Posted on 08/27/2018 1:35:39 PM PDT by UMCRevMom@aol.com
Thank you, President Trump! The stock market is soaring, thanks to Trump’s announcement that the U.S. and Mexico have reached a trade deal!
CNBC Stocks jumped on Monday as the United States and Mexico closed a new trade deal. Investors also digested reassuring comments from Federal Reserve Chair Jerome Powell on the central bank's policy-tightening path.
The Dow Jones Industrial Average rose 260 points as Caterpillar outperformed. The Nasdaq Composite climbed 1 percent to an all-time high, breaking above 8,000 for the first time, as Facebook, Amazon, Netflix and Alphabet rose. The S&P 500 gained 0.8 percent to hit a record high with materials and financials as the best-performing sectors.
"The market has been buffeted with a lot of headwinds lately, and the biggest one is trade," said Art Hogan, chief market strategist at B. Riley FBR. "If you were to take trade out of the picture, you would have a smoother ride higher in this market."
President Donald Trump said the deal would be called The United States-Mexico Trade agreement, getting rid of the NAFTA name. "The name NAFTA has a bad connotation because the United States was hurt very badly by NAFTA," he said. Trump added that the deal with Mexico is also very special for farmers and manufacturers.
The comment comes after Mexican Economy Minister Ildefonso Guajardo said Sunday both countries were close to resolving key differences on trade. This would pave the way for a new deal between the two longtime trade partners. "We’ve continued making progress," Guajardo said.
Trump tweeted earlier on Monday that a deal with Mexico was "looking good."
Shares of Caterpillar and Boeing rose 2.8 percent and 1.3 percent, respectively. Their stocks are considered trade bellwethers because of their large exposure to overseas markets. Shares of Ford, General Motors and Fiat Chrysler also rose.
The Mexican peso rose 1.2 percent against the dollar. Investors have been grappling with trade worries over the past few months as the U.S. takes a more protectionist stance on the matter. The U.S. has slapped tariffs on billions of dollars worth in Mexican and Chinese imports, to which Mexico and China have retaliated.
Global markets were also buoyed by news from Friday that the Fed's Powell sees "further, gradual" rate hikes ahead. The Fed chief said at the Jackson Hole Symposium in Wyoming that the central bank would likely continue with its policy tightening if the economy continued to strengthen.
Powell's comments lifted the S&P 500 and Nasdaq composite indexes to record highs in Friday's trading session. In Europe, the Stoxx 600 index rose 0.5 percent on Monday, while the German Dax climbed 1.2 percent.
In Asia, China’s central bank, the People's Bank of China (PBOC), reintroduced a policy adjustment aimed at supporting the yuan. The move, coupled with Powell's comments, sent the Shanghai Composite up by 1.9 percent overnight.
Tesla shares dropped 2 percent after CEO Elon Musk gave up efforts
Didn’t the liberals say making changes to trade deals would he a disaster?
Didn’t critics say the tax bill would cause economic hardship?
And recall Obama himself told us not to pay attention to the ups and downs of the stock market.
Those booms you hear are liberal’s heads assploding everywhere.
Boy that Trump. And the corrupt MSM just continue to go after him. Think of the national psychological euphoria if the corrupt MSM treated him honestly.
Remember the days when the corrupt MSM tried every possible positive comment during the Obama era to describe the economy. Unexpectedly was the ongoing by-word. They were cheerleading Obama’s turd sideways economy.
Now that the economy is booming they keep using ominous headlines to portend the near certain impending economic catastrophe because of Trump.
I think a lot of people thought Nafta should be updated, not torn up. And that’s what Lighthizer accomplished, or is on the way to accomplishing.
That does it! Impeach and exile President Trump now!!!
We needed BOLD action.
Ceasar Chavez would be pleased. He stood for equal dignity, wages, and working conditions for farm workers in the US, not for invader labor to lower expectations of all agricultural workers.
Fixed it.
What was the win? What are the details?
But that flag lowering thing happened today....that’s important.
Yeah, but what about Stormy, Stormy, Stormy...?
There are few people dumber in the world than East Coast liberals. They are like little Chihuahuas who go after much larger dogs because they see themselves as 10X bigger than what they actually are.
I thought the market was supposed to have crashed by now. Let me guess, it’s still Obama’s fault it’s doing so well. LOL
Good news.
Yep , and these media types in the New York Washington axis, do not get out very much, to see how things are going in the rest of the country.
Dow still 550 off all time high
The S&P 500 index fund has returned 18.5% year over year and 75% over 5 years. Not a bad return if they can keep it up.
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