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Morning Commentary

Anxiety Grows

By Charles Payne, CEO & Principal Analyst
5/23/2019 9:35 AM
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The sell off continues as concerns over trade build, coupled with the infrastructure showdown in D.C. yesterday.  China is saying that trade talks cannot continue unless the U.S. deals with its “wrong actions.”

While specific actions were not mentioned, restriction placed on Huawei by the U.S. is among the issues. However, Secretary of State Mike Pompeo maintains that Huawei ‘s CEO simply “isn’t telling the American people the truth” on its ties to the Chinese government.  He added, “For them to say that they don’t work with the Chinese government is false.” 

All the negativity surrounding trade is impacting Europe as well,  which was just starting to show signs of stabilizing. The May flash manufacturing PMI for the Eurozone declined further into contraction, and Germany's Ifo Business Climate Index fell to its lowest level since 2014 in May.

Meanwhile, President Trump said he will not work on an infrastructure bill while the Democrats are investigating him. This is dragging down key names in that space.

Key support for the Dow Jones Industrial Average

https://www.tradingview.com/x/rDYdd98F/

This morning we received initial jobless claims for the week ending May 18.  Claims were down 1,000 to 211,000 and the 4-week moving average declined by 4,750 to 220,250.   Continuing claims increased by 12, 000 to 1,676,000 and the 4-week average increase by 5,000 to 1,674,250. The numbers continue to represent a tight labor market.

Portfolio Approach

Communication Services

Consumer Discretionary

Consumer Staples

1

3

1

Energy

Financials

Healthcare

1

2

1

Industrial

Materials

Real Estate

2

3

0

Technology

Utilities

Cash

3

0

3

 

Today’s Session

Its been a tough time for chip stocks, and this month alone, the sector is down about 12%.  The antitrust ruling on Qualcomm (QCOM) is continuing the drag down.

 


Comments
There's part of the unemployment report you should take note of. The unemployment claims for newly discharged veterans. From over 900k a year ago to 488k May 11th.

Brian Bigelow on 5/23/2019 10:07:21 AM
No count Democrats should be convicted of treason and billed for Border Cost that we are paying for; Also charged for 40 million to litigate Trump Collusion Delusion: they are not worthy of public service and must be extricated from office!

Mike Mitchell on 5/23/2019 10:35:10 AM
Mike is dead on the mark!

E T Nash on 5/23/2019 1:33:00 PM
I am concerned with the NOTHING being accomplished in the House & Senate. Doing nothing over a long period of time has to be detrimental to the Stock Market. The DEM's are disgraceful. They do nothing except investigate, create falsehoods, ignore our immigration-invasion and target Trump's impeachment. They do not seem to care about Americans, real Americans. They seem to want to destroy our future. Why?
**Mike Mitchell has good points - above.

FM Toye on 5/23/2019 1:41:34 PM
I'm so confused about the political world these days. I think too many politicians don't care because they'll be reelected. It would be wonderful to have a test on sincerity of desire to cure nation's issues not play partoican games.

Charles Payne on 5/23/2019 3:16:26 PM
Vote the dictators out before they fundamentally change the U.S.A. into the United States Socialist Republic. , better know as the USSR-----who robbed the public starting w/ $ and moved on to robbing the people of the TRUTH-------sound familiar ?????----millions died---

John Cowger on 5/23/2019 2:35:47 PM
I am hopping mad over the demonRat's treason, sedition, lying and corruption. They are sabotaging America to stop Trump. Mark Levin nails it. It is a constitutional crisis. Democrats are the party of hatred, infanticide, crime and open borders. Please vote them out. America depends on it.

ALISON HARRIS on 5/23/2019 2:53:09 PM
Ditto ET Nash and Mike

Larry Leonard on 5/23/2019 3:00:01 PM
 

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