|Day's range||26,811.20 - 27,120.11|
|52-week range||21,712.53 - 27,398.68|
Stocks rose Tuesday as some of the first major corporate names began delivering third-quarter results. Meanwhile, investors continued to monitor signs that President Donald Trump’s “phase one” trade deal with China would materialize.
Investing.com – Stocks jumped Tuesday and the Dow briefly showed a gain of more than 300 points as Wall Street cheered third-quarter earnings.
Based on the early price action and the current price at 26855, the direction of the December E-mini Dow Jones Industrial Average futures contract the rest of the session on Tuesday is likely to be determined by trader reaction to the uptrending Gann angle at 26727.
The International Monetary Fund said trade standoffs and geopolitical tensions are behind its tepid projections for global growth in 2019.
Bank of America Merrill Lynch’s monthly fund manager survey revealed some shocking insights about President Trump’s trade war with China. Some 43% of respondents don’t think the trade war will be resolved and view the situation as the “new normal.”
Investing.com – Wall Street was higher on Tuesday after robust third-quarter earnings from JPMorgan Chase (NYSE:JPM), UnitedHealth (NYSE:UNH) and Johnson & Johnson (NYSE:JNJ).
The price action suggests investors are still trying to grasp the concept of a trade deal done in phases. However, if investors were really skeptical about the matter, the markets would’ve sold off a lot harder. This indicates they may be comfortable with the idea that both sides are still talking.
Investing.com - Stocks pulled back slightly Monday after concerns emerged that the U.S.-China trade deal announced Friday might not be as solid as first thought.
The U.S. dollar gained on Monday as optimism ebbed over a potential U.S.-China trade deal that President Donald Trump outlined last week, while a gauge of global equity markets was little changed as investors sought details about an agreement. Gold gained and oil prices fell more than 3% at one point as scant information about the first phase of a Sino-U.S. trade deal undercut optimism over a thaw in the dispute that has sparked a slowdown in global growth. A slide in Chinese exports picked up pace in September while imports contracted for a fifth straight month, evidence of further weakness in China's economy as tariffs take their toll.
Wall Street struggled for direction on Monday as inconclusive U.S.-China trade negotiations dampened sentiment and investors turned toward third-quarter earnings season, which begins in earnest on Tuesday. The S&P 500 was essentially flat, while the Nasdaq and the Dow were nominally higher following a three-day winning streak during which the benchmark S&P 500 gained 2.7%. Hopes dimmed that recent trade negotiations between the United States and China would bear fruit, as China indicated further talks were needed and U.S. Treasury Secretary Steven Mnuchin said the next round of tariffs on Chinese imports are on track to go into effect on Dec. 15 if a deal has not been reached by then.
News, again, drives the US stock market and major indexes higher as optimism of a US/China trade agreement floods the news wires. As we’ve been suggesting, the global markets continue to be news-driven and are seeking any positive news related to easing trade tensions and capital markets. We believe any US/China trade deal would be received as very positive news by the global capital markets – yet we understand the process of achieving the components of the “deal” would likely still be 6 to 24 months away.
Based on the early price action and the current price at 26795, the direction of the December E-mini Dow Jones Industrial Average futures contract into the close on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at 26697.
U.S. stock markets opened the week with a scramble to recover premarket losses that had been caused by a report suggesting China will seek more concessions from the U.S. before it signs the modest handshake deal it made last week with the U.S. Treasury Secretary Steven Mnuchin reassured CNBC earlier Monday that the two sides have an understanding, while Hu Xijin, the editor of China’s English-language mouthpiece, Global Times, also tried to downplay concerns. Initial statement of the Chinese side is moderate,” Hu said via Twitter.
Despite quite a few calls for caution, at the end of the trading session, the data revealed that Big Tech, Banks and chipmaker investors liked the news. Since stock investors tend to discount future events, they were probably happy because the tariffs that were set to begin on October 15 had been suspended.
On October 10, in an interview with CNBC, Mike Wilson said investors should focus on the fundamental story. He's worried about expensive growth stocks.
It is a big week ahead, with corporate earnings, trade talks, Brexit and economic data in focus. There’s also the IFM meetings and the EU Summit.
The lights have been green for the baby boomers all their lives. They were born just after World War II, between 1946 and 1964, and raised during the biggest, most sustained economic boom in human history.