Left Menu
Development News Edition

Trump's auto tariffs delay report offers respite to markets; US stocks trade higher

Devdiscourse News Desk | Updated: 16-05-2019 02:33 IST | Created: 15-05-2019 21:11 IST
Trump's auto tariffs delay report offers respite to markets; US stocks trade higher
Image Credit: Pixabay

U.S. stocks reversed course to trade higher on Wednesday after a report that President Donald Trump may delay a decision to impose auto tariffs, offering respite to markets worried about slowing global growth after a batch of weak economic data. The deadline to decide on tariffs is May 18, but Trump is expected to delay it by up to six months, sources told Reuters. Automakers Ford Motor Co, and General Motors Co gained about 1% on the news.

Meanwhile, Treasury Secretary Steven Mnuchin said he will likely travel to Beijing soon to continue trade talks with China. "We got some support from Mnuchin comments and then auto tariffs, that is a positive development as there was fear that tariffs would stretch to auto imports," said Paul Brigandi, managing director of portfolio management at Direxion Funds in New York.

"Between now and June, when the G20 meeting happens, unless something is resolved, we're in for a period of high volatility." Stocks came under pressure earlier in the day after U.S. retail sales unexpectedly fell in April as households cut back on purchases of motor vehicles and a range of other goods, indicating a moderation in economic activity. Worries about slowing growth were reinforced by a drop in industrial production last month. Data from China also showed surprisingly weak growth in retail sales and industrial output for April, adding pressure on the country to roll out more stimulus.

The weak data hit U.S. Treasury yields and the interest rate sensitive banking stocks fell 1.01%. The broader financial sector dropped 0.56%, the most among the major 11 S&P sectors. Concerns that the trade dispute could be protracted and may impact the global economy have kept investors on the edge over the past couple of days, with the benchmark S&P index now 3.9% below its all-time high reached two weeks ago.

At 11:09 a.m. ET the Dow Jones Industrial Average was up 40.71 points, or 0.16%, at 25,572.76, the S&P 500 was up 7.76 points, or 0.27%, at 2,842.17 and the Nasdaq Composite was up 50.19 points, or 0.65%, at 7,784.69. Technology stocks jumped 0.7%, providing the biggest boost to markets. A more than 2% gain in shares of Facebook Inc and Alphabet Inc lifted the communication services index by 1.3%, the most among major 11 S&P sectors.

Agilent Technologies Inc's shares fell 9.9%, the most on the S&P 500, after the medical equipment maker reported quarterly results below estimates. Perrigo Company Plc dropped 1.5% as Jefferies lowered its price target on the generic drugmaker after the company's recent move to divest its higher margin generic pet care business. Advancing issues outnumbered decliners by a 1.18-to-1 ratio on the NYSE and a 1.06-to-1 ratio on the Nasdaq. The S&P index recorded 12 new 52-week highs and 10 new lows, while the Nasdaq recorded 46 new highs and 49 new lows.



‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...


Latest News

USISPF’s West Coast Summit to Highlight Growing U.S.-India Ties Through Startups

New Delhi, Delhi, India Business Wire India The US-India Strategic Partnership Forum USISPF annual west coast summit will be held virtually this year on May 28, 2020. The agenda this year focuses on the key pillars defining the US-India ec...

US STOCKS-Wall St set for higher open as recovery hopes outweigh Sino-U.S.tensions

Wall Streets major indexes were set for another session of gains on Wednesday as a revival in business activity drove hopes of an economic recovery, eclipsing concerns over simmering tensions between the United States and China.Travel-relat...

Meghalaya govt allows students to appear for remaining HS exam papers from home district headquarters

The Meghalaya government has said it will allow students to appear for the remaining papers of the higher secondary board examinations from their respective home district headquarters. Over 3,700 students will sit for the papers of subjects...

SSC students to get average of marks of subjects for Geography

The Maharashtra State Board of Secondary and Higher Secondary Education on Wednesday said it will award an average of marks obtained in other subjects for the Class 10 Geography paper, which was cancelled because of the COVID-19 pandemic. I...

Give Feedback