🍨 Daily Scoop: The trade war is not over yet

By Hoda Mehr Wed, Jul 3, 2019

What you need to know?

The stock market was just about to take a deep sigh of relief about the continuation of the U.S. and China trade conversations that the news about yet again another trade war came out. The U.S. Trade Representative’s Office released a new list of European products that could get hit by new tariffs summing up to $4 Billion.

Apparently, the EU and the U.S. are in a 15-year trade disagreement over subsidies provided to Airbus, the aircraft manufacturer in the EU, that directly impact Boeing (Ticker: BA), the rival aircraft manufacture in the U.S.

What does it mean for investors?

While any news with the word “trade” in it seems to be threatening to the stock market investors, we should not forget that trade negotiations are complex and time-consuming. It takes years to go through several categories of products and services and come to an agreement that is mutually beneficial to the two sides of the trade. Don’t let the news headlines throw you off of your game.

• U.S. markets: All three major stock market indices finished Tuesday slightly higher. The upward trend was not a certainty in the early hours of the afternoon, but by the time the market closed, they all ended in the green territory. Scroll to the Overall Market section to read more about what happened. 
• Cryptocurrency: Bitcoin’s price continued to hover between $10,000 to $11,000 per coin. But, in related news, shares of Overstock.com Inc (Ticker: OSTK) were up close to 14% after the company announced the launch of its crypto wallet mobile app.

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Going up, one day at a time. 

What happened on Tuesday?

The stock market finished Tuesday higher than where it started, following a similar pattern on Monday. The higher prices are coming after the report that the manufacturing sector has softened globally, and investors are concluding that the central banks around the world will start administering new monetary and policy boosts. Couple that with the residual happiness from the continuation of the trade negotiations between the U.S. and China, the stock market had nothing to do but celebrate.

Now What?

Despite all that, borrowing words from the White House economic advisor, Peter Navarro, the trade agreement is still far from completion and several aspects of the agreement need to be discussed. As investors, we should remember that there is no reason to expect a market crash every day. The stock market can continue an upward or a downward trend for several consecutive days without ever experiencing a very drastic change of direction. For now, it looks like the market is just taking the news one day at a time.

What a Yo-Yo. 

It was only a few weeks ago when the short sellers were celebrating the demise of Tesla (Ticker: TSLA), as the company’s stock price fell to the low of $176.99 per share. As it stands today, more than 20% of the company’s outstanding shares in the market are shorted. Tuesday was no celebration for those short sellers. Tesla’s share price was up to more than $240 in the after-hours’ trading session.

The stock price jump came after the latest vehicle delivery report by Tesla. With over 95,000 deliveries in the quarter and a higher backlog of orders, the company broke its global record and investors are gobbling up the company’s shares once again! Don’t forget that the higher delivery number is coming after a disappointing quarter. Most of the boost in the delivery numbers is due to the delays from the last quarter that were pushed out to the latest quarter. That doesn’t mean Tesla is firing on all cylinders now.

Nike’s Flag. 

Shares of Nike (Ticker: NKE) finished Tuesday slightly lower than where it started after the news broke that a new 4th of July special sneakers are not going on sale because of a controversial flag reminiscent of the slavery era in America.

There is a joke circulating within the trading communities online that Nike’s shares flagged after pulling off its flag shoes (ahem: stock nerds). The flagging of the stock refers to a flag-like price pattern being formed as Nike’s stock price reacted to the news. The controversy is not over yet. The move by Nike made Arizona’s Governor request to cancel previously promised financial incentives to the company for building a factory in that state. Let’s wait and see how this flag story develops in the coming days …

The food delivery war. 

So, what happened? 

Restaurant delivery startup DoorDash is winning the war. First, we heard about Amazon’s food delivery group to shut down its services, and now, the numbers show that GrubHub (Ticker: GRUB) is losing the war in recent months. The food delivery app DoorDash now has 32% share of the market in the United States, based on the report by the data aggregator firm, Second Measure. The company is even surpassing Uber Eats in market share.

The meal delivery war is heating up. Which one is your go-to app for meal orders?

About the Author

The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card