$DIA, $SPY, $QQQ, $RUTX, $VXX
- Wall Street declines for 4th day running, finished near session highs
- President Trump firm on tariffs, driving concerns about the trade dispute with China
- The S&P 500 held its 50-Day MA at 2860 on the close
- The CBOE Volatility Index (VIX), Wall Street’s ‘fear factor’ closed well off session highs at 19.35
On the China trade issue
President Trump said he has an “excellent alternative” to a trade deal, tariffs are the alternative. President Trump also said he received a letter from President Xi and intended to give him a call later, which was a sign of good will ahead Thursday’s dinner between Vice Premier Liu He and USTR Lighthizer.
Top US and Chinese trade negotiators concluded the 1st of 2 days of talks on Thursday as Washington prepares to go ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China at 12:01a EDT Friday.
President Donald Trump said if the 2 sides cannot make a deal, the United States would go back to manufacturing products that China now makes. “It’ll be the old-fashioned way, the way we used to do it: We made our own product.” America First!
Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin talked for 90 mins Thursday and are expected to resume talks Friday. Officials did not speak to reporters as they left the talks
On the Fed’s inflation indicator
The Producer Price Index (PPI) for final demand increased 0.2% M-M in April, as expected, while the index for final demand, less food and energy, or core PPI, increased 0.1% (consensus 0.2%). That left the Y-Y increases at 2.2% and 2.4%, respectively, unchanged from March.
- The Key takeaway from the report is that it did no show any acceleration in core producer inflation, which will keep the market’s pass-through concerns for the consumer in check.
Thursday, the major US stock market indexes finished at: DJIA -138.97 at 25828.36, NAS Comp -32.73 at 7910.57, S&P 500 -8.70 at 2870.72
Volume: Trade on the NYSE came in at 834-M/shares exchanged
- NAS Comp +19.2% YTD
- Russell 2000 +16.4% YTD
- S&P 500 +14.5% YTD
- DJIA +10.7% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral to Bullish in here.
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