Dow Smashes Record as Animal Spirits Seize the U.S. Stock Market, Crypto Coins News
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The stock market raced to fresh record highs today.
The Dow Jones was bolstered by solid retail sales and better than expected jobless claims data.
But stocks may not be out of the woods yet.
The Dow Jones pushed further into record territory on Thursday after U.S. retail sales hit their target and jobless claims dropped unexpectedly.
A euphoric U.S. stock market is basking in thepossibility of more tax cutsand the de-escalation of the trade war. But the rally in the Dow ignores lingering concerns about the enforceability of the phase one deal.
Dow Surges to All-Time High as Momentum Gathers Pace
Less than 71 minutes before the closing bell, the Dow Jones Industrial Average had climbed (******************************************************************. **************************************************************************** (points or 0.) ********************************************************************** (% to
The trade war between the U.S. and China weighed on the Dow for more than a year, but the actual impact on the stock market receded when it became apparentTrump was keen to de-escalate the situationfor a political win ahead of the election.
The Stock Market May Be Too Complacent About the Trade War
Investors may have moved on from U.S.-China trade, but analysts continue to debate how much credence they should give the phase one deal. The$ 92 billion headline figurelooks nice, but is it really enforceable?
Comments by vice-Premier Liu that these commitments are dependent on Chinese demand seem at odds with the English version of the official text published by the US trade representative, which specifies the exact amounts.
However, the agreement does not include an enforcement clause addressing the purchasing commitments by China. In addition, the text explicitly states that the purchases are dependent on commercial considerations.
GivenChina’s history of ignoring international law, the fact they are not bound to purchase anything elevates the risk of Trump having to threaten more tariffs if Beijing flouts their end of the bargain.
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The trade deal text is concerningly-vague. | Source: U.S. Trade Representative’s Office
It’s noteworthy thatoften-questionable “official” Chinese datais going to be used as a reference, though the agreement does permit an investigation if there is an obvious disconnect.
Dow Stocks: Apple & Boeing Shine, But Caterpillar Leads
It was a sea of green in the Dow
, with only four components (Pfizer, Merck, Walgreens, and Exxon) slipping into decline.
Bolstering the DJIA were steady gains from Apple (NASDAQ: AAPL) and Boeing (NYSE: BA), the index’s two most heavily weighted stocks. Apple’s 0. (********************************************************************% bounce came asinvestors ignored a high-profile spat between the company and Donald Trumpover the unlocking of a mass murderer’s iPhone.
It is impossible to talk about the stock market today and not mention the monster move in Morgan Stanley (NYSE: MS), which soared 7% after a blow-out earnings report. Financial institutions Goldman Sachs and JPMorgan Chase were both lifted on the tide. JPM rose 0.2%, and GS rallied a more substantial 1.3%.
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