What a Week!
Here's what moved markets this week.
No fancy language, just the facts that matter for your money.
TikTok Gets a New Owner
Trump signed an executive order Thursday that clears the way for TikTok to be owned mostly by Americans. The deal values the app at $14 billion.
Six out of seven board seats will go to Americans. The data stays in the US too. TikTok algorithm in the US to be managed by Oracle (NYSE: ORCL). Great news for investors!
But here's the thing, the deal isn't done yet. It's more like Trump saying "okay, you can proceed" rather than signing on the dotted line.
Trump Drops New Tariffs
Trump announced tariffs on drugs (100%), kitchen cabinets (50%), heavy trucks (25%), and furniture (30%). These start October 1st. That's a big jump in import costs.
Drug companies building plants in the US get a pass on the 100% tariff. Smart move! It pushes manufacturing back to America. Home improvement stocks might see a bump.
Pharma companies with US facilities could gain an edge. Import-heavy retailers? Not so much. Seems we need more details here.
Disney Drama Heats Up
Investors want answers about Jimmy Kimmel's suspension situation. The details are still murky, but it's creating noise around Disney's stock (NYSE: DIS).
When your entertainment giant has talent issues, it usually means distraction from the main business. Not great timing with streaming competition heating up.
Disney has bigger fish to fry than late-night TV drama. Focus on their streaming numbers and theme park recovery instead.
H-1B Visa Changes Coming
Trump's shaking up the H-1B visa program. Details are still rolling out, but tech companies are already nervous.
If you're heavy in tech stocks, pay attention. These companies rely on foreign talent. Tighter visa rules could mean higher labor costs or slower hiring.
This hits tech differently than other sectors. Keep an eye on how companies with large engineering teams react.
Economy Keeps Growing
The US economy grew 3.8% in Q2. That's solid growth, especially with all the uncertainty floating around.
Strong GDP usually means good things for stocks. But it also means the Fed might not cut rates as fast as everyone wants.
The economy is holding up better than expected. That's good for earnings, tricky for rate cuts.
What to Watch Next Week
TikTok deal details (if any actually emerge)
How tariff-affected industries react
Fed officials' comments on the strong GDP print
Tech stock moves on visa policy changes
The market doesn't like uncertainty. But it really doesn't like surprises.
This week gave us both.
Other interesting reads
Musk Issues a Grim Forecast for Retirements (from American Alternative)
