President Trump Inks P-1 of China Trade Deal: DJIA, S&P 500 Close at Record Highs

President Trump Inks P-1 of China Trade Deal: DJIA, S&P 500 Close at Record Highs

$DIA $SPY, $QQQ, $RUTX, $VXX

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.

Stay tuned…

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