“U.S. stocks edged higher Tuesday as technology stocks began to bounce back after a three-session downturn,” Ben St. Clair reports for The Wall Street Journal. “The Dow Jones Industrial Average added 99 points, or 0.4%, to 25405 shortly after the opening bell. The S&P 500 gained 0.4%, and the tech-heavy Nasdaq Composite rose 0.7%.”
“Large U.S. tech stocks mostly inched higher after a closely watched index of tech stocks fell into correction territory Monday, hurt by disappointing earnings reports and concerns about growth. The NYSE FANG+ Index—which includes Facebook, Amazon, and Netflix —slipped 10% below its June 20 record,” St. Clair reports. “But not all technology stocks have declined this month. Shares in Amazon are up 4.7% since the start of July, and shares in Apple, which reports earnings after the bell Tuesday, are up 2.6%.”
St. Clair reports, “The broader stock ‘market has withstood the selloff in the tech stocks in the last few days with resiliency,’ said Jim McDonald, chief investment strategist at Northern Trust. The gains demonstrate investor confidence in the economy, Mr. McDonald added.”
Read more in the full article here.
“The momentum came following a Bloomberg report around the opening bell that the U.S. and China are pursuing talks to defuse the trade war,” Leia Klingel reports for FOXBusiness. “Earnings reports released before the opening bell included Pfizer and Procter and Gamble. The big report will come out after the closing bell when tech giant Apple releases its latest quarterly results.”
“Investors will also be watching the Fed, which begins a two-day policy meeting on Tuesday. It is widely expected that the central bank will announce Wednesday that it will keep interest rates unchanged,” Klingel reports. “Economic growth combined with rising inflation are likely factors that will keep the Fed on track for another two hikes this year, according to Reuters.”
Read more in the full article here.
“The U.S. and China are trying to restart talks aimed at averting a full-blown trade war between the world’s two largest economies, two people familiar with the effort said,” Bloomberg News reports.
“Representatives of U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are having private conversations as they look for ways to re-engage in negotiations, according to the people who spoke about the deliberations on condition of anonymity,” Bloomberg reports. “They cautioned that a specific timetable, the issues to be discussed and the format for talks aren’t finalized, but added there was agreement among the principals that more discussions need to take place.”
“The next wave of U.S. tariffs is set to kick in as soon as Wednesday, with the possible imposition of duties on another $16 billion of Chinese imports,” Bloomberg reports. “One person familiar with the internal deliberations said the U.S. is trying to secure certain concessions and if China agrees, it is possible the U.S. would back off additional tariffs.”
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
Read more in the full article here.
MacDailyNews Take: Hopefully a better balance will be struck.
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
SEE ALSO:
What trade war? Markets shrug off US-China dueling tariffs – July 6, 2018
The Sowell quote tracks the views of David Ricardo (d. 1823) and almost every economist since. One hopes the current administration is listening.
Sowell could just as easily repeated three of the Rotary Club’s four test of fairness:
Is it fair to all concerned?
Will it build goodwill and better friendships?
Will it be beneficial to all concerned?
Clearly, the extreme trade imbalance between the US and China (favoring China) doesn’t satisfy any of these tests.
Trade deficits with China should have been addressed long ago.
I can guarantee you one thing. The current administration does not listen to FALSE prophets …
You don’t know who Trump listens to because his position sways in the wind. But you’d rush to paste labels anyway.
The only steady values being promoted by this administration are oligarchic greed and xenophobia. Exactly the opposite of what actually did make America great in the past. FUD flows freely on from the Samsung using twitter addict. Actual legislative reform or well designed executive reforms and cost cutting, not so much.
Well, I do know he listens to a good friend of my mine from the local hood that he campaigned for tonight. As usual, you don’t know jack and pretend you know everything …
Thank you president chump and president xi jumping.
The Libtard speaks again denigrating the greatest country on Earth and disrespecting our hard working tireless president.
Take a hike socialist. Your opinions amount to ZERO …