Stock market guru, Jim Cramer said President Trump has the upper hand in the China trade distpute because tariffs are hurting the Chinese economy way more than the US economy.
“Hate him or like him, he has them where he wants them,” Mr. Cramer said on TV Friday.
“I always felt that there is a moral equivalence that our mainstream puts between China and the United States. Hate him or like him, Trump is not morally equivalent” to Chinese President Xi, Mr. Cramer said.
Mr. Cramer spoke just before the United States and China agreed Friday to the 1st phase of a deal to end a trade dispute, prompting President Trump to suspend a threatened tariff hike, but officials said the agreement had to be put on paper and more work was required to get it finalized.
The partial accord, covering agriculture, currency and some aspects of IP (intellectual property) protections, represented the biggest step toward resolution of a 15-month tariff dispute between the world’s 2 largest economies that has hit financial markets and slowed global growth.
President Trump said it could take up to 5 wks to get the deal written, Reuters explained.
“We will not sign an agreement unless we get and can tell the President that this is on paper,” US Treasury Secretary Steven Mnuchin said as the 2 sides gathered with President Trump in the Oval Office
With Chinese Vice Premier Liu He sitting across a desk from him President Trump told reporters that the 2 sides were very close to ending their trade dispute.
“There was a lot of friction between the United States and China, and now it’s a lovefest. That’s a good thing,” he said.
President Trump had not made a decision about pending tariffs that were subject to go into effect in December
When asked about those tariffs, President Trump said: “I think that we are going to have a deal that’s a great deal that’s beyond tariffs.”
Closing Summary
Stock markets rallies on trade deal expectations as the major averages ended a volatile week on a high.
The S&P 500 gained 1.1% to finish the week higher by 0.6%, the NAS Comp (+1.3%) outperformed, rising 0.9% on the week, and small caps had an even showed up Friday as the Russell 2000 rose 1.8%, climbing 0.8% for the week.
The 2nd day of trade talks between representatives from China and the US started with strong optimism, which President Trump highlight in a morning Tweet.
The 1st 2 hrs of the session saw a rally led by cyclical sectors lifting the S&P 500 above its high 1 October highs. The benchmark index hit a session high shortly after the Fed confirmed what Fed Chairman Powell signaled earlier in the week. Starting Tuesday, the Fed will begin purchasing T-Bills at a pace of $60-B/month. The purchases will continue into Q-2 of next year or longer.
Friday, the major US stock market indexes finished at: DJIA +319.92 at 26816.59, NAS Comp +106.26 at 8057.04, S&P 500 +32.14 at 2970.27
Volume: Trade on the NYSE came in at 864-M/shares exchanged.
NAS Comp +21.4% YTD
S&P 500 +18.5% YTD
DJIA +15.0% YTD
Russell 2000 +12.1% YTD
Industry Watch
| Strong: Industrials, Financials, Technology, Materials, Consumer Discretionary, Energy |
| Weak: Consumer Staples, Utilities, Real Estate HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral with a Bullish bias. There is no economic data Monday’, and the US bond market will be closed for Columbus Day. |
Have a terrific weekend…
President Trump has China “Where He Wants Them on Trade” + Closing Market Summary added by HEFFX on
View all posts by HEFFX →
Latest posts by HEFFX (see all)
- Tesla Is Hiring Someone To Defend Elon Musk And Fend Off Attacks By Twitter Trolls - January 20, 2021
- PayPal Will Continue To Profit From A Huge Increase In Volume And Accounts - January 20, 2021
- Google’s Ethical AI Division Investigating Sharing of Sensitive Documents - January 20, 2021