Plus, Analog Devices jumps on a Goldman Sachs upgrade.
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The stock market may be warming up to the President’s unconventional trade policies.
Stocks tanked after President Trump threatened Mexico with a five percent tariff on all exports to the U.S. a couple of weeks ago. They have bounced back considerably since the President called it off last Friday and claimed victory with a deal to control illegal migrants at the southern border. Today, the President said he would slap further tariffs on China if it didn’t attend the G-20 Summit meeting in Japan at the end of the month. Growing numbers of corporate leaders are expressing concern, but investors appear willing to bet on the “tariff man” for now.
Stock prices were well off their mid-day highs but the indexes all had gains today. The Dow and S&P 500 indexes were up 0.3 percent and 0.47 percent respectively and the Nasdaq Composite gained 1.05 percent. The Entrepreneur Index™ closed the day up 0.93 percent.
Technology stocks were mixed. Three of the four FAANG stocks on the index were up with Netflix (-2.46 percent) the only one to decline on the day. Amazon gained 3.14 percent while Alphabet Inc. and Facebook were up 1.35 percent and 0.85 percent respectively.
Analog Devices had the biggest gain on the index today, jumping 5.82 percent after a Goldman Sachs analyst upgraded the stock from sell to buy. Fellow-chipmaker NVIDIA Corp. was also up 2.01 percent. Meanwhile, software-maker salesforce.com had the sharpest decline on the index, falling 5.26 percent after it announced a $15.3 billion deal to buy Seattle-based tech firm Tableau.
Tesla surged 4.1 percent after Roth Capital upgraded the stock from a neutral to a buy rating. It suggested vehicle deliveries in China could surprise to the up side based on May data. The stock has had a nearly twenty percent bounce in the last week after falling nearly fifty percent in the first five months. The shares are still down 36 percent on the year.
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Other good gains on the index included Fedex Corp. (2.42 percent) and Ralph Lauren Corp. (2.51 percent).
L Brands, makers of Victoria’s Secret lingerie, had the second biggest decline on the index today, dropping 3.88 percent. The stock has been a rollercoaster for shareholders this year as optimism for change has alternated with dismay at ongoing loss of market share at Victoria’s Secret. The shares are now down fifteen percent this year.
Other notable declines on the Entrepreneur Index™ today were posted by J.M. Smucker Company (-1.52 percent) and Alexion Pharmaceuticals (-1.67 percent).
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.