Trading the Trump tariffs...
It may be time to dust off those Trump tariff trades. Over the course of a week, the always unpredictable Trump administration has displayed a renewed vigor to slam countries with tariffs. Earlier this week, team Trump said it would proceed with a 25% tariff on $50 billion of Chinese goods boasting "industrially significant technology." On Thursday, the Trump Administration said it would drop the European Union from an exemption to global tariffs of 25% on imported steel and 10% on aluminum.
Thus far Thursday, the market has taken it in stride with a modest selloff in U.S. markets. But the market should start worrying about tariff bombs, and by extension trade wars with vital overseas market players. A few weeks back, TheStreet ran a list of 50 big-cap stocks that could be rocked by a trade war with China. Now is a good moment to play those trades to the downside in what may be a volatile few weeks of political headlines on the trade front.
Top names include: Qualcomm (QCOM - Get Report) , Micron (MU - Get Report) , Broadcom (AVGO - Get Report) , Intel (INTC - Get Report) , Electronic Arts (EA - Get Report) , Visa (V - Get Report) , McDonald's (MCD - Get Report) , Nike (NKE - Get Report) and Starbucks (SBUX - Get Report) .
Here's a news flash that shouldn't come as a surprise: Sears (SHLD) is an absolute disaster. TheStreet wrote about that here, and then warned about it again here. In fact, we have been warning about Sears for more than six years.
We fire off the alarm once more on Thursday as the dying owner of Sears and Kmart said it will close 100 more stores following a dreadful first quarter in which it lost an astonishing $3.93 a share. But that may not be the most disturbing aspect of the day for Sears. Dig into the company's freshly filed 10-Q, and it shows Sears used a whopping $1.2 billion in cash to support its operations during the quarter. That's up from $880 million used a year ago. The company finished the quarter with a mere $186 million in cash and only had $20 million in availability under its $1.5 billion credit facility.Shares of Sears, which had been boosted by a new deal with Amazon ( AMZN - Get Report) (of course announced weeks before this awful quarter), were likely to be under pressure Thursday as investors assess whether the company can make it to the holiday season.
Names on TheStreet
Boeing's (BA - Get Report) stock has been on fire this year, up 20%. Broaden out the stock chart, and the gains amass to an impressive 90%. At least four factors have fueled the gains: (1) Consistently strong demand in the commercial aircraft market; (2) solid levels of defense spending by the Trump administration; (3) an insanely growing backlog; and (4) perception on Wall Street that Boeing remains just as innovative as, say, a big-cap tech company such as Alphabet (GOOGL - Get Report) .
So what better time to sit down with Boeing CEO Dennis Muilenburg this afternoon to discuss the company's outlook. Looking forward to this interview, which will go live on our site around 1 p.m. ET. You can easily sign up for alerts on Boeing from TheStreet (and any other stock you own) by heading here. Since you probably own 100 shares of Boeing, you might want to quickly get on that free alert list.