US stocks seem to be poised to edge lower today on further anxiety about US/China trade wars.
After the president rushed an executive order to ban sales of goods and services in the US from Chinese telecom giant Huawei, analysts are pointing out the likely consequences in terms of heightened trade tensions.
“The Nasdaq Composite led U.S. stocks lower as Google and other tech companies began to comply with the White House’s ban on sales of goods and services to China’s Huawei Technologies,” write MarketWatch analysts in “The Brief” for this morning. “That ban is likely to worsen tensions with Beijing over trade. Oil prices rose in response to indications that OPEC might extend cuts to production.”
Some analysts are taking a longer view, looking at what may happen to the market over a year’s time.
“We’re in for a very rough time because of all of these things that have been going on,” said Todd Horowitz to CNBC’s Nancy Hungerford this morning.
Overall, Horowitz downplays some of the concerns on the dashboard, such as US/China trade, but points squarely to debt as a major problem in the American economy.
Suggesting that banks are overleveraged, Horowitz said he could see up to a 20% selloff over the year in a recession scenario, and suggested that Federal Reserve moves are going to move markets in a big way.
“I think the Fed should keep their mouth shut,” he said, arguing for a more private operational model by the central bank.
Elsewhere, analysts see some green indicators in corners of the short term outlook.
Analyst Pierre Ferragu points to an ascendant Uber stock.
“As they grow, you will wait less for your ride,” Ferragu said in a CNN Business interview segment.
Responding to the slump of Uber value since its IPO, Ferragu said the company has a twofold mandate – first, he said, they need to explain how they create value, and second, they need to provide regular progress updates to investors.