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
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| 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.