Week In Review: How Trump's Policies Moved Stocks - Nov 9, 2019

Trump says China wrong about rollbacks, ends up (mostly) right about GM plant sale

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump and his administration with this weekly recap compiled by The Fly:

1. TARIFF ROLL BACK? NOT SO FAST: After a spokesperson for China's Ministry of Commerce was quoted on Thursday as having said that China and the United States had agreed to cancel tariffs in phases, President Donald Trump told reporters on Friday that he has not agreed to roll back tariffs on China, though China would like him to do so. Trump added that "frankly they want to make a deal much more than I do."

2. IF TARIFFS ROLL BACK, APPAREL AND SHOE SELLERS SEEN AS WINNERS: Following Thursday's press reports indicating that the U.S. was considering removing the 15% List 4A tariffs and may not move ahead with December's planned List 4B tariffs, Jefferies analyst Janine Stichter said she thinks such an event could be a catalyst for the footwear and apparel group from both an EPS and multiple standpoint and a tailwind for overall discretionary spending. She particularly highlighted what she sees as a potentially significant benefit for retailers American Eagle (AEO), Urban Outfitters (URBN) and Boot Barn (BOOT), on which she has Buy ratings. Stichter also listed Chico's (CHS), Abercrombie & Fitch (ANF), Gap (GPS), Steven Madden (SHOO) and Genesco (GCO) among retailers and footwear companies who source heavily from China and have high exposure to direct imports, instead of third party brands.

3. SIX MONTHS LATER, GM SELLS LORDSTOWN: On Thursday, Lordstown Motors Corp., or LMC, a new original equipment manufacturer, announced the acquisition of the GM (GM) manufacturing complex in Lordstown, Ohio. "The move paves the way for LMC to begin production of the Endurance pickup truck, the industry's first all-electric pickup truck purpose-built for fleets starting in late 2020," the company stated. Lordstown Motors will be licensing components of Workhorse Group's (WKHS) electric drive technology in building the Endurance electric pickup truck, the company noted, adding that their agreement also provides the opportunity to transfer 6,000 existing pre-orders received by Workhorse for its W-15 prototype to LMC. On May 8, nearly six months to the date before LMC's deal announcement, President Trump tweeted: "GREAT NEWS FOR OHIO! Just spoke to Mary Barra, CEO of General Motors, who informed me that, subject to a UAW agreement etc., GM will be selling their beautiful Lordstown Plant to Workhorse, where they plan to build Electric Trucks."

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