Skip to comments.Dow jumps more than 250 points after the US and Canada secure a deal to replace NAFTA
Posted on 10/01/2018 8:34:29 AM PDT by Red Badger
Stocks rose sharply on Monday as investors cheered news of Canada joining a trade deal with the United States and Mexico.
The Dow Jones Industrial Average rose 264 points as American Express and Boeing outperformed. The S&P 500 gained 0.8 percent, led by 1 percent jumps in materials and industrials. The Nasdaq Composite advanced 0.7 percent as Amazon and Apple both climbed more than 1 percent.
"The biggest risk factor [in the market] is a trade war and we've dialed that down a bit," said Mike Bailey, director of research at FBB Capital Partners. Bailey noted, however, the market may be going too high too fast right now. "I'm not calling for a major correction or a bear market, but I think we're getting a bit ahead of ourselves here." Traders work on the floor of the New York Stock Exchange (NYSE) ahead of the closing bell, November 30, 2017 in New York City. Drew Angerer | Getty Images News | Getty Images Traders work on the floor of the New York Stock Exchange (NYSE) ahead of the closing bell, November 30, 2017 in New York City.
Canada and the U.S. secured a trade deal to replace the current North American Free Trade Agreement (NAFTA). The new accord is expected to be named the United States-Mexico-Canada Agreement, or "USMCA" for short, according to a senior U.S. administration official.
The agreement will deliver more market access to U.S. dairy farmers, while Canada has effectively capped automobile exports to the States. Both nations, along with Mexico which agreed to a deal earlier this year are expected to sign the agreement by the end of November. It would then be passed to Congress.
"The market is happy because we're removing an uncertainty," said Maris Ogg, president at Tower Bridge Advisors. "It looks like this trade deal will benefit both countries, but I wouldn't call it a great win for the Trump administration."
Ogg noted the deal serves as a stepping stone for the U.S. in its trade negotiations with China.
Shares of Ford and General Motors both jumped more than 1 percent following the news. Boeing and Caterpillar, stocks that are also sensitive to trade news, rose 1.8 percent and 0.3 percent, respectively.
The moves on Wall Street came after theS&P 500 notched its best quarter since 2013, having risen 7.2 percent in that time period.
Tesla shares surged more than 17 percent after CEO Elon Musk settled charges with the Securities and Exchange Commission over his recent aborted bid to take the firm private.
As part of the settlement, Musk will relinquish his position as chairman of the board at Tesla for at least three years. Tesla and Musk will pay $20 million each.
Meanwhile, General Electric surged 11.7 percent after the company abruptly removed CEO John Flannery from his post and named Lawrence Culp as his successor.
Where are all those on the left who said the market would collapse if Trump was elected?
What an awesome President we selected. He gets the job done and he gets it done right.
Meh i co.....just paid for the wall.
*** NEGOTIATIONS DO WORK! ***
If part of this plan is to find a market for corn so that we can end the ethanol subsidy, then even better. Ending ethanol subsidies would PERMANENTLY free the midwest from any influence from the left.
“Here’s a market for your corn, sadly your checks are going to stop, but now you can look in the mirror and know you’re not on the dole.”
Two years of fractious negotiations in order to sell a bit more cheese.
Still saying it and protesting Kavanaugh...............
Trump’s gonna take on India next...
We’re winning and as long as Trump can hold the House and Senate we’ll KEEP WINNING.
POTUS 45 gets things done! With all the crap flying around him 24/7 its amazing how he stays focused on his goals of helping the American people and accomplishing them. Meanwhile, the Democrats are involved in more pressing matters as in trying to find out how much booze did Judge Kavanaugh drink at Yale.
Its a deal, just not a big deal.
Well, big deal politically maybe.
Canadian banks are everywhere in the USA, U.S. banks in Canada are prohibited.
So too, digital communications,exclusivley Canadian,airlines,and yes dairy. Only 3.5% of the industry were pried open with the Soviet style supply economics remain in place.
A mehh~ deal.
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