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Tariff Wars Create Market Jitters as Wall Street Begins Earnings Season

Originally published: 07.16.18 by Margot Crabtree


It was a turbulent month, as trade worries and looming inflationary pressures vied with strong labor and tech as our trading session ended July 13, 2108. The session began with trade wars heating up, as the European Union and Canadian leveed taxes on U.S. exports; retaliation from the U.S. ensued, and Chinese tariffs also took center stage.

The National Association of Realtors said that existing home sales fell 0.4 percent in May, a result of the persistent shortage of available housing stock. The National Association of Home Builders/Wells Fargo builder sentiment index fell from 70 in May to 68 in June. However, the Commerce Department reported that construction spending rose 0.4 percent in May and is 4.5 percent ahead of this time a year ago.

 The Commerce Department said that May’s consumer spending cooled, rising just 0.2 percent. The Commerce Department said that orders for durable goods fell 0.6 percent in May, the second monthly drop. The Conference Board said that its consumer confidence index fell to 126.4 in June, down from May’s 128.8.

The Institute for Supply Management’s manufacturing index rose to 60.2 in June, from a reading of 58.7 in May; seventeen of eighteen manufacturing categories reported growth, despite fears


of pressures from tariff-wielding countries and a stronger dollar.

As earnings season began, banking stocks were eyed critically, as the first to report results did not wow investors. Despite the uncertainty brought by trade and tariff worries, investors turned their attention to earnings.

“We think there will be a lot of attention paid to the outlook,” said Paul Christopher, head of global market strategy for Wells Fargo Investment Institute. “We still think the economy is really what investors should be watching here, and we think it’s going to be solid this year and again good next year.”

Exchange
Symbol
Company Name
Price
7/13/18
Price
6/15/18
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 35.75 33.30 2.45 7.36% 40.25 29.05 52360 1871870
NYSE ABB ABB Ltd. 21.63 23.03 -1.40 -6.08% 28.67 21.22 2130000 46071900
NYSE AOS AO Smith Corp. 60.23 62.88 -2.65 -4.21% 68.39 53.23 145080 8738168.4
NYSE FIX Comfort Systems USA, Inc. 48.30 47.90 0.40 0.84% 48.95 31.90 37040 1789032
NYSE DOV Dover Corp. 74.91 76.82 -1.91 -2.49% 88.09 66.16 154680 11587078.8
NASD ELON Echelon Corp. 8.29 4.15 4.14 99.76% 8.37 4.07 4540 37636.6
NYSE DWDP DowDuPont 66.36 67.75 -1.39 -2.05% 77.08 61.27 2320000 153955200
NYSE EME EMCOR Group, Inc. 77.35 77.70 -0.35 -0.45% 85.08 62.15 58460 4521881
NYSE EMR Emerson Electric Co. 70.58 72.28 -1.70 -2.35% 74.45 57.47 630090 44471752.2
NYSE FCAU Fiat Chrysler 19.43 20.85 -1.42 -6.81% 24.95 11.54 1540000 29922200
NYSE F Ford Motor Co. 10.98 11.88 -0.90 -7.58% 13.48 10.14 3910000 42931800
NYSE GM General Motors Co. 39.36 43.91 -4.55 -10.36% 46.76 34.50 1410000 55497600
NYSE HON Honeywell International, Inc. 147.50 150.23 -2.73 -1.82% 165.13 133.70 746930 110172175
NASD HDSN Hudson Technologies, Inc. 2.16 2.19 -0.03 -1.37% 10.40 1.93 42400 91584
NYSE IR Ingersoll-Rand Plc 91.05 92.14 -1.09 -1.18% 97.67 79.63 247960 22576758
NYSE JCI Johnson Controls, Inc. 35.12 35.04 0.08 0.23% 44.37 32.89 922600 32401712
NYSE LII Lennox International Inc. 215.09 211.33 3.76 1.78% 223.05 160.18 41240 8870311.6
NYSE LXU LSB Industries, Inc. 6.97 5.15 1.82 35.34% 11.71 4.75 28610 199411.7
NYSE MTW Manitowoc Co., Inc. 27.39 25.45 1.94 7.62% 44.03 22.99 35520 972892.8
NYSE MLI Mueller Industries, Inc. 29.62 30.41 -0.79 -2.60% 37.57 25.26 57560 1704927.2
NYSE NWL Newell Brands, Inc. 27.80 26.05 1.75 6.72% 54.19 22.60 485700 13502460
OTC NSANY Nissan Motor Co. Ltd. 18.19 19.77 -1.58 -7.99% 22.14 18.11 3910000 71122900
NASD OFLX OmegaFlex, Inc. 82.96 69.70 13.26 19.02% 84.57 53.50 10090 837066.4
NYSE PH Parker-Hannifin Corp. 161.51 170.92 -9.41 -5.51% 212.80 152.47 132960 21474369.6
NYSE RBC Regal-Beloit Corp. 82.45 82.40 0.05 0.06% 87.50 67.84 43980 3626151
NYSE ROK Rockwell Automation 171.07 177.66 -6.59 -3.71% 210.72 155.81 125580 21482970.6
OTC SIEGY Siemens Aktiengesellschaft  68.22 69.46 -1.24 -1.79% 77.17 61.68 812830 55451262.6
NYSE SPXC SPX Corp.  36.61 36.86 -0.25 -0.68% 37.96 23.41 42970 1573131.7
NYSE TXN Texas Instruments 115.14 115.89 -0.75 -0.65% 120.75 76.19 981720 113035240.8
NYSE UTX United Technologies Corp. 129.51 126.91 2.60 2.05% 139.24 109.10 800060 103615770.6
NYSE WSO Watsco, Inc. 184.06 187.90 -3.84 -2.04% 192.94 141.61 29050 5346943
 
