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- The market drivers today, 07.05.2019
The market drivers today, 07.05.2019
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Loading...1. Tariffs and trade wars
With the end of the first trading day of the new week, everything looked good on the US-China trade front. The Chinese delegation headed for Washington with a approximately 100 people, and it seems that the negotiations will continue.
Stocks ended well above the bottoms formed during the crazy opening of the markets on Sunday morning.
The reason for this is that traders believe Trump's threats are just tactics.
Perhaps they are, but at the end of the day there was a statement by US Trade Representative Robert Lighthizer in which he commented that these tariffs would be imposed on Friday as China gave up their previous commitments and promises. The futures market collapsed immediately, with Dow losing 297 points, S & P 500 declining by 38, and Nasdaq losing 126 points. Prices of corn, soybeans and wheat susceptible to trade strains also declined.
It is not clear what the problem may be. Lighthizer did not say anything about it, and at the same time the delegation still travels to Washington for the negotiations that will now take place on Thursday and Friday (instead of Wednesday). It is unclear whether Liu He's Vice-Premier, who follows China's economic policy, will attend the talks.
2. Nasdaq hopes for support from corporate results
On the reporting calendar tomorrow, everyone will look for the "novice" after the end of the session - Lyft. Analysts expect a loss of $ 3.33 per share. Income is expected to be about $ 740 million. The company's shares are down 22% from the first trading day.
Another big name that will be watched today is Electronic Arts. EA is expected to announce earnings of 0.99 cents per share and earnings of about $ 1.2 billion. Both indicators are lower than last year at the same time.
3. Oil Stocks
The American Petroleum Institute will publish data on oil reserves. Last week, the figures showed an increase, and today this news will be of particular relevance to the price of black gold as US production is at record levels. Stronger production is noted as one of the factors that can keep prices under control, especially as summer approaches when historical demand is very strong.
In addition to trade strains, the US's high reserves, the number of oil platforms and production have a negative effect on oil with the entry of the "summer fever" for black gold.
Trader Aleksandar Kumanov Read more:
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