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Tariffs Collide with Bull Market; Stocks End Mixed

Originally published: 03.19.18 by Margot Crabtree


Our session was a bit of a tussle after President Trump announced aluminum and steel tariffs and markets intersected with the 9th anniversary of the bull market as our trading session ended March 15, 2018.

The continued lack of housing stock contributed to a drop in sales of existing homes. The National Association of Realtors said that sales fell 3.2 percent in January. Year-over-year, sales of existing homes fell 4.8 percent, the biggest yearly decrease since August 2014.

In a separate report, the organization said that that pending home sales fell 4.7 percent in January, citing higher prices, increasing mortgage rates and fewer homes on the market. Their index fell to 104.6, the lowest reading since Oct. 2014. Stock markets worldwide swooned amid Trump’s talk of a “trade war,” and Wall Street finished out its worst month since January 2016.

The Conference Board reported that its consumer confidence index increased to 130.8 in February, ahead of January’s 124.3. Stocks enjoyed a broad rally as we stepped into the anniversary of the bull market, and also got a boost from a jobs report that showed sturdy hires, a low jobless rate, and modest wage growth.

There was concern and some wobble on Wall Street


as President Trump’s premier economic advisor Gary Cohn resigned in opposition to the proposed aluminum and steel tariffs. But when Trump signed onto the import tariffs, the provisions were not as strict as traders feared, and by and large markets shrugged off tariffs, trade wars and inflation, and focused on jobs and job growth.

“The market is being driven by a very strong jobs report and lack of wage inflation. The Goldilocks economy reappears,” said Tim Ghriskey, chief investment strategist at Inverness Counsel. “But anything that accelerates the (Russia probe) and removes some uncertainty is good. The financial markets really dislike uncertainty.”

Exchange
Symbol
Company Name
Price
3/15/18
Price
2/15/18
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 38.80 34.60 4.20 12.14% 39.20 29.95 52430 2034284
NYSE ABB ABB Ltd. 24.13 25.47 -1.34 -5.26% 28.67 22.04 2130000 51396900
NYSE AOS AO Smith Corp. 65.24 65.23 0.01 0.02% 68.39 49.48 145470 9490462.8
NYSE FIX Comfort Systems USA, Inc. 42.35 41.45 0.90 2.17% 44.80 31.90 37100 1571185
NYSE DOV Dover Corp. 99.12 101.59 -2.47 -2.43% 109.06 76.23 154560 15319987.2
NASD ELON Echelon Corp. 4.67 4.71 -0.04 -0.85% 7.20 4.26 4520 21108.4
NYSE DWDP DowDuPont 67.88 71.85 -3.97 -5.53% 77.08 59.29 2330000 158160400
NYSE EME EMCOR Group, Inc. 80.40 76.50 3.90 5.10% 85.08 59.76 58370 4692948
NYSE EMR Emerson Electric Co. 70.93 71.50 -0.57 -0.80% 74.45 56.77 634840 45029201.2
NYSE FCAU Fiat Chrysler 21.14 22.39 -1.25 -5.58% 24.95 9.60 1540000 32555600
NYSE F Ford Motor Co. 11.07 10.76 0.31 2.88% 13.48 10.14 3900000 43173000
NYSE GM General Motors Co. 37.85 41.85 -4.00 -9.56% 46.76 31.92 1400000 52990000
NYSE HON Honeywell International, Inc. 151.07 153.42 -2.35 -1.53% 165.13 122.40 748380 113057766.6
NASD HDSN Hudson Technologies, Inc. 5.48 6.06 -0.58 -9.57% 10.40 5.37 42400 232352
NYSE IR Ingersoll-Rand Plc 90.22 92.01 -1.79 -1.95% 97.67 77.26 249890 22545075.8
NYSE JCI Johnson Controls, Inc. 37.05 38.19 -1.14 -2.99% 44.37 34.51 926120 34312746
NYSE LII Lennox International Inc. 211.44 207.23 4.21 2.03% 223.05 160.18 41180 8707099.2
NYSE LXU LSB Industries, Inc. 6.97 7.33 -0.36 -4.91% 11.71 5.55 28600 199342
NYSE MTW Manitowoc Co., Inc. 29.94 35.27 -5.33 -15.11% 44.03 21.00 35350 1058379
NYSE MLI Mueller Industries, Inc. 27.98 26.65 1.33 4.99% 37.57 25.50 57560 1610528.8
NYSE NWL Newell Brands, Inc. 28.89 27.64 1.25 4.52% 55.08 23.85 490100 14158989
OTC NSANY Nissan Motor Co. Ltd. 21.17 21.05 0.12 0.57% 22.14 18.18 3910000 82774700
NASD OFLX OmegaFlex, Inc. 63.52 60.90 2.62 4.30% 76.63 42.00 10090 640916.8
NYSE PH Parker-Hannifin Corp. 180.08 184.63 -4.55 -2.46% 212.80 151.17 133050 23959644
NYSE RBC Regal-Beloit Corp. 73.30 75.95 -2.65 -3.49% 87.50 67.84 44320 3248656
NYSE ROK Rockwell Automation 181.76 187.58 -5.82 -3.10% 210.72 148.31 127780 23225292.8
OTC SIEGY Siemens Aktiengesellschaft  65.51 69.10 -3.59 -5.20% 77.17 63.25 815520 53424715.2
NYSE SPXC SPX Corp.  31.10 31.30 -0.20 -0.64% 33.93 21.97 42780 1330458
NYSE TXN Texas Instruments 109.71 104.57 5.14 4.92% 120.75 75.92 983790 107931600.9
NYSE UTX United Technologies Corp. 129.25 130.00 -0.75 -0.58% 139.24 109.10 799780 103371565
NYSE WSO Watsco, Inc. 181.38 169.73 11.65 6.86% 183.84 134.08 29020 5263647.6
 