 
Price 7/13/18
Price 6/15/18
Net Change
Percent Change
HVACR Business Stock Index 1,538.98 1,584.08 -45.11 -2.85%
Dow Jones Industrial Average 25,019.41 25,090.48 -71.07 -0.28%
S&P 500 Index 2,801.31 2,779.66 21.65 0.78%
NASDAQ Composite 7,825.98 7,746.38 79.60 1.03%

 

Gainers/Losers
$ Gainer OmegaFlex, Inc. 13.26
$ Loser Parker-Hannifin Corp. -9.41
 
% Gainer Echelon Corp. 99.76%
% Loser General Motors Co. -10.36%
 
Advancers 11
Decliners 20

 

The HVACR Business Stock Index fell 45.11 points, or 2.85 percent, and closed at 1538.98. Declining issues outpaced advancing issues by a 20-to-11 count.

Echelon Corp jumped 4.14 points, or 99.76 percent after Adesto Technologies announced an agreement with ELON to acquire the company for $8.50 per share, for a total value of about $45 million. The deal, subject to traditional closing conditions, including approval by Echelon shareholders, is expected to close in the third quarter of 2018. After acquisition, ELON will become a division within Adesto. ELON ended at 8.29, and was the top percentage gainer.

Parker-Hannifin lost 9.41 points, or 5.51 percent. Investment firm KeyBanc Capital Markets maintained its “overweight” rating, but cut its price target to $200, from $225. PH ended at 161.51, and was the top dollar loser.

Although car sales remained strong, tariffs threw a wrench into automotive stocks, with China imposing billions of dollars of tariffs in retaliation for U.S. measures. Tariffs on aluminum and steel are being felt, and the global nature of the automotive supply chain is expected to reverberate throughout the industry.

GM said if President Trump imposes a tariff on car imports, GM will likely shrink instead of grow. GM fell 4.55 points, or 10.36 percent, and closed at 39.36. GM was the top percentage loser.




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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Tariff Wars Create Market Jitters as Wall Street Begins Earnings Season

The HVACR Business Stock Index fell 45.11 points, or 2.85 percent, and closed at 1538.98. Declining issues outpaced advancing issues by a 20-to-11 count.
View article.