In normal U.S.-China trade war fashion, Chinese officials Thursday were reported to have doubts surrounding the tentative trade deal. The news caused U.S. markets to fall Thursday, with investors aiming to sell all risk assets in an unstable trade climate.
Here's how the U.S. market settled Thursday:
S&P 500 Index (SPY): -0.30% or -9.21 points
Dow Jones Industrial Average (DIA): -0.52% or -140.46 points
NASDAQ Composite Index (QQQ): -0.14% or -11.62 points
According to a Bloomberg report, Chinese officials have suggested that they will not be willing to make concessions on some of the major reforms the Trump administration has called for to reach a deal. The officials were concerned that President Donald Trump go back on the phase one trade agreement that was set to be signed by both parties in November.
Trump tweeted on the manner that: "China and the USA are working on selecting a new site for signing of Phase One of Trade Agreement, about 60% of total deal, after APEC in Chile was canceled do to unrelated circumstances. The new location will be announced soon. President Xi and President Trump will do signing!" Because the two messages contradict, it is unclear really where the trade deal is headed as the market enters November.
In U.S. Economic news, the weekly unemployment claims increased more-than-expected in a report for the Department of Labor. Separately, personal income growth decelerated by the economics expected amount according to a report from the Bureau of Economic Analysis. Finally, the ISM Chicago Business Barometer reading for October fell to a reading of 43.2 from September's 47.1. This reading reflects the lowest level of regional manufacturing activity in four years.
In Stock Sectors, all but two of the eleven sectors fell today, demonstrating investment fear in the current market. The only two sectors that saw gains today were Utilities +0.46% and Communication Services +0.27%. The losers decreases that included Industrials -1.14%, Materials -1.10%, Financials -0.55%, energy -0.47%, Consumer Discretionary -0.46%, Real Estate -0.36%, Consumer Staples -0.21%, Health Care -0.13%, and Information Technology -0.21%.
In Commodity news, the price of oil continues to drop, with West Texas Intermediate falling over -1.30% to a price per barrel that sits just above $54. Brent Crude also continues to slide, with prices slipping just about -0.70% to price barrels at about $60. In contrast, gold has been on the rise today due to the poor current trade conditions. The price per ounce increased over 1% with prices ranging around $1,512.
As October comes to a close, it is just to reflect on such a historic month. This month has been clouded with trade uncertainties, impeachment inquiries, Brexit votes and extensions, and weak economic data that is showing signs of a weak global economy. Despite the global woes, the S&P 500 has hit record highs during earnings season and many investors still have confidence that the trade war will come to an end soon. Only time will tell as the market moves into November.
