262.93 -2.45 (-0.92%)
Pre-Market: 7:36AM EST
|Bid||262.61 x 4000|
|Ask||262.69 x 1100|
|Day's Range||264.12 - 267.49|
|52 Week Range||252.92 - 293.94|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.09%|
Today, the stock of KushCo Holdings (KSHB), one of the key packaging supplies providers to the cannabis industry, is trading on a negative note. US-China trade tensions have hurt many large US companies, including Ford Motor Company (F), General Motors (GM), and Harley-Davidson (HOG), among others. In contrast, the cannabis industry is largely unaffected by the global trade war—at least so far.
With the bloodbath that is XPO Logistics Inc. (NYSE: XPO) being in the headlines today, I could not help but to think back to December 2017 when Home Depot Inc. (NYSE: HD) was said to be considering an offer for the company just to keep it out of the hands of Amazon Inc. (Nasdaq: AMZN).
On December 12, US crude oil January futures fell 1% and closed at $51.15 per barrel. The market wasn’t expecting a decline of 1.2 million barrels in US crude oil inventories for the last week, which might have dragged oil prices. OPEC and its allies’ production cut might not have boosted the bullish sentiment for oil prices, which we discussed in the previous part.
XPO Logistics Inc. (NYSE: XPO) is down over 17% as of 12:25 P.M. EDT following a report by famed short-seller Spruce Point Capital Management. In the report, Spruce Point discusses the background of XPO’s founder, Bradley Jacobs, and the “accounting scandal during his leadership” at United Rentals, Inc. (NYSE: URI), which he co-founded. Ultimately, Spruce Point thinks XPO’s share price could “swiftly collapse in Enron-style fashion” with a 40%-60% intermediate downside risk and a 100% long-term downside risk.
Tech giant Apple (AAPL) is up over 1% today after it revealed its plans to build a new campus in Texas with an investment of $1 billion. The move could be an attempt to please President Donald Trump, who recently indicated that he planned to impose tariffs on Apple’s Chinese imports. At 11:01 AM EST on December 13, Apple stock was up 1.2% from its previous day’s closing price despite a minor fall of 0.1% in the S&P 500 Index (SPY) at the same time.
Given the recovering sentiments and a bullish holiday outlook, the tech sector appears as a compelling last-minute investment. As such, we have highlighted a few beaten-down tech ETFs that could see surge this Christmas.
Mario Draghi mentioned that the central bank would still be ready to make needed adjustments to the Eurozone economy, but right now, the ending of the bank's Quantitative Easing (QE) program will go on as expected.
US steel stocks are having a dismal year dear despite trade protections from President Donald Trump. Steel companies’ price action looks to be even more frustrating when we consider the record earnings Nucor (NUE) and Steel Dynamics posted in the second and third quarters. Over the last couple of days, we’ve seen analysts lower their price targets for steel stocks.
According to Trading Economics, the country’s GDP growth averaged an impressive 9.6% between 1989 and 2017. China’s GDP growth rate hasn’t suddenly decelerated—it has gradually tapered down. Given China’s current GDP size, no one expects the country to grow in the double digits like it did a decade ago.
As reported by Bloomberg, Citigroup economists think that the damage to the Chinese economy is already done. In the 2019 economic outlook report, Citigroup economists, led by Liu Li-Gang, gave several reasons for the argument. The economists estimate that the ongoing trade war could cut China’s export growth by almost half in 2019, which would put ~4.4 million jobs at risk.
Shares of telecommunications equipment company Ericsson (ERIC) have risen 34.3% in 2018. The stock is currently trading at $8.79, 46.5% above its 52-week low of $6.00. Ericsson has outperformed its peers and the indexes in 2018.
China’s (FXI) steel production hit another record in October, coming in at 82.6 million tons and marking the third consecutive month of gains for the country. While China (MCHI) produced record steel on a monthly basis, the average daily output in October was lower than in September, according to Reuters’ calculations. China’s production for the first ten months of the year totaled 782.5 million tons, a rise of 6.4% over the same period last year.
While experiencing some selling pressure in the last few hours of the trading session, investors are enjoying yet another rally in the stock market. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) has been in a sharp rebound this week, a welcome sight for the bulls.
The S&P 500 Index (SPY) has lost about 4.5% while the NASDAQ Composite Index has lost 3.5% month-to-date as of December 11. Concerns about the global economic slowdown and US–China trade tensions have hurt market sentiment (QQQ) this month. In contrast, December is proving to be a great month for some companies—and the largest Chinese used car e-commerce platform, Uxin (UXIN), is certainly one of the top performers.
As of the close of trading on Tuesday December 11th the S&P 500 as represented by the popular S&P 500 ETF (NYSEARCA:SPY) was lower by just about 1% for 2018. It has been a choppy year for this index and thus many/most of its constituent stocks.
China’s (FXI) domestic demand is on a downtrend, as is evident from the latest batch of Chinese trade data, which showed weaker-than-expected exports and imports for November. China’s auto sales data were released on December 11. With just one month left in 2018, it’s highly likely China will report its first yearly decline in automobile sales since 1990.
As of December 11, Apple stock has lost about 25.3% sequentially compared to a 9.5% and 12.1% drop seen in the S&P 500 Index (SPY) and the NASDAQ Composite Index (QQQ), respectively. On December 12, Apple seems to be on a recovery path. At 10:11 AM EST, Apple was trading at $171.03 with 1.4% gains.
US equity markets rallied sharply in 2016 after President Trump was elected. There was a sharp rally in metal prices. Before President Trump’s election, base metals like copper and aluminum were trading in a narrow range. President Trump was expected to save US manufacturing, especially steel, from the onslaught of imports.
One of the major factors spooking the markets worldwide has been the concern about China’s economic slowdown. According to Bank of America Merrill Lynch’s survey for November, apart from trade war risk and concerns about quantitative tightening, China’s slowdown was fund managers’ biggest worry. As the trade war escalates, concerns about China’s slowdown are also picking up.
With the production cut agreement that’s set to be implemented in 2019, US crude oil’s downside could be limited. Traders think that the recent flow of funds from oil to the natural gas market might stop, which could be a negative development for natural gas prices.