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Home / Business / Stock Market News: August 19, 2019

Stock Market News: August 19, 2019



U.S. stocks fell together Monday morning in a least temporary postponement following a routine in mid-August. US government bond yields rose above the curve, driven by interest rates on 30-year bonds and 10-year notes.

Here were the key moves in the market, as of 09:47 ET:

  • S&P 500 (^ GSPC): + 1.16%, or 33.37 points

  • Dow (^ DJI): + 1, 1%, or 285.42 points

  • Nasdaq (^ IXIC): + 1.41%, or 110.05 points

  • 10-year Treasury Rate (^ TNX): +7.6 bps to 1.616% [19659007] <p class = "canvas-atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "Commerce Secretary Wilbur Ross said during an appearance with Fox Business on Monday morning that the & nbsp; government would extend a 90-day & nbsp; temporary license so that China's Huawei Technologies could continue to do business with US companies. The license would have expired on Monday, but Ross said to Fox Business, "We give them a little more time to wean themselves." Huawei counts US companies including Qualcomm ( QCOM ), Intel ( INTC ) and Micron Tec hnologies ( MU ) as suppliers. "Data-reacti d = "22"> Secretary of Commerce Wilbur Ross said during an appearance with Fox Business on Monday morning that the government would extend a 90-day temporary license so that China's Huawei Technologies can continue to do business with US companies. That license would have expired Monday, but Ross told Fox Business, "We're giving them a little more time to recover." Huawei counts US companies including Qualcomm (QCOM), Intel (INTC) and Micron Technologies (MU) as suppliers.

    Ross added 46 new Huawei subsidiaries were added to the device list, which means US companies cannot sell to them in the absence of a specific license. The new grants bring the total list of Huawei subsidiaries on the Ministry of Commerce's blacklist to more than 100.

    <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This came after & nbsp; President Donald Trump said over the weekend & nbsp; that the United States" is doing great with China and talking! "However, & nbsp; he added in comments to reporters & nbsp; on Sunday that he was not yet ready to sign a trade agreement, underscoring the ongoing turmoil between the two largest economies in the world. "Data-reactid =" 24 "> This came after President Donald Trump said over the weekend that the United States" is doing very well with China and talking! "However, he added in comments to reporters Sunday that he was not yet ready to sign a trade agreement and underline the ongoing stalemate between the two largest economies e in the world.

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Under the same comments to the reporters, Trump at Apple ( AAPL ) CEO Tim Cook “came up with a very compelling argument” as to why it would be difficult for the iPhone manufacturer to compete with South Korea's Samsung in the face of escalating tariffs on Chinese imports. Samsung's production is taking place in South Korea, so the company can avoid tariffs on goods from China that Apple would be charged with if the Trump administration's tariffs were extended. "data-reactid =" 25 "> Under the same comments to reporters, Trump that Apple (AAPL) CEO Tim Cook “made a very compelling argument” as to why it would be difficult for the iPhone maker to compete with South Korea's Samsung in the face of rising tariffs on Chinese imports. Much of Samsung's production takes place in South Korea, allowing the company to avoid tariffs on goods from China that Apple would be charged with if the Trump administration's tariffs were expanded.

    Trump originally planned to have a 10% duty in force of $ 300 billion worth of Chinese imports on September 1. Last week, however, he delayed some of those duties – including those on mobile phones and laptops – until early December.

    Traders work on the floor of the New York Stock Exchange (NYSE) in New York, USA, August 14, 2019. REUTERS / Eduardo Munoz

    <p class = "canvas atomic canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tariffs come into effect September 1 – which will now be $ 112 billion dollars in Chinese imports – is expected to cost each US household & nbsp; as much as $ 1,000 per year, according to a JPMorgan analysis, which has increased from $ 600 per household previously. increase to as much as $ 1500 per household if the tariff for the new slate was increased to 25%, and would offset the estimated $ 1,300 benefit it the average American household received from the Trump administration's tax law, JPMorgan, according to analysts. "data-reactid =" 38 "> Customs duties that come into force on September 1 – which will now be at an additional $ 112 billion of Chinese imports – are expected to cost each US household as much as $ 1,000 per year, according to a JPMorgan analysis, up from $ 600 per household previously, would cost consumers up to as much as $ 1500 per household if the new tariff rate was increased to 25%, offsetting the estimated $ 1,300 benefits for the average US households received from the Trump administration's tax law, JPMorgan analysts said. [19659015MeanwhileincreasedstimulusfromforeigngovernmentssignaledincountriesmostusedbytradetensionsandaglobalslumpaddedtothesentimentonMonday

    <p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Over the weekend, People's Bank of China ( PBOC) an update on interest rates & nbsp; for new bank issued loans that would lower real interest rates for the companies. The new supply system, which will come from prices from open market operations and take effect on Tuesday, will keep the company's funding costs down for companies, and help encourage borrowing and investment as the country's growth takes a hit amid the US-China trade war. "data-reactid =" 40 "> Over the weekend, People's Bank of China (PBOC) unveiled an interest rate update for new bank loans, which will reduce the real interest rates for companies. The new bidding system, which will stem from interest rates from open market operations and take effect on Tuesday, will keep the company's funding costs down for companies, and help encourage borrowing and investment as the country's growth hits a midst of the US-China trade war.

