“U.S. stock futures jumped 0.9 percent on Wednesday, joining a global equities rally, as President Donald Trump’s encouraging comments fueled optimism over trade negotiations between the United States and China,” Medha Singh reports for Reuters. “Trump, in an interview with Reuters, said trade talks with Beijing were taking place by phone and he would not hike tariffs on Chinese imports until he was sure about a deal.”
“He also said he would intervene in the Justice Department’s case against a top executive at China’s Huawei Technologies if it would help secure a trade deal,” Singh reports. “The comments set S&P 500 equity futures on course for their biggest one-day percentage jump since Dec. 3.”
“Trade-sensitive Caterpillar Inc and Boeing Co rose over 1.5 percent, while chipmakers advanced more than 1 percent in premarket trading,” Singh reports. “Technology stocks also rose, with Dow components Apple Inc , Cisco Systems Inc, Microsoft Corp gaining between 0.8 percent and 1.5 percent.”
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MacDailyNews Take: A U.S.-China trade deal would certainly be good news for the U.S.economy as a whole, along with full employment, rising wages, and consumer confidence, it’d certainly be excellent news for Apple, maker of coveted goods and services.
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
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
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
Morgan Stanley: Apple investors shouldn’t worry too much about China – October 18, 2018