Wall Street faced extreme volatility in the last eight trading sessions following President Donald Trump’s tweet on May 5, in which he expressed his displeasure about the progress of U.S.-China trade negotiations and threatened to hike tariffs on Chinese goods.
Wall Street lost a good chunk of value, which it gained through the bull run in first four months of this year, recorded as the best start in 30 years. The technology and industrials sectors were the predominant losers as these are highly trade sensitive. However, a few tech stocks have gained during this period despite the stock market mayhem.
Wall Street Tumbles as Trade War Resurfaces
On May 10, the U.S. government hiked existing tariff rates to 25% from 10% on $200 billion of Chinese exports. In 2018, the Trump administration imposed 25% tariff on $50 billion of Chinese goods. Moreover, President Trump threatened to levy 25% tariff on another $325 billion of Chinese goods.
China had imposed $110 billion tariffs on U.S. exports in 2018. Following the hike of U.S. tariff, the Chinese authority imposed 25% tariff on an additional $60 billion U.S. goods effective Jun 1, 2019.
Consequently, the three major stock indexes -- the Dow, S&P 500 and Nasdaq Composite -- plunged 3.21%, 3.23% and 4.14%, respectively, in the last eight trading sessions covering May 6 to 15.
Uncertainty Looms Large
Markets are uncertain about when the U.S.-China trade tension will be resolved or if at all it will be. President Trump added to the prevailing ambiguity on May 13, when he said that people will come to know whether a trade deal is at all possible in next three to four weeks.
If negotiations continue, there is no timeline specified on when the parties should reach an agreement. However, a consensus will certainly bode well for both economies. On the other hand, if no progress is made at all and a full- fledged trade war rages, then in addition of these two countries, the global economy will also see a slowdown.
5 Tech Stocks Moving Higher
The recent concerns about U.S-China trade deal and consequently the global economic slowdown have not stalled growth of all technology stocks. We have been able to narrow down our search to five tech stocks, which have moved higher in the last eight trading days and still have upside left. All five stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
OptimizeRx Corp. (OPRX - Free Report) provides digital health messaging services for pharmaceutical companies to communicate with healthcare providers. Its cloud-based solutions support patient adherence to medications by providing real-time access to financial assistance, prior authorization, education and critical clinical information.
The company has expected earnings growth of 61.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 10.5% over the last 30 days. The stock has surged 44.3% in the last eight trading days.
Match Group Inc. (MTCH - Free Report) offers subscription-based online dating websites and applications services. Its biggest and best known brands are Tinder, Match.com, PlentyOfFish, Meetic and OkCupid. The company offers dating products in 42 languages in more than 190 countries.
Although the company has expected earnings growth of just 6.6% for the current year, the same for the next is currently pegged at 29.2%. The Zacks Consensus Estimate for the next year has improved by 0.5% over the last 30 days. The stock has surged 13.1% in the last eight trading days.
Cubic Corp. (CUB - Free Report) provides various integrated technology solutions worldwide. Its solutions enhance the situational understanding for transportation, defense, and training customers, as well as for command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) customers.
The company has expected earnings growth of 1,051.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 108.8% over the last 30 days. The stock has gained 6.4% in the last eight trading days.
PCTEL Inc. (PCTI - Free Report) delivers performance critical telecom solutions in the Asia Pacific, Europe, the Middle East, Africa and the Americas. It designs and manufactures precision antennas, which are used primarily in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial IoT.
The company has expected earnings growth of 675% for the current year. The Zacks Consensus Estimate for the current year has improved by 187.5% over the last 30 days. The stock has gained 4.9% in the last eight trading days.
Diodes Inc. (DIOD - Free Report) designs, manufactures, and supplies application-specific standard products in the discrete, logic, and analog and mixed-signal semiconductor markets in Asia, North America, and Europe. It primarily focuses on low pin count semiconductor devices with one or more active or passive components.
The company has expected earnings growth of 17.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 12% over the last 30 days. The stock has gained 2.4% in the last eight trading days.
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