U.S. Stocks Could Be Headed for Fresh Records As Trade-Deal Hopes Remain High
U.S. markets are poised for yet more records after a report U.S. officials may remove tariffs on Chinese goods, to seal a “phase one” trade deal.
U.S. stock futures are climbing on Tuesday, a day after all three major stock indexes nabbed record highs, thanks to enthusiasm about a China-U.S. trade deal.
Wall Street stocks could carve out more records on Tuesday, after a session that saw all three major indexes nail closing highs. Helping that sentiment along is a report the U.S. may roll back tariffs on Chinese imports worth $112 billion.
A day after the Dow Jones Industrial Average soared 114.75 points to its first record close since July, stock futures are up.
Got a nagging feeling about those all-time highs? So does RBC Capital Markets’ head of equity strategy Lori Calvasina who is sticking to her year-end 2019 S&P 500 target of 2,950, even if the index is past that.
Her concerns? “Euphoric” U.S. equity futures positioning among asset managers, valuations that are at 2017 highs, earnings-growth outlooks for 2020 that are too optimistic and baked-in gains on trade deal hopes, to name a few.
And “we haven’t learned anything in the current reporting season that justifies euphoric positioning and peak valuations,” she argues. Read more here.