WSJ- Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average rose sharply Tuesday as investors brushed off signals of a recession and unrest in Hong Kong to focus on news of a possible thaw in the U.S.-China trade war.
- Tilray (TLRY) climbed as the medical marijuana company prepares to release second-quarter earnings after the market closes on Tuesday. Tilray is Real Money’s Stock of the Day.
- Uber (UBER) fell to its lowest level since the company’s initial public offering in May as investors continued to re-visit the company’s revenue and growth prospects following its latest quarterly results.
Wall Street Overview
Stocks soared Tuesday after the U.S. removed some items from its list of new China tariffs in signs of a possible thaw in the ongoing trade war between the world’s two largest economies.
The Dow Jones Industrial Average, which ended the previous session down 391 points, was up 385 points, or 1.49%, to 26,283, the S&P 500 rose 1.44% and the Nasdaq was up 2.01%.
News of discussions between U.S. and China trade officials sent Apple (AAPL – Get Report) shares higher, with the tech giant jumping 4.7% to $209.88.
The U.S. Trade Representative said that it will delay applying additional tariffs on China-made goods until December, just minutes after China said it held telephone talks with officials in Washington.
The USTR said it will delay tariffs on several items in the basket of $300 billion in consumer goods that are made in China and sold in the United States, which were set to rise to 10% on Sept. 1, until at least December 15.
Cell phones, video game consoles, certain toys and footwear will get the short term exemption, the USTR said.
China’s Commerce Ministry said Vice Premier Liu conducted a phone call with U.S. Trade Representative Robert Lightizer and U.S. Treasury Secretary Steven Mnuchin.
The U.S. Trade Representative said some products are being removed from the tariff list based on health, safety, national security and other factors, and will not face additional tariffs on 10%.
The trade war between the world’s two largest economies recently heated up when President Donald Trump said Aug. 1 that the U.S. on Sept. 1 would levy 10% tariffs on an additional $300 billion of Chinese imports in a bid to push Beijing to reduce its huge trade imbalance with the U.S. The threat from Trump prompted Chinha to halt purchases of U.S. agricultural products.
Meanwhile, the yield spread between 2-year and 10-year yields fell to 3 basis points in early Tuesday trading, the lowest since June 2007, after data from the Commerce Department showed July core consumer prices rose faster than expected.
The benchmark 10-year Treasury yield was off 0.005 to 1.635% recently.
“The inflation figures were positive,” said David Madden, a market analyst at CMC Markets UK. “It is encouraging to see that demand in on the rise and keep in mind, rates were cut at the end of July, so we might see the CPI rate tick higher in the coming months. James Bullard of the Fed, recently said he wants to play the wait and see game before making casting his next vote, so a rate cut next month is not a done deal.”
In Hong Kong, pro-democracy protesters into the territory’s airport for a second day and continued to disrupt flights. CNN reported that large crowds of protesters have taken over the pre-security departures areas at the airport blocking the entrances to the ticketed areas.
The Hang Seng Index declined 2.1% on Tuesday and has fallen 11% since the beginning of July when the protests turned more violent.
(CBS – Get Report) CBS and Viacom (VIAB – Get Report) have finalized their merger agreement, Reuters said, citing an anonymous source, in which Viacom shareholders will receive 0.59625 CBS shares for each share they own. CBS was up 2.5% to $49.22, while Viacom was up 2.2% to $29.17.
Shares of Tilray (TLRY) rose 1.6% to $43.12 as the medical marijuana company prepares to release second-quarter earnings after the market closes on Tuesday. Tilray is Real Money’s Stock of the Day.
Shares of Uber (UBER) fell to their lowest level since the company’s initial public offering in May, as investors continued to re-visit the company’s revenue and growth prospects following its latest quarterly results. Uber was down slightly recently to $36.80.
JD.com (JD – Get Report) surged 7.9% to $29.30 after the China-focused retailerbeat Wall Street’s second-quarter revenue estimates.
Gold jumped to a fresh six-year high in overnight trading and was recently going for $1,512.05 an ounce.
posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com
In the energy sector, Brent crude contracts for October delivery, the global benchmark, were up 16 cents to $58.73 a barrel, while West Texas Intermediate contracts for September, which are more tightly linked to U.S. gas prices, were up $1.28 cents at $56.21 a barrel.
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