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Afternoon Note

What Trade War?

By Charles Payne, CEO & Principal Analyst
5/16/2019 1:20 PM

The markets have erased all of Monday’s losses and are now in the green for the week.  The market is rallying despite comments from the China Trade Ministry that they were unaware of Treasury Secretary Mnuchin’s alleged trip to Beijing, that there are no talks scheduled, and they have specific demands before talks could resume.  The street is ignoring the saber rattling.

All eleven S&P 500 sectors are in the green.  Materials and Technology are leading the way higher as investor jump back into the market.  Warren Buffet disclosed his actual stake in Amazon (AMZN) of 483,000 shares to the tune of $900 million dollars.  AMZN is up another 1.88% to $1,907 today.

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)



After the bell, Applied Materials (AMAT), Baidu (BIDU), Nvidia (NVDA), and Pinterest (PINS) will report earnings.  This will be PINS first release since going public. 

On the economic front, initial unemployment claims for the week ending May 11 were down 16,000 to 212,000.  A better gauge, the 4-week moving average, was up by 4,750 to 225,000.  Continuing claims declined 28,000 to 1,660,000 million and for the 4-week moving average increased 1,500 to 1,688,250.  Initial claims have been below 300,000 for 219 consecutive weeks as the labor market remains very tight.

On the housing front, housing start for April were higher than expected, rising 5.7% from the prior month to 1.235 million, as single family starts increased 6.2%. However, starts are down 2.5% year over year and single-family starts are down 4.3% year over year.  The Northeast and Midwest led the way higher on starts, while the South and the West declined.  Permits declined 4.2% from March, and the Midwest was the lone region to see an increase. 


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