“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.”

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“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.”

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“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.”

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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

What trade war? Markets shrug off US-China dueling tariffs – July 6, 2018