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.
Waiting to hear from the anti-trade, or Buy American, we need 20% tariffs Freepers. Did Trump just enable foreign imports?
Could he be serious about the elimination of all barriers and tariffs on trade?
Dow Jones Industrial Average (.DJI:Dow Jones Global Indexes)
26,728.56 +270.25 (+1.02%)
Nationalize the election
New campaign slogan...
SUPPORT TRUMP
VOTE REPUBLICAN
or
SUPPORT TRUMP and YOURSELF
VOTE REPUBLICAN
or
SUPPORT TRUMP and AMERICA
VOTE REPUBLICAN
Excellent. Now if they’ll take about 40 million people back and Make Mexico Great...
VOTE REPUBLICAN
Hopefully they had the conviction of their opinions to go short. For those who did, they are probably now pushing a broom after the circus parade passed them by.
Yeah, because dairy is a cottage industry, and not a $442B/year industry impacting trucking, rail, farming, medicine, retail grocery, and chemicals. And let’s not talk about the deal he got on automotive.
We keep on winning, and they keep on whining.
I just checked the only individual stock I own. It hasn’t moved a bit today.
It’s the parent of the company I work for and the stock is very strong. A few weeks ago, I met the CEO and something he mentioned made me think it was time to buy more.
I got some but not enough. It rose very high a couple days later and has held.
I don’t play around with my 401K at all or the rest of my investments, but it’s been fun to watch them rise the last couple years.
And you're above all that?
What do you feed yourself on? Government checks?
Thanks for your confession of insider trading.
Yes, I’m on welfare and eat government cheese.
Nice try. He didn’t say to go buy stock, he told us of something happening in the company that was public knowledge and had been written about in the financial press. It just clicked with me.
That would be a loud mouth NY Slimes contributor and Economic Idiot Paul Krugman.
You mean this guy?
https://www.politico.com/story/2016/11/krugman-trump-global-recession-2016-231055
Figures.
Old fart like you gets the constipation off cheese.
Eventually reaches the brain and mouth.
Marked for later reading.
************TRUMP TRUMP TRUMP****************
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