Dow Gains 323 Points Because a Trade Deal Would Make Everything All Right

Illustration by Michael Haddad

11:10 a.m. The Dow Jones Industrial Average has gained more than 300 points on reports that the U.S. and China are making progress on a trade deal.

The Dow has gained 323.36 points, or 1.3%, to 25,762.75, while the S&P 500 has risen 0.8% to 2767.87, and the Nasdaq Composite has advanced 0.5% to 7462.45.

The market is getting a lift from reports that China and the U.S. are making progress on trade, with China apparently promising to buy more U.S. goods. That’s overshadowed more dismal data in China and the U.S. We learned that industrial production fell for the first time in eight months in January, just one day after the release of dismal December retail sales data—as well as President Donald Trump declaring a state of emergency to get a border wall funded. Apparently, the state of emergency is not an emergency for the stock market.

The S&P 500 has now risen solidly above its 200-day moving average which may now be turning up after being relatively flat for much of the last four months. in a note released yesterday, JPMorgan strategist Marko Kolanovic noted that funds that had reduced their market exposure due to December’s selloff, will need to continue “re-leveraging” to regain exposure to the market, something which could prolong the rally. “This re-levering cycle could last between now and e.g. May (in which case, we could go back to the normal ‘sell in May’ seasonal schedule this year),” he writes. “Following the January rally, our S&P 500 price target (3000) is no longer considered outlandish by most.”

Wouldn’t that be nice?

Write to Ben Levisohn at [email protected]

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...

The Dow Goes Higher Because Hope on Trade Counts for More Than Trump's Emergency

Illustration by Michael Haddad

The Dow Jones Industrial Average is still heading higher, even though President Donald Trump declared a state of emergency. Optimism over trade is overshadowing domestic politics.

The Dow has gained 347.53 points, or 1.4%, to 25,786.92, while the S&P 500 has risen 0.8% to 2768.67, and the Nasdaq Composite has advanced 0.4% to 7457.62.

The discrepancy among the indexes can be explained by what’s working today. Big gains in banks like JPMorgan Chase (ticker: JPM) and Goldman Sachs (GS)—they’ve risen 3.1% and 2.8%, respectively—are boosting the Dow. Apple (AAPL) has slipped 0.3%, hurting the tech- heavy Nasdaq.

Still, everything could come back to earnings. Right now, the companies in the S&P 500 are expected to grow their earnings by 6%, right in line with the 61-year average, according to Leuthold Group data. The only problem? Since 1957, only one year has seen EPS growth between 4% and 8%.

“We’re asking for a number that’s historically improbable given the almost binary nature of earnings growth,” writes Leuthold’s Phil Segner.

And you know which way he expects it to go.

Here are five stocks making midday moves on Friday:

American International Group (AIG) has gained 3.6% to $41.66 after a Compass Point upgrade to Buy from Neutral trumped an Argus downgrade to Hold from Buy. CenturyLink (CTL) has climbed 7.9% to $13.79 one day after falling 13% after cutting its dividend. Chemours (CC) has declined 2% to $37.90 after offering downbeat guidance. Barrick Gold (GOLD) has fallen 0.9% after getting cut to Hold from Buy at Deutsche Bank and TD Securities. SunPower (SPWR) has dropped 6.8% to $5.86 after getting cut to Neutral from Outperform

Read More Here...