[ad_1]
Traders are working after the opening bell on Friday at the New York Stock Exchange. Investors are closely following trade negotiations between the United States and China. (Johannes Eisele / AFP / Getty Images)
Thomas Heath
Journalist and local business columnist, writing about entrepreneurs and businesses in the Washington metropolitan area
Shares rebounded Friday afternoon after a deep morning of retreat as investors sought good news about the impact of President Trump's price hikes on Chinese products.
The three major US indexes rallied in the afternoon to earn gains that day, although the general market had its worst week in 2019.
The Dow Jones industrials index lost up to 359 points on average but rebounded 550 points at its peak before closing at 25,942. Closing left the Dow at a 114 point gain, about 0.44%. Walmart, Procter & Gamble and Coca-Cola headed the Dow. The Blue Chips were down 2.12% over the week.
The Standard & Poor's 500 Index also finished higher on Friday after diving early in the day. The S & P finished at 2881, up 0.37%. The 11 sectors of the S & P posted gains on Friday, with utilities, consumer discretionary and real estate leading the way. The S & P lost 2.18% for the week, its worst week of the year.
The highly technical Nasdaq Composite also took the torch in the dark, finishing at 7,917, six points above its starting position.
The indexes are still close to their historic high of May 3 and yields remain solid until 2019. For this year, the Dow is up 11.4%, the S & P 500 up more by 15% and Nasdaq by 19.7%.
The threat of rate hikes, which came into effect on Friday at 12:01 pm, has wreaked havoc on global markets all week as investors and corporate executives attempt to dispel the uncertainties and wait for prepares. Concerns about impending tariffs were observed Thursday as many companies exposed in China, Apple, Boeing and Caterpillar lost about 1%.
"You have this nervousness this weekend," said Kenny Polcari of ButcherJoseph Asset Management. "The market was under pressure last week and lost 3.5% over the week, then turned around and hinted to Trump that the negotiations did not fail. is still thin and not done yet, but the market has taken this as a good sign and it has bounced back. "
The US-China trade talks ended before noon and the Chinese were preparing to leave. However, US Treasury Secretary Steven Mnuchin said the talks were "constructive", leaving the possibility of reaching an agreement.
The market has started an unstable U-turn characterized by stops, starts and reversals throughout the afternoon.
"Investors are beginning to worry that trade wars are not as easy to win as the president has declared," said Ed Yardeni, chairman of Yardeni Research. "The people in charge of the administration had already raised expectations about an agreement. Instead, they have once again increased tariffs on Chinese imports in view of prolonged negotiations and more tariffs if no progress is made quickly. "
International markets appeared to stabilize on Friday during the day, while Chinese stock markets, after suffering heavy losses earlier in the week, advanced. The Shanghai Composite Index rose 3.1% and the Shenzhen index rose 4%.
After getting close to the red Thursday, European markets rebounded on Friday. The French CAC 40 rose by 0.5% in morning trading. The German DAX rose 0.8% and the FTSE 100 England 0.4%.
After Trump expressed his frustration at the pace of trade talks and threatened to impose high tariffs on $ 200 billion of Chinese imports last weekend, negotiators failed to reach a okay this week. US authorities have accused China of revisiting earlier details of the deal; China has denied this. Trump Chief Trade Negotiators Robert E. Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to meet Chinese Vice Premier Liu He on Friday to continue negotiations.
On Thursday, the Ministry of Commerce said China "deeply regrets" the decision to raise tariffs and "will have to take the necessary countermeasures".
"We hope that the United States and China will meet at mid-term and deploy joint efforts to resolve existing problems through cooperation and consultation," a spokesman said in a statement.
Investors seem exasperated by the back and forth and have said that it harms the US economy.
"We have seen it throughout the trade war: negative stocks, algorithms are lowering stocks. I do not like it, no investor likes it, "said Nancy Tengler of Tengler Wealth Management. "There is increasing risk that tariffs and, more importantly, uncertainty among business leaders, are blocking both economies and therefore global growth. convinced that there will be a solution, but the risks are increasing. "
Trump defended the rates in tweets on Friday morning, indicating that he would be ready to apply even heavier penalties in the future. In one of the tweets, Trump wrote that it was "not necessary to rush". He said that tariffs "would bring much more wealth to our country than even a phenomenal agreement of the traditional type". He also warned China repeatedly not to renegotiate the terms of the agreement.
But trade experts and business groups said Trump did not systematically inform the operation of tariffs. Fees are taxes paid by US companies – such as manufacturers and chemical manufacturers – that import products overseas. While this raises the price of Chinese products, which Trump says is good for US competitors, it also increases costs for US companies and, ultimately, for consumers.
Beyond the hubbub of trade, investors were attentive to the much-anticipated public offer of Uber on Friday, with the disgusting giant who was quoting 45 dollars a share, a price lower than that initially indicated by the company. Uber ended Friday at $ 41.57, down $ 3.43, or 7.6%.
[ad_2]
Source link