A trade-sensitive portfolio is probably a volatile one right now.
But remember to differentiate between the stocks that are more and less sensitive to tariffs.
The U.S. Trade Representative's office released a list of potentially tariffed goods for an additional round of charges on top of Trump's current round -- a second helping that analysts say would have a greater impact on U.S. companies.
The list includes apparel, textile goods, food and food-related items. The chances this would force Walmart (WMT - Get Report) to raise prices are strong. The same goes for Macy's (M - Get Report) . Walmart reports earnings Thursday, May 16, and Macy's beat estimates Wednesday.
But Walmart shares, down 0.27% Wednesday and up less than 1% in the last two days, haven't quite reacted to the news. And if Wednesday's down-move is seen by some as a reaction, it's certainly a muted one.
Walmart items are weighted more toward being consumer staples, rather than discretionary. Groceries are a large portion of revenue; and low-priced discretionary products like clothes are also a big part of the company's revenue. This means that if Walmart has to raise prices on goods that were more costly to obtain in light of tariffs, demand would not fall as drastically as it would for other more discretionary products.
And of course, Walmart shares reacted well Tuesday to the announcement that the company will offer next-day delivery on its online products.
Macy's (M - Get Report) , Real Money's stock of the day, offers consumer discretionary goods. Its stock fell Wednesday as much as 2.9% when trade news in the morning seemed ominous, before moderating to a loss of 0.87% to $21.62.