Dow gained 27, advancers over decliners a healthy 3-1 & NAZ went up 41. The MLP index was higher by 1+ to the 257s & the REIT index recovered 1+ to the 382s. Junk bond funds were mixed & Treasuries rose in price after tame wage data. Oil climbed 2 to 1296 & gold added 2 to 1296.
AMJ (Alerian MLP Index tracking fund)
Stocks rise on US-China trade optimism
Chinese Vice Premier Liu He said a new consensus has been reached between China & the US on the text of a trade agreement that they are negotiating, according to official state news Xinhua. Liu led a delegation to DC this week to meet with US officials for another round of high-level negotiations as the 2 sides seek to end a potentially devastating trade conflict. Yesterday, Liu met Pres Trump at the White House's Oval Office. Chinese Pres Xi Jinping, thru a message conveyed by Liu, told Trump that both sides have made new & substantial progress on key issues regarding trade in the past month, according to Xinhua. Xi said he hopes both sides will continue to work together to conclude talks on the trade text as early as possible, Xinhua reported. Trump said that “we’ll know over the next four weeks” if the 2 countries have a deal. Greater China markets were closed today. The US & China — the 2 largest economies in the world — are engaged in a tariff fight that started last year. The Trump administration imposed additional tariffs on $250B in Chinese imports, while Beijing slapped duties on $110B of American goods. Representatives from both countries have been meeting to address their differences on issues such a trade imbalance & alleged forced technology transfers from American firms to their Chinese partners. Tensions between the US & China have roiled global markets & hit economic activity worldwide.
‘New consensus’ reached on US-China trade, says Chinese Vice Premier Liu
Pres Trump said the US economy would climb like “a rocket ship” if the Federal Reserve cut interest rates. Commenting after a strong jobs report for Mar, Trump said the Fed “really slowed us down” in terms of economic growth, & that “there’s no inflation.” “I think they should drop rates and get rid of quantitative tightening,” Trump told reporters, referring to the Fed's policy of selling securities to unwind its balance sheet, a stimulus put in place during the financial crisis. “You would see a rocket ship. Despite that we’re doing very well.” White House aides have called for the Fed to cut interests rates by as much as 50 basis points. Following the Fed's most recent meeting in Mar, the central bank decided to maintain interest rates & hold off on any further increases this year. As Trump's chief economic adviser Larry Kudlow did today, Federal Reserve Chairman Jerome Powell highlighted the slowing global economy. “We’re facing a worldwide slowdown [as] Europe is not doing well,” Kudlow said. But unlike the White House, the Fed did not conclude in Mar that slowing global growth means the bank should begin cutting rates. Trump has been heavily critical of Powell's decisions at the Fed, going as far as to say that “the Fed has gone crazy” with raising rates. Trump has blamed Powell's decision-making for drops in the stock market, calling him “loco” for steadily raising rates in 2018 & saying choosing Powell for Fed chairman was the worst mistake of his presidency. But the White House declared repeatedly that Trump does not plan to remove Powell as Fed chairman.
Trump says economy would take off like 'rocket ship' if Fed cut rates
The good news from jobs data & higher hopes on a trade deal was greeted with limited enthusiasm. Much of news has been baked into the markets, so there was some caution by investors. The jobs number eases recession fears, but the trade deal still needs more work. Safe haven gold & Treasuries were also purchaed as the Dow crawls closer to setting a new record..
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 62.61 | +0.51 | +0.8% |
| GC=F | Gold | 1,293.80 | -0.50 | -0.0% |
Stocks rose on optimism, albeit tentative, that current high-level negotiations between the US & China will produce a sweeping deal & end a costly tariff standoff between the 2 economies. That
optimism was fed by China's Xinhua News Agency, which reported that
Pre Xi Jinping called for negotiations to wrap up quickly & also
said that recent trade talks had resulted in substantial progress. Trump last month indicated that he was in “no rush” to complete a trade
deal with China, insisting that any deal must include protection for
intellectual property. From the American perspective, the challenge is
getting the Chinese to move from words to actions & finding an
enforcement mechanism that can guarantee that Chinese companies adhere
to whatever is finally agreed upon. Investor sentiment also rose on an unexpectedly strong Mar jobs report. US employers added 196K jobs in Mar, beating expectations for an increase of 180K on the heels of a measly month
for job creation that reignited fears about an impending economic
slowdown. Japan's
Nikkei 225 closed up 0.4%, Hong Kong's Hang Seng ended down
0.2% & China's Shanghai Composite increased 1.0%. Britain's FTSE 100 was up 0.2%, France's CAC 40 added 0.3% & Germany's DAX slid lower.
