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
“B-b-but... the flag wasn’t at half-mast today...”
But my MCain flag!
The left has NOTHING to celebrate.
N. O. T. H. I. N. G.
See my tagline...
This IS NOT the all time high.
I apologize. They were referencing the NASDAC Composite.
—— President Donald Trump said the deal would be called The United States-Mexico Trade agreement, getting rid of the NAFTA name -——
USMTA: Once again, putting America first…
(Now, if the Fed doesn’t stick their nose in & screw things up ;-)
I am not trying to rain on anyone’s parade.
However factual accuracy requires notice of some caveats to the glowing headline.
Yes, for the NASDAQ and the S&P their markets hit some highs not hit before.
However, for the broader DowJonesIndustrials index, its market value is below it’s highest ever value, which was in February this year, and it is nearly 600 points off that high.
And while the small cap index - the Russel 2000 - is also at a high, a good measure of that was earned before today, as it seems to have taken a beating today, with small cap issues aparently sold to buy NADAQ traded shares.
All in all, yes, the market is buoyed by the NAFTA news.
Let’s just hope it is not being bought on expectations alone, without underlying values given due consideration.
Yes; I am a values trader, not a speculator.
Won’t the Demonrats be em-bare-assed to impeach the most effective American president in history?
Doesn’t matter to the left. This is bad news and will not be reported or completely twisted.
No, they won’t because all this winning is, in reality, only crumbs.
Bill Maher must be swaddled in his blanky sucking his thumb by now.
I think (haven’t seen the trade agreement details) Trump’s manner of making bilateral deals may be working, as far as pressuring others to follow suit instead of them insisting on nothing but “multilateral” trade agreements.
That insistence is nothing but a canard, as the EU-block has no problem signing one-on-one deals that don’t include the U.S. and the U.S. political and media elites have no problem with that. Yet the U.S. political talking keep trying to restrict U.S. trade deals to just multinational ones. Hypocrites.
[The left has NOTHING to celebrate.
N. O. T. H. I. N. G.]
Well, they still have their butchering abortion-murdering babies. And this:
“With a colorful White House backdrop, (L) Kevin Barragan and his partner Adam Smith celebrate as do Kelly Miller (with glasses) and her wife Lindsey Miller.”
tagline
Forest fires. Brush fires. Trump is trying to burn down California with these leftard head explosions. Then everyone will leave the state pursued by homeless guys asking for change, and its electoral votes will go down.
I have slept at a Holiday Inn Express at sometime in the past.
Attention liberals, please file your W4-V forms immediately.
Didn’t the liberals say making changes to trade deals would he a disaster?
:::
Well, this good news is a disaster for them because they want to see the US fail.
This deal includes Mexico paying for the wall! I am not joking - hidden within the deal is a cooperation for Mexico to build and pay for the wall on their side of the border!!!
Well, it depends on what measure you use.
That is awesome!
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