On today’s episode of Free Lunch, Ryan McQueeney discusses the latest on Sears’ bankruptcy, Kroger’s earnings, and Costco’s strong same-store sales results. Later, he chats with Dave Bartosiak about what the Huawei CFO’s arrest means for trade relations. The pair also preview the upcoming jobs report.
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U.S. stocks were lower in morning trading—again—as investors continued to express caution over U.S.-China trade tensions. The trade war added another layer this week, as Meng Wanzhou, chief financial officer of Chinese tech behemoth Huawei, was arrested in Canada at the request of the United States.
The charges against Wanzhou remain unspecified, but earlier reports suggest U.S. officials have been concerned about Huawei breaking sanctions on Iran, or using its networking tech to commit espionage in the U.S. Regardless, the arrest is being considered an escalation of the U.S.-China trade war, just days after the two sides seemed to reach a temporary truce.
Trade war frustrations overshadowed largely good news from the retail sector. Notably, Sears CEO Eddie Lampert, through his own hedge fund, has made a bid on the bankrupt retailer that hopes to maintain 50,000 jobs.
Wall Street also saw positive results from Kroger KR, which reported strong earnings before the bell, as well as big-box retailer Costco COST. The membership-based retail chain posted its latest monthly sales numbers, and comps growth crushed expectations.
On the first half of today’s Free Lunch, Ryan recaps the key facts and figures from all of these stories. Later, he is joined by Dave Bartosiak to dive deeper into the Huawei arrest and what investors should expect over the next few weeks.
Dave says that the market’s reaction to the Huawei CFO’s arrest clearly shows that investors have no patience for further trade war aggravations. Resolving the trade dispute, in Dave’s view, would send markets screaming higher, but until then, even a strong jobs report tomorrow is likely to get overlooked.
Want to hear exactly what Dave thinks is the only bullish scenario for the remainder of 2018? Make sure to check out the episode!
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