Stocks Trade Back And Forth After A Busy News Day
Stocks closed mostly lower yesterday after a zig-zag of a day which saw stocks change between positive and negative no less than 5 times.
Stocks were up right out of the gate on trade talk optimism. Word that China would lower their tariffs on US automobiles only furthered that optimism.
Then the televised White House meeting between President Trump, Nancy Pelosi and Chuck Schumer, where the President said he'd shut the government down over border wall funding sank shares.
Stocks recovered, only to get hit again with reports that U.K.'s Parliament has enough signatures to force a no-confidence vote on Prime Minister Theresa May.
Stocks, once again, staged a comeback late in the day, only to be turned back around on reports that a decision would be made after the close on extradition for China's Huawei CFO, Wanzhou Meng. (Canada granted extradition to the U.S.) Rightly or wrongly, this has now become a part of the trade negotiations between the U.S. and China.
Clearly, there are plenty of challenges. But the strength of the economy continues to underpin the market.
Eventually these challenges will be over.
And when they are, stocks are expected to soar.
See you tomorrow,
Kevin Matras
Executive Vice President, Zacks Investment Research
|
