Stocks and Securities

Stocks closed lower on Friday, after the Employment Situation report for August showed a stronger-than-expected increase in average hourly earnings. Later, the US – China trade war took another step forward as President Trump threatened another round of tariffs on Chinese goods. The S&P 500 finished lower by 0.2%, while the Dow Jones Industrial Average and the Nasdaq Composite each lost 0.3%.

Trump sent stocks back to their opening levels around midday after saying that he’s got another tranche of tariffs on $267 billion of Chinese goods “ready to go” if China retaliates to a US bid to impose a tariff on an additional $200 billion of Chinese goods. These tariffs are yet to come to be, however, investors are expecting them to come to be implanted sooner than later.

Dow Industrial AverageS&P 500Nasdaq 100Russell 2000

 

 

 

 

 

 

 

 

 

 

 

The top-weighted technology sector outperformed for much of the day, but eventually finished lower losing 0.3%. Within the space, Broadcom (AVGO) rallied 7.7% after reporting better-than-expected earnings for its fiscal third quarter. Shares of Apple Inc. (AAPL) dropped late afternoon, finishing lower by 0.8% in response to headlines that the Trump administration’s proposed tariff list may cover a wide range of the company’s products.

In other news, shares of electric automaker Tesla (TSLA) tumbled 6.3%, hitting a five-month low, after its Chief Accounting Officer announced his resignation after just a month with the company and following headlines that its Chief People Officer will not be returning from her leave. Additionally, Elon Musk was seen smoking marijuana and drinking on Seth Rogen’s show which also contributed the uncertainty surrounding Tesla (TSLA).

 

 

Crude oil WTI - Oil markets and oil pricesCrude oil Brent - oil markets and oil prices

 

 

 

 

 

 

US oil production reported by the EIA increased by 231K bpd (2.2%) mom in June driven by increases in the Gulf of Mexico and Texas. However, the US onshore is once again weighing heavy on investors minds after profit warnings from HAL, Weir and Keane. It may take some time for the US sector to recover. Most estimate that recovery could take well into second half of 2019 to early 2020. Imperative to note, Oil demand continues to be higher than expected, which could be attributed to the disruptions seen in Iran and Venezuela.

What are the best stocks to buy in this market?

 

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Stocks on the Radar

Regarding potential ETF plays from our ETF ALPHA segment, last week we had the notables UWT (+4%) and LABU (+6%). Look at this weeks take on the ETFs we follow.

Furthermore, we encourage our readers to look at our most recent article titled “New Frontiers in Genomic Medicine” as we highlighted Bluebird BioInc. (BLUE) as our next long-term investment opportunity.

Lastly, take time to read our “Best stocks to Buy in September”, as we highlighted four of our picks for this month.