Dow jumps 500 points led by Apple as US delays China tariffs on cellphones, clothing

[tacobell fan]

Stocks surged higher in a sudden move after the U.S. said it was delaying China tariffs until Dec.15 on items including cellphones and clothing. The U.S. also removed some items from list of new tariffs outright.

The adjusted policy caused the Dow Jones Industrial Average to jump 520 points, while the S&P 500 rose 2.1% and the Nasdaq Composite was 2.5% higher, led by Apple which surged more than 5%.

 

The United States Trade Representative announced Tuesday certain products are being removed from the tariff list based on “health, safety, national security and other factors” and will not face additional tariffs of 10%. The tariff should be delayed to Dec. 15 from Sep. 1 for certain articles, it said.

“Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing,” the statement from the USTR said.

Retailers cheered the potential delayed rise in costs for apparel and electronics. Best Buy soared 10%, while Nike jumped 2%. Macy’s and Nordstrom also both surged more than 4%. The SPDR S&P Retail ETF is up more than 4%, on pace for its best day of the year.

President Donald Trump last week abruptly ended the cease-fire with China by threatening to impose additional tariffs on Chinese imports that eluded duties in the earlier round in May. Stocks suffered their worst days of the year on Aug. 5 after China allowed its currency to drop against the dollar below a key level unseen since 2008.

The trade negotiators from the U.S. and China agreed to hold discussions again in two weeks, China state-run media Xinhua reported Tuesday.

 

The yield curve widened after the USTR announcement, easing concern the trade war with China would tip us into a recession. Still, the widely watched 2-year to 10-year yield spread is now just 4 basis points, according to FactSet. A yield-curve inversion has been a reliable recession indicator watched by the Federal Reserve as well as many market experts.

The Labor Department’s consumer price index report showed inflation came in as expected last month. The yield curve continued to narrow after the report.

The Dow slumped nearly 400 points on Monday to fall back below 26,000, while the benchmark 10-year Treasury yield dipped to 1.63%. 

Despite concerns about the yield-curve inversion, history shows stocks have another year-and-a-half to run typically before doom hits, based on data going back to 1978, according to Credit Suisse. Data show a recession comes in about 22 months on average after the curve inverts.

“I think there’s a lot of fear embedded in the bond market,” said Jim Paulsen, chief investment strategist at The Leuthold Group. The inverted yield curve “is the biggest risk right now. It’s my number one worry but I think it’s overdone. If economic reports continue to improve, then I think people will decide this doesn’t look like a recession.”

“The fact that we have negative yields around the world makes this somewhat a different signal. The fact we inverted on underheat rather than the normal inversion on overheat makes it somewhat different,” Paulsen added.

The increasingly violent protests in Hong Kong and a crash in the Argentine peso also drove investors to perceived “safe haven” assets such as U.S. bonds, gold, and the Japanese yen.

China once again fixed its yuan midpoint at 7.0326 per dollar on Tuesday, the fourth consecutive session where the People’s Bank of China set the figure at a level weaker than the psychologically 7-yuan-per-dollar level.

[shaw183]

APPLE odu uchapoinchuthundu thata gadini

[tacobell fan]

Just now, shaw183 said:

APPLE odu uchapoinchuthundu thata gadini

last time idhe chepthe hadavudi chesaru including @TRUMP. 

 

When Tim Apple asked for Tariff waiver his response, he don't know what corporate can do?

 

 

[shaw183]

1 minute ago, tacobell fan said:

last time idhe chepthe hadavudi chesaru including @TRUMP. 

 

When Tim Apple asked for Tariff waiver his response, he don't know what corporate can do?

 

 

e thata gadu paisal cheskonike ochindu..oke roju 500points market peragatam malli oka week lo tagadam endi asala...? long adala short adala telika paisal pothunai eda

[TheBrahmabull]

fake markets -- both bond markets and stcoks both are rallying..

[tacobell fan]

Just now, TheBrahmabull said:

fake markets -- both bond markets and stcoks both are rallying..

it's a legal gamble but adding voice to it at the highest level hurt people. 

[TheBrahmabull]

4 minutes ago, tacobell fan said:

it's a legal gamble but adding voice to it at the highest level hurt people. 

i know each and every market is manipulated.. but not to this level and magnitude..

[shaw183]

2 minutes ago, TheBrahmabull said:

i know each and every market is manipulated.. but not to this level and magnitude..

mari inta manipulation a ..better to stay away from now and start shorting once he get reelected >??

[TheBrahmabull]

1 minute ago, shaw183 said:

mari inta manipulation a ..better to stay away from now and start shorting once he get reelected >??

Once the nominations are done - i think you can do that.. by end of 2nd Q 2020 , we can see markets coming to reality and PPT would go in to hibernation