Market 2018-04-06 (Dumb and Dumber, TGIF....)

As I said yesterday, we have a bloody Friday. Trade worries are rising again as Dumb Trump requested that U.S. trade officials consider imposing tariffs on an additional $100B worth of imports from China, which reacted by declaring that is ready to respond to any new tariffs and that negotiations could not be conducted under current conditions.

In today's title, "dumb and dumber" ---- It was a dumb idea to start "trade war", now it's getting dumber. "TGIF" ---- thanks god it's Friday. Hope the situation will get better over the weekend. Current market is "untradable".

The March non-farm payrolls report showed the U.S. adding 103K jobs, missing headline expectations by a wide margin.

The early bounce attempt has failed, with all three indices fell more than 2%. At 2600, the S&P 500 is right around February low again.

The worst today are the industrials (XLI -2.8%), Tech (QQQ -2.5%) and the financials (XLF -2.4%). Relatively better are income plays like mREITs (REM flat), utilities (XLU -0.8%) and REITs (IYR -0.9%) as the 10-year Treasury yield dips.

Treasury: 30-year +0.82%. 10-yr +0.36%. 5-yr +0.22%. TLT +1.1%.
Crude -2.44% to $61.99. Gold +0.61% to $1,336.60. UUP -0.37%.

The total U.S. rig count climbed by 10 (all oil, flat for gas) to 1,003.

Trump tweeted today that falling aluminum prices are a sign that his tariffs are not hurting the economy, but the price of Midwest premium aluminum has more than doubled this year and is still near YTD highs. Then Aluminum prices surge again today (JJU +1.9%), following new tariffs on Russian businesses and individuals, including aluminum producer Rusal and billionaire CEO Oleg Deripaska.

BMW plans to introduce the i4 and iNext electric models in 2020 and 2021, but could pull the plug on the i3 and i8 over the long term.

Winners

Supervalu (SVU +9.3%) spikes off reports that the company is working with advisers on a potential sale.

BGS +2.5% continues its bounce-back. UNFI flat, SAFM flat, PPC +1%, CPB +0.6%.

ULTA +0.6% is among few stocks showing green.

REITs & mREITs: OHI +0.7%, AGNC +0.5%, HCP +0.2%...

Losers

Among stocks related to the agricultural sector, Caterpillar (CAT -3.5%), Deere (DE -3.9%) and DowDuPont (DWDP -2.6%) are sharply lower.

BA -3.1%.

Ford (F -1.5%) issues a recall in North America for ~350K trucks and SUVs to address a potential issue with unseated transmission gear shift cable clips.

China Internet Nationwide Financial Services (CIFS -8.6%) is hitting a session low after Muddy Waters Research tweets "we're still short." Muddy Water links it to Longfin (LFIN +47.3%), noting the two share Network 1 Financial Securities as an underwriter (lead for Longfin, co-lead for CIFS). Nasdaq halted trading in Longfin at 10:01 ET for "additional information requested" from the company at a last sale price of $28.189. The SEC has obtained an emergency freeze of $27M in proceeds from stock sales of what the agency calls a "purported cryptocurrency company."

In today's update on Facebook (FB -1.3%) policy moves, the company says it's acting to increase transparency and accountability for "issue" advertising, including political/electoral ads. FB is the best among FAANG today, AAPL -2.6%, AMZN -3.2%, NFLX -1.7% and GOOG -2%. MSFT -2.3%, SQ -4.5%, TWTR -1.9%, SNAP -1%...

Semiconductors continue to slip, SOXX -3%: MU -2.8%, NVDA -3.2%, WDC -3%, INTC -3.2%, AMD -4.1%, XLNX -6.2%, KLAC -4.3%, AMAT -3.6%, LRCX -2.2%...

My Trades Today

Sold BGS @ $24.8.

Bought QD @ $11.

Added more NVDA @ $215.

Comments

  1. UnknownApril 6, 2018 at 5:26 PM

    亏飞了。真的是没办法。看来要不然捂着，要不然退市。

    ReplyDelete
  2. UnknownApril 6, 2018 at 5:42 PM

    捂着吧没什么 希望小扎和FB早日恢复正常

    ReplyDelete
  3. UnknownApril 6, 2018 at 5:43 PM

    经常来拜读 很受益 多谢了

    ReplyDelete

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