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.
2 hours of Canadian-only material that nobody watches.
Luckily, people are cutting their cable and just going to a high speed internet connection and stream what they want when they want.
I believe they do the same with radio stations that they have to play a certain percentage of Canadian artists.
Their objective is and has been to destroy capitalism. Socialism is how they will rule. It's not so much that Krugman and his fellow travelers are wrong as this is how they hope to seize power; Make things so bad people beg for government to take over.
Remember when JFK, a democrat, was more right-wing Constitutional than the RINOS of today? That man through guts and wisdom made the Soviets stand down during the Cuban Missile Crisis. He and his brother kept the World from blowing up. If there was ever a Kennedy that should have been put down, it was Ted. After LBJ, he did more damage to America than anyone I can think of off hand...and there have been plenty like Patsy Schroeder regarding our military.
If Senator Graham keeps on this track and reverses his McCain influenced amnesty, I will give him all my support, even to the next majority leader.
AMERICA FOR AMERICANS
The Cuban missile crisis would not have happened if Kennedy had supported the Bay of Pigs invasion.
I think it’s fair to conclude we have never seen a man like President Trump. Nor are we likely to ever see his ilk again. No matter what is going around him - no matter the chaos, the slander, the malice, the political indifference of his own party - Trump just keeps plowing ahead.
I constantly hear that he is wildly unpopular and unlikable, but I’ll believe my lying eyes.
Thanks Red Badger.
“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.”
I recently toured the Petersen Automotive Museum in Los Angeles, and there was an exhibit on alternative-fuel cars. An interesting accompanying chart had the cost of using various energy sources with existing technology relative to gasoline. As I recall, only natural gas was cheaper. Ethanol was equivalent to something like $3.40/gal when gasoline was $2.69/gal.
What exactly does this mean? “The new agreement requires Mexico to allow more workers to unionize and to lift wages in some instances, specifically for autoworkers.” why should the USA tell Mexico they have to allow unions?
You have no idea how much fresh water ethanol consumes either. It is an ENORMOUS amount. Refining gasoline also requires quite a bit of water too as it turns out, but not like ethanol production.
Last I saw, ethanol and gasoline aren’t far apart in water use, two to three gallons of water per gallon of product.
For perspective, a 100 million gallon ethanol plant uses about the same amount of water as a small town of about 3,000.
Because Mexico has suppressed unions and worker demands for better wages with military force in the past to keep the maquiladora money flowing in. Mexico isn’t forced to accept unions and the new
Minimum Wage requirement also in the treaty - but if they don’t, US tariffs will kill their for-export manufacturing sector. Then they’re looking at either the cartels taking over or a violent revolution - either way, the politicians will be evicted from the gravy train.
Further, such measures will also mean more Mexicans will stay in Mexico through better treatment and better pay.
I once nearly got the biggest beverage plant in the world developed up here in WA state.
The idea was to use rolling stock to ship beverages to places where water was scarce, and do it at a scale that would make manufacturing it cheaper (including the freight) than manufacturing locally and shipping by truck.
By using rail instead of truck, the fuel savings cost alone in WATER USE made the total water use of the plant a WASH. The amount of water used in the manufacturing of the beverages was offset by the diesel fuel savings.
The plant was to be partially powered by organic waste from the manufacturing process. It would have replaced 24 medium sized beverage manufacturing facilities. (Essentially replacing every plant in California, Arizona, and Nevada).
It didn’t happen. Watermelons tied us up and used the clock to beat us.
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