(New York)

Stocks woke up to a volatility explosion this morning. President Trump made a surprise announcement that he was considering boosting tariffs on China. Specifically, the president threatened to raise tariffs to 25%. Beijing is reportedly infuriated. The comments come towards the end of what seemed to be a smooth negotiation with Beijing about a new trade package. Therefore, they riled markets to a major extent. Headline indexes shed a couple percent at peak (so far) and sectors like technology and industrials sold off sharply. The trade delegation from Beijing is still expected to attended a planned tariff meeting this week.

FINSUM: It is very hard to know how significant this is (whether Trump actually wants to do this), or whether this is just a negotiating tactic.

(New York)

Barron’s has interviewed some of the top financial advisors in the country to figure out how they incorporate ETFs into their portfolios. We thought our readers might be curious. Raj Sharma, from ML, said that he thinks ETFs are just a tool and that active management still has a big role to play, especially in emerging markets and small caps. One top advisor, for whom ETFs comprise 50% of their business, says they use options bets against ETFs, something you can’t do with active funds. Another top advisor from ML, Peter Rohr, summarized ETFs nicely, saying: “ETFs allow us to control the controllable. We can control fees, we can control taxes, and we can control risk level”.

FINSUM: ETFs are a very flexible, and largely inexpensive product, facts which explain their explosive growth. However, that flexibility also means it takes strategy to put them to their best use.

(New York)

Millennials are the largest generation in the US and are primed to start entering their peak earning and spending years in the next decade. The oldest of the group is now 38, and thus entering prime home buying and spending time. Consumers usually see their spending peak in their 30s and 40s and taper in their 50s. With that in mind, here are some stocks (2 niche plays, 3 big companies) that could really gain from Millennial spending growth: Zuora (cloud based subscription payments provider), Lovesac (specialist furniture maker), Home Depot, Nike, and Farfetch (online luxury clothes retailer).

FINSUM: Boomers’ spending is fading, and Gen X is smaller, so Millennial spending is what is going to drive the consumer space.

(New York)

The trade war seems to be back on with full force. Trump spooked markets today by warning that he may impose higher tariffs on China. With that in mind, here are the stocks and sectors most at risk of big selloffs. Industrials and technology shares are the most vulnerable to tariff worries. It is difficult to say what stocks will be most affected because the potential impacts are widespread. However, the following list looks very at-risk: Colfax, Danaher, Emerson Electric, Fortive, Gates Industrial, 3M, and Kennametal.

FINSUM: We are very early in the volatility for this round of trade fears. Hopefully this minor panic will be the extent of it.

(Washington)

Not to be outdone by the DOL, the SEC made some comments on its forthcoming Best Interest Rule yesterday. SEC chief Clayton has been tightlipped about the rule and its updates, but yesterday said that it would be out soon, likely much sooner than expected. The expectation has been that the SEC would debut the rule in the fall, but speaking on timelines Clayton said “Wait and see … You won't have to wait long”. Reporters taking note of the comment say he suggested the final rule was imminent.

FINSUM: We bet some unveiling of the final rule happens before Memorial Day. This means the DOL’s updated rule is likely coming very soon as well, as they are working in concert.