Dow jumps more than 200 points after the US and Canada secure a deal to replace NAFTA
S E E D E D C O N T E N T
Thank you President Trump.... the NEW USMCA will be replacing the job killing NAFTA.
Of course, some will insist that this is due to the Obama effect.
Stocks rose sharply on Monday as investors cheered news of Canada joining a trade deal with the United States and Mexico.
The Dow Jones Industrial Average rose 200 points as Chevron and Boeing outperformed. The S&P 500 gained 0.5 percent, led by 1 percent jumps in materials and industrials. The Nasdaq Composite advanced 0.2 percent as Amazon and Apple both climbed about 1 percent.
"The biggest risk factor [in the market] is a trade war and we've dialed that down a bit," said Mike Bailey, director of research at FBB Capital Partners. Bailey noted, however, the market may be going too high too fast right now. "I'm not calling for a major correction or a bear market, but I think we're getting a bit ahead of ourselves here."
Canada and the U.S. secured a trade deal to replace the current North American Free Trade Agreement (NAFTA). The new accord is expected to be named the United States-Mexico-Canada Agreement, or "USMCA" for short, according to a senior U.S. administration official.
The agreement will deliver more market access to U.S. dairy farmers, while Canada has effectively capped automobile exports to the States. Both nations, along with Mexico – which agreed to a deal earlier this year – are expected to sign the agreement by the end of November. It would then be passed to Congress.
"The market is happy because we're removing an uncertainty," said Maris Ogg, president at Tower Bridge Advisors. "It looks like this trade deal will benefit both countries, but I wouldn't call it a great win for the Trump administration."
Ogg noted the deal serves as a stepping stone for the U.S. in its trade negotiations with China.
Shares of Ford and General Motors both jumped more than 1 percent following the news. Boeing and Caterpillar, stocks that are also sensitive to trade news, rose 2.7 percent and 0.3 percent, respectively.
The moves on Wall Street came after theS&P 500 notched its best quarter since 2013, having risen 7.2 percent in that time period.
Tesla shares surged more than 16 percent after CEO Elon Musk settled charges with the Securities and Exchange Commission over his recent aborted bid to take the firm private.
As part of the settlement, Musk will relinquish his position as chairman of the board at Tesla for at least three years. Tesla and Musk will pay $20 million each.
Meanwhile, General Electric surged 9.3 percent after the company abruptly removed CEO John Flannery from his post and named Lawrence Culp as his successor.
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Ok, I don't like Trump. I didn't vote for either him or Hillary. I am really hoping either of the major parties puts forward a non toxic, non criminal, qualified candidate so we can make Trump one and done.
That being said; maybe it is a good thing other countries fear Trump's unpredictability. It is not like any of the past presidents have been able to rework trade agreements that the US came out on the short end of. Chances are this is not an even across the board agreement with Canada and Mexico (I will have to read more up on it); but if it is an improvement over NAFTA I will give Trump full credit.
Gee, you were so close to be taken seriously after that first paragraph and you blew it completely with the second. Should have done that research first:
Trump’s New Nafta Pact Looks More Like a Rebranding Than a Revolution
And you might want to find out how our allies feel about that:
https://www.washingtonpost.com/opinions/trumps-unpredictability-may-be-useful-against-enemies-but-its-deadly-to-allies/2016/07/25/37019d86-52a0-11e6-88eb-7dda4e2f2aec_story.html?utm_term=.0d66ae8b8a14
I listent o Canadian Radio out of Toronto (One of the cool things about living in Northwest New York) and their news says they are pretty thrilled with the negotaition.
Gee, some of us work for a living- and do this type of thing on our lunch break. I tend to do research when I have the time which is later in the day.
I will read your link; and find others on it when I have time.
As for allies. With allies like ours who needs enemies? Call me when our "allies" can fight a war w/o the US doing all of the heavy lifting. It would also help if they actually lived up to their obligations under NATO and spent at least the amount they were supposed to on their own defensive readiness.
What part of I am not pro Trump do you not understand? I won't be voting for Trump if he wins the Republican nomination again; regardless if I give him full credit for this or not. And, unless the Dems come up with a real candidate- and not Hillary regurgitated for the third time- I will be going third party again.
Moral Convictions......another virtue. We need more like you.
And we defend them. The Europeans have little defense spending
Which must mean the feel they got one over on Scumbag. But that's because that's how just about every "deal" he makes actually hurts the US economy and workers.
Unlike the TPP it's easy to make an equitable trade pact with Canada because their wages are close to ours. The TPP would have had our Workers competing against Southeast Asian Countries where Workers make as little as ten cents an hour. Free Trade with Countries like that might be good for Multi- National Corporations but it's not good for American Workers.
Honesty combined with objectivity, I like it.
Seems like a plus (I don't know how significant the changes actually were?). However whatever positive things it might have accomplished, that pales in comparison to the negative impact of the China sanctions . . .
I just love rightwing crowing like this. Since it was written the Dow fell nearly 1400 points which is the second time in a year for such a big sell off.
As a famous yogi once said:
Prediction is difficult, especially about the future.
-Yogi Berra
And one good way to lose money in the stock market is to base your decisions on your political (or religious) biases-- whatever they may be.
Rather then looking for the actual facts (even when they don't validate your belief systems).