    <p class = "canvas-atom canvas -text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Elsewhere, & nbsp; reports on Monday & nbsp; suggested the German government was ready for a fiscal stimulus package that could be released in case co ntinued & nbsp; economic contraction . Germany's economy contracted 0.1% in the second quarter as emergency signals mounted for the export-driven country and after the country's manufacturing sector softened during the year. "Data-reactid =" 41 "> Elsewhere, Monday reported that the German government was preparing a fiscal stimulus package that could be released in the event of continued economic contraction. Germany's economy contracted 0.1% in the second quarter, as emergency signals mounted for the export-driven country and after the country's manufacturing sector softened the year.

    Fed watch

    The path for future domestic monetary policy remains in focus this week as investors consider the risks of the trade war and a dovish bias among global central banks, such as has sent interest rates plummeting around the world.

    <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = " text "content =" On Wednesday, the Fed eral Reserve will release its minutes from its July political meeting, where central bank officials delivered their first & nbsp; interest rate reduction since 2008. & nbsp; The protocol will describe the deliberations of members of the Federal Open Market Committee to make this decision and shed light on the thoughts of the two dissenters, who at the time asked for the rates to remain unchanged. "data-reactid =" 48 "> On Wednesday, the Federal Reserve will release the protocol from its July political meeting, with central bank officials delivering its first rate cut since 2008. The protocol will detail the discussions by members of the Federal Open Market Committee about making this decision, and throw light on the minds of the two dissenters, who at the time asked for prices to remain unchanged.

    Then, at the end of the week, Federal Reserve Leader Jerome Powell will give a speech on monetary policy at the Fed's annual Jackson Hole symposium in Wyoming Market participants widely believe that the Fed leader will use the public comments as an opportunity to bolster expectations of another rate cut after the central bank's September meeting, which would bring the target band to between 1.75% and 2.00%.

    <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = “As of Monday morning, the m arcades with a probability of 92.7% for such an outcome, along with about 7% probability of further reduction of 50 basis points to between 1.50% and 1.75%, according to & nbsp; CME Group. "data-reactid =" 61 "> As of Monday morning, markets priced at a 92.7% probability of such an outcome, along with about a 7% probability of a further 50 basis point reduction to between 1.50% and 1, 75%, according to the CME Group.

    But with expectations rooted to the notion of lower prices, any deviation from dovish rhetoric could spell disasters for markets, some analysts said.

    <p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content = Paul Ashworth, Chief Financial Officer of the United States, Capital," says the result of being a risk that Powell and his colleagues will end the disappointment in the bond market next week – by not signaling clearly enough that further interest rate cuts will come in mid-September and beyond. Economics, & nbsp; wrote in a note. & nbsp; "It can & nbsp; trigger carnage in the bond and stock market p." "Data-reactid =" 63 ">" The result is a risk Powell and his colleagues end up disappointing the bond market next week – by not signaling clearly enough that further interest rate cuts will come in mid-September and beyond, "Paul wrote Ashworth, head of the US economist for Capital Economics, in a note. "It can trigger carnage in the bond and stock markets."

    "We may not even have to wait for the Jackson Hole symposium to kick off," he added. "The minutes of the July FOMC meeting, due to be published on Wednesday, can also be a major market operator if they show that officials were resistant to multiple interest rate cuts."

    <p class = "canvas-atom canvas -text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck "data-reactid =" 66 "> Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text "content =" Read more from Emily: "data-reactid =" 67 "> Read more from Emily:

    <p class =" canvas-atom canvas text Mb (1.0em ) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Follow Yahoo Finance on Twitter Facebook [19659028] Instagram Flipboard LinkedIn and reddit . "data-reactid =" 74 "> Follow Yahoo Finance on Twitter Facebook Instagram Flipboard LinkedIn [19659045] and reddit .

    <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Read lat est financial and Yahoo Finance Business News "data-reactid =" 75 "> Read the latest Yahoo Finance and business news


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