Almost drawn even. Without sounding sort of like arcane and gob deli bookish here, that items teams seems to that we have less worry of about a recession. That concern eases, even when we do when inverted it takes sometimes a year or two years before it materializes. The nevertheless the fact that is pushed off, a lot of stocks that do business with companies abroad, particularly in asia, china, they are among the stronger advancers. It is helping reverse this bond Market Sentiment that built we were going to enter a slow down. Now people are selling bonds. Buying stocks. More attracted to the yield of the s p 500 for example, which at 2 or so, is significantly better than around the 1 1 2 youre looking at for 10year note. You can well understand what has been going on here, at the corner of wall and broad. Oil prices moved up a little bit. Theyre advancing today. That benefits key Oil Components dominant among 11 s p sectors. What is happening with the nearly 2 runup in oil prices. Be
Oil prices end disproportionate weighting with the dow, components like exxon, chevron mobile dominating the scene. Lets go to Edward Lawrence with the latest from the white house on the trade front. Edward what are we hearing . It is fish. U. S. Trade Representatives Office filed to increase tariffs on last 300 billion of chinese imports from 10 to 15 . It will go into effect in two faces. First phase of 15 happens this sunday. You see items on the screen will be affected. The second batch goes on september 15th. Chinese reinstituted 25 tariffs on u. S. Cars sold in china. Increasing tariffs on 75 billion worth of u. S. Imports. Were expecting a phone call between the two trade teams. It has not happened yet. Vice president chief of staff says the pressure will put the u. S. In a position where china will make a deal. There is a lot of pressure on china for them to reach a deal, and to actually hold, the commitments of that deal. Which is something we havent seen in the past. No, i wo
Predicted every last recession weighs in. Now to Edward Lawrence at the white house, on the trade front where things stand. What is going on there . Reporter looks like better than expected numbers coming out of china helping markets today. China says their exports have increased 3. 3 from june to july. Surprise with some with escalating trade tensions. Export numbers deficit from the United States has shrunk 2 billion from june to july. It is still a huge number, look at yeartodate. It is 168. 5 billion yeartodate. Also thursday, Chinas Central Bank made moves signaling future devaluing currency even though today theyre stablizing. Should the currency weaken too much that should cause Asian Countries to cut their Interest Rates even more. White house Economic Advisor Peter Navarro down playing that this morning. Listen. The yuan has gone down 12 . We put on tariffs at 10 . The yuan goes down 12 . Theyre basically trying to offset the effect of the tariffs but it does have ripple effec
Investor that it would be hard to keep track of everything you do and a lot of this stuff is much more important than the day to day action. Without the right discipline, the right frame working the right dare i say philosophy, youre going to get yourself into trouble but i also know big picture Financial Advice is hard to process a lot of it seems down right contradictory to most people we tell you to have conviction, to stick with the companies you believe in and say you need to be ready to change your mind on the dime you need to be cautious because its so dangerous out there but you also need to be ready to pounce on opportunities when they spent themselves. You need to be skeptical but you also need to know when to suspend your belief, disbelief you need to avoid chasing stocks that have run too much, but you also shouldnt care too much where a stock is coming from if you believe its headed higher you know the rules, it doesnt matter where a stock has come from, its where its head
Coming together. Edward lawrence with the very latest. Reporter thanks for that intro, neil. President donald trump on twitter calling for more Federal Reserve rate cuts to take on china. Also help keep the economic expansion going. The president also saying he expected that drop in the dow this week but also expects ultimately a bounceback. I would have maybe anticipated even more but ultimately it is going go much higher than it ever would have gone. China was like a anchor on us. China was killing us with unfair trade deals. China, what they were doing to us, for years and years, taking hundreds of billions of dollars out, stealing intellectual property, targeting our farmers, all of that ending. Reporter this the price of taking on china now. Add into the drop of the 10year yield, helping the president s case for more rate cuts, falling to a lowest level since october 2016. The trade dispute more than a year old, hotter than ever now. Some experts say this could be a prolonged trad