Stocks reversed early losses Wednesday among reports that the Trump administration is planning to delay auto tariffs by up to six months.
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<p class = "canvas text (0) – sm Mt (0.8em) – sm" type = "text" content = "On Wednesday, several news reports outlets & nbsp; that Trump administration is [n/a break & nbsp; about implementing auto rates before May 18. The Commerce Department had compiled a report earlier this year that concluded that Trump could justify imposing tariffs as high as 25 % on cars by citing a national security threat. "data-response time =" 17 "> On Wednesday, several news stores reported that the Trump administration is planning to stop implementing auto tariffs before an May 18 deadline. The Ministry of Commerce had prepared a report earlier this year that concluded that Trump could justify imposing up to 25% tariffs on cars by citing a national security threat.
The news sent stocks into green after Dow was out of as many as 190 points earlier in the session.
US stock markets initially opened lower, as new economic data in the April retail and industrial production were lower than expected.
The retail sales in the US fell 0.2% in April, when consensus economists expected a 0.2% gain. In the control group, which excludes volatile sales of auto and gas, the retail market also fell 0.2% month-on-month. But for the month before, this control group was revised upwards to see a 1.1% gain that put three months over 3-month annual growth rates of 3.2%, a five-month high.
Analysts from JP Morgan noted that lower recoveries during the year's tax season may have contributed to the weakness of household spending in April.
JPM on Retail Loss Missing: "One possible explanation for the softening of consumer spending last month is the tax season, which seems to have been worse than expected households, this will also be in line with the 5.9% thumb in car sales in April. "
– Sam Ro (@SamRo) May 15, 2019
" Whatever led to the disappointment of last month, the general background for consumers still looks quite favorable (jobs, feelings etc.), so that we expect sequentially better numbers during the rest of the second quarter, JP Morgan analyst Michael Feroli writes in a note Wednesday
industrial production also unexpectedly declined in April, dropping 0.5% against consensus expectations Production output, which accounts for about three-quarters of total production, fell 0.5%, and in the first three months of the year, production production fell by 0.4% per month on average.
"The bad global road Clearly, it is still taking its toll on US manufacturers, while further dollar bucks over the past few months are an additional headwind, "Andrew Hunter, senior US finance economist, wrote in a note.
The manufacturing sector accounts for only a small portion of economic activity in the United States, but is closely monitored as a proxy for changes in global demand.
China also made weak data on retail and industrial production for April, and feared a slowdown in the world's second largest economy among a growing trade war with the United States.
Retail sales increased by 7.2% year over year in China, marking the weakest growth rate since 2003 and underperforming 8.6% growth estimates.
China's industrial production increased by 5.4% from the same period in April, and also lacks expectations. The disappointing new data from the country's key industry reversed the apparent increase in March, when industrial production growth was 8.5% over four and a half years.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "These results come after the Chinese government earlier this year launched a stimulation program