rss

US says it is creating a 90-day temporary general license for Huawei and 68 entities

US Commerce Department

  • Says it is revising entity list restrictions on Huawei so existing customers can maintain networks
  • Allows Huawei to provide service and support, including software updates or patches to existing Huawei handsets
  • Says it is creating a 90-day temporary general license for Huawei and 68 entities through to the 19th of August

Headlines via Reuters

US Commerce Dept. ever so slightly pulling back the restrictions on Huawei. Tech stocks on the US have been hit on the Huawei developments over the weekend and into Monday.

Stocks down but it could have been worse

Nasdaq the hardest hit

The major US indices are ending the session in the red, but it could have been worse.
The final numbers are showing:
  • The S&P index fell -19.31 points or -0.67% at 2840.23. The low reached 2831.29
  • The Nasdaq fell -113.91 points or -1.46% at 7702.37. The low reached 7678.34
  • The Dow fell -84.10 points or -0.33% at 25679.90.  The low reached 25560.55

Looking at the ranges and changes for the US and European markets, the major indices for the most part stayed below the 0.0% as global trade concerns weighed on equity sentiment.

Ford to cut 7000 salaried jobs

Major restructuring in the US automaker

Ford has announced that they will cut 7000 salaried jobs in a major restructuring. Of the 7000 cuts around the world, 2300 will be in the US. The cuts will be made by the end of August.
Looking at Ford’s stock price, the price moved above the 50, 100 and 200 day MAs back in March/April (and also above a downward trend line. The pair tested an old floor at $10.44 over the last few weeks.  A move above that area would be more bullish….
Ford stock

US equity futures slip on speculation that China will retaliate against Huawei measures

S&P 500 futures turn negative on the day

E-minis 20-05

European stocks are also hitting its day’s lows after speculation earlier and that has sent USD/JPY to its lows near the 110.00 handle currently as well. The only bright side for risk sentiment is that Treasury yields have yet to really respond, as 10-year yields are still up by about 1 bps at 2.402%.
Otherwise, sentiment is starting to turn south again as US-China trade tensions continue to stick around. The speculation earlier didn’t exactly come from an official source but is enough to send jitters across markets for now.
Should the news be made official, I reckon the tremors will reverberate even more. As such, tread with caution as we’re most likely going to see trade tensions ramp up further before they get any better moving forward.
Go to top