Trade deals and earnings drove stocks to all time highs as the Dow gained 267 to close at 29,297. Trading volume was down a bit. Both IBD and BTS indicators are positive. Yesterday the US and China signed the Phase One Trade deal or “POT” deal. Tariffs will stay on, China will buy more bacon and beans plus they will
end the process of forced technology transfers which is a big deal to the US.
It’s trade deal Thursday as the US Senate voted 89-10 to approve of the USMCA trade deal between the US, Canada (Beauty eh?) and Mexico. The deal now goes to the President’s desk for his signature. This agreement is different in that it contains protections for labor to prevent jobs from gravitating to low wage zones like Mexico which Canada and the US were concerned about. The important thing is that the North American trade rules have been set meaning that businesses now have a framework to plan ahead with.
Morgan Stanley was the last big financial firm to report earnings and they posted stellar numbers sending shares up over 6% to near all-time highs. Revenue was up 15% while net profits grew a whopping 64%. Bond trading revenue more than doubled and the company gave positive forward guidance. Both top and bottom line results beat guru estimates.