Dow down more than 400 points after Trump orders US manufacturers to move from China
Trump tweeted on Friday: "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing..your companies HOME and making your products in the USA." However, it is not clear how much authority the president has on this front.
"The threats always been out there but there's been no need to provoke that," said Art Hogan, chief market strategist at National Securities. "It's almost like the administration was expecting the Fed to announce a rate cut at the Jackson hole meeting. And since Powell did not deliver, he went to defcon 5."
Apple shares dropped 4%. The VanEck Vectors Semiconductor ETF (SMH) slid 3.6% as Nvidia and Broadcom both fell around 4.5%. Caterpillar shares, meanwhile, pulled back 2.9%.
China announced Friday it will impose new tariffs on $75 billion worth of U.S. goods in addition to restarting levies on American autos.
The Chinese State Council said it decided to impose the tariffs of either 5% to 10% on either Sep. 1 or Dec. 15. China also added a 25% tariff on U.S. cars and a 5% on auto parts and components, which will go into effect on Dec.15.
Electronics, including cellphones and chips, is the category with the biggest value of American imports into China.
The list was published by Maggie Fitzgerald (CNBC)
Trump can't afford to let the Dow go down. It's election campaigning for Presidential 2020. There will be a deal with China. The US tech companies are putting pressure on Trump.
Technical analysis cannot predict movement caused by external factors such as national or international crisis. It can only predict the buying/selling interest for the company excluding the external factors which usually can cause retracements that cannot be explained.
Since escalation of trade wars seems like a frequent occurrence, the past actions/reactions can sometimes be factored into the technical analysis. But the accuracy may not be high.
Technical analysis is only good at predicting something that occurs in almost every trading session such as the expectation for the company, the willingness to buy or sell at certain price.
Earlier Monday, Trump said U.S. trade officials received overnight calls from the Chinese saying Beijing was ready to return to the negotiating table.
"China called last night our top trade people and said. 'Let's get back to the table,' so we will be getting back to the table and I think they want to do something. They have been hurt very badly but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world," Trump said.
"I think we are going to have a deal," he added. In Beijing, Foreign Ministry spokesman Geng Shuang said he was not aware that a phone call between the two sides had taken place. And Hu Xijin, editor-in-chief of Chinese state-run newspaper the Global Times, denied that negotiators had held the phone calls Trump described.
"China didn't change its position. China won't cave to U.S. pressure," said Hu, who is widely seen as a mouthpiece for Beijing's messaging.
If its were’nt because of the trade war, frontken price should have been above 2.00 by now. Today trump says positive things, tomorrow he says different things. Man is a snake.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
edmen
277 posts
Posted by edmen > 2019-08-21 10:36 | Report Abuse
new high! buy buy!