U.S.-China trade deal, optimism power stocks to new record highs

Powered by optimism about the U.S.-China trade deal, as well upcoming earnings reports, Apple and other tech stock pushed Wall Street to record highs on Monday.

Noel Randewich for Reuters:

Apple, Facebook Inc, Netflix Inc, Microsoft Corp and Amazon.com Inc, which have powered the longest bull run in U.S. equities, were among the top contributors to record high closes for the S&P 500 and Nasdaq. Apple rose 2.14% to close at a record high…

An easing of Middle East tensions and the Phase 1 U.S.-China trade agreement, which is expected to be signed in Washington on Wednesday, have encouraged riskier bets over the last week… Bloomberg, citing sources, reported that the Trump administration planned to lift its designation of China as a currency manipulator, adding to the positive mood.

MacDailyNews Take: The signing of the Phase 1 U.S.-China trade deal will be a welcome relief for the market, and for Apple, tomorrow.

9 Comments

  1. “An easing of Middle East tensions”

    What utter bullshit. Here is what Defense Secretary Mark Esper said yesterday:

    “Defense Secretary Mark Esper says the U.S. has the constitutional authority to strike Iranian proxies in Iraq and Iran on the Islamic Republic’s home soil in retaliation for attacks on American forces.”
    https://www.npr.org/2020/01/13/796102188/esper-u-s-could-strike-iran-or-proxies-where-legally-available-and-appropriate

    That is anything but an easing of Middle East tensions. It is an escalation and a threat. To which Iran said a week ago about an attack on Iranian soil:

    “Iran’s elite Islamic Revolutionary Guard Corps (IRGC) has warned that it will launch attacks on cities of Dubai in the UAE and Haifa in Israel if the Iranian soil is bombed in the future.”
    https://www.business-standard.com/article/news-ani/iran-threatens-to-attack-dubai-haifa-if-country-is-bombed-120010800230_1.html

    Which inevitably leads to full scale war and the shutting of the Straight of Hormuz to public oil transit. In other words, if we attack the Iranians on their own soil, it will set in motion a series of events that will lead to a global recession or depression. Apple’s stock then will be worth a fraction of what it is today.

    But that’s the kind of idiotic analysis you get when you cherry-pick news sources that feed the fishbowl attitude that everything is right in the world if the stock market is booming.

    Here’s a nice, well thought out conservative analysis by a former Marine intelligence officer:

    “…The economic impact of any closure [of the Straight of Hormuz] will be immediate, catastrophic and sustained. Even if the United States prevailed in a military conflict over the Strait of Hormuz (and it is not certain it would do so), any victory would be pyrrhic in nature, with the United States sacrificing its national economic health, and that of the rest of the world, on an alter of hubris that fails to advance the national interest in any meaningful fashion.”

    https://www.theamericanconservative.com/articles/what-if-iran-retaliates-and-shuts-the-strait-of-hormuz/

    1. Bravo, JC!

      It is astounding how myopic, self-centered, and short sighted the fans of this incompetent administration are. They can’t even admit that the record debt and loss of trusting international trading partners that this administration has caused also pose a serious threat to future US prosperity.

      Remember, the excuse the Great Orange Liar offered to the public (imminent threat) is diametrically opposed to the one issue that occupies the vast majority of his incessant tweets: the need to distract from his impeachment and potential treason. He’s desperately trying to keep anyone from testifying into the senate, so what better media distraction than to have a nice little assassination to distract from his domestic mess? Clearly the Orange Fuhrer is desperate to control the news cycles, it’s plainly obvious he has no cohesive middle east strategy whatsoever. If the assassination of a dangerous foreign agent was truly necessary to save lives, then why make a media circus out of it? No, this administration is all about distraction and now it even includes provoking war. Repurcussions have been real, and threats are still high. 260 people lost their lives, a US military base was bombed, cyber attacks are on the rise (https://www.usatoday.com/story/tech/2020/01/07/iran-cyberattack-risk-up-missile-strike-iraq/2838442001/), and there is no reason to believe that Iran can’t bide its time to attack a weak point at any time in the future. Is the west supposed to feel safer? Well, the magats must think so. Goeb will be here to insult us momentarily.

        1. By the way, the market dropped tuesday.

          https://www.reuters.com/article/us-usa-trade-china/china-to-ramp-up-u-s-buys-under-trade-deal-but-skeptics-question-targets-idUSKBN1ZD0FN

          Turns out the corrupt Orange administration was trotting out some unrealistic promises. As usual.

          I wonder when the corrupt Orange administration is going to let US farmers in on the dirty little secret that Beijing has already contracted massive agricultural purchases from South American producers like Argentina and Brazil. But you can’t (and won’t) ever discuss those pesky little details, will you Dd?

          In other news, US tech companies like Tesla continue to announce more openings of Chinese plants. Remind us how many grand new factories have broken ground since the Great Orange Liar promised the massive wave of high paying job creation? Wall Street loves the corporate buybacks, but Wall Street gambling doesn’t increase working wages any. Perhaps when your hero means “Great Again”, he’s only referring to his insider trading and emoluments — you know, which he repeatedly promised to share with voters.

          Who’s stupid, someone who looks at the total picture, or someone who endlessly swallows the lies and spin?

          1. OMG Mike! Give it a rest, please! Here you are dumping numerous sour grapes gripes again from over the horizon. Oh, the misery of more twisted rubbish from the “government is good; free enterprise businesses bad” psycho named Mike.

            You’ve already informed us in the previous few articles here that you live in Great Britain so why are you hectoring Americans about their chosen elected leaders? Take a hike—for the hundredth time.! We don’t want, we don’t need and we despise your bitter pills of socialistic writing. You likely are a government employee; well enjoy your golden pensions and free health care and shut the hell up—especially about another country’s citizens and the choices they make in either the marketplace or their elections. In other words, eat my shorts. And leave us be so we can enjoy this Apple forum without your sick diatribes and whining. Thank you and good night.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.