The US Financial Markets are Closed Monday to Celebrate Memorial Day
Note: The US economy is so diverse that there are always areas that are insulated from whatever you may be concerned about.
The US-China trade dispute has driven dividend-rich sectors like utilities higher, but investors do not need to get Super defensive just yet, as there are lots of growth stocks with some insulation from China.
Some investors are seeking safety in domestic US growth stocks ranging from software and online advertising to aerospace and recruitment.
While the prospect of a prolonged trade dispute has shaken the market, investors are also trying to protect themselves from the risk that they could miss out on gains in the event that the US and China reach an agreement, and surprise the market.
If looking to avoid the pure dividend play and avoid the China trade issues, you have to look at stocks that are a pure play on the US economy.
What we are seeing is that investors have been raising their defenses. While the S&P has fallen roughly 4% since President Trump announced his plan to raise tariffs on Chinese goods in early May, utilities have risen more than 2%.
But growth investors seek nimble companies with little exposure to overseas sales or Chinese imports even in the beaten down technology sector, where semiconductor stocks have lead the recent declines.
Online advertising platforms and cloud software are 2 technology segments that would not be directly affected by China tariffs.
Some strategists at favors US facing companies offering services such as recruiting and merger advice due to a strong US labor market and solid merger activity.
And some favors domestic payroll software companies, which tend to do better than recruiters in a downturn. But even if their fundamentals remain strong.
And some like defense stocks, which could benefit if US-Iran hostilities keep intensifying.
Remember, the US economy is so diverse that there are always areas that are insulated from whatever you may be concerned about.
Friday, the major US stock market indexes finished at: DJIA +95.22 at 25585.69, NAS Comp +8.72 at 7636.98, S&P 500 +3.82 at 2826.06
Volume: Trade on the NYSE came in at 640-M/shares exchanged
- NAS Comp +15.1% YTD
- S&P 500 +12.7% YTD
- Russell 2000 +12.3% YTD
- DJIA +9.7% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes for the week ended 24 May 2019 is Neutral to Bullish.
Have a terrific Memorial Day weekend
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