We start out today’s market session with the S&P 500 and DJIA still about where they were yesterday – near all-time highs on the historical price chart, but kind of in the toilet in terms of five-day activity.
Challenges with big ticker tags like Tesla and JCPenney create downward pressure, and Ford’s 7000 layoffs are also concerning.
On a brighter note, Christine Romans at CNN Business reported before the bell that the Trump administration has somewhat reversed its executive action cracking down on Chinese telecom giant Huawei.
“The Trump administration is easing up on Huawei a little bit,” Romans said, describing a temporary license for the Chinese operator that will last 90 days.
However, Romans also pointed to another major trade threat on the horizon.
Over the past 24 hours, a new narrative has emerged in the US/China trade war that’s currently underway.
Nike, Adidas, and other similar brands are petitioning the American White House to limit tariffs on specific products that might come under the wider umbrella of tariff activity begun a couple of weeks ago.
Claiming that tariffs on their products will cost U.S. consumers $7 billion per year, these captains of industry are pleading with an erratic White House to draw the line on tariff activity, which would seem to be out of character for a president bent on punishing China for its wrongs.
“Any action taken to increase duties on Chinese footwear will have an immediate and long-lasting effect on American individuals and families,” wrote industry heads in a letter that was posted on the website for the Footwear Distributors and Retailers of America. “It will also threaten the very economic viability of many companies in our industry.”
Nor is the potential carnage limited to the footwear industry.
“Other US companies have also recently warned that additional tariffs on Chinese goods will hit consumers,” writes Nathaniel Meyersohn at CNN. “Walmart, America’s largest retailer, said last week it will raise prices on some products as a result of the Trump administration’s tariffs on Chinese goods.”
Look for more news this week – will tariffs change? Give us your predictions here.