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