Stocks rise on US-China trade optimism
US employers added 196K jobs in Mar, beating expectations for an increase of 180K, likely quelling some fears
about an impending economic slowdown on the heels of a measly month for
job creation. The unemployment rate remained
at 3.8%, while the labor force participation rate was also little
unchanged at 63%. Average hourly earnings, meanwhile, rose by 4¢ to $27.70, following a 10¢ gain in Feb. Over the year,
average hourly earnings have increased by about 3.2%, missing
expecations for 3.4% growth. The job creation in Mar marks the 118th month of straight gains. Investors
were closely watching for signs of a softening economy -- in
Feb, the economy added a disappointing 33K jobs -- but expected
to see positive signals for stronger consumer spending & overall
positive economic growth in the months ahead. The
report also likely provides the Federal Reserve additional fodor to
remain on its dovish track of not raising interest rates for the
remainder of 2019. However private sector hiring cooled last month, with non-farm payroll increasing by 129K, far lower than the expected 170K.
American employers created a robust 196,000 jobs last month
Chinese Vice Premier Liu He said a new consensus has been reached between China & the US on the text of a trade agreement that they are negotiating, according to official state news Xinhua. Liu led a delegation to DC this week to meet with US officials for another round of high-level negotiations as the 2 sides seek to end a potentially devastating trade conflict. Yesterday, Liu met Pres Trump at the White House's Oval Office. Chinese Pres Xi Jinping, thru a message conveyed by Liu, told Trump that both sides have made new & substantial progress on key issues regarding trade in the past month, according to Xinhua. Xi said he hopes both sides will continue to work together to conclude talks on the trade text as early as possible, Xinhua reported. Trump said that “we’ll know over the next four weeks” if the 2 countries have a deal. Greater China markets were closed today. The US & China — the 2 largest economies in the world — are engaged in a tariff fight that started last year. The Trump administration imposed additional tariffs on $250B in Chinese imports, while Beijing slapped duties on $110B of American goods. Representatives from both countries have been meeting to address their differences on issues such a trade imbalance & alleged forced technology transfers from American firms to their Chinese partners. Tensions between the US & China have roiled global markets & hit economic activity worldwide.
‘New consensus’ reached on US-China trade, says Chinese Vice Premier Liu
Pres Trump said the US economy would climb like “a rocket ship” if the Federal Reserve cut interest rates. Commenting after a strong jobs report for Mar, Trump said the Fed “really slowed us down” in terms of economic growth, & that “there’s no inflation.” “I think they should drop rates and get rid of quantitative tightening,” Trump told reporters, referring to the Fed's policy of selling securities to unwind its balance sheet, a stimulus put in place during the financial crisis. “You would see a rocket ship. Despite that we’re doing very well.” White House aides have called for the Fed to cut interests rates by as much as 50 basis points. Following the Fed's most recent meeting in Mar, the central bank decided to maintain interest rates & hold off on any further increases this year. As Trump's chief economic adviser Larry Kudlow did today, Federal Reserve Chairman Jerome Powell highlighted the slowing global economy. “We’re facing a worldwide slowdown [as] Europe is not doing well,” Kudlow said. But unlike the White House, the Fed did not conclude in Mar that slowing global growth means the bank should begin cutting rates. Trump has been heavily critical of Powell's decisions at the Fed, going as far as to say that “the Fed has gone crazy” with raising rates. Trump has blamed Powell's decision-making for drops in the stock market, calling him “loco” for steadily raising rates in 2018 & saying choosing Powell for Fed chairman was the worst mistake of his presidency. But the White House declared repeatedly that Trump does not plan to remove Powell as Fed chairman.
Trump says economy would take off like 'rocket ship' if Fed cut rates
The good news from jobs data & higher hopes on a trade deal was greeted with limited enthusiasm. Much of news has been baked into the markets, so there was some caution by investors. The jobs number eases recession fears, but the trade deal still needs more work. Safe haven gold & Treasuries were also purchaed as the Dow crawls closer to setting a new record..
Dow Jones Industrials
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