Morning Briefing
Down yesterday, up today–traders buy the chip stocks they sold yesterday on Huawei headlines
Stocks--especially chip stocks--have rallied strongly today on headlines saying that the Department of Commerce has granted a 90-day license for U.S. companies to do business with China's Huawei Technologies in order to service existing networks. This is especially...
Chipmakers begin to cut supplies for China’s Huawei and lead U.S. stocks down today
Call it a secondary effect of the U.S.-China trade war but it's still clearly taking a bite out of the shares of U.S. chip makers today. Last week the Trump administration added sanctions on China's Huawei Technologies that would prevent the company from buying U.S....
Beijing says, If the U.S. won’t play nice, China won’t play at all
The Chinese government is using the country's official media to signal that it isn't interested in resuming trade talks with the United States under a threat of higher 25% tariffs on another $320 billion in Chinese exports to the United States. And to make the point...
Negative economic numbers from both China and United States this morning
I'd give the edge to China in the "Whose news is worse?" sweepstakes this morning. For April China's retail sales rose 7.2% year over year--good news except that economists were projecting an 8.6% increase and that March showed 8.7% year over year growth. The April...
Treasury yield curve inverts again–key to market direction?
Adding to Monday's market sell off or maybe causing Monday's market sell off or maybe just a result of the Monday sell off, the yield curve on U.S Treasuries inverted again on May 13. The yield on the 3-month Treasury bill at 2.38% ended the day higher than the yield...
Market falls as China retaliates for U.S. tariff hike on Friday
On Friday, the Trump administration raised tariffs on $200 billion in Chinese exports to the United States to 25% from 10%. The move, the administration said, was in response to Chinese efforts to walk back provisions the country had agreed to, according to the White...
U.S. stock market wants to believe U.S.-China talks are “constructive”
The Standard & Poor's 500 was slightly in the green at the close today at 2881.40. That marked a big turnaround from earlier in the session. As of 11 a.m. New York time the index had dipped to 2826.29. Today it was all about China and the trade/tariff talks...
Rational self-interest argues for a successful conclusion of U.S.-China trade talks in the long run; in the short run it argues that the talks will fall apart first
It is clearly in the self interest of both President Donald Trump and President Xi Jinping to reach an agreement that would bring the U.S.-China trade war to an end. In the long-run. That same calculus, however, argues that in the short run both leaders will let the...
Who knows what’s real and what’s spin in the U.S.-China trade talks
Today U.S. stocks are moving slightly higher as if they believed that talks Thursday and Friday over will see an agreement between the U.S. and China on trade and tariffs rather than a breakdown in the negotiations. As of 2:30 the Standard & Poor's 500 is ahead...
What the market fears is what it doesn’t know about the U.S.-China trade wars
The Standard & Poor's 500 fell another 1.65% to 2,884.05 today on fears that there would be no agreement this week out of the U.S.-China trade talks and that President Donald Trump's threats to raise tariffs on $200 billion in Chinese exports to the United States...
How serious is this morning’s stock sell off?
Here's what's disconcerting about this morning's stock market drop. First, while we do know what caused the selloff--President Donald Trump's Sunday tweet threatening China with higher tariffs on even more exports unless it agreed to a trade deal in the next few...Jim’s Stock Alerts
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