Morning Dose: Trade War Escalation Sparks Stock Slide
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning traders! Welcome to The Morning Dose market briefing. Today, on Friday, July 11th, we are greeted with a sea of red as trade war tensions escalate, setting the market on edge.
Overnight Headlines
- Trade War Escalation: President Trump announces new tariffs, including a substantial thirty-five percent tariff on Canadian imports.
- Market Reaction: S&P 500 futures indicate a drop of over half a percent at the open amidst the risk-off sentiment.
- Yields Response: Surprisingly, Treasury yields are up as the market grapples with conflicting impulses of safety and inflationary pressures.
Economic Announcements
Today’s key event is the Treasury Budget for June at 2 PM Eastern. However, the focus remains on trade-related headlines driving market sentiment.
Earnings Highlights
- Levi’s (LEVI): Beats earnings, raises full-year guidance, and increases dividends, leading to a more than six percent surge.
- AeroVironment: Up on reports of fast-tracked drone production, while Toll Brothers slips following executive changes.
Top Movers
- Winners: Levi’s (LEVI), AeroVironment
- Losers: Milestone Pharmaceuticals (MIST), Civista Bancshares (C.I.V.B.)
Quick Trade Ideas
- Upgrade: AMC and Cinemark upgraded to Outperform by Wedbush.
- Downgrade: Albemarle downgraded to Sell by UBS, Expeditors downgraded by B of A Securities.
Key Takeaway
Keep a close watch on trade developments and technical levels. The market is vulnerable to further selling pressure, but support levels for the S&P 500 (SPY) at 621 could offer a buying opportunity. Stay nimble and monitor gold and the VIX for fear signals.