|Day's Range||2,761.73 - 2,782.81|
|52 Week Range||2,405.70 - 2,872.87|
Trade war fear has descended on Wall Street. It ought to be another contentious week in global trade after Friday, June 15, escalated the tariff war between the U.S. and China to new highs. Early Friday, President Donald Trump announced a fresh set of tariffs of about $50 billion on imports from China.
Company gearing up to hit target of 5,000 Model 3 cars a weekReutersTesla Model 3s recharge in an underground parking lot next to a Tesla store in San Diego,. The new line is apparently rolling out dual-motor, high-performance Model 3s, a new version for $78,000 that the Tesla chief executive announced less than a month ago. On Friday, Musk reportedly sent an email to staff congratulating them on their efforts, but said “radical improvements” still need to be made to reach their production goal.
Dow Jones futures were steady Sunday. Five chip stocks are near buy points: Micron Technology, Texas Instruments, Broadcom, ASML and Entergis. Micron reports earnings this week.
U.S. corporate earnings growth looks poised to slow from a blistering pace, posing a potential new challenge to a long bull market that is already contending with slower global-growth momentum and rising interest rates. Earnings growth has accelerated in recent quarters, helping drive major U.S. stock indexes to new highs and keeping share valuations from getting too stretched as prices rose. Earnings growth is expected at 19% in the second quarter, 21% in the third and 17% in the fourth, according to FactSet.
Asian markets fell on Monday as investors digested U.S.-China trade tensions. The U.S. said it will impose tariffs on $34 billion in Chinese goods beginning July 6. China quickly announced its retaliation.
Asian stock futures indicate a mixed start to the week after U.S. shares fell on Friday with China and the U.S. exchanging trade threats. Oil fell, while Asian currencies were slightly weaker against the dollar as Treasury yields retreated toward 2.90 percent. Futures were modestly lower in Japan and South Korea and flat in Australia.
Stock-market investors navigated, virtually unscathed, a gauntlet of central-bank gatherings, a historic summit between President Donald Trump and North Korean Kim Jong Un, and flaring trade tensions. The S&P 500 index(^GSPC)ended the week essentially flat, managing the narrowest of weekly gains, up 0.02% to 2,779.66, while the Dow Jones Industrial Average(^DJI)posted a weekly decline of 0.9%. The Nasdaq Composite Index(^IXIC)outperformed both, rising 1.3% for the five-day period.
Fears of tariffs and a potential global trade war have jostled U.S. stocks over the past few months, but there is a sense among investors that the market is taking the drum beat of rhetoric and statements more in stride. In the latest salvo, U.S. President Donald Trump announced hefty tariffs on $50 billion of Chinese imports on Friday, and Beijing threatened to respond in kind. The benchmark S&P 500 index ended down only 0.1 percent on Friday.
Ignore a trade war at your own risk. Stocks tumbled Friday after President Donald Trump gave the greenlight on the imposition of about $50 billion worth of tariffs on imports from China. The Trump administration has so far justified the newest round of tariffs on the basis of intellectual property theft perpetrated by China.
A busy week for markets includes a crucial Opec meeting in Vienna, while fragile emerging markets and US dollar strength remains a hot topic among investors. Energy ministers from Opec countries and those outside the cartel are meeting in Vienna this week [June 22-23] to debate oil policy with traders and market analysts questioning how far countries will go.
We expect to see heightened volatility this week due to fear and uncertainty driven by the trade tensions between the U.S. and China. However, based on the strong recovery on Friday after the initial sell-off, the return of volatility may not necessarily imply a prolonged sell-off.