Wednesday, the DJIA closed above 29,000 for the 1st time plus the S&P 500 closed at a record high after the United States and China signed the Phase 1 trade agreement and pledged to resolve the 2 yr tariff dispute.
The centerpiece of the agreement is a pledge by China to purchase at least an additional $200-B worth of US farm products and other goods and services over 2 years, over a baseline of $186-B in purchases in Y 2017.
This agreement clears the way for investors to focus on upcoming Quarterly earnings, including the outlooks companies should provide in light of the deal.
There’s no question from a psychological viewpoint it’s a big relief for the market, there are still CEOs that are cautious, but this wil help capital investments, and that was a big missing element to the economy over the last few years.
President Trump said he would remove all US tariffs on Chinese imports as soon as the 2 countries complete the Phase 2 trade agreement, on which negotiations will start soon.
Wednesday, the major US stock market indexes finished at: DJIA +90.55 at 29030.13, NAS Comp +7.37 at 9258.72, S&P 500 +6.14 at 3289.29
Advancers outnumbered decliners on the NYSE by a 1.35-to-1 ratio, on NAS Comp, a 1.31-to-1 ratio favored advancers.
The S&P 500 posted 74 new 52-wk highs and no new lows, the NAS Comp recorded 151 new highs and 20 new lows.
Volume on US exchanges was 7.3-B shares, compared with an average of 7.0-B shares over the last 20 trading days.
- NAS Comp +3.2% YTD
- S&P 500 +1.8% YTD
- DJIA +1.7% YTD
- Russell 2000 +0.8% YTD
HeffX-LTN’s overall outlook for the major US stock markets indexes is Bullish to Very Bullish in here.