Trump Bans Transactions With TikTok’s Owner ByteDance

TikTok ByteDance Ban Huawei tiktok privacy concerns

Commenting on Trump’s executive order to ban transactions with TikTok’s owner ByteDance and WeChat and today’s trading Gorilla Trades strategist Ken Berman said:

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Q2 2020 hedge fund letters, conferences and more

Trump Bans Transactions With TikTok’s Owner ByteDance And WeChat

The major indices are all trading slightly lower at midday following a bearish overnight session. Risk assets pulled back globally and the dollar pushed higher due to the mounting worries regarding the European COVID outlook and the U.S.-China tensions. President Trump issued an executive order to ban Americans from making transactions with TikTok’s owner ByteDance and WeChat, two Chinese social media and communication platforms. The decision sparked a selloff across markets, reviving global trade fears and putting pressure on China-related issues, crude oil, and the energy sector.

In economic news, the government jobs report was in focus this morning, and the report beat expectations across the board. Non-farm payrolls came in at 1.76 million, well above the consensus estimate of 1.53 million, while the unemployment rate fell to 10.2% and hourly earnings increased by 0.5%. Earlier on, German and French industrial production handily beat expectations and while European equities stabilized thanks to the positive surprises, the euro remained weak as the COVID fears weighed on the currency.

Market Wrap

Market breadth has been in line with the performance of the major indices this morning, with decliners outnumbering advancing issues by a 6-to-5 ratio on the NYSE at midday. Only 5 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 122 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a choppy and mixed afternoon. Utilities and real estate stocks have been showing relative strength in early trading as Treasury yields dropped despite the bullish jobs report, while the energy sector, materials, and the tech sector have been lagging the broader market as the sectors continue to diverge in the choppy environment. Stay tuned!

The post Trump Bans Transactions With TikTok’s Owner ByteDance appeared first on ValueWalk.