Stocks rose on Friday amid renewed optimism about the\nprogress of trade talks between Washington and Beijing as Wall Street ended an\nexcellent quarterly performance. The Dow Jones industrial average rose 157\npoints, with Boeing and Caterpillar gaining the most. The Standard & Poor’s\n500 Index rose 0.4%, led by the industrials and health care sectors. The Nasdaq\nrose 0.6%.<\/p>\n\n\n\n
CarMax was the best performer in the Standard & Poor’s\n500 index, rising 10.6% on strong earnings. Morale was also boosted by Lyft as\nthe company’s shares rose more than 12% on the first day of trading.<\/p>\n\n\n\n
US officials said China has made proposals on a range of\nissues that have gone beyond what it was before, including the forced\ntechnology transfer. Treasury Secretary Stephen Mnuchin also said on Friday it\nwas a “productive working dinner” with Chinese trade officials the\nnight before in Beijing, where the two sides resumed negotiations in the hope\nof ending the long-running trade dispute.<\/p>\n\n\n\n
The world’s two largest economies-imposed tariffs of billions\nof dollars on goods over the past year, destroying financial markets and\naffecting corporate and consumer sentiment.<\/p>\n\n\n\n
According to US market analysts, there is still some bullish\nmarket trend going on. The markets are currently facing a lack of conviction\nregarding any positive results, because there are so many factors to consider.\nHowever, markets will mot probably see a short-term bump.<\/p>\n\n\n\n
Chinese stocks rose overnight. The Shanghai Composite Index\nrose 3.2% overnight to lead the region’s stock indexes. In the United States,\nCaterpillar and Boeing were up more than 1%. Friday’s gains were added to the\nstrong performance of the quarter. The Standard & Poor’s 500 Index rose\n12.3% during the period, posting its biggest quarterly gain since the third quarter\nof 2009. The overall index has been on track for its best quarter since 1998.<\/p>\n\n\n\n
The Dow rose 10.3% this quarter to Thursday’s close with the\nbest start of a year since 2013, while the Nasdaq is on a steady pace to\nachieve the biggest quarterly gain since the first quarter of 2012.<\/p>\n\n\n\n
This quarter’s rebound is characterized by a few key\nfactors: a sharp rebound from Christmas Eve lows, increased optimism in\nUS-China trade talks and an important reversal in the Fed\u2019s monetary policy\nstance.<\/p>\n\n\n\n
Concerns about a possible economic slowdown have raised some\ndoubts on the rise as global economic data continue to deteriorate. This has\nled to lower bond yields worldwide. Recently, 10-year Treasury yields hit their\nlowest level since December 2017 and are less than their 3-month counterparts\nfor the first time since 2007. This is known as the reversal of the yield curve\nand investors see it as a sign of a possible recession.<\/p>\n\n\n\n
Atlanta’s GDPNow forecast an economic growth of 1.5% for the\nfirst quarter, well below the 2.2% rate for the fourth quarter of 2018. Profit\ngrowth in the first quarter is also expected to be weak. FactSet data shows\nthat analysts expect the S & P 500’s earnings to fall in the first quarter\nby 3.7% YoY. However, earnings data show that analysts expect earnings growth\nto rise in the last quarters of the year.<\/p>\n\n\n\n
The bottom line is that if we can get to the end of the year\nand say that inflation is benign and that the Fed is still in a critical\nposition, then we can say pretty surely that there will be no recession soon.\nBy August this will be the longest economic cycle in history and will last\nlonger than many people think.<\/p>\n","protected":false},"excerpt":{"rendered":"
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