Recent Articles
Best Stocks for 2018: REMX Shows the Market Overwhelming Fundamentals
Demand for rare earth metals continues to increase, but the prices traders are willing to pay for those stocks in the face of escalating trade-war rhetoric are falling dramatically.
Trade of the Day: Caterpillar (CAT)
Caterpillar (NYSE:CAT) has been caught in the crosshairs of the escalating trade tensions between the United States and China. The company has been hit not only by the rising cost of steel but also by the potential decline in sales the company may experience in China if the trade war continues.
Trade of the Day: Harley Davidson (HOG)
Harley Davidson (HOG) announced on Monday that it would be moving production overseas to avoid EU tariffs. This is a risky announcement and one that we think will lead to much lower prices in the short term.
Trade of the Day: Starbucks Corporation (SBUX)
Starbucks Corporation (NASDAQ:SBUX) was hit with a selling frenzy on Wednesday and Thursday after announcing that it would be closing 150 U.S. stores. From Tuesday’s close to Thursday’s close, the stock dropped nearly 12%, which is a big move for SBUX.
Which U.S. Stocks Lose in a Trade War With China?
The technology sector could manage to sidestep the nastiness that a trade war with China could bring, but other sector-based stocks may not be so lucky.
Trade of the Day: FedEx (FDX)
At least in the short term, investors seem to be counting on a resolution to the back and forth tariff threats. As that is the case, we feel that FedEx (FDX) is oversold on trade fears and out of step with the rest of the market.
Trade of the Day: Facebook, Inc. (FB)
According to The Interpublic Group (IPG), online advertising is likely to grow 6.4% this year rather than the earlier estimate of 5.2%. This news, lower interest rates and a surprisingly defensive market have continued to push FB above short-term resistance near $195 per share.
Fed Rate Hikes and the Market
The potential for a faster pace of interest rate hikes in the near term indicates the Fed believes that inflation will be high enough to justify those rate increases.
Trade of the Day: AmerisourceBergen Corporation (ABC)
The surprise judgment on Tuesday in favor of the AT&T (T)/Time Warner (TWX) merger is probably going to give media stocks a small boost in the short term, but another stock that could benefit from the shift in favor of larger mergers is AmerisourceBergen Corporation (ABC).
Trade of the Day: Utilities Select Sector SPDR ETF (XLU)
A lower-value dividend combined with a generally bullish market should send prices on the Utilities Select Sector SPDR ETF (NYSEARCA:XLU) lower in the short term.
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