Dow fell 400 points, or 1.6%, on Friday afternoon. Nasdaq lost 2%, while the S & P 500 recovered 1.5%.…
Dow fell 400 points, or 1.6%, on Friday afternoon. Nasdaq lost 2%, while the S & P 500 recovered 1.5%.
The shares had traded higher earlier friday, but the market became sharply lower after conflicting announcements that came out of the Trump Administration on Trade.
Vitryssen’s economic adviser Larry Kudlow left an optimistic note about China talks on CNBC, Trade Advisor Peter Navarro warned CNN at the same time if higher fees for problems were not resolved during the 90-day negotiation period.
“We’ve got a hodge podge of mixed messages from people in the same administration,” says Art Hogan, Chief Marketing Manager at B. Riley FBR. “We are not sure who we should listen to.”
Concerns about the trade war’s negative impacts and hopes of progress have launched Wall Street on a wild ride late. The United States and China released stocks on Monday. But doubt about the truce helped beat Dow nearly 800 points in red on Tuesday. And then, Dow scored 785 points on Thursday before a big comeback started.
Senior administration officials have alternated between law enforcement and poor police at the trade front.
Kudlow told CNBC on Friday that trade negotiations with China are “extremely promising.”
Kudlow, chief of Trump’s financial council, said that Trump has stated that he may be willing to extend the 90-day negotiation window if there is “good, solid move and good action.”
Navarro, Hakka’s commercial shovel, hit another tone on CNN. Asked whether the administration would go if issues with China were not resolved within 90 days, Navarro suggested that Trump would “easily raise” existing taxes of $ 200 billion Chinese goods.
If China does not change its way of shopping, “we have a president who will stand up for it once,” said Navarro.
Navarro also enchanted the nearly $ 12 billion that the United States has raised from tariffs, even though the money is largely paid by American consumers and businesses.
The comments did not raise the uncertainty on Wall Street. Trade-sensitive stocks including Apple (AAPL), Boeing (BA) and Caterpillar (CAT) recovered more than 2%.
“We continue to receive conflicting reports of these guys,” said Joe Saluzzi, Trade Manager at Themis Trading. “The markets are confused.”
Trump himself has added the confusion. While Trump has talked about a wish to do business with China, the president also worried some investors by calling a “Tariff Man” on Twitter on Tuesday. That tweet was blamed to help send the market disturbing.
But on Thursday night, Trump told Twitter that he agrees with a recent encouraging statement from China expressing confidence in a 90-day trade agreement.
“Today is a microcosm of what we have had all week: mixed messages,” said Hogan. “Each message has been opposed.”
Hogan pointed to the confusion about a central issue: when the 90-day clock started negotiations. First, Kudlow suggested that the period commenced on January 1. The White House later corrected Kudlow to clarify that 90 days began the day for the dinner on December 1.
The stock market would be down on Friday if it was not for a rally in the energy sector. Oil stocks such as EOG Resources (EOG) and Anadarko Petroleum (APC) were bidder higher after OPEC and its allies reached a deal to significantly reduce production. US oil prices spiked 4% on the news.