By Victor Reklaitis, MarketWatch
The Dow looks like it might want to fall for a fifth-straight session, as heebie-jeebies about a potential trade war refuse to go away.
The mixed results from Italy and Germany’s political “Super Sunday” are largely failing to grab the broad market’s attention, as traders think instead about the rationale behind the tariff bombshell.
“My take on the steel tariff move by Trump is that it is not a game-changer for the economy at large, but was designed by the administration’s trade negotiators as a tactic,” says a Team Macro Man blogger . They want to “look more serious in negotiations with China and NAFTA,” he says.
One product so far from President Trump’s tariff plan: a rise in bullish calls on steel stocks. MKM Partners technician Jonathan Krinsky and iBankCoin blogger The Fly are both sounding upbeat about the alloy, and they contribute to our call of the day .
U.S. Steel’s stock /zigman2/quotes/200069642/composite X +9.66% is “potentially breaking out to the upside,” Krinsky says. MKM’s chief market technician reckons the stock is emerging from a multi-year base, as he shares the chart below, which shows sideways or downward action since 2011.
Meanwhile, iBankCoin’s The Fly has this advice: “Quit bitching about things you cannot control, and get inside the molten steel furnace and enjoy the heat.”
“Your job is to make money,” he reminds traders in a post filled with insults . “U.S. Steel is +55% over the past 3 months. The steel ETF , SLX /zigman2/quotes/206568157/composite SLX +4.73% , is higher by 16% over the past 3 months.”
Key market gauges
Futures for the Dow and S&P 500 are falling, while those for the tech-heavy Nasdaq-100 are flat. That’s after the Dow /zigman2/quotes/210598065/realtime DJIA +0.83% closed lower Friday, but the S&P /zigman2/quotes/210599714/realtime SPX +0.88% and Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.70% gained, as each gauge lost ground for the week.
European stocks /zigman2/quotes/210599654/delayed XX:SXXP +0.59% are mostly higher after German Chancellor Angela Merkel secured a fourth term over the weekend. But Italy’s benchmark is dropping after yesterday’s election there produced no clear winner, but showed a surge in support for anti-establishment parties.
Asian markets closed mostly lower, while oiland the dollar index /zigman2/quotes/210598269/delayed DXY +0.10% are up. Gold is little changed, as bitcoin /zigman2/quotes/31322028/realtime BTCUSD -0.46% trades around $11,500.
See the Market Snapshot column for the latest action.
Oscars 2018: Politics in the Spotlight
Social issues stole the show at the Academy Awards, with celebrities such as Guillermo del Toro, Lupita Nyong'o and Frances McDormand talking politics at the podium. Photo: ABC
4 Oscars — That was the haul last night for Guillermo del Toro’s “The Shape of Water,” with the monster romance nabbing more Academy Awards than any other movie. It won for best picture, best director, best production design and best score.