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6 Stocks To Watch As Trade Tariffs Near Deadline

Stock futures nibbled away at minor losses in extended trade Thursday, pausing after logging a powerful advance in regular trading, as markets waited to see whether the White House would fire the latest shot in a U.S.-China trade war.

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Visteon (VC) leapt in late trade as Standard & Poor’s said it would join the MidCap S&P 400 on July 11. PriceSmart (PSMT) tumbled on a quarterly earnings miss. Bitcoin slumped in late trade as Square (SQ) withdrew an FDIC application. And a handful of key stocks — including Qorvo (QRVO), MasterCard (MA) and Advanced Micro Devices (AMD) — were among those in the hot seat on the approach to the midnight deadline for tariffs.

Dow futures traded with a fractional loss. S&P 500 and Nasdaq 100 futures were less than 0.1% below fair value.

Friday is T-Day — T for tariff — in the brewing trade war between the US. and China. The White House has scheduled tariffs to go into effect on $34 billion in China-based U.S. imports just after midnight Thursday. China, which is 12 hours ahead of the U.S., has said it will wait to be sure the U.S. goes through with its plans before launching its response. That means its tariffs targeting $34 billion in U.S.-made goods could take effect anytime after the U.S. decision.

The Labor Department’s June payrolls report, due out before the market opens, will also be carefully watched.

Among the Dow’s most trade-sensitive stocks, Boeing (BA) edged up less than 0.1% on Thursday. Caterpillar (CAT) added 2%. In after-hours action, 29 of 30 Dow issues were subdued and tightly mixed. The exception was Cisco Systems (CSCO), which was down more than 1%. No immediate news items explained the move. (For updates on this story and other market coverage, check IBD’s stock market news today.)

Square Exits FDIC Application; Bitcoin Slides

Bitcoin dropped 1.4% across Thursday’s session, according to Coinbase, trading at just below $6,500 at 6 p.m. That was almost 3% off the session’s high, but still up almost 11% from a June 24 low. The decline may have been tied to payment processor Square. News reports said San Francisco-based Square withdrew its Federal Deposit Insurance Corp. application to become an industrial loan company. Square had become more closely associated with Bitcoin and other cryptocurrencies after its Cash app became popular as a type of de facto bank account for users of cryptocurrencies.

Square slipped 0.2% in late trade after scoring a 3.9% gain in regular trade. The stock is extended, up almost 12% since clearing a cup-with-handle buy point at 57.29 in May.

Stocks to Watch Friday: Qorvo, AMD, A.O. Smith

Caterpillar was inactive in Thursday’s extended session. Boeing dipped 0.5%.

Techs stocks with high exposure to China markets — like Skyworks Solutions (SWKS), Qualcomm (QCOM) and Western Digital (WDC) — have largely been beaten down on concerns over the trade battles. Those companies reported getting 80%, 63% and 22%, respectively, of their most recent year’s revenue from China.

Among the tech names with strong China exposure that have held up reasonably well, Qorvo (60% of revenue) was rebounding from support at its 10-week moving average and just below an 83.52 buy point on Thursday.

Mastercard was extended above a flat-base buy point at 183.83. It was looking for a volume push as it attempted to rebound from support at its 10-week moving average.

Advanced Micro Devices (10% of revenue) was just below a 15.75 buy point in a deep, yearlong base. AMD has plowed through an eight-quarter recovery in revenue and earnings growth. Analyst consensus projects a 254% EPS gain this year.

Visa (V) (10% of revenue) is in a buy range after a touchback to test 10-week support. The stock is up 6% since breaking out above a flat-base buy point at 125.44 in April.

A.O. Smith (AOS) (33% of revenue) shares are below key levels of support, hurt by a downtrend started in February. If any last-minute reprieve emerges regarding tariffs, this would be a stock to watch.

Expediters International of Washington (EXPD) (26.5% of revenue) pulled back for a test of support, with shares 7% above a 67.73 buy point in a flat base.

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