U.S. stocks pulled up a somewhat lackluster performance on Wednesday. The Dow and the S&P 500 abandoned their upward movement, moving south rather marginally. A crucial reason behind this development was due to the U.S. weighing tariffs on European products. The tech-laden Nasdaq Composite, however, continued to derive optimism from the almost finalized phase one U.S.-China trade agreement.
Stocks were mostly directionless on Dec 18 because of a lack of any major economic news. Certain developments on the trade front with North American countries also affected investor sentiment. In addition, investors awaited news on the possible impeachment of President Trump by the U.S. House of Representatives in Washington later in the day, which clearly had little effect on the markets.
The Dow Jones Industrial Average closed at 28,239.28 after losing 0.1% while the S&P 500 finished at 3,191.14 after declining 0.04% on Wednesday. The Nasdaq Composite closed in positive territory, finishing at 8,827.73 after gaining 0.05%.
The fear-gauge CBOE Volatility Index (VIX) rose 2.4% to close at 12.58 on Dec 18. Finally, advancers outnumbered decliners on the NYSE by a 1.57-to-1 ratio.
U.S. Could Escalate Taxes on EU Goods
On Dec 17, U.S. Trade Representative Robert Lighthizer, in an interview with Fox Business, warned that the United States was prepared to escalate tariffs against members of the European Union. According to Lighthizer, trade relationship between the United States and European Union was “very unbalanced”.
The United States is considering to impose up to 100% tariffs on European products that the Trump administration had previously cleared from such taxes. The currently proposed levies target some of the Eurozone’s most symbolic products, which comprise of Cognac, Irish and Scotch whiskies.
Last week, the Office of the United States Trade Representative (USTR) published a list of additional European goods under consideration for the taxes. These products range from food products such as pork, coffee, cheese and olives to machinery and apparatus, books and microwave ovens.
Earlier in 2019, the USTR had published multiple lists of European goods worth more than $10 billionthat it had planned to impose tariffs on. The move was in retaliation to the fallout of its high-profile dispute with Airbus.
The United States is expected to begin trade talks with the UK shortly after it leaves the European Union at the end of January.
USMCA Trade Deal Approved, Vote on Dec 19
On Dec 17, The House Ways and Means Committee cleared a new North American trade deal called the United States-Mexico-Canada Agreement (USMCA), which is a replacement for NAFTA.
House Majority Leader Steny Hoyer said on Tuesday that the House plans to consider the new trade agreement on Dec 19. The chamber is expected to approve the agreement with bipartisan support. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Image: Bigstock
Stock Market News for Dec 19, 2019
U.S. stocks pulled up a somewhat lackluster performance on Wednesday. The Dow and the S&P 500 abandoned their upward movement, moving south rather marginally. A crucial reason behind this development was due to the U.S. weighing tariffs on European products. The tech-laden Nasdaq Composite, however, continued to derive optimism from the almost finalized phase one U.S.-China trade agreement.
Stocks were mostly directionless on Dec 18 because of a lack of any major economic news. Certain developments on the trade front with North American countries also affected investor sentiment. In addition, investors awaited news on the possible impeachment of President Trump by the U.S. House of Representatives in Washington later in the day, which clearly had little effect on the markets.
The Dow Jones Industrial Average closed at 28,239.28 after losing 0.1% while the S&P 500 finished at 3,191.14 after declining 0.04% on Wednesday. The Nasdaq Composite closed in positive territory, finishing at 8,827.73 after gaining 0.05%.
The fear-gauge CBOE Volatility Index (VIX) rose 2.4% to close at 12.58 on Dec 18. Finally, advancers outnumbered decliners on the NYSE by a 1.57-to-1 ratio.
U.S. Could Escalate Taxes on EU Goods
On Dec 17, U.S. Trade Representative Robert Lighthizer, in an interview with Fox Business, warned that the United States was prepared to escalate tariffs against members of the European Union. According to Lighthizer, trade relationship between the United States and European Union was “very unbalanced”.
The United States is considering to impose up to 100% tariffs on European products that the Trump administration had previously cleared from such taxes. The currently proposed levies target some of the Eurozone’s most symbolic products, which comprise of Cognac, Irish and Scotch whiskies.
Last week, the Office of the United States Trade Representative (USTR) published a list of additional European goods under consideration for the taxes. These products range from food products such as pork, coffee, cheese and olives to machinery and apparatus, books and microwave ovens.
Earlier in 2019, the USTR had published multiple lists of European goods worth more than $10 billionthat it had planned to impose tariffs on. The move was in retaliation to the fallout of its high-profile dispute with Airbus.
The United States is expected to begin trade talks with the UK shortly after it leaves the European Union at the end of January.
USMCA Trade Deal Approved, Vote on Dec 19
On Dec 17, The House Ways and Means Committee cleared a new North American trade deal called the United States-Mexico-Canada Agreement (USMCA), which is a replacement for NAFTA.
House Majority Leader Steny Hoyer said on Tuesday that the House plans to consider the new trade agreement on Dec 19. The chamber is expected to approve the agreement with bipartisan support. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>