in

Dow Reverses After Reuters Exposes Possible Trade Deal Delay, Crypto Coins News

Dow Reverses After Reuters Exposes Possible Trade Deal Delay, Crypto Coins News


  • The Dow Jones slipped after a US official suggested President Trump might not sign a trade deal with China in Chile after all.
  • Meanwhile, consumer confidence fell to a four-month low, the latest in a long trend of worsening macro data releases in the US.
  • Boeing supported the Dow 30 with a substantial rally, offsetting weakness in Apple (AAPL) stock.

TheDow Jones swung between gains and losses on Tuesdayafter Reuters broke the news that President Donald Trump Trumpmight not sign the “phase one” trade dealwith China in Chile after all.

Adding to gravity on the US stock market, consumer sentiment missed expectations, while a weak performance from Apple also weighed on the Dow.

Dow Jones Treads Water Amid Doubts About China Trade Deal

It was a day ofmediocre moves in the stock market, as bulls appeared hesitant to take on too much risk ahead of the Federal Reserve’s interest rate decision on Wednesday. TheDow Jones Industrial Averagefell 19. 03 points or 0. 07% to 27, 071. 69.

The Dow Jones fell slightly on Tuesday as a Trump official dented trade war hopes. | Source:Yahoo Finance

The S&P 500 was the top-performing index, though it also declined 0. 04%, while the Nasdaq sunk 0. 47% afterweak performancesfrom Alphabet (Google’s parent company) and Tesla.

Crude oil fell with the stock market, while thegold price was also under pressuredespite a soft US dollar. In Europe, news thatBoris Johnson would get a snap election in December after allsaw the British pound trade higher and theFTSE 100 close 0.5% lower on the day.

Consumer confidence came in lower than analysts expected, and the reading was the worst in four months. Consumer sentiment may be being impacted to some extent by political instability. Consequently, it’s notable thatNancy Pelosi announced the next round of Trump impeachment proceedingswith a vote. The Dow demonstrated no discernible reaction to this news.

There is no question that a significant portion of the Dow Jones rally has been thanks to the market’s optimism that President Trump will eventuallydeclare a substantial de-escalation in the trade warwith China. Writing for Jim Cramer’s “RealMoney,” Stephen Guilfoyle buys into this viewpoint thathope of a trade deal in Chile is driving the stock market.

He writes,

“It has become apparent that Presidents Trump and Xi of the US and China respectively, are truly making an earnest effort to sign some kind of ‘phase one’ compromise when they meet in Chile in about two weeks. Conditions can only get better if they stop getting worse first. This is the fountain of global hopium. ”

The prevalence of this optimism makes Reuters ’report that there may be no accord in Chile all the more worrying for Dow bulls. Another concerning development was theTrump administration’s desire to have direct control over where all cars are made. This would likely be unacceptable to the EU, and it raises the risk of escalating another front in the White House’s global trade offensive.

Federal Reserve Meeting Is Critical for Stock Market Outlook

The Federal Reserve will meet tomorrow, and expectations remain high that Jerome Powell and the FOMC will provide someadditional stimulus to shield markets from the shakier sectors of the US economy.

With a rate cut almost entirely priced into stocks, volatility will likely come from the accompanying statement and the committee’s outlook for the coming months. Not surprisingly, Donald Trump provided his usual dose of pressure to encourage the Fed to ease policy.

Dow Stocks: Apple Struggles, Boeing Rises

It was anothervery mixed day in the Dow 30, as Apple posted a hefty 2.2% loss heading into itshotly anticipated earnings release.

Putting the index on its back, the Dow Jones’ most heavily weighted stock, Boeing, rose 2. 09%. Therally in BA stockcame as CEO Dennis Muilenburg faced a grilling in Congress over the 737 Max disasters. Muilenburg’s optimism about the timetable for the 737 Max’s return to the skies appeared to win over investors despite the harsh tone from many on the congressional panel.

Pfizer enjoyed a strong rally afterposting excellent earnings; the stock is currently up around 3%. Fellow pharmaceutical giant Merck was 3.8% higher in response toits own impressive outlook.

This article was edited by Josiah Wilmoth.

Brave Browser
Read MorePayeer

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

The 2020 Stock Market Rally Will Make Everyone Rich – Except You, Crypto Coins News

The 2020 Stock Market Rally Will Make Everyone Rich – Except You, Crypto Coins News

Working at Ribbon, Hacker News

Working at Ribbon, Hacker News