This Week's Highlights
- Congress returns to Washington DC today after watching China tariffs dominate the headlines last week.
- With trade rhetoric heating up, shipping companies are exposed to increased volatility. Below are three shipping companies we’re watching:
- Expeditors (EXPD): A logistics company that buys cargo space from ocean shipping and airline companies for resale to customers. ~27% of its 2017 revenue came from China.
- Atlas Air Worldwide (AAWW): A New York cargo airline that provides outsourced aircraft and aviation operating services. ~15% of its 2017 revenue came from China.
- Matson (MATX): A company that provides shipping services throughout the Pacific Ocean, primarily to and from the Hawaiian Islands. ~23% of its 2017 revenue came from China.
- Congress is currently drafting the 2018 farm bill, a re-authorization of the 2014 farm bill. Tthe Trump administration is pushing to rein in food stamp spending by nearly $130 billion over the next decade. Food retailers, such as Walmart (WMT), Target (T), Dollar Tree (DLTR), and Kroger (KR), could lose billions of dollars in sales.
- The nation’s opioid crisis continues to grab headlines and Congress’s attention. In our view, pharmaceutical distributors not only face judicial headline risk, but also legislative risk as lawmakers consider increased regulation.
Read More from this week's Policy Insights: Congress Returns.
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