“I always define my risk, and I don’t have to worry about it.” – Tony Saliba

1. EU Responds to U.S. Auto Tariff Threat — after President Trump threatened to impose a 20% tariff on all imports of EU-assembled cars, EU Commission Vice President Jyrki Katainen told French newspaper Le Monde “If they decide to raise their import tariffs, we’ll have no choice, again, but to react,”.
2. GE Plans Healthcare Spinoff, Baker Hughes Stake Sale — the once industrial conglomerate is spinning off its healthcare business and unloading ownership in its oil services company Baker Hughes (NYSE:BHGE). The final turnaround plan from CEO John Flannery. GE will focus on its power, aviation and renewable-energy divisions. The company was booted out of the Dow Jones Index and was replaced by Walgreen Boots.
3. Canada Prepares Moves to Block Chinese Steel Diverted from U.S. — Canada is preparing tariffs and quotas on steel from China and other countries to prevent a potential flood of imports from global producers seeking to avoid U.S. tariffs. The Bloomberg report follows warnings from the Canadian steel industry and the EU’s decision to ward off the dumping of steel that would have been sent to the U.S.
4. Amazon’s New Last-Mile Delivery Service — Amazon is building out its own last-mile delivery service, pushing further onto the turf of shipping partners UPS and FedEx (NYSE:FDX). The new program, called Delivery Service Partners, will let entrepreneurs run their own local delivery networks of up to 40 delivery vans emblazoned with Prime logos. “This is all about scaling cost effectively,” said Dave Clark, SVP of Amazon Worldwide Operations (NASDAQ:AMZN).
5. AAII Weekly Bearish Sentiment Surges — according to the latest weekly sentiment survey from AAII, bullish sentiment dropped more than ten percentage points, falling from 38.7% down to 28.4% in what was the largest one week decline since early March.

Meanwhile, bearish sentiment surged, rising from 26.2% up to 40.8% in what is only the second week in the last year where bearish sentiment has been above 40%. More importantly, though, it was the largest one week increase in negative sentiment since January 2016, which also happens to be another time when a plunging Chinese stock market was in the headlines.

The week ahead — Economic data from Econoday.com:

Tags: AAII Weekly Sentiment

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