Dow in record numbers by signing the trade agreement between the US and China
Dow in record numbers by signing the trade agreement between the US and China
The Dow closed the record today on Wednesday, ignoring the mixed results of the companies they reported today, and encouraged by investors who applauded the signing of phase one of the trade agreement between the United States and China.
The S&P 500 rose 0.19%, while the Nasdaq Composite added 0.08% and the Dow Jones Industrial Average jumped 0.31%.
The United States and China signed Phase 1 of the trade agreement, thereby halting the two-year trade war that weighed on global growth.
President Donald Trump said the “historic” agreement would benefit American farmers. However, there are those who consider the agreement fragile, since it includes an option for China to waive the agreement if the United States imposes tariffs again.
Under the terms of the agreement, the United States reduced tariffs from $ 120 billion in Chinese products to 7.5% from 15%. China agreed to increase purchases in the United States by $ 200 billion over the next two years in manufactured goods, agriculture, energy and services.
On the other hand, Bank of America (NYSE: BAC ) fell 2% after warning about a weaker net income in the first half of the year.
Goldman Sachs (NYSE: GS ) changed shortly after its earnings failed to meet estimates amid an increase in legal costs related to the 1MDB scandal.
Target (NYSE:TGT) fell 7% after its sales fell due to lower demand for electronic products and toys.
Citigroup (NYSE:C) suggested that the weakness in sales of this company was probably due to a shorter Christmas season. The bank said that Target’s results “give us no reason to change our opinion that TGT is a retail winner in the coming years.”
