Stocks Mixed With Earnings, Trade Tensions in Focus
Stocks started strong this week but eventually slid into a three-day losing streak
The week looked promising for stocks on Monday, as the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) all managed to grab fresh highs as investors brushed off ongoing trade uncertainties. The mood on Wall Street shifted on Tuesday, however, after highly anticipated earnings from Blue Chip Home Depot (HD) fell flat. This sell-off was further exacerbated by comments from President Donald Trump threatening to raise tariffs if a deal between the U.S. and China could not be reached.
This dismal trade sentiment led to a three-day losing streak for the Dow, as even more tension-building trade news began to trickle in, including a report from Reuters that a "phase one" trade deal wouldn't happen until next year, and a Wall Street Journal report suggesting China may have invited U.S. officials to continue negotiations in Beijing. As of this writing, both the Dow and S&P are looking to snap their three-day losing streak.
Retail Sector Abuzz Before Black Friday
The retail sector has seen a lot of action this week, with earnings still pouring in and the Black Friday shopping event just around the corner. Headlining this busy week was the aforementioned dismal report from Home Depot (HD), which weighed down the sector. Kohl's (KSS), Urban Outfitters (URBN), and Macy's (M) joined in with dismal earnings of their own.
It wasn't all bad news though. Despite the stock moving lower, Victoria's Secret parent L Brands (LB) pulled through with a strong full-year forecast. Target (TGT), Lowe's (LOW) and Nordstrom (JWN) also posted well-received results, despite the bearish sentiment that circled the two pre-earnings. Meanwhile, a bear signal just sounded for Bed Bath & Beyond (BBBY) which could push the stock even further down.
Pot Stocks Burn Bright on Federal Bill Buzz
News that the U.S. House Judiciary Committee approved a bill to legalize marijuana at a federal levels had U.S.-traded pot stocks popping this week. Canopy Growth (CGC), Aurora Cannabis (ACB) and Cronos (CRON) were among the names to get a boost. Earlier in the week, sector peer Tilray (TLRY) got a boost, which had options bulls calling a short-term bottom on the pot stock.
Shortened Week Features Retail Earnings, Deluge of Economic Data
Although markets will be closed for the Thanksgiving holiday next Thursday, and Friday will be an abbreviated session, there's still plenty of activity for investors to gobble up. The retail sector will remain front and center, with the Black Friday shopping event, and the unofficial start to holiday shopping season. Several members of this sector will also take their place in the earnings confessional, including Dick's Sporting Goods (DKS) and Dollar Tree (DLTR). On the economic front, durable goods, gross domestic product (GDP) and housing data is due out.