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Markets Tumble as Trade Wars Bite

Originally published: 10.16.18 by Margot Crabtree


A tumultuous month began with two record back-to-back highs from the Dow industrials and closed with a more than 800-point sell-off in the same as our trading session ended Oct. 15, 2018.

As it began, an additional 10 percent tariff on $200 billion worth of Chinese goods came into play. Labor Department said that employers added considerably more jobs in July and August than tallied earlier. The unemployment rate is now at 3.7 percent, a low not seen since December 1969.

The Federal Reserve said that the worth of Americans’ stock holdings rose by $800 billion in the second quarter, and home values increased by $600 billion. Total household wealth in the second quarter grew by 2.1 percent compared to the first quarter. The Federal Reserve, as expected, raised the short-term interest rate, causing a slight stutter.

The Commerce Department reported that housing starts soared by 9.2 percent in August, the largest increase since January 2018. The National Association of Realtor’s pending home sales index slid 1.8 percent in August to 104.2, with a 2.3 percent decline year-over-year. The Commerce Department said that sales of new homes rose 3.5 percent in August.

The Commerce Department reported that durable goods orders rose a sturdy


4.5 percent in August, the biggest increase in six months, driven by the volatile transportation sector. Excluding that sector, orders increased 0.1 percent. The Commerce Department reported that factory orders surged 2.3 in August, the largest jump since September 2017. Year-over-year, orders are up 8.6 percent.

At the beginning of October, a strong jobs report and higher interest rates capped a turbulent week with another Dow record close. The sell-off continued in our final week as concerns emerged about slowing global growth when China lowered the costs of financing and stimulated growth in the midst of the on-going trade war. Despite economic data, investors have their eyes on the fallout from trade tensions.

“Everybody has been pretty much dismissing the effect of the trade war on U.S. equities, and now they’re beginning to think ‘wait a minute, maybe there could be a problem,’” said Sam Stovall, chief investment strategist for CFRA. “I don’t think the reasons for the decline have been resolved.”

Exchange
Symbol
Company Name
Price
10/15/18
Price
9/14/18
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 32.25 40.20 -7.95 -19.78% 43.30 29.05 52260 1685385
NYSE ABB ABB Ltd. 21.09 23.96 -2.87 -11.98% 28.67 21.01 2130000 44921700
NYSE AOS AO Smith Corp. 47.56 59.36 -11.80 -19.88% 68.39 47.32 144540 6874322.4
NYSE FIX Comfort Systems USA, Inc. 51.93 56.50 -4.57 -8.09% 59.05 35.50 37040 1923487.2
NYSE DOV Dover Corp. 82.03 88.48 -6.45 -7.29% 90.26 70.11 147700 12115831
NYSE DWDP DowDuPont 58.94 68.58 -9.64 -14.06% 77.08 58.81 2310000 136151400
NYSE EME EMCOR Group, Inc. 69.12 77.12 -8.00 -10.37% 85.08 68.05 58180 4021401.6
NYSE EMR Emerson Electric Co. 71.42 77.54 -6.12 -7.89% 79.70 57.47 628470 44885327.4
NYSE FCAU Fiat Chrysler 16.22 17.50 -1.28 -7.31% 24.95 15.33 1550000 25141000
NYSE F Ford Motor Co. 8.81 9.45 -0.64 -6.77% 13.48 8.55 3910000 34447100
NYSE GM General Motors Co. 32.12 34.63 -2.51 -7.25% 46.76 31.49 1410000 45289200
NYSE HON Honeywell International, Inc. 156.21 165.11 -8.90 -5.39% 167.72 137.99 742610 116003108.1
NASD HDSN Hudson Technologies, Inc. 1.23 1.39 -0.16 -11.51% 6.98 1.00 42400 52152
NYSE IR Ingersoll-Rand Plc 97.11 103.40 -6.29 -6.08% 105.76 79.63 245310 23822054.1
NYSE JCI Johnson Controls, Inc. 33.15 38.00 -4.85 -12.76% 42.60 32.35 924920 30661098
NYSE LII Lennox International Inc. 199.71 226.09 -26.38 -11.67% 229.98 178.12 40260 8040324.6
NYSE LXU LSB Industries, Inc. 8.60 9.09 -0.49 -5.39% 10.05 4.75 28610 246046
NYSE MTW Manitowoc Co., Inc. 21.05 22.98 -1.93 -8.40% 44.03 20.58 35540 748117
NYSE MLI Mueller Industries, Inc. 25.81 28.97 -3.16 -10.91% 37.57 25.20 57590 1486397.9
NYSE NWL Newell Brands, Inc. 17.43 21.70 -4.27 -19.68% 43.08 17.28 472500 8235675
OTC NSANY Nissan Motor Co. Ltd. 17.82 18.98 -1.16 -6.11% 22.14 17.53 3910000 69676200
NASD OFLX OmegaFlex, Inc. 62.90 75.24 -12.34 -16.40% 95.00 53.50 10090 634661
NYSE PH Parker-Hannifin Corp. 163.53 187.15 -23.62 -12.62% 212.80 152.47 132420 21654642.6
NYSE RBC Regal-Beloit Corp. 77.22 84.90 -7.68 -9.05% 86.75 67.84 43450 3355209
NYSE ROK Rockwell Automation 169.02 191.60 -22.58 -11.78% 210.72 155.81 123170 20818193.4
OTC SIEGY Siemens Aktiengesellschaft  58.19 63.65 -5.46 -8.58% 77.17 57.13 814100 47372479
NYSE SPXC SPX Corp.  29.75 34.65 -4.90 -14.14% 39.28 28.09 43050 1280737.5
NYSE TXN Texas Instruments 99.43 105.36 -5.93 -5.63% 120.75 92.57 972200 96665846
NYSE UTX United Technologies Corp. 130.33 137.80 -7.47 -5.42% 144.15 115.40 800090 104275729.7
NYSE WSO Watsco, Inc. 164.27 183.35 -19.08 -10.41% 192.94 155.57 29050 4772043.5
 
