Last Week’s Highlights:

The continued stalemate between the U.S and China on a potential trade deal continued to pressure equity markets. Rhetoric from politicians on tariffs and trade once again resulted in share weakness of companies that rely on sales in China and those that buy supplies there. The Dow Jones Industrial Average (DJIA) closed lower for a fifth consecutive week, its longest such losing streak since 2011. For the past week, the DJIA declined 178.31 points, or 0.7%, to 25,585.69, while the S&P 500 fell 1.2% to 2826.06. The tech-heavy NASDAQ dropped 2.3%, closing at 7637.01. The Commerce Department blacklisted China telecom giant Huawei Technologies from buying U.S.-made components. The Department then gave Huawei a reprieve for 90 days to fulfill existing orders. Shares of suppliers to the company, including Alphabet (GOOGL) and Intel (INTC), rose and fell as trade headlines continued. British Prime Minister Theresa May finally said she would resign as Conservative Party leader on June 7th. She’ll remain as PM until a successor is named. May’s discussions with the Labour Party and her final attempt to pass a Brexit plan have both collapsed.

Looking Ahead:

On Tuesday, Bank of Nova Scotia (BNS) and Workday (WDAY) release their quarterly financial results. The Conference Board reports its Consumer Confidence Survey for May – economists forecast a 130 reading, up from April’s 129.2 print. President Trump concludes his four-day visit to Japan. The trade war with China and sanctions against North Korea are expected to be topics of discussion with Prime Minister Shinzo Abe. Palo Alto Networks (PANW), Dick’s Sporting Goods (DKS), Amerco (UHAL) and Bank of Montreal (BMO) report earnings on Wednesday. Bristol-Myers Squibb (BMY) and Exxon Mobile (XOM) hold their annual stockholder meetings in Lawrence Township, N.J., and Dallas, respectively. The Federal Reserve Bank of Richmond releases its Fifth District Manufacturing Survey for May – analysts call for a reading of seven, up from April’s three, indicating that manufacturing activity is still expanding in the region. On Thursday, look for earnings reports from Burlington Stores (BURL), Costco Wholesale (COST), Dell Technologies (DELL) and Ulta Beauty (ULTA). The National Association of Realtors reports its Pending Home Sales Index for April – economists forecast a 1% increase after a 3.8% rise in March. Lowe’s (LOW) and Zions Bancorp (ZION) host their annual meetings of stockholders in Charlotte and Salt Lake City, respectively. The Institute for Supply Management announces its Chicago Purchasing Managers’ Index for May – economists forecast a 55 reading, up from April’s 52.6 report.

The Tufton Capital Team hopes that you have a wonderful week!