Week In Review: How Trump's Policies Moved Stocks - Sunday, Nov. 24, 2019

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. APPLE TOUR: President Trump and Apple (AAPL) CEO Tim Cook toured facilities in Texas where Apple products are made earlier this week. Remarking on the "key strategic visit for the company," Wedbush analyst Daniel Ives said that while he sees more AI and hardware manufacturing coming out of the U.S., India, and potentially Vietnam down the road, for the foreseeable future China remains the "linchpin" of success on the iPhone supply chain. Cook needs to "play nice in the sandbox" both in the U.S. as well as in China to make sure no new roadblocks appear that could derail this potential "5G super cycle" heading into 2020, said Ives, who has an Outperform rating and $325 price target on Apple shares.

Following the visit, Trump said he is weighing whether to exempt Apple from tariffs on Chinese imports, Reuters reported. "We're looking at that," Trump said in response to a reporter's question about the duties.

2. VAPING MEETING: Trump met with vaping supporters and critics on Friday as the White House weighs how to address an epidemic of youth e-cigarette usage, Bloomberg's Josh Wingrove reported. The meeting with the president will include "a diverse group of advocacy, industry, nonprofits, medical associations, and State officials," said Judd Deere, White House spokesman.

Trump is in favor of raising the minimum age for purchasing nicotine vaping products to 21 years old from 18, MarketWatch's Jaimy Lee then reported, citing comments made during Friday's meeting attended by the CEOs of some of the nation's biggest vaping companies, including Altria Group (MO), Juul Labs, and Njoy. The administration appears to be backing off a plan, announced in September, to ban most flavors of e-cigarettes, despite worries from health organizations and physicians groups, Lee says. Trump added during the discussion forum that he has concerns with "prohibition" since illegal vape products bought on the black market could be especially unsafe compared with ones sold in a regulated market, the author notes.Other publicly traded companies in the tobacco space include British American Tobacco (BTI), Imperial Brands (IMBBY) and Philip Morris (PM).

3. HUAWEI EXTENSION: The Trump administration is set to again extend a license that will allow U.S. companies to continue doing business with China's Huawei, The New York Times' Ana Swanson reported on Friday. Huawei suppliers include Micron Technology (MU) and Western Digital (WDC), while makers of optical components - including Oclaro (OCLR), Acacia Communications (ACIA), NeoPhotonics (NPTN), Lumentum (LITE), and Finisar (IIVI) - have previously reacted negatively to headlines regarding U.S. enforcement actions and allegations against China's Huawei.  

4. CHINA TRADE TALKS STALLING... OR PROGRESSING?: Signing of a "Phase one" trade agreement between the U.S. and China could slide into next year, Heather Timmons of Reuters said on Wednesday, citing trade experts and people close to the White House. Beijing is pressing for more extensive tariff rollbacks, and the Trump administration is countering with heightened demands of its own, Timmons stated. A deal is "still elusive," and negotiations may be getting more complicated, trade experts and people briefed on the talks told Reuters.  

At nearly the same time as Timmons' report, Bloomberg said that trade negotiators from the U.S. and China are making progress in key areas even as concerns grow that efforts to reach a "phase one" deal are stalling. People close to the talks describe them as being in a "sensitive, make-or-break stage" and caution that what President Trump proclaimed as a done deal a month ago could still easily fall apart, according to Bloomberg. While the deteriorating situation in Hong Kong hangs over the talks, officials in recent days have made some progress on issues ranging from a China crackdown on intellectual property theft and how a deal might be enforced, according to officials and others briefed on the talks, said Bloomberg. 

5. NEW EU PROBE CONSIDERED: Trump administration officials are weighing whether to initiate a new trade probe against the European Union as the window closes for slapping automobile tariffs on the bloc, Politico's Adam Behsudi and Doug Palmer reported, citing multiple people briefed on the issue. Such a move would mean that European car imports wouldn't be subject to duties out of national security concerns, but the trading bloc would be subject to a much broader investigation, the authors say. "What it would do is it would create a situation that for another year would give the president leverage over the EU," a former administration official told Politico. Publicly traded companies in the space include Daimler AG (DDAIF), Fiat Chrysler (FCAU), Ford (F), General Motors (GM), Honda (HMC), Nissan (NSANY), Tesla (TSLA), Toyota (TM) and Volkswagen (VWAGY).

Disclosure: None.

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