After the markets opened the day lower on bond yield concerns, stocks made an early morning reversal and jumped higher after the US announced delays on China tariffs until December on certain items, including cellphones, some clothing, video game consoles, certain toys and many others. President Trump said he delayed the tariffs ahead of the holiday season to avoid potential impact on holiday shopping. The early morning drop came after red flags in the bond market. The 10 Year Treasury yield came within 3 basis points of the 2 Year yield. A yield curve inversion, where the short term rates are higher than the long term rates, has been a reliable indicator of a future recession. At the end of the day, bond yields turned higher, investors were risk on putting money into the markets, and the major indices closed higher across the board:
DOW +382 at 26279
SP500 +42 at 2926
NASDAQ +152 at 8016
The 10 Year Treasury closed up 4 basis points to yield 1.68%
Oil prices trading +2.03 at 56.96 a barrel
Gold prices trading -4.20 at 1513.00 an ounce
In the days’ stock news:
- Retailers cheered the delayed rise in cost for apparel and electronics as the SPDR S&P Retail ETF closing up more than 4%, its best daily performance of the year.
- Apple led the DOW higher, closing up over $8.50 or 4%.