The Dow Jones Industrial Average Index drops as the midnight rate approaches the deadline

Midnight deadline

US stocks again closed in red on Thursday in an uncertain context of trade negotiations between the United States and China. the
Dow Jones Industrial Average
decreased by 138.97 points, or 0.54%, to finish at 25,828.36. the
S & P 500
slipped 8.70 points, or 0.30%, to close at 2870.72, and the
Nasdaq Composite
lost 32.73 points, or 0.41%, to end at 7910.59.

As negotiators from both countries return to the table, investors remain worried if negotiations can avoid rate hikes before the Trump deadline of midnight.

China said it would take retaliatory action if the US responded to its tariff threats, as well as the country's economic resilience and ability to cope with tariff escalation. The market was hammered early Thursday, according to the principle "sell first, ask questions later", but recovered from the bottom of the session at the end of negotiations.

LPL Financialof the Ryan Detrick Not too worried: "Even if tariffs rise tomorrow, there is still time for a resolution and minimal impact on the global economy," he wrote Thursday, "But the weather is counted and both parties still have important differences to resolve. "

Jamie Cox of Harris Financial Group think some opportunities could be created in the fog of the trade war. "Many investors were expecting a withdrawal of capital that would have been late before the rally of the first quarter of 2019. Today, you have your chance," he wrote, "no one really knows what the situation will be. of trade, but everyone should do it. able to understand that if you liked
Microsoft

(MSFT) at 130, you should like it at 125. "

Yet not all actions were losing. Barron selected some of the best performers of the day and recommended some methods to prepare your portfolio for both possible scenarios: escalation or agreement.

While all eyes are on trade, the latest economic data suggests that inflation remains moderate and that the labor market still looks healthy for the United States.

The April producer price index (PPI) rose 0.2% from the previous month, down from the 0.6% monthly increase in March, but largely in line with expectations. Initial jobless claims were 228,000 for the week ended May 4th, down from 230,000 the previous week, but higher than a consensus estimate of 215,000, according to FactSet.

The four-week moving average of jobless claims rose to 220,250, the third consecutive increase. Despite the slight increase, the number of claims remains well below 300,000, an essential threshold generally associated with a healthy labor market, according to Jim Baird of Plante Moran Financial Advisors.

"On the surface, the recent increase in the number of claims after three consecutive weeks around the 200,000 threshold could be worrying, especially in the context of the current economic slowdown," Baird wrote Thursday. "Nevertheless, the fact that the claims have stabilized around 230,000 claims for three consecutive weeks and are not continuing to increase gives some assurance that the rate of layoffs does not accelerate."

Baird believes that the recent volatility in claims data could also be attributed in part to the two vacation periods – Easter and Passover – and the school year, all of which can skew the numbers.

The hot stock

Tapestry stock (TPR) climbed to the top of the S & P 500 on Thursday

The tapestry stock advanced $ 2.61, or 8.5%, to $ 33.36.

The fashion conglomerate, notably the brands Coach and Kate Spade, recorded a positive quarter and set up a buyback program.

In the last 12 months, the tapestry stock has decreased by 26.5%.

The biggest loser

Western Oil

shares (OXY) fell to the bottom of the index, becoming de facto the buyer of
Anadarko Petroleum

(APC).

Western stocks lost $ 3.88, or 6.4%, to $ 56.33.

Chevron

stock (CVX) has refused to increase its bid on Anadarko after Western has exceeded its initial bid, which means that Occidental will likely close the deal. However, investors may not be happy with the profile of its post-takeover debt and would prefer that it give them back some money.

Over the last 12 months, the western stock has lost 31.6%.

–Teresa Rivas