TradeTheNews.com Weekly
Market Update: Stocks finish higher despite escalating trade spat
Fri, 06 Jul 2018 16:16 PM EST
Stocks lifted this week in holiday-abbreviated trade. Early on, worries around
potentially changing political winds in Europe resulted in risk-off trading
sentiment. Coming out of the July 4th break, rising tensions surrounding trade
and escalating tariffs were counterbalanced by another strong reading on the US
jobs market and high expectations heading into corporate earnings season. The
US Treasury yield curve continued to flatten into territory not seen since
2007, while copper prices plumbed to fresh 1-year lows. Banks remained a
notable laggard, unable to garner any momentum, while traditionally defensive
groups and the NASDAQ/tech remained in leadership roles. For the week the
S&P gained 1.5%, Dow rose 0.7% and the NASDAQ jumped 2.5%.
In corporate news this week, Tesla announced it hit its one-week production
goal of 5,000 Model 3 units in the last week of Q2, but analysts noted a miss
on overall Q2 deliveries and a decline in net Model 3 reservations, sending
shares lower. Casino names fell after Macau gaming numbers came in below
estimates for the second straight month. Facebook shares dropped Tues on news
of an expanded probe into the Cambridge Analytica-linked data breach, with the
FBI, SEC and FTC joining the DOJ in their investigation. Boeing and Embraer
confirmed a JV deal in which Boeing will acquire control of Embraer’s $4.8B
commercial jet division. Biogen surged after successful results from an
Alzheimer’s trial that showed its drug could slow the progression of the
disease in its milder, early stages.
SUN 7/1
(DE) Germany Interior Minister/CSU Chairman Seehofer said to have offered
resignation to colleagues in CSU Party over migrant issue; CSU Caucus chief
Dobrindt said to oppose Seehofer quitting - financial pres
(EU) EU makes written submission to US Commerce Dept warning that EU and others
will likely respond to tariffs on foreign autos, by targeting $300B in US goods
in retaliation - FT
(HK) Macau June Gaming Rev MOP22.5B, Y/Y: 12.5% v 18%e (2nd consecutive missed
estimate)
MON 7/2
TSLA Reports Q2 vehicle deliveries 40.7K (Model 3 18.4K, Model S 10.9K, Model X
11.4K)
(UK) JUN MANUFACTURING PMI: 54.4 V 54.0E
(DE) Chancellor Merkel and Interior Min Seehofer reach compromise over
migration - German press
(US) Atlanta Fed raises Q2 GDP forecast to 4.1% from 3.8% prior
(CN) China June exports to the US said to be +3.8% y/y according to customs v
27.6% y/y - Chinese press
TUES 7/3
(CN) China PBOC Gov Yi Gang: closely watching moves in fx market, reiterates to
keep yuan basically stable and at reasonable level; reiterates 'prudent,
neutral' monetary policy
(SE) SWEDEN CENTRAL BANK (RIKSBANK) LEAVES REPO RATE UNCHANGED AT -0.50%
WEDS 7/4
(UK) Post-Brexit document showed customs system 'could take up to five years -
financial press
(CN) China to implement tariffs on $34B worth of US goods from midnight July
6th, according to press report; Separately, a China MOF official said China
will not implement tariff measures ahead of the US
(UK) JUN SERVICES PMI: 55.1 V 54.0E (23rd month of expansion and a 9-month
high)
THURS 7/5
(US) JUN ADP EMPLOYMENT CHANGE: 177K V 190KE
(US) JUN ISM NON-MANUFACTURING COMPOSITE: 59.1 V 58.3E
(US) Conference Board June Total online job ads 4.5M v 4.7M m/m v 4.8M y/y; New
ads 1.9M v 1.9M m/m v 2.0M y/y
005930.KR Reports Q2 prelim (KRW) Op 14.8T v 14.9Te (vs 14.07T y/y), Rev 58.0T
v 59.7Te (vs. 61.0T y/y)
FRI 7/6
(CN) First round of US tariffs on China take effect
(CN) China Commerce Ministry (MOFCOM): Reiterates has to fight back, forced to
retaliate on tariffs; will continue evaluating impact of US tariffs
*(CN) CHINA STATE MEDIA: IMPORT TARIFFS HAVE TAKEN EFFECT ON US PRODUCTS
066570.KR Reports prelim Q2 (KRW) Op 771B v 821Be, Rev 15.02T v 15.5Te
(CN) China Foreign Ministry spokesperson Lu Kang: Retaliatory tariffs on US
goods are now in effect - press conf
DBK.DE Reportedly JP Morgan and ICBC considering taking a stake - press
(IT) Bank of Italy (BOI) June Balance-Sheet Aggregates: Target2 liabilities at
record high of €480.9B v €464.6B m/m
(CA) CANADA JUN NET CHANGE IN EMPLOYMENT: 31.8K V +20.0KE; UNEMPLOYMENT RATE:
6.0% V 5.8%E
*(US) JUN CHANGE IN NONFARM PAYROLLS: 213K V 195KE
