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Stocks erase gains as Trump reportedly says he wants to move forward with tariffs on $200 billion in Chinese goods - http://earlyretireonline.com | how to earn money fast

September 14, 2018 4:03 pm
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Stocks dipped on Friday, erasing slight gains, after a report said President Donald Trump wants to move forward with tariffs on $200 billion in Chinese goods.

The Dow Jones Industrial Average traded 24 points lower after trading about 50 points higher. The S&P 500 declined 0.1 percent, while the Nasdaq Composite slipped 0.1 percent. Both the S&P 500 and Nasdaq had also traded higher.

Bloomberg News first reported that Trump told aides to proceed with slapping tariffs on the $200 billion worth in Chinese goods.

Boeing shares pared gains to trade 0.8 percent higher, while Caterpillar erased its gains and was last down 0.3 percent. Boeing and Caterpillar are considered bellwethers for global trade given their large international exposure.

“Trade has been the focus this week and the past month,” said Benjamin Lau, chief investment officer of Apriem Advisors. “But the muted reaction shows investors are a bit complacent. … I think investors are shrugging this off.”

The report comes after sources familiar with these negotiations told CNBC on Wednesday that the States was in the early stages of proposing a new round of trade talks with China in the near future.

It also comes after a week of turmoil between the two nations, which saw China looking to seek permission from the World Trade Organization to inflict sanctions upon the U.S., and President Donald Trump stating last week that he was “ready to go” on hitting China with an additional amount of tariffs.

Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research, said trade is the key for the market to be able to move substantially higher from here. “Trade has been the only thing holding this market back,” he said.

The S&P 500 was on track to post its fifth straight day of gains as well as notch solid weekly gains. Entering Friday’s session, the broad index was up 1.1 percent for the week.

The VanEck Vectors Semiconductor ETF (SMH) rose about 1 percent as shares of Nvidia gained more than 2 percent. Nvidia rose after Needham hiked its price target on the stock, noting the company’s “dominance” in machine learning gives the stock more upside. Advanced Micro Devices also rose 4.2 percent.

 
 

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