Another week another series of unfortunate events…

The market dipped heavily in the opening hours Monday as Trump and North Korea’s Twitter battle escalated to its highest level yet. After another missile launch by North Korea over the weekend, Trump took to Twitter (TWTR) to call out Kim Jong Un as “Little Rocket Man” while threatening to decimate all of North Korea. Upon hearing the name-calling and violent threats, Pyongyang released a statement saying Trump’s tweet was a declaration of war, and North Korea would respond appropriately. Although we’ve seen markets hold fairly steady following the back-and-forth between these two global leaders recently, securities dipped immensely across all markets following the news.

 

While the market as a whole dipped heavily Monday, FAANG stocks fell even more as each faces their own bundle of issues. Apple (AAPL) continues to post lower-than-expected sales for its new iPhone 8 while newly-reported issues are surfacing with its Apple watch. Facebook (FB) is caught in the middle of the investigation into Russia’s impact on our Presidential election as reports revealed fake accounts tied to Russian advertisements. Lastly, Netflix (NFLX) continues to lose content as more content providers are setting up their own independent streaming sites. The only questions to ask now: is this a sign of future trends or rather a good time to buy the highest-returning stocks of the year?

 

Trump announced Wednesday a new tax cut that sent the market soaring. Most prominently, he offered a 15% tax cut on corporate earnings that Goldman Sachs (GS) explained could potentially increase annual per-share earnings in the S&P 500 by nearly $15. It will be interesting to see how this legislation turns out after watching the GOP’s health reform bill fall apart several times over.

 

Micron (MU) beat its earnings expectations and provided strong outlook for its final quarter, boosting its stock nearly 4% after hours on Tuesday. Nike (NKE) also beat its earning expectation, but it demonstrated slowed domestic growth causing its shares to tumble after hours on Tuesday. With its main competitor, Adidas, being caught in the middle of an FBI investigation into tampering with college prospects, it will be interesting to see how Nike recovers from this dip.

 

This was a big week for monetary policy watchers as several prominent leaders spoke regarding hints at future rate hikes. Janet Yellen spoke Tuesday reinforcing her claim that future rate hikes are imminent. In addition, she explained that the Federal Reserve will be patient with inflation after confirming their faith in its rebound to the 2 percent mark. Mario Draghi spoke Monday regarding the risks of Brexit and the European Central Bank’s bullish feelings towards the Eurozone recovery. While both of these topics were expected, Draghi also explained that the ECB has no control over the regulation of cryptocurrencies, boosting Bitcoin heavily following the announcement.

 

The White House projected confidence Thursday in its response to Puerto Rico. However, pictures of the devastation – impassable roads and long lines for fuel, water and food – continued to play out on TV screens across the country. Eight days after Hurricane Maria made landfall, nearly half the population still does not have access to potable water and huge numbers of people are struggling to get access to fuel to power generators, according to the Federal Emergency Management Agency. Nearly the entire island remains in the dark after the power grid was knocked offline.