Week of Apr 6 2018 Weekly Recap & The Week Ahead

“There is only one side of the market and it is not the bull side or the bear side, but the right side.” ― Jesse Livermore

1. China Hits U.S. with Tariffs on 128 Products — In response to the Trump administration’s recently implemented tariffs on steel and aluminum, China has retaliated with tariffs on imports of 128 American-made products. The tariffs, which are hitting such products as wine and frozen pork, are as high as 25% and go into effect Apr 9. “We hope that the United States will rescind its measures that violate World Trade Organization rules as quickly as possible” said the Chinese Ministry of Commerce in an online statement. Furthermore, The Trump administration has imposed another $50B worth of 25% tariffs on China imports, to which China has responded with 25% tariffs on another 106 American products. The newest U.S. tariffs will impact some 1,300 Chinese products, including medical devices, batteries and machine tools, as well as some consumer products like television sets.
2. GM No Longer Report Monthly U.S. Auto Sales — General Motors stated in its latest report that it will do away with monthly U.S. vehicle sales reports – an industry standard – and switch to quarterly reporting. “Thirty days is not enough time to separate real sales trends from short-term fluctuations in a very dynamic, highly competitive market,” said Kurt McNeil, U.S. vice president, Sales Operations, in a GM press release.
3. First Quarter 2018 ETFs Asset Class Performance — courtesy of BIG, the S&P 500 (SPY), Dow 30 (DIA), and Nasdaq 100 (QQQ) all fell quite significantly in March, which was enough to drag both the S&P 500 and Dow 30 into negative territory for the quarter. Looking at S&P 500 sectors, the worst-performing areas in March were Financials, Materials, and Technology, while Energy and Utilities were actually up nicely. For the full first quarter, though, Technology and Consumer Discretionary were the only two sectors in the black.

4. Cyberattack On Four Gas Pipeline Companies — Bloomberg reported cyberattack that hit the operations of at least four gas pipeline companies in recent days also was felt in the utility industry. Duke Energy (NYSE:DUK) said it first learned of the attack on March 30 because it shares consumer data with third-party electricity and gas providers in Ohio through an electronic system run by Energy Services Group, the data firm that was hacked.
5. Trump Announced New Tariff Threat — President Trump has instructed the U.S. trade representative to look at $100B more in tariffs against China. “In light of China’s unfair retaliation, I have instructed the USTR to consider whether $100B of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs,” Trump said.

The week ahead — Economic data from Econoday.com:

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