Trade Negotiation Tactic Hits Wall Street Repeatedly

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as trade negotiation tactic hits Wall Street repeatedly. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow is set to skid nearly 350 points as Trump ratchets up the pressure on China with additional tariffs

U.S. stock index futures slumped ahead of Tuesday’s open, after President Donald Trump threatened China with a new raft of tariffs. Around 5:20 a.m. ET, Dow futures indicated heavy losses at the open of a drop of 341.47 points. The Nasdaq and the S&P 500 futures also posted sharp losses at the start to their respective trading sessions.

The S&P 500 (SPY) dropped -0.40% today. Sector decliners led advancers 7 to 4 as shown below in the sector graph. Industrials (XLI) -2.11% and materials (XLB) -1.76% led decliners down. Consumer discretionary (XLY), energy (XLE), financials (XLF) and technology (XLK) each had small losses of less than 1%. Utilities (XLU) led advancers with a +1.03% gain. Consumer staples (XLP), healthcare (XLV) and real estate (XLRE) each had minor gains of less than 1%.

The Dow Jones index gave up 287 points (-1.15%) to close at 24,700. The Nasdaq slipped 21 points (-0.28%) to settle at 7,725.

Trade Negotiation Tactic Hits Wall Street Repeatedly

The Dow continued its losing streak to 6 days as President Trump’s latest tariff threats hit Wall Street. A majority of chipmakers fell in response to the tariff threats given their exposure to China. Increasing tariffs against China is a negotiating tactic by the Trump administration that has repeatedly hit Wall Street. I ran across the following quote in the above CNBC article regarding this negotiation tactic, “At some point you’ve got to wonder how many times stocks are going to react to the same general bit of news. It may all just be a game of one-up-manship as a negotiating tactic to get to some sort of deal,” said Willie Delwiche, investment strategist at Baird. However, “with investor optimism as high as it is, there might not be much margin for error, and there is a real risk that this starts to erode consumer and business confidence.”

Key takeaway…

I took the following CNBC screenshots this morning regarding revenue exposure to China:

Trade Negotiation Tactic Hits Wall Street Repeatedly

Trade Negotiation Tactic Hits Wall Street Repeatedly

Notable S&P movers…

I’ve highlighted below the S&P movers (both winners and losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

Download our new Handy ETF Guide

Subscribe to get our free weekly newsletter by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

6/19/18

S&P 500 Sector Graph

Trade Negotiation Tactic Hits Wall Street Repeatedly

S&P 500 (SPY)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Consumer Discretionary (XLY)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Consumer Staples (XLP)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Energy (XLE)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Financials (XLF)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Real Estate (XLRE)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Healthcare (XLV)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Industrials (XLI)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Materials (XLB)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Technology (XLK)

Trade Negotiation Tactic Hits Wall Street Repeatedly

Utilities (XLU)

Trade Negotiation Tactic Hits Wall Street Repeatedly

S&P 500 Sector Heat Map

Trade Negotiation Tactic Hits Wall Street Repeatedly

Leave a Reply

Your email address will not be published. Required fields are marked *