 
Price 10/15/18
Price 9/14/18
Net Change
Percent Change
HVACR Business Stock Index 1,426.74 1,563.29 -136.55 -8.73%
Dow Jones Industrial Average 25,250.55 26,154.67 -904.12 -3.46%
S&P 500 Index 2,750.79 2,904.98 -154.19 -5.31%
NASDAQ Composite 7,430.74 8,010.04 -579.30 -7.23%

 

Gainers/Losers
Smallest $ Loser Hudson Technologies, Inc. -0.16
Top $ Loser Lennox International Inc. -26.38
 
Smallest % Loser Honeywell International, Inc. -5.39%
  LSB Industries, Inc. -5.39%
Top % Loser AO Smith Corp. -19.88%
 
Advancers 0
Decliners 30

The HVACR Business Stock Index tumbled, shedding 136.55 points, or 8.73 percent and closing at 1426.74, the lowest close since April 2017. Declining issues shut out advancing issues, with all thirty companies posting in negative terrain.

Lennox International fell 26.38 points, or 11.67 percent. Investment bank Credit Suisse Group began coverage on LII with a rating of “outperform.” Their price target is $229. Lennox ended at 199.71, and was our top dollar loser.

Honeywell slid 8.90 points, or 5.39 percent. Two firms started coverage on Honeywell this session: Gordon Haskett with a rating of “buy” and Credit Suisse with a rating of “neutral.” HSBC Securities cut its rating to “hold” from “buy,” and have a price target of $162. HON closed at 156.21, and was one of the smallest percentage losers.

Parker-Hannifin fell 23.62 points, or 12.62 percent. Research firm Gordon Haskett initiated coverage on PH with a rating of “sell.” Parker-Hannifin ended at 163.53.

 




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.

 

 




Articles by Margot Crabtree

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Markets Tumble as Trade Wars Bite

The HVACR Business Stock Index tumbled, shedding 136.55 points, or 8.73 percent and closing at 1426.74, the lowest close since April 2017. Declining issues shut out advancing issues, with all thirty companies posting in negative terrain.
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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.
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