It was another tough week for stocks.
The week actually got off to a great start. On Monday, the major indices were up nicely, ending the day near session highs. And for a moment, it looked like we were close to another run at the records set in January.
But then the mood changed. And back-to-back-to-back losing days put the major indices deep in the red.
On Friday, stocks were higher. But it wasn’t enough to make a real dent in the losses suffered mid-week.
The major indices finished lower for the third time in five weeks. The DOW was hardest hit, losing 3.1% on the week.
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Here’s where the major indices ended the week:
- The S&P finished with a 2.0% loss. Down 56 points, the S&P ended at 2,691.
- The DOW ended 3.1% lower. Dropping 772 points, the DOW closed at 24,538.
- The NASDAQ was down 1.1% With a 78 point loss, the NASDAQ finished at 7,258.
- Bitcoin was up 15%. Adding $1,455, Bitcoin is trading at $11,123.
Crude Oil (CL) had a rough week as well. With a 3.8% loss, CL settled at $61.15 a barrel.
The big news last week had to do with President Trumps’ tariffs and a possible trade war. Trump acknowledged the trade war concerns by tweeting “Trade wars are good, and easy to win.”
On Thursday, Trump announced a 25% tariff on steel imports and a 10% tariff on aluminum imports. The tariffs go into effect this week.
American steel companies did great last week because of the news. U.S. Steel (X) finished 4.3% higher and Steel Dynamics (STLD) was up 1.8%.
But the tariff news didn’t sit well with investors overseas and stocks were lower in Asia and Europe on Friday. Domestically, auto manufacturers who rely on low metal prices were also hit hard.
Looking at the week, Ford (F) dropped 2.8%, General Motors (GM) lost 8.5% and Toyota (TM) was down 4.7%.
There were some big earnings moves on Friday.
Gap (GPS) finished higher by 7.8% after reporting strong fourth-quarter earnings. Foot Locker (FL) lost 12.7% after weaker than expected results, and J.C. Penney (JCP) lost 5.4% after missing on same-store sales estimates. Nordstrom (JWN) had a mixed fourth quarter but traders didn’t seem to mind. JWN finished higher by 5.9%.
McDonald’s (MCD) was the victim of a downgrade on Friday. With the news, MCD touched 9-months lows and lost 4.8%.
This week, traders will continue to assess the impact of Trump’s tariffs and a possible trade war. We also have the closely watched Jobs Report on Friday.
Here are this week’s key reports (all times ET):
MONDAY – ISM Non-Manufacturing PMI at 10:00am.
TUESDAY – No major reports.
WEDNESDAY – ADP Non-Farm Employment Change at 8:15am and Crude Oil Inventories at 10:30am.
THURSDAY – Unemployment Claims at 8:30am.
FRIDAY – Jobs Report at 8:30am.
Source: RockwellTrading by Markus Heitkoetter | Original Link