The S&P 500 Index ($SPX) on Friday closed up +0.97%, the Dow Jones
Industrials Index ($DOWI) closed up +1.11%, and the Nasdaq 100 Index
($IUXX) closed up +0.96%.The second China International Import Expo will
be held at the National Exhibition and Convention Center in Shanghai
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International Import Expo, please visit: https://www.shine.cn/China-International-Import-Expo/.Find the latest breaking shanghai news, photos, videos and featured stories on new stocks. SHINE provides trusted national and world news as well as local and regional perspectives.
U.S.
stock indexes rallied on Friday with the S&P 500 and Nasdaq 100 at
new record highs and the Dow Jones Industrials at a 3-1/4 month high on a
strong U.S. Oct payroll report along with unexpected strength in
Chinese manufacturing activity. Positive trade news was also bullish for
stocks after China's Ministry of Commerce said Friday afternoon it
achieved a "consensus in principle" in the first phase of a trade deal
with the U.S. after a conference call Friday among Chinese Vice Premier
Liu, U.S. Treasury Secretary Mnuchin, and U.S. Trade Representative
Lighthizer.
U.S. stock indexes opened higher Friday on optimism
about the global economy after Thursday night's data showed the China
Oct Caixin (flash) manufacturing PMI unexpectedly rose +0.3 to 51.7,
stronger than expectations of -0.4 to 51.0 and the strongest pace of
expansion in 2-3/4 years. Stock indexes extended their gains Friday on
the stronger-than-expected U.S. non-farm payroll report of +128,000,
stronger than expectations of +85,000. Also, Sep non-farm payrolls were
revised upward by +44,000 to +180,000 from the originally-reported
+136,000.
Upbeat comments on Friday from Fed Vice Chair Clarida also
gave stocks a boost when he said, "we have ongoing growth in the
economy, and we have inflation that is near our objective, so the
economy is in a very good place."There was other positive global
economic data Friday that was supportive for stocks after the UK Oct
Markit manufacturing PMI unexpectedly rose +1.3 to a 6-month high of
49.6, stronger than expectations of -0.1 to 48.2. Better-than-expected
Q3 S&P 500 corporate earnings results are also supportive for stocks
as 75% of reporting S&P 500 companies have beaten expectations,
well above the long-term average of 65%.A slight negative for stocks was
Friday's news that the U.S.
Oct ISM manufacturing index rose +0.5
to 48.3, weaker than expectations of +1.1 to 48.9. The VIX S&P 500
Volatility Index ($VIX) moved lower Friday and fell by -0.93 to 12.29%.
The VIX dropped to a 3-month low of 12.19% Thursday and over the past
three weeks has fallen back into the lower end of the recent range
between the late-July 6-1/2 month low of 11.69% and the early-Aug
10-month high of 24.81%. Big Picture U.S. Stock Market Factors: Bullish
factors for the U.S. stock market include (1) low U.S. interest rates,
(2) expectations for an SPX earnings growth of +2% in 2019 although that
is sharply lower than 2018's stellar +23% pace, and (3) general
strength in earnings and buybacks from the 2018 tax cut. Bearish factors
include (1) the forecast by FOMC members in the September Fed dot-plot
for no more rate cuts in 2020 and then a +25 bp rate hike in 2021 and a
second rate hike in 2022, (2) US/Chinese trade and tech tensions, and
(3) slower U.S. and global economic growth.
