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Afternoon Note

Trade Tensions

By Charles Payne, CEO & Principal Analyst
4/9/2019 1:57 PM

News of tariffs on European goods and the International Monetary Fund (IMF) cutting its 2019 global growth forecast have been adding pressure to the major indexes.  According to the IMF, global growth is expected to decline to 3.3% in 2109. IMF chief economist Gita Gopinath said, "Fiscal policy will need to manage trade-offs between supporting demand, protecting social spending, and ensuring that public debt remains on a sustainable path, with the optimal mix depending on country-specific circumstances."


The U.S. Bureau of Labor Statistics reported the number of job openings In February fell to 7.1 million (rate of 4.5%); verses 7.5 million consensus. The January number was revised to 7.62 million (from 7.58 million). The number of quits were little changed in February at 3.5 million; still well above the pre-recession levels. Layoffs and discharges were little changed at 1.7 million.

Trade-sensitive industrials were among the worst hit, dropping 1%. The Down Jones transports index (DJT) is down 0.6% after American Airlines (AAL) trimmed its first-quarter revenue forecast due to the global grounding of Boeing’s 737 MAX jets.

Boeing (BA) is lower after its first quarter deliveries numbers showed that the company handed far fewer planes, with no new MAX orders in March. Caterpillar (CAT) and 3M Company (MMM) were also driving the Dow lower.

Communication Services (XLC) is the only sector in green led by Disney (DIS) and Facebook (FB).


S&P 500 Index


Communication Services (XLC)


Consumer Discretionary (XLY)


Consumer Staples (XLP)


Energy (XLE)


Financials (XLF)


Health Care (XLV)


Industrials (XLI)


Materials (XLB)


Real Estate (XLRE)


Technology (XLK)


Utilities (XLU)




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