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July 21, 2019, 4:38 p.m. EDT

Earnings season: Here are the 9 S&P 500 companies blaming the trade war for performance or outlook, so far

Dow components Nike and Goldman Sachs make the list

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By Chris Matthews, MarketWatch

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Honeywell International Inc . /zigman2/quotes/205583690/composite HON -1.16%  

The industrial company clawed back some early-week losses when it issued second quarter earnings results Thursday that beat expectations, though revenue fell shy.

Chief Financial Officer Greg Lewis said, however, that the company is “taking a cautious view on short-cycle growth as many macro signals: China GDP, U.S.-China trade tensions and Brexit, just to name a few, are still clouding the economic outlook. We think it’s prudent to plan conservatively, given the uncertainties. And our 3Q and second half guidance reflect that.”

Shares were down 1.5% for the week, though they are up 32% on the year, versus a 19.6% rise for the S&P 500.

Morgan Stanley /zigman2/quotes/209104354/composite MS +0.51% and Goldman Sachs Group Inc.  

Morgan Stanley Chief Financial Officer Jonathan Pruzen cited “trade discussions” as a reason why “China [mergers and acquisitions] activity has been quite slow.”

Dow component Goldman Sachs partially blamed declining revenues in its institutional client services and underwriting businesses on China trade concerns, during a Tuesday earnings call. ”Geopolitical events caused significant shift in risk appetite,” Chairman and Chief Executive David Solomon said. “Fears of expanding trade wars drove concerns that new tariffs on China and Mexico would erode the prospect for continued growth,” he added.

“In response, equity volatility were increased, global markets turned risk-off, the U.S. yield curve inverted and client activity slowed across a variety of products as our corporate and investor clients stayed on the sidelines.”

Nike Inc.  

The global apparel giant reported fourth-quarter earnings on June 27, missing earnings forecasts. Though fears that new tariffs will be applied to apparel imports from China have not come to fruition, Nike Chief Financial Officer Andrew Campion did cite a stronger dollar, driven by “uncertainty around Brexit and U.S.-China trade” as a reason for not posting better performance.

The company’s stock has outpaced the S&P 500 since it released earnings, but trails the index by about 2 percentage points year-to-date.

Micron Technology Inc . /zigman2/quotes/205710729/composite MU -4.46%  

The chip maker has been on a tear lately, despite revenue for the third quarter, ended May 30, tumbling 39% year-over-year. “With economic and trade challenges facing the industry, the near-term continues to be uncertain,” Sanjay Mehrota said in a June 25 call with analysts.

Shares have risen 18.5% month-to-date, versus a 2.4% rise in the S&P, though some analysts have warned that chip investors are getting ahead of themselves.

FedEx Corp . /zigman2/quotes/203047719/composite FDX -0.52%  

The global logistics giant released fiscal fourth quarter earnings on June 25, reporting a nearly $2 billion loss, and Chief Executive Fred Smith attributed weaker international revenue on “the slowdown in global trade.’

“Global trade disputes and low global growth rates create significant uncertainty for the Express business, leading us to be cautious in projecting full-year 2020 earnings for this segment,” he said. Shares in the company have fallen 15.5% during the past three months, versus a 2.7% rise for the S&P 500.

/zigman2/quotes/205583690/composite
US : U.S.: NYSE
$ 165.57
-1.95 -1.16%
Volume: 4.42M
Oct. 18, 2019 6:30p
P/E Ratio
19.34
Dividend Yield
2.17%
Market Cap
$119.13 billion
Rev. per Employee
$366,763
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/zigman2/quotes/209104354/composite
US : U.S.: NYSE
$ 43.66
+0.22 +0.51%
Volume: 10.49M
Oct. 18, 2019 6:30p
P/E Ratio
9.32
Dividend Yield
3.21%
Market Cap
$72.16 billion
Rev. per Employee
$831,709
loading...
/zigman2/quotes/205710729/composite
US : U.S.: Nasdaq
$ 43.47
-2.03 -4.46%
Volume: 26.22M
Oct. 18, 2019 4:00p
P/E Ratio
7.94
Dividend Yield
N/A
Market Cap
$47.98 billion
Rev. per Employee
$832,917
loading...
/zigman2/quotes/203047719/composite
US : U.S.: NYSE
$ 149.91
-0.79 -0.52%
Volume: 2.79M
Oct. 18, 2019 6:30p
P/E Ratio
92.89
Dividend Yield
1.73%
Market Cap
$39.11 billion
Rev. per Employee
$304,846
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