Trade Tensions, Bond Yields Headline Short Week

Major indexes are set for their worst month of 2019

The holiday-shortened and final week of May had no shortage of headlines, with another round of trade-induced fear taking investors by storm. Specifically, the Dow plunged to start the week, after President Donald Trump claimed the U.S. was "not ready" to make a trade deal with China. The U.S. 10-year Treasury yield suffered in response, exploring nearly two-year lows, with an inverted yield curve fueling fears of a recession.

While the latest gross domestic product (GDP) reading gave stocks a brief respite on Thursday, the selling pressure resumed on Friday, after Trump made a surprise tweet saying he will impose a 5% tariff on Mexican imports beginning June 10 -- a blow to several sectors, including auto stocks and beer makers. As of this writing, all three major stock market indexes are set for their worst monthly loss since December.

Retail Earnings Make Noise

Several retailers stepped into the earnings spotlight this week. Dick's Sporting Goods (DKS) attracted attention from options traders after earnings, and analysts were cautious ahead of quarterly figures from Abercrombie & Fitch (ANF). Canada Goose (GOOS) also took a hit after reporting slower-than-expected revenue growth.

Trade Tensions Send Commodity Stocks Spinning

Following news that China's latest tariff threat against the U.S. included a restriction in the export of rare earth minerals, commodity stocks and ETFs took focus. Specifically, the SPDR S&P Metals and Mining (XME) and VanEck Vectors Rare Earth/Strategic Metals (REMX) ETFs made notable moves on the charts, the former touching a two-year low, and the latter gapping back above a key trendline. Meanwhile, steel stocks took a hit, with United States Steel (X) and Steel Dynamics (STLD) both crushed by downgrades.

Oil also suffered, though some options traders are attempting to call a bottom for crude prices. On the flip side, Enphase Energy (ENPH) is flashing a fresh buy signal, which could point to further gains for the stock.

2 Stocks That More Than Doubled

Texas-based Soliton (SOLY) saw a big win Tuesday, kicking off the week with an approval from the Food and Drug Administration (FDA) for its "Rapid Acoustic Pulse" tattoo removal device. In fact, the FDA note sent SOLY to its best day ever, more than doubling on the charts. Climbing the charts as well was power conversion specialistEltek Ltd. (ELTK), which more than tripled on a $15 million annual savings plan and upwardly revised forecast.

Apple Conference, May's Nonfarm Payrolls on Deck

With China's $60 billion in tariffs on U.S. goods set to take effect Saturday, June 1, and Trump's newly imposed tariffs on Mexican imports on deck for June 10, trade will almost certainly be a big focus for the upcoming week. Meanwhile, on the economic front, May's highly anticipated nonfarm payrolls. FAANG stock Apple (AAPL) could make headlines as its Worldwide Developers Conference (WWDC) kicks off. Earnings season will continue to wind down, though the highly anticipated debut report from Beyond Meat (BYND) will be unveiled, as well as earnings from retailers GameStop (GME) and Guess? (GES).