Investing

US/China Trade Data by the Numbers, and How Exposed Top American Companies Are

Jon C. Ogg

Caterpillar Inc. (NYSE: CAT) sells large amounts of its heavy earth and infrastructure building equipment to China and the Asia Pacific region, and the international component was about 59% of total revenues in 2018. Its shares were down 3.25% at $114.06 on Friday, and that is now down over 28% from its 52-week high.

Deere & Co. (NYSE: DE) has farming exposure globally, but slower or no imports from China will hurt Deere in many markets. It was down 5.3% at $147.02 on Friday, and Deere is down over 14% from its 52-week high.

General Motors Co. (NYSE: GM) has frequently been said to sell more cars in China than in the United States. Whether that holds true in the future and whether manufacturing stays or migrates remains to be seen. GM was down 3.2% at $36.06 on Friday, but it is down 14% from its 52-week high. GM’s dividend yield is over 4%.

Nike Inc. (NYSE: NKE) continues to have a big reliance on China and Asia Pacific manufacturing and destination. Nike shares closed down 3.4% at $80.44, and the stock is now down 10.6% from its 52-week high.

The top technology sector stocks took it on the chin as well, and there is zero chance that any of these companies can immediately mitigate their exposure to China via manufacturing, parts inclusion and selling into the country. Intel Corp. (NASDAQ: INTC) has a $199 billion market cap and its shares closed down about 3.9% at $44.96 on Friday. Its 52-week high is $59.59. Advanced Micro Devices Inc. (NASDAQ: AMD) was down 7.4% at $29.54 on Friday, and it is now down 17% from its high.

Nvidia Corp. (NASDAQ: NVDA) has a $98 billion market cap and closed down 5.3% at $162.44 on Friday. It is down over 40% from its highs of $292.76, but its woes and worries around artificial intelligence, autonomous vehicles, bitcoin and cryptocurrency mining go beyond just China.

Qualcomm Inc. (NASDAQ: QCOM) has an $89 billion market cap and its shares closed down 4.7% at $73.52. Its 52-week high is $90.34. As the dominant processor for smartphones, there is no escaping China here. And guess which nation that rhymes with China was the one to block the Qualcomm-NXP Semiconductor merger in the past (Hint: it’s China).

Micron Technology Inc. (NASDAQ: MU) is the independent pure-play leader in memory and it has 50% exposure to China as its chips might end up in anything that needs DRAM or flash memory. Micron was down 4% at $42.96 on Friday.

As a reminder, 24/7 Wall St. showed how some of the top Chinese stock reactions are starting to be less severe than some of the reactions in their American counterparts.

These are obviously not the only companies that sold off on Friday. Still, it’s important to understand where the tariffs will actually hit on both sides of the equation.

And if things just feel too dicey and rocky, think about 10 lessons of sanity from Warren Buffett during insane markets.