Tesla is working on new battery cell designs, and a way to make their own cells, with R&D teams in a lab near its car plant in Fremont, California.Technologyread more
The Federal Reserve and the market are miles apart on interest rate expectations, and the disparity could cost the stock market a 7%-10% drop, economists say.Economyread more
President Trump lambastes Twitter, Google and other technology giants for what he claims as their efforts to stifle him.US Economyread more
Underneath the impressive market rally is a trend that doesn't seem quite right, according to J.P. Morgan.Marketsread more
Mnuchin tells CNBC he's confident President Trump and China's Xi Jinping can make progress in stalled trade talks.World Economyread more
JP Morgan's Jamie Dimon says student lending "is a disgrace and it's hurting America."Economyread more
These are the stocks posting the largest moves midday.Market Insiderread more
The Supreme Court refused to overturn a precedent that strengthened the power of government regulators in a closely watched case that could have had broad ramifications for...Politicsread more
Shares of Paychex dropped on Wednesday after Bank of America downgraded the stock due to its "excessive valuation" and "underwhelming fundamentals."Marketsread more
A full-time worker earning the federal minimum wage of $7.25 per hour cannot rent an affordable two-bedroom apartment anywhere in the country, where affordable is defined as...Spendread more
The president raised $6 million alone at a fundraiser he attended at the Trump International Hotel on Tuesday in Washington.Politicsread more
Stocks rose on Tuesday, regaining some of the sharp losses from the previous session, as investors weighed the impact of the escalating trade war between the United States and China.
The Dow Jones Industrial Average rose 207.06 points to 25,532.05, boosted by gains in Visa and Boeing shares. The 30-stock index also posted its best day since April 12. The advanced 0.8% to 2,834.41 as tech shares outperformed. The Nasdaq Composite climbed 1.1% to end the day at 7,734.49.
"The reason we're seeing this recovery is because fundamentals haven't changed," said Kevin Miller, CIO at E-Valuator Funds. He noted the U.S. economy remains strong.
"That being said, we are going through something that we've never gone through before," Miller said. "This China trade agreement issue is changing investing into something more like speculating because no one knows what direction this thing can go."
Boeing climbed 1.7% while Apple rose 1.6%. Caterpillar shares gained 1.7%. Bank shares also rose broadly. Citigroup and Bank of America rose more than 1% each while J.P. Morgan Chase gained 0.8%.
Microsoft shares rose 1.1% to boost the tech sector. Cisco Systems also gained 1.4% after an analyst at Bank of America touted it as the tech stock to buy amid rising U.S.-China trade fears. Coca-Cola shares rose 1.3% after Morgan Stanley upgraded it to overweight from equal weight. The bank named the soda maker its "top mega-cap staples pick. "
Greg Luken, CEO of Luken Investment Analytics, thinks this is a "dead-cat bounce," or a temporary recovery, however. "I think this is going to last for a while," he said. "This is not something that's going to be resolved tomorrow and anybody who says they know exactly how this will play out is spinning a yarn."
"Only history will tell us if this is good or bad," Luken added.
Major U.S. indexes tumbled Monday after news that China plans to raise tariffs on $60 billion worth of U.S. imports, beginning on June 1. The list of targeted goods ranges from TV cameras to tequila, and includes a range of agricultural products. Beijing's move comes after Washington announced last week it would increase tariffs from 10% to 25% on a bulk of Chinese imports.
On Monday, the Dow and S&P 500 fell 617 points and 2.4%, respectively, their worst performances since early January. The Nasdaq dropped 3.4%, its biggest one-day loss of 2019.
In a note to clients Monday, Citi said its China economists are "cautiously optimistic that a trade deal can eventually be signed." But it added that the "window to avoid further escalations in US/China tensions is closing fast."
"Ongoing trade flare-ups may continue to swing the stocks in the near-term, but we think the market may have priced a lot of this in," Citi said.
President Donald Trump tweeted on Monday that China will be "hurt very badly if you don't make a trade deal. " He also said companies would be forced to leave the country without an agreement, adding that China had a "great deal" almost completed but they "backed out." Stocks came off their lows in afternoon trading Monday after Trump said he had not decided if he would slap tariffs on the remainder of Chinese goods.
Trump also tweeted on Tuesday the U.S. is in a "much better position now than any deal we could have made," noting that "billions of dollars" are returning to the U.S.
Trump also said he thinks the U.S. is winning the country's trade dispute with China. According to the Washington Post, the office of the U.S. Trade Representative has already gone ahead with first steps on slapping tariffs on roughly $300 billion of Chinese imports.
Mike Wilson, Morgan Stanley's chief U.S. equity strategist, told clients in a note Monday that higher U.S. tariffs on Chinese goods will likely turn into a headwind for corporate earnings — and the economy could fall into a recession if the country's trade war keeps escalating.