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.
MAGA. I love how he’s rebranding this as USMCA.
It’s a delight to have a non-politician and a very effective negotiator.
I think other nations are taking notice.
Do we have a post on FR about the Chinese reducing tariffs?
Mexico and Canada are not known for their cheese. This was about our auto, and steel industry.
#resist
/a liberal
That "giant sucking sound" that Perot was right about has already reversed since Trump was President Elect. Pres. Trump is methodically making it clear to the World that the USA is no longer its piggy bank. Even the NATO countries are committed to paying more for their own protection.
Watch what he does with China, the second largest economy in the World. Any improvement there would solidify our economic prowess for decades. Of course, unless the socialists get back in power and screw up all these advances.
Don’t need to have a trade deal with India as much as we need to end H1B and end the ability of spouses to work prior to getting green card on their own. You close that and India will PAY us to buy our products … the biggest import from India is PEOPLE.
WHY, OH, WHY didn’t I buy pork and milk futures, yesterday?!?! ;)
It was Sunday................
Not telling. Sorry.
Here was the Nobel Prize winning Paul Krugman writing in the NYT. What an idiot! (funny to read now.) https://www.nytimes.com/interactive/projects/cp/opinion/election-night-2016
“So we are very probably looking at a global recession, with no end in sight. I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened.”
Winning
The cheese stands alone.
Donald Trump is such a blessing for this great nation! I think I need a framed portrait like all those deceived catholics did for Kennedy in the 60s.
Didn't he also support the Democrats in pressuring banks/mortgage lenders to make down-payment free loans to those who couldn't even afford the monthly payments?
We all know the defaults on those loans was the beginning of the 2008 recession with its domino effect. Another epic failure by the liberals which I now call socialists. Bleeding hearts bleed other peoples' wallets.
Smiling from ear to ear. Four more years!
***********TRUMP TRUMP TRUMP*************
Notice the ONLY quote in the article is an anti-Trump quote. Of course.
So, for every hour of HGTV aired by a Canadian network, they must run 2 hours of Canadian-only material. weird!
Trump will drop out of the race any day now, ya know...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.