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In One Chart: If Trump can’t secure a trade truce, watch for these stocks to get hammered

Investors will be watching closely this weekend for news of a potential trade truce between the U.S. and China, after the leaders of both countries meet on the sidelines of the G-20 meeting in Japan Saturday.

While the broad stock market — as measured by the S&P 500 index SPX, +0.36% or the Dow Jones Industrial Average DJIA, +0.20% — will surely move on the news of a deal or lack thereof, investors would be wise to focus on the industries and companies that have been most sensitive to trade news in recent years.

Jeff deGraaf of Renaissance Macro Research delved into the industry-level reaction to positive trade news in Friday note to clients, finding that capital goods, materials, and automobiles and components stocks perform best on days when there is news of trade tensions easing.

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