Breaking Market Market New!
U.S. negotiators have the terms of China trade deal ready for President Donald Trump’s review. CNBC confirmed reports from earlier in the day. They said U.S. negotiators are offering to cancel new China tariffs and reduce existing levies on Chinese goods by up to 50% on $360 billion worth of imports. The latest trade news comes ahead of a key Sunday deadline. If an agreement is not reached by Sunday, additional U.S. levies on Chinese products will take effect.
LET’S HOPE HE DOESN’T SCREW IT UP WITH A DUMB TWEET!
The market took a big jump on this news and closed as follows:
DOW closed at 28,131.17 up a whopping 219.87 points or a +0.79%
S&P 500 closed at 3,168.47 up a modest 26.84 points or a +0.85%
NASDAQ closed at 8,713.93 points up 59.87 or a +0.69%
Russell 2,000 closed at 1,644.90 points up a small gain of 12.97 or 0.79%
THE FED WATCH
The U.S. economy could keep chugging along for another two years without a recession, thanks to the Federal Reserve’s low rate policy, which makes it a good time to own stocks, according to BCA Research.
The U.S. economy has defied expectations and expanded into a record 11th year following its worst setback since the Great Depression.
But the economy still likely has at least another 18 to 24 months to run before the next downturn starts, which means stocks likely will hold up in the coming months and years.
“Tight monetary policy is a necessary, albeit not sufficient, condition for a recession, and we consider the Fed’s current monetary policy settings to be easy, especially after this year’s three rate cuts.”
“A recession can’t begin until the Fed reverses those three cuts and tacks on at least three additional hikes.”
The U.S. central bank’s Federal Open Market Committee on Wednesday opted to hold its benchmark fed funds rates steady at a range of 1.5% to 1.75% and signaled no change was likely through 2020.
What are your thoughts on all of this? I’m listening.
Robert L. Woods