Happy hump day.
The news is centering around Tesla's earnings, so let's focus on some stories that didn't get enough love.
China vs. U.S. Showdown
U.S. stock indexes mainly rose and overseas stock markets mainly fell on Wednesday, August 1, after Bloomberg reported that the Trump administration is planning to raise pending tariffs on Chinese imports to 25% from 10%.
Chinese officials are ramping up the rhetoric in response to the news.
"U.S. pressure and blackmail won't have an effect," China's Foreign Ministry said. "If the United States takes further escalatory steps, China will inevitably take countermeasures and we will resolutely protect our legitimate rights. Unilateral threats and pressure will only produce the opposite of the desired result."
Department Stores are Moving Into the Green
Morgan Stanley sees department stores moving to positive EPS beats in the second quarter of 2018. Analysts said that they expect an increase of 0.8% on average in "department store comp sales."
"Given last year's robust holiday season, we expect department stores could be buying more" inventory in the fourth quarter of 2018 when compared to the fourth quarter of 2017. This means that inventory "levels will be a point of focus for the print," according to Morgan Stanley.
Both Kohl's and Nordstrom are holdings in Jim Cramer's Action Alerts Plus members club.