The Closing Bell: Stocks Bounce Back as Tariffs Come Into Force

Ted

(The Closing Bell will be updated sometime after 4:00 PM CDST to include the latest updates from IBD and Bloomberg Evening Briefing.)

FYI: U.S. stocks climbed late in Friday’s session, extending this week’s volatility after President Trump hinted tariffs on China could be removed and said trade talks will continue.

The S&P 500 was recently up 0.37%, after earlier falling as much as 1.6% following drops the previous four days. The broad equity gauge is down 1.9% for the week but still up 15% for the year.

The Dow Jones Industrial Average added 114 points, or 0.44%, to 26942. At its low point on the day, the Dow was down 358.5 points. The tech-laden Nasdaq Composite advanced 0.08%.

Stocks rebounded earlier in the day after Treasury Secretary Steven Mnuchintold CNBC the most recent trade talks were “constructive,” then climbed further after Mr. Trump tweeted that tariffs “may or may not be removed” depending on future negotiations.

Mr. Trump in a series of tweets early Friday continued to back tariffs as good for the U.S. economy, following an increase in U.S. tariffs on $200 billion of Chinese goods to 25%.

Stocks rebounded earlier in the day after Treasury Secretary Steven Mnuchintold CNBC the most recent trade talks were “constructive,” then climbed further after Mr. Trump tweeted that tariffs “may or may not be removed” depending on future negotiations.

Mr. Trump in a series of tweets early Friday continued to back tariffs as good for the U.S. economy, following an increase in U.S. tariffs on $200 billion of Chinese goods to 25%.

Still, in one sign that some analysts remain optimistic that a deal will spur further economic and profit growth globally, the Shanghai Composite rose 3.1% Friday. The index still fell 4.5% for the week as shifting sentiment about trade fueled volatility around the world. Some analysts are also expecting Chinese officials to continue stimulus measures designed to boost growth in the world’s second-largest economy.

Investors were also reacting to the disappointing public debut of Uber Technologies Friday. In one of the biggest initial public offerings of recent years, the ride-hailing giant opened at $42 a share, below its IPO price. It recently traded at $42.45.

Elsewhere, the Stoxx Europe 600 edged up 0.3%, stabilizing following its largest one-day drop of the year on Thursday.

As the Shanghai Composite rallied, Hong Kong’s Hang Seng advanced 0.8%, while Japan’s Nikkei Stock Average declined 0.3%.
Regards,
Ted

MarketWatch:
https://www.marketwatch.com/story/us-stock-futures-ease-as-higher-tariffs-on-china-imports-kick-in-2019-05-10/print

WSJ:
https://www.wsj.com/articles/global-stocks-rebound-as-tariff-increase-comes-into-force-11557476135

Bloomberg:
https://www.bloomberg.com/news/articles/2019-05-09/asia-stocks-seen-mixed-ahead-of-tariff-deadline-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-leads-stock-market-back-into-black-after-wild-session/

CNBC:
https://www.cnbc.com/2019/05/10/us-markets-as-higher-tariffs-on-chinese-goods-kick-in.html

Reuters:
https://uk.reuters.com/article/us-usa-stocks/wall-st-slips-at-open-on-protracted-trade-dispute-worries-idUKKCN1SG13F

U.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-gains-on-hope-for-trade-deal-strong-gdp-boosts-midcaps-idUKKCN1SG0NK

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-rise-aided-by-defensives-amid-gloomy-trade-outlook-idUSKCN1SG0SC

Asia:
https://www.marketwatch.com/story/asian-markets-mostly-gain-despite-looming-us-tariff-hikes-targeting-chinese-goods-2019-05-09/print

Bonds:
https://www.cnbc.com/2019/05/10/us-bonds-increased-tariffs-on-china-kick-in.html

Currencies:
https://www.cnbc.com/2019/05/10/forex-market-us-china-trade-tariffs-in-focus.html

Oil:
https://www.cnbc.com/2019/05/10/oil-market-us-china-trade-opec-supply-cuts-in-focus.html

Gold
https://www.cnbc.com/2019/05/10/gold-market-us-china-trade-talks-tariff-threats-in-focus.html

WSJ: Markets At A Glance:
https://markets.wsj.com/us

Major ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitor

SPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-tracker

SPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectors

Current Futures:
https://finviz.com/futures.ashx