 
Price 3/15/18
Price 2/15/18
Net Change
Percent Change
HVACR Business Stock Index 1,582.58 1,615.38 -32.80 -2.03%
Dow Jones Industrial Average 24,873.66 25,200.37 -326.71 -1.30%
S&P 500 Index 2,747.33 2,731.20 16.13 0.59%
NASDAQ Composite 7,481.74 7,256.43 225.31 3.10%

 

Gainers/Losers
$ Gainer Watsco, Inc. 11.65
$ Loser Rockwell Automation -5.82
 
% Gainer AAON, Inc. 12.14%
% Loser Manitowoc Co., Inc. -15.11%
 
Advancers 12
Decliners 19

 

The HVACR Business Stock Index slid 32.80 points, or 2.03 percent, and closed at 1582.58. Declining issues passed advancing issues at a 19-to-12 count.

Manitowoc tumbled 5.33 points, or 15.11 percent, and closed at 29.94. Activist investor Carl Icahn said he was unaware of President Trump’s intention to increase steel and aluminum tariffs before he sold one-third of his stake in Manitowoc shares, worth about $31 million, saying that he divested for “legitimate business reasons.” MTW was the top percentage loser.

AAON jumped 4.20 points, or 12.14 percent. For the fourth quarter AAON posted net income of $15.8 million, or $0.30 per share; adjusted for one-time items, earnings were $0.22 per share.

Revenue was $104.2 million. This compares to last year’s profit of $11.4 million, or $0.22 per share and revenue of $91.7 million. AAON also reported the acquisition of the assets of WattMaster Controls with available cash. AAON ended at 38.80, and was the top percentage gainer.

Despite an upgrade, shares of Parker-Hannifin slid 4.55 points, or 2.46 percent. Investment firm Robert W. Baird upped its rating to “outperform” from “neutral.”

Their price target remained the same at $203. Baird analyst Mircea Dobre cited PH’s improving performance, as well as several initiatives the company is executing. PH closed at 180.08.

 




About Margot Crabtree

Margot is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit tradetrendsonline.com.

 

 




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