Stocks are off to a mixed open, coinciding with no reported progress on U.S.-China trade talks before the tariffs on consumer goods hit on Dec. 15.
As well as Trade war weighs on Chinese exports which dropped 1.1% in dollar terms in November from a year earlier, while imports rose 0.3%, resulting in a trade surplus of $38.73B for the month. The reason is very simple as the trade deal stuck in one phase and there is no further escalation of this ongoing tension so it is quite natural the drag on China's exports from higher U.S. tariffs will likely ease through 2020. From the US point of view, import rose for the first time since August last year, with China's trade surplus with the U.S. for November standing at $24.6B, easing from the previous month's surplus of $26.45B. Microsoft, Dell, and HP may hit after the Chinese Government ordered all state offices to remove foreign hardware and software within three years after Washington banned U.S. companies from doing business with Huawei, and expanded its blacklist to include Hikvision which is a Chinese surveillance Firms in October.
Future of U.S. wireless industry may be effected as all the attorneys general of 13 states and the District of Columbia will face off against T-Mobile and Sprint over their $26.5B merger as the new concern has come that the tie-up of the third and fourth-largest wireless carrier will limit competition and lead to higher prices. But as we all know that the DOJ and the FCC have already allowed the deal to proceed after reaching an agreement with Dish Network which will buy Sprint's prepaid businesses including Boost and Virgin Mobile. So it will surely affect the upcoming week for this industry. Apparently, the story from T-mobile that CEO John Legere officially announced plans to retire May 1, 2020, which may be a painful loss for this company as the regulatory delays are pushing the T-Mobile/Sprint 5G network buildout behind AT&T and Verizon. But the news has been mostly ignored by the market this week as the stock still trading near the peak after 7 years of strong outperformance.