariff fears marched back onto Wall Street early Friday, stirring up tension and possibly overshadowing some solid earnings news in which info tech continues to lead the parade.
Worries about a possible trade war might put a damper on things today as U.S. pre-market trading signaled a possible lower start and markets in Europe took a beating. The pressure came despite Microsoft (MSFT) and General Electric (GE) both beating analysts’ earnings estimates.
In an interview with CNBC, President Trump threatened to unleash tariffs on $500 billion worth of Chinese goods. Just a few weeks ago, the White House slapped tariffs on a smaller amount of Chinese imports, but the market bounced back pretty quickly from weakness then. One thing to remember about this administration is that it tends to make big threats that get people worried, but sometimes pulls back. There’s no guarantee that will happen this time, but it’s important not to let political noise affect your long-term investing plan.
Getting back to earnings, Microsoft (MSFT) appeared to do really well, especially in cloud services. It report
Upbeat U.S. stock market sentiment appears to be ebbing as earnings season rolls on, tensions over trade weigh and investors are perhaps consolidating yesterday’s gains.
Big bank earnings rounded out today with Morgan Stanley, and on the whole they looked good, but not great. What they do seem to point to is a solid economy.
It could be a rough day for the FAANGs and Nasdaq as a whole due in large part to Netflix missing on its own guidance for subscriber growth in Q2. In other news, Goldman Sachs beat earnings estimates, while Fed Chair Powell testifies to Congress today and tomorrow.
The focus this morning is on bank earnings, while Netflix results after the close also could get a long look from investors.
Big bank results looked mixed overall, with JP Morgan beating estimates but the other two major banks showing some signs of struggle. It’s not necessarily a negative picture, but it isn’t a slam dunk, either.
After Asian and European markets traded higher, U.S. equities futures were also in the green, apparently helped by a rebound in oil prices and news on the M&A front that may have kindled some optimism about the economy and market.
Equities futures were pointing to a lower open for all three major U.S. indices after the Trump administration threatened $200 billion in new tariffs on Chinese goods.
There seems to be a positive tone heading into Tuesday’s session after big gains Monday that took stocks back toward their one-month highs. Inflation data due on Wednesday and Thursday.
Quick Links
Trade
Invest
Service
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2018 TD Ameritrade.