Dow Jones Industrial Average Surges 450 Points as Markets Hail Trade War Truce

Original post

The Dow Jones Industrial Average jumped 450 points in premarket trading after a purported “truce” in trade hostilities between China and the United States at the G-20 summit. The White House announced it will delay a scheduled tariffs hike of $200 billion in Chinese goods that was set to take effect on January first. China has agreed to not raise tariffs on U.S. goods at the New Year deadline as well.

In addition, President Trump tweeted this morning that China has agreed to slash tariffs on U.S.-made automobiles. Oil prices popped as much as 5% on optimism from the truce, which is a stark change in policy after months of escalating tensions between the world’s top two economies. Markets hope that a deal will restore confidence in global growth and restore stability at a time that markets are teetering.

Follow topic

Morning Market Alert

Get an exclusive look at what’s going on in the markets at the start of each day.

Here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:

Index Previous Close Point Change Percentage Change
Dow Jones 25538.46 199.62 0.79%
S&P 500 2760.17 22.41   0.82%
Nasdaq 7330.54 57.45   0.79%

Now, here’s a closer look at today’s Money Morning insight, the most important market events and stocks to watch.

Money Morning Insight of the Day: These 3 Stocks Are the Key to 2018’s Greatest Profits

The 2018 midterm election was a turning point for the cannabis industry.

We expect nothing short of historic profits by the end of the year.

But not all pot stocks will hand you life-changing wins. In fact, often the companies making headlines are least likely to see the biggest gains.

These three stocks, on the other hand, are flying under the radar… for now. Each of them could see exponential stock price acceleration at any moment, and if you get in before that happens, you could turn a token stake into a lifetime of wealth.

I don’t know of any other sector providing anywhere near this level of growth now.

Click here to learn more.

The Top Stock Market Stories for Monday

  • Speaking of oil, OPEC is under significant pressure to survive after one of its oldest members announced plans to depart the world’s largest energy cartel. The natural gas-rich nation of Qatar said it will depart OPEC at the end of the year after 60 years of membership. Country leaders said that the country wants to expand natural gas production, however, it has been at the mercy of the direction of Saudi Arabia, the cartel’s largest oil producer. Qatar currently produces 600,000 barrels of oil per day.
  • Over the weekend, President Trump celebrated the signing of a new trade deal between the United States, Mexico, and China. Trump said he plans to withdraw from the 25-year-old North American Free Trade Agreement (NAFTA), just days after signing the U.S.-Mexico-Canada Agreement with the leaders of those two nations. The decision will give Congress just six months to ratify the new trade dow jones industrial averageagreement or return to economic terms that pre-date the continental NAFTA deal.
  • On Friday evening, former President George H.W. Bush passed away at the age of 94 at his residence in Houston. The 41st President will lie in state at the Capital Rotunda for two days before his burial at his presidential library at Texas A&M University. President Trump has designated Wednesday as a day of national morning. The U.S. markets will be closed as a result.

Stocks to Watch Today: NXPI, CAT, F, GM, FCAU

  • Shares of NXP Semiconductors NV (Nasdaq: NXPI) rallied on news that the U.S. and China struck a temporary deal on trade. Analysts are speculating that the improved dialogue between the U.S. and China could press President Xi Jinping to approve a deal that would allow Qualcomm (Nasdaq: QCOM) to buy NXP.
  • Shares of Caterpillar (NYSE: CAT) popped after Bank of America/Merrill Lynch analysts hiked the stock’s rating from neutral to a “Buy.” Analysts say that macroeconomic risks have abated in the wake of the Fed’s dovish approach on interest rates and news of a short-term deal between the U.S. and China.
  • Shares of General Motors Company (NYSE: GM) popped nearly 4% after China agreed to cut tariffs on American cars. Automotive rivals Fiat Chrysler Automobiles (NYSE: FCAU) added 3%, while Ford Motor Company (NYSE: F) added 2.8% on the news. Automotive stocks also received a boost from the initial signing of the USMCA.
  • Look for an earnings report today from Finisar (Nasdaq: FNSR)

Follow Money Morning on Facebook, Twitter, and LinkedIn.

Join the conversation. Click here to jump to comments…

This post is from Money Morning. We encourage our readers to continue reading the full article from the original source here.