Happy Halloween Everybody!
Apple and Facebook may have released stronger-than-expected earnings results, but that wasn’t enough to stop the markets from falling, as US-China trade negotiations took center stage.
According to Bloomberg, Chinese officials have voiced concerns over the possibility of establishing a long-term trade deal wiht the US, citing President Trump’s “impulsive nature” as an unreliable factor. Investors were optimistic about a “phase one deal” to be signed in November. Now, the likelihood of such a deal (or its timing) may be cast into doubt.
President Trump tried to reassure the market before today’s open, tweeting: “China and the USA are working on selecting a new site for signing of Phase One of Trade Agreement, about 60% of total deal, after APEC in Chile was canceled do to unrelated circumstances. The new location will be announced soon. President Xi and President Trump will do signing!”
The employment cost index came in at 0.7%, indicating an increase in wages, salaries, and personal expenditures. Initial jobless claims remained stable near record lows, totalling 218,000 in the week ending October 26. Personal income in September rose 0.3%, matching consensus.
Overall concerns about the economy and trade overshadowed earnings news, which so far has topped analyst expectations for a majority of the S&P 500 companies that have already reported.
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