Stocks closed the day higher and the S&P 500 had its first positive day in 4 sessions. Trading volume was a bit lower and the Dow gained 54 points to 26,439. Tech stocks were higher led by Apple after the company received an upgrade from JP Morgan. Amazon jumped back over $2,000 per shares. The latest Q2 GDP number came in at 4.2% after adjustments which is in line with prior readings. After the closing bell the SEC announced it would charge Elon Musk with fraud over his “going private” tweet. The disruption cycle continues. Elon goes to jail while buyers flock to get their Tesla Model 3!
The South China Morning Post reported the growth rate in China’s industrial firms has been cut by 43% over the past 4 months falling from 16.2% to 9.2%. Escalating trade frictions are fanning concerns about faltering domestic demand in China. Business expansion plans have slowed due to efforts to curb corporate debt levels and crack down on risky borrowing. Yang “Kiwi” Yewei, a guru at Southwest Securities noted that inventories and receivables are edging higher which is a sign that business conditions are becoming increasingly challenging. China is moving to inject stimulus but, in the meantime, ongoing trade tensions appear to be taking their toll.
Oil prices continue to creep higher thanks to fears of a supply gap caused by Iranian sanctions. WTO closed the day up about 1% to $72.22 per barrel.