The Dow Jones Industrial Average got a slight boost from a thaw in the trade war, but fears of slowing global growth are keeping the index stuck in neutral.
China's lackluster economic growth, reported in the country's latest industrial output numbers, rattled investors. But that's welcome news for a few American companies. We'll outline which are celebrating below...
Here are the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
Forget the ongoing trade dispute between China and the United States. Focus on the fact that global GDP is likely to pull back. China's industrial numbers are a disaster. The unfortunate people in charge of announcing industrial output numbers did so this morning, and the figures tied to manufacturing were well short of expectations. Markets were off this morning thanks to recurring concerns about China's growth potential.
Automotive stocks were pushing higher after China announced plans to cut tariffs on U.S. automobiles. Shares of General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F) ticked higher thanks to a "Buy" recommendation from Deutsche Bank, which initiated coverage this week. The German investment bank said that the challenges faced by the automotive business will create a scenario where restructuring leads to future success.
Investors have reason to fret over Britain's plan to exit the European Union. On Thursday, European Union leaders reaffirmed their support for a recent deal to allow the UK to exit the world's largest trading block. However, despite surviving a confidence vote, Prime Minister Theresa May has struggled to find support in Parliament for the deal she struck with the EU last month.
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Shares of Costco Wholesale Corp. (NASDAQ: COST) were on the move this morning after the retailer fell short of earnings expectations on Thursday. Shares fell 3.7% after the firm announced earnings per share of $1.61. That figure was $0.01 short of expectations.
Starbucks Corp. (NASDAQ: SBUX) stock was off this morning after the firm announced tepid same-store sales projections for the future. The firm said that it expects 3% to 4% annual growth despite huge growth expectations in China and a slew of emerging markets.
Facebook Inc. (NASDAQ: FB) is set to diversify its sources of revenue. The social media giant announced this morning that it plans to increase its video subscription model. The social media giant plans to sell subscriptions for channels like HBO and other networks in the near future.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.