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U.S. markets soar to fresh highs, extending November’s record-setting start U.S. markets soar to fresh highs, extending November’s record-setting start
(32 minutes later)
All three U.S. stock indexes leaped to fresh highs after market open Monday, extending last week’s record-breaking run, as investors respond to strong economic data, blockbuster earnings and trade optimism. U.S. stocks leaped to fresh highs Monday, extending last week’s record-breaking run as investors reveled in strong economic data, blockbuster earnings and trade optimism.
The Dow Jones industrial average was up more than 125 points at open, putting it within striking distance of a record high close, last set in July. The Standard & Poor’s 500 and Nasdaq were both up in morning trading, already on track to top the fresh highs they set on Friday. The Dow Jones industrial average had climbed nearly 150 points by midday, putting it on pace of surpassing the record close of 27,398 set in July. The Standard & Poor’s 500 and Nasdaq indexes also were pointing up, fresh off the highs they set Friday.
Markets have rallied, thanks to a better-than-expected jobs report in a month marked by one of the largest private-employer strikes in recent years and assurances from both U.S. and Chinese trade officials that a deal is forthcoming. The S&P 500 is up 22 percent for the year, headed for its best performance since 2013.Markets have rallied, thanks to a better-than-expected jobs report in a month marked by one of the largest private-employer strikes in recent years and assurances from both U.S. and Chinese trade officials that a deal is forthcoming. The S&P 500 is up 22 percent for the year, headed for its best performance since 2013.
“Fresh record highs seem likely, as US stocks rise on continued momentum from last week’s blockbuster employment report and this weekend’s trade optimism,” Ed Moya, an analyst with OANDA, wrote in a note to investors Monday. “There is no recession out there on the horizon,” Chris Rupkey, chief financial economist at MUFG Union Bank, wrote in a research note Monday. “The stock market can rejoice and continue to climb to new record highs.”
The upswing is a welcome shift for investors after a rocky October, when ongoing trade uncertainty collided with a raft of recession warnings that cast doubt on the life span of the economic expansion, which is now the longest in U.S. history. About 75 percent of S&P 500 companies that had reported earnings as of Friday had beaten expectations, assuaging fears that the protracted trade war would make a significant dent in corporate profits. Now, Wall Street is expecting a formidable performance in November.The upswing is a welcome shift for investors after a rocky October, when ongoing trade uncertainty collided with a raft of recession warnings that cast doubt on the life span of the economic expansion, which is now the longest in U.S. history. About 75 percent of S&P 500 companies that had reported earnings as of Friday had beaten expectations, assuaging fears that the protracted trade war would make a significant dent in corporate profits. Now, Wall Street is expecting a formidable performance in November.
“The market has risen in price nearly two out of every three Novembers and has recorded the greatest percentage of new all-time highs since WWII,” Sam Stovall of CFRA Research wrote in a research note Monday. “November typically kicks off a stretch of improving average total returns and frequencies of reporting positive performances for large, small, and international stocks, along with REITs and bonds.” “The market has risen in price nearly two out of every three Novembers and has recorded the greatest percentage of new all-time highs since World War II,” Sam Stovall of CFRA Research wrote in a research note Monday. “November typically kicks off a stretch of improving average total returns and frequencies of reporting positive performances for large, small, and international stocks, along with REITs and bonds.”
Over the weekend, U.S. Commerce Secretary Wilbur Ross said that American companies would soon be granted licenses to sell to Chinese tech titan Huawei, lifting a ban that has been a contentious point in trade negotiations. Chinese trade officials said on Friday they had reached a consensus with U.S. negotiators on phase one of a trade deal.Over the weekend, U.S. Commerce Secretary Wilbur Ross said that American companies would soon be granted licenses to sell to Chinese tech titan Huawei, lifting a ban that has been a contentious point in trade negotiations. Chinese trade officials said on Friday they had reached a consensus with U.S. negotiators on phase one of a trade deal.
President Trump and Chinese President Xi Jinping were expected to sign phase one at the Asia-Pacific Economic Cooperation forum later this point, but Chile canceled the forum because of political unrest. But Trump has insisted a deal is still coming, and he told reporters at the White House on Friday that he wants it signed on U.S. soil. He suggested Iowa as a possible location — a state he won in 2016 but which has been among the hardest hit by the 16-month trade war.President Trump and Chinese President Xi Jinping were expected to sign phase one at the Asia-Pacific Economic Cooperation forum later this point, but Chile canceled the forum because of political unrest. But Trump has insisted a deal is still coming, and he told reporters at the White House on Friday that he wants it signed on U.S. soil. He suggested Iowa as a possible location — a state he won in 2016 but which has been among the hardest hit by the 16-month trade war.
“We’re thinking about Iowa, you know why, because it would be the largest order in history for farmers. So to me, Iowa makes sense. I love Iowa. It’s a possibility,” Trump said.“We’re thinking about Iowa, you know why, because it would be the largest order in history for farmers. So to me, Iowa makes sense. I love Iowa. It’s a possibility,” Trump said.
The trickle of rosy trade news prompted Goldman Sachs to revise its tariff outlook, saying it expected tariffs to stay at the same levels through 2020.The trickle of rosy trade news prompted Goldman Sachs to revise its tariff outlook, saying it expected tariffs to stay at the same levels through 2020.
“While further tariff increases are no longer our base case, we believe the risks continue to lean in that direction, as a US-China deal that substantially reduces US tariffs continues to look much less likely than an eventual breakdown in talks that leads to renewed tariff escalation,” Alec Phillips, Goldman Sachs’ chief U.S. political economist wrote in a note to investors Monday.“While further tariff increases are no longer our base case, we believe the risks continue to lean in that direction, as a US-China deal that substantially reduces US tariffs continues to look much less likely than an eventual breakdown in talks that leads to renewed tariff escalation,” Alec Phillips, Goldman Sachs’ chief U.S. political economist wrote in a note to investors Monday.
Scandals and shake-ups dragged down some key players in early trading. McDonald’s shares were down 2 percent in premarket trading after the fast-food juggernaut announced Sunday that chief executive Steve Easterbrook had been fired for a consensual relationship with an employee that violated company policy. Chris Kempczinski, former president of McDonald’s USA, will replace Easterbrook as chief executive.Scandals and shake-ups dragged down some key players in early trading. McDonald’s shares were down 2 percent in premarket trading after the fast-food juggernaut announced Sunday that chief executive Steve Easterbrook had been fired for a consensual relationship with an employee that violated company policy. Chris Kempczinski, former president of McDonald’s USA, will replace Easterbrook as chief executive.
And sportswear giant Under Armour was down more than 14 percent in premarket trading after the Wall Street Journal reported that the company had been under federal investigation for more than two years over accounting practices. Despite posting strong quarterly numbers Monday, Under Armour cut its 2019 revenue forecast for the second straight time.And sportswear giant Under Armour was down more than 14 percent in premarket trading after the Wall Street Journal reported that the company had been under federal investigation for more than two years over accounting practices. Despite posting strong quarterly numbers Monday, Under Armour cut its 2019 revenue forecast for the second straight time.
News of the probe comes just two weeks after founder Kevin Plank announced he would be stepping down as chief executive on Jan. 1, after 23 years with the company. He will be replaced by Patrik Frisk, the chief operating officer.News of the probe comes just two weeks after founder Kevin Plank announced he would be stepping down as chief executive on Jan. 1, after 23 years with the company. He will be replaced by Patrik Frisk, the chief operating officer.