DOW Jumps 250 points to record HIGHS after China says it has agreed with US to roll back tariffs

[The_King]

The Dow Jones Industrial Average climbed 250 points, or 0.97% as trade bellwethers Caterpillar and Boeing were both up at least 1.5%. The S&P 500 rose 0.6% as the financials sector gained 1.1%. Energy stocks also advanced 1.4% while tech and communications services advanced 1.2% each.  The Nasdaq Composite, meanwhile, advanced 0.8%.

Chip stocks such as Micron Technology, Advanced Micro Devices and Skyworks Solutions all gained more than 1%. Apple shares advanced 1.1%.

Gao Feng, a ministry spokesperson for China’s Commerce Ministry, said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods, according to the country’s state broadcaster. The ministry spokesperson said that both sides were closer to a so-called “phase one” trade agreement following constructive negotiations over the past two weeks.

 

“This gets us closer to a phase one trade deal, which is more important psychologically than fundamentally,” said Art Hogan, chief market strategist at National Securities. “It’s not as though we’re removing all tariffs and the economic drags dissipate, but what does dissipate significantly is the uncertainty.”

One important condition for a limited trade agreement, Feng insisted, was that the U.S. and China must remove the same amount of charges at the same time.

It comes after reports that a meeting between President Donald Trump and Chinese President Xi Jinping could be postponed until December — delaying a chance for the two leaders to sign an interim trade deal.

“The last 24 hours have seen a bit of whiplash in the U.S./China trade drama, as a potentially negative headline yesterday has been more than offset by a positive one this morning,” said Tom Essaye, founder of The Sevens Report, in a note to clients. But “it’s fair to say that at these levels, the market is already partially pricing in removal of the tariffs that were implemented on September 1.”

“That also means the risk is of disappointment is now real on an actual phase-one announcement, because if all we get is ‘what’s expected’ and we don’t see any existing tariff removal, we could easily see a sell-the-news reaction in stocks,” Essaye said.

Market participants had expected the two economic giants to sign a deal later this month, after both Washington and Beijing spoke of progress in talks late last week. The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

 

But the recent optimism around U.S.-China trade has helped stocks push to all-time highs recently. Over the past month, the S&P 500 is up more than 5%.

“We are seeing a nice follow-through on the back of the breakout, the most obvious one being the S&P 500 hitting all-time high,” said Katie Stockton, founder and managing partner at Fairlead Strategies. “The breakout is what helped the market sustain the positive momentum. The short-term overbought condition I think will give way to a little consolidation, but I’m not looking for significant pullback at least not in a couple of weeks.”

 

On the data front, the latest weekly jobless claims numbers came in at 211,000, down slightly from 218,000 in the previous week.

In corporate news, Booking Holdings, Disney and Activision Holdings are the companies set to report their latest quarterly figures after market close.

Qualcomm shares jumped more than 7% after reporting Wednesday quarterly results that topped analyst expectations. The company’s results were driven by strength in Qualcomm’s licensing business

 

 

https://gellerreport.com/2019/11/trump-dow-jones-record-highs.html/

[The_King]

@socrates469bc

 

enjoy while it last. after trump finish 1 or 2 term. i can tell that democrat will win all the way . you know what i mean if you read the news from left and right.

 

like the current election. there more voter then register population, the Epstein case etc.....  

Edited November 8, 2019 by The_King

[XianGe]

1 hour ago, The_King said:

@socrates469bc

 

enjoy while it last. after trump finish 1 or 2 term. i can tell that democrat will win all the way . you know what i mean if you read the news from left and right.

 

like the current election. there more voter then register population, the Epstein case etc.....  

 

Trump win his 2nd then demo will take back and destroy wat he has done

[The_King]

20 minutes ago, XianGe said:

 

Trump win his 2nd then demo will take back and destroy wat he has done

it the people that will suffer. cause is about small gov vs big goverment

 

no need to look so far for big goverment.

 

[socrates469bc]

1 hour ago, The_King said:

@socrates469bc

 

enjoy while it last. after trump finish 1 or 2 term. i can tell that democrat will win all the way . you know what i mean if you read the news from left and right.

 

like the current election. there more voter then register population, the Epstein case etc.....  

 

7 minutes ago, XianGe said:

 

Trump win his 2nd then demo will take back and destroy wat he has done

 

put it this way, whoever wins the second term will most likely face a recessionary us economy due to the monetary excesses of the past decade.

 

if mad-rational Trump is re-elected, which i believe he would, on the current strength of the us economy, the recession will not be as deep as feared since he will most likely used this recession to ramp up the needed infrastructure spending.

 

the most likely dem candidate is now either warren or sanders since biden is having an electability issue and if warren/sanders win, wall st/farmers/oilmen/industrialists/unions will really flip as farmers/oilmen/industrialist/unions will be held hostage to the hypocritical environmental socialists while wall st will cry due to weak earnings. in other words, any dem president will make a recessionary us economy even worse.

 

so despite the many polls showing the dems having an edge, when it comes to bread-and-butter issues, most americans r pragmatic enough to choose the dinner table.

[The_King]

5 minutes ago, socrates469bc said:

 

 

the most likely dem candidate is now either warren or sanders since biden is having an electability issue and if warren/sanders win, wall st/farmers/oilmen/industrialists/unions will really flip as farmers/oilmen/industrialist/unions will be held hostage to the hypocritical environmental socialists while wall st will cry due to weak earnings. in other words, any dem president will make a recessionary us economy even worse.

 

 

 

sound like a good news. i like it