Alchanati Campbell & Associates
Not a good day… Dropbox IPO, U.S. battles China, Best Buy wants love, and shopping spree alert.
Welcome Dropbox! (Ticker $DBX). Dropbox launches its IPO today. Entering the market at $21/share, it jumped 35% to close at $28.48/share. Their successful day led to an increase of $4 billion to make its market capitalization about $12 billion.
Dow Jones drops 420+ points at market closing. Trade war fears? Capital markets took another plunge today with all three major stock indexes in the red. The S&P500, DJIA, and NASDAQ saw losses of 2.1%, 1.77%, and 2.43 % respectively. However with equity's plunging, the major commodities rose, as Crude oil, Gold, and Silver were all in the green. Something worth noting is that the VIX is rearing it's head once more after spiking during the stock plunge in early February. The VIX is up 6.5% today after climbing 20% yesterday. The VIX or volatility Index is essentially the fear gage. It measures investor confidence and fear based off the S&P 500.
$60 billion annual tariff on China Extended. Within the next 15 days, US officials will publicize a plan to tax up to $60 billion worth of Chinese tech imports. US 1 - 0 China
China strikes back. China is set to impose 15-25% tariffs on 128 different US goods including fresh fruit, wine, and steel pipes. US 1 - 1 China
Best Buy is the middle child and wants some love from daddy Trump. The electronics retailer will no longer sell phones from China’s biggest smartphone maker, Huawei. US 2 - 1 China
The U.S. is going shopping. Senators passed a $1.3 trillion spending bill that increases military and domestic spending. This bill will fund the government through September.
China owns 19% of the U.S.? The Chinese Ambassador, Cui Tiankai, stated that, “We are looking at all options,” when asked if China would reduce purchasing U.S. Treasuries. China is America’s biggest foreign creditor. China owns $1.7 trillion in U.S. government securities, and reducing purchasing would cause the U.S. to have to find other ways to pay for their government expenses. US 2 - 2 China
Who will win?
For people who like sports. With the regular season winding down, this means playoffs must be around the corner. The race to the playoffs usually tends to be tight, but this year is different. Only eight of fifteen teams in each conference can get a spot. In the West, we have eight teams, the third through tenth seed all separated by six games; a very slim margin. In the East, Philly is trusting the process and shocked the world sitting a game behind last years Eastern conference’s reigning champs. Each team has 8 - 11 games left to go. Stay tuned to see how this all unfolds.
The Alchanati Campbell and Associates Team
WHAT'S UP FRIDAY? is a weekly newsletter that will give you a summary of "What's up?" on Wall Street, in the US and around the World written by The Alchanati Campbell and Associates Team. What makes us unique is we focus on long-term knowledge; knowledge that will still be useful to you 10 years from now.