Futures were looking ugly this evening after Apple posted stellar numbers, but a conservative outlook, and a heads up that they won't be reporting iPhone unit sales numbers going forward (I have thoughts on that that I may follow up with in another post). But then the following hit the wires:
"U.S. President Donald Trump is interested in reaching an agreement with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina later this month and has asked key U.S. officials to begin drafting potential terms."Dow futures went from down 100ish to up 136 points within minutes. The Nasdaq went from down 1% (the equivalent of 250 Dow points) to slightly positive. Not, by the way, that the initial dip was all about Apple, but that's certainly the narrative...
Of course the morning's a ways off, as is a trade deal -- so don't hold your breath, or bet your farm -- but tonight's market action certainly confirms our message from earlier today.
In case you missed it:
"While the cynic would say that the below is simply an attempt to engineer a pre-midterm election market bounce (Dow was up 20 before the headline, up 203 as I type), it absolutely does speak to how the equity market is influencing the discussion.
Ultimately, as we stated from the get-go, the market -- which, along with the economy, can't hold up in a protracted trade war scenario -- will provide the ultimate incentive to settle the matter.
"Trump says he and China's Xi exchanged 'long and very good' trade conversation""