Markets

Stocks Ignore Trump’s Tariff Talk

An image of a pencil and a calculator
Credit: Shutterstock photo

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Stocks blitzed higher on Monday, setting aside concerns about President Trump's aggressive trade protectionism efforts. The catalyst seems to have been headlines that GOP House Speaker Paul Ryan urged Trump to not advance his trade tariff plan and that Congress could take action to thwart what looks like the opening salvo of a global trade war.

Trump didn't back down, however, noting that he wasn't going to stop when asked about Ryan's comments. Also playing a role is the ongoing momentum in the "FANG" stocks including Facebook Inc (NASDAQ: FB ) and Amazon.com, Inc. (NASDAQ: AMZN ), which are up 7% off of Friday's lows as a group.

In the end, the Dow Jones Industrial Average gained 1.4%, the S&P 500 gained 1.1%, the Nasdaq Composite gained 1% and the Russell 2000 gained 0.8%. Treasury bonds were mixed, the dollar was mixed, gold lost a touch, and crude oil moved higher. Breadth was heavily positive, with advancers outpacing decliners by a 2.8-to-1 ratio.

Defensive utility stocks led the way higher with a 2% gain with financials not far behind, up 1.4%. Stocks in Asia were weak overnight, with Hong Kong's Hang Seng down 2.3%.

Conclusion

All you need to know: AMZN is back above $1,500 and is within a hair of record highs. Yet the NYSE Composite Index, with a broader weighing of components, is 7% off of its highs and only 5% above its February panic lows.

Looking ahead, all eyes will be on Friday's payroll report. Remember that a month ago, the January report unleashed a wave of selling after wage inflation surprised to the upside. Economists are looking for the unemployment rate to decline to 4.0% with the annual increase to average hourly earnings potentially increasing to the 3.0% threshold (from 2.9% last month).

Today's Trading Landscape:

To see a list of the companies reporting earnings today, click here .

For a list of this week's economic reports due out, click here .

Anthony Mirhaydari is the founder of theEdge(ETFs) andEdge Pro(Options) investment advisory newsletters.Free two- and four-week trial offers have been extended to InvestorPlace readers.

More From InvestorPlace

Compare Brokers

The post Stocks Ignore Trump's Tariff Talk appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AMZN FB

Other Topics

Stocks

Latest Markets Videos

    InvestorPlace

    InvestorPlace is one of America’s largest, longest-standing independent financial research firms. Started over 40 years ago by a business visionary named Tom Phillips, we publish detailed research and recommendations for self-directed investors, financial advisors and money managers.

    Learn More