Your browser does not support JavaScript!

Author : admin | Wednesday, 3 July 2019

Markets Up On Trade Truce And Huawei Reprieve

Author : admin | Wednesday, 3 July 2019

U.S. markets were up greatly Monday morning following the G20 summit this past weekend, where attention was focused on a meeting between the leaders of the United States and China, who are embroiled in a protracted trade war. Most analysts and economists anticipated a whole lot of posturing and not much action. But incredibly, the two world leaders agreed to a trade truce for the time being, with Huawei even catching a break.


The S&P 500 gapped higher, ascending 0.6% and reached an all-time high of 2,977.86. The Dow Jones Industrial Average obtained 97 points, or 0.4% as Nike and Apple outperformed. The Nasdaq Composite rallied 1%.


“The markets appear to be content with the cooperative tone coming out of the meetings. To me, it felt like the contrarian play was to the upside post meetings,” said Dan Deming, managing director at KKM Financial. “There was a great deal of bearishness in sentiment headed into the meeting. Many market observers were discounting any change in the narrative, which made many believe the risk was to the downside.”


Yet, inspite of the initial enthusiasm, the major indexes tempered their gains around midday. Ans, if it were never for some crucial gains from technology stocks on the news of the Huawei amnesty, it may likely be a typical, marginally higher market day that actually reflected the trade truce.


“There was a fair amount of exuberance at the open. I don’t know if it was celebrating good news or the absence of bad news,” said Willie Delwiche, investment strategist at Baird. “Either way, we started strong. The problem is, while we had a new high on the S&P 500, the number of individual stocks making new highs was shy of what we say back in late June,” when the index made its latest record close. “I don’t want to overstress the importance of it, but it is not confirming the index-level highs,” Delwiche said.


Jim Cramer believes possibly there was something more profound that was being reflected in the president’s reversal on Huawei, which less than two months ago the Trump administration effectively blacklisted from doing business in the U.S., citing national security concerns.


“For the president to turn around like this, it must have meant there is something afoot,” Cramer said on “Squawk on the Street.” “Much bigger than anyone realizes,” he added. People who don’t believe something is “afoot,” Cramer said, think “the president got had.”


“The president’s people are shocked,” Cramer said. “There was both the concessions and also the trip to North Korea,” he said of the spontaneous visit to meet leader Kim Jong Un. And yet, top White House economic advisor Larry Kudlow on Sunday defended Trump’s Huawei decision, noting that the blacklist was still in place.


“This is not a general amnesty,” Kudlow said in an interview with Fox News. “Huawei will remain on the so-called entity list where there are serious export controls and in national security inferences or suggestions there won’t be any licenses.”


Source: ETF Trends

marketing huawei huawei in us huawei reprieve trade trading
   

COMMENTS