U.S. markets saw positive gains today following more optimistic news toward the "Phase One" trade agreement between U.S. and China. On Sunday, U.S. Commerce Secretary Wilbur Ross told Bloomberg that he is confident that the trade deal will be completed this month and licenses for the agreement would be coming "very shortly" for American companies to sell components to Huawei Technologies Co. "We're in good shape, We're making good progress, and there's no natural reason why it couldn't be," Ross stated. Though he stoked the continuous trade uncertainty by saying: "But whether it will slip a little bit, who knows. It's always possible."
Here's how the stock markets settled Monday:
S&P 500 Index (SPY): +0.37% or 11.37 points
Dow Jones Industrial Average (DIA): +0.42% or 114.89 points
Nasdaq Composite Index (QQQ): +0.56% or 46.8 points.
In furtherance of positive trade news, Goldman Sachs economists announced Monday that they believe that the tariffs on imports from China have peaked. The analysts estimating that "tariffs on imports from China will remain at current levels through 2020," which is extremely positive towards raising investor confidence towards trading in riskier stocks.
In stock news, Saudi Aramco, the world's most profitable company, announced on Sunday its formal plans for going public. The company is estimated to value close to $1 trillion and will initially trade locally on the Tadawul stock exchange before entering global markets.
In U.S. Sector news, most of the eleven sectors has seen gains today in the more positive trade climate. Gainers for the day include Energy +3.15%, Industrials +1.20%, Financials +0.89%, Materials +0.78%, Informational Technology +0.55%, Communication Services +0.40%, and Consumer Discretionary +0.11% Losers include Utilities -1.28%, Real Estate -1.05%, Consumer Staples -0.94%, and Health Care -0.35%.
In Commodity news, the price of oil continues to rise in the beginning of the week. West Texas Intermediate increased around 0.80%, making the price per barrel almost $57. Brent Crude also continued to climb, with the USD per barrel soaring over 1% to price just above $62. On the other hand, Gold is on the decline today, with prices dropping over -0.20% to price around $1,510.
As November 2019 enters its first full week of trading, it seems that the market is going towards a more promising future after the positive trade announcements made over the weekend. Stable expectations around trade are needed to help restore investor confidence in the market.