December 3, 2018

US stocks rose today after President Trump and the Chinese President agreed to a 90 day cease-fire in the trade war that has weighed heavily on global stock markets for most of 2018. The two leaders agreed over the weekend to hold off on additional tariffs on each other’s good at the start of the New Year to allow for talks to continue. Boeing jumped nearly 4% on the news while Caterpillar also rose 2.5% after Bank of American said the US-China trade cease-fire presents a 20% upside for the stock. Multi-national companies have been most hurt by the possibility of a long term trade war and we saw some relief on those stocks today. At the end of the day, the major averages closed off the highs but solidly higher across the board:

DOW +287 at 25826
SP500 +30 at 2790
NASDAQ +110 at 7441

The 10 Year Treasury yield closed down 2 basis points to yield 2.99%
Oil prices closed +2.20 at 53.13 a barrel
Gold prices closed +10.40 at 1236.40 an ounce

In the days’ stock news:

  • Marlboro cigarette maker Altria is in early talks to acquire Canadian cannabis producer Cronos. MO closed +1.6% at 55.73.