US stocks made some ground early this week as lawmakers revealed tentative plans for acquiring and dispensing new funding for border security. With the announcement, the Down Jones Industrial Average jumped 250 points, heavily reliant on gains from Goldman Sachs and JP Morgan Chase. In addition, the Standard & Poors 500 showed a steady climb of nearly 1 percent, on the heels of energy and financial stocks outperforming expectations. The Nasdaq Composite also grew by 1 percent.
It seems that the government shutdown has been a bane to the market, so the restart has been, at the very least, refreshing.
However, the border wall is not the only thing lifting spirits in the market. Not surprisingly, US investors are also interested in the trade relationship between the United States and China. So with the new negotiations starting in Beijing this week, the two countries approaching some kind of agreement would certainly be quite welcome.
We can expect for US Trade Representative Robert Lighthizer and US Secretary of the Treasury Steven Mnuchin to arrive in Beijing on Thursday. This is when high-level discussions will begin, in an attempt to meed the trade agreement deadline before the new Trump-issued tariffs will go into effect. These new tariffs will add 15 percent tariffs (on top of the existing 10 percent) to all China-made goods valued higher than $200 billion.
A few stocks leading on the day include Under Armour, who earned 9 cents per share in the fourth quarter alone, on reports of an adjusted revenue of $1.39 billion. This beat analyst estimates for both top and bottom lines. And with that, UAA stock rose 4.5 percent. Also outperforming expectations today is Moslon Coors Brewing Co. TAP posted profit results in Q4 are definitely better than they expected, as well, but after income tax accounting errors, they will need to reissue their 2016 financial statement. That actually caused shares to fall 9.44 percent.
Other markets also appear to be faring well today. Asia’s Nikkei 225 Index jumped more than 1 percent on news of this optimism. The Shanghai Composite also rose more than 1 percent. In addition, Stoxx Europe 600 increased about 0.75 percent but looks to gain even more ground as European stock futures appear to be in upward momentum.