Gold Silver Reports (GSR) – U.S. Tariffs Planned For $300 Billion More – Late Monday, the U.S. Trade Representative’s Office released plans to impose 25% tariffs on the $300 billion worth of Chinese goods that have not been taxed so far. President Donald Trump has been threatening such a move even as he raised tariffs on $200 billion worth of goods to 25% from 10%.
Trump Remains Upbeat
Trump remained upbeat on China trade talks later in the evening: “We’ll let you know in about three or four weeks whether of not it was successful. … But I have a feeling it’s going to be very successful.”
Early Tuesday, Trump said A China trade deal will come “when the time is right.”
Despite Trump’s optimism, both sides seem to be digging in after China trade talks broke down.
Beijing said Monday it would impose tariffs on an additional $60 billion of U.S. goods.
The U.S. is taking an initial step to further escalate the China trade war, though the $300 billion in tariffs won’t happen for several weeks at least. But they would mostly hit consumer goods, such as smartphones, computers and textiles. That suggests that the Apple iPhone would finally face a stiff penalty, likely hurting Apple and U.S. customers.
Apple stock rose just over 1% in early Tuesday, providing a boost to Dow Jones futures as S&P 500 futures and Nasdaq futures. During Monday’s stock market trading, shares skidded 5.8%, falling below their 50-day and 200-day lines. That’s after Apple stock tumbled last week to close below its 197.97 buy point. At its intraday low Monday, Apple was 7.6% below that entry, an automatic sell signal.
Current Stock Market Rally
The current stock market rally took a serious beating Monday, especially after last week’s sharp losses. The Dow Jones fell 2.4%, plunging through its 200-day line. The S&P 500 index skidded 2.4% and the Nasdaq composite lost 3.4%, both knifing through their 50-day averages.
But beyond the major indexes and big-name losers like Apple stock, a big concern for the current stock market rally was the performance of leading growth stocks, especially software stocks like Zscaler that had looked strong last week. Zscaler stock, which broke out Friday, tumbled 7.4% Monday, erasing all of Friday’s 7.2% gain. Workday (WDAY), Coupa Software (COUP), HubSpot stock and Mimecast stock all fell below buy points.
Email security services provider Mimecast reported mixed earnings late Monday, with shares tilting lower after hours.
Among the best ETFs, Innovator IBD 50 (FFTY) slid 3.9% on Monday. The iShares Expanded Tech-Software Sector ETF (IGV) fell 3.8%. VanEck Vectors Semiconductor (SMH), which took a beating last week, fell 4.7% Monday.