Stock Market Update Sunday, May 12th, 2019
It was a rough week for stocks.
Traders thought a trade deal was in the works. But instead, President Trump said he would raise tariffs on Chinese goods (again).
Traders freaked out on the news, and stocks finished lower for 4 days straight.
The major indices were down big on Friday after the Chinese tariffs went into effect. At one point, the S&P was down over 4.0% for the week! And it looked like the losing streak would go onto 5 days.
But stocks bounced back after some big early losses Friday, eventually ending the day with a small gain.
Friday’s small gain seemed like a win after a rough week. But the S&P still ended the week with a 2.2% loss, the worst of the year.
This week traders were focused on the following:
- Tariffs & Trade – This was the real driver behind the swings we saw. At the beginning of the week, President Trump threatened more tariffs. And on Friday the increase actually happened, with tariffs going up to 25% on $200 billion worth of Chinese goods. After the tariff increase, Trump stoked trader fears even more by saying that there is “no rush” to make a deal now that tariffs have been raised. But reports on Friday said that the U.S. is giving China 3-4 weeks to reach a deal.
- Uber (UBER) – Uber’s IPO was setting up to be one of the biggest of all time. But like Lyft, the IPO was a bit of a flop. On its first day of public trading, Uber opened below its $45 IPO price at $42 a share. The stock finished its debut with a 7.6% loss.
Here’s where the major indices ended the day:
- The S&P finished with a 2.2% loss. Down 64 points, the S&P ended at 2,881.
- The DOW was lower by 2.1%. Dropping 563 points, the DOW closed at 25,942.
- The NASDAQ was down 3.0%. With a 247 point loss, the NASDAQ finished at 7,917.
Crude Oil (CL) finished lower for the 3rd week in a row. Down 0.4%, CL ended at $61.66 a barrel.
This upcoming week traders will be keeping a close eye on the trade situation between the U.S. and China.
Retail will also be in the spotlight.
On Wednesday, we’ll get Retail Sales data. And some big retail names are reporting earnings. Including Walmart (WMT) on Thursday and Macy’s (M) on Friday.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.