On Wednesday, Wall Street inched higher as positivity involving the United States and China talks arise. A trade agreement, hopefully, will be realized after Steve Mnuchin, Treasury Secretary, said the deal is “90 percent complete”.
United States President Donald Trump said he could still be able to put tariffs on China once the expected deal isn’t reached.
The S&P 500 rose slightly higher by 0.3 percent or 8 points.
The Dow was up by 0.2 percent or 59 points.
The Nasdaq composite, performing slightly better than the other two, was up 74 points translating to 0.9 percent.
According to Trump, he is “very happy” with the current situation and that United States is “taking in a fortune”. He also added how it’s not going good for China, but it remains a good thing for the U.S.
Trump is willing to put tariffs on the 350 billion dollars’ worth of remaining goods imported to the U.S. once the two superpower countries settle on an agreement.
Comments of both the secretary and the president boosted the hopes of further escalation of Sino-U.S. disputes.
President Trump and Chinese President Xi Jinping are to meet on the day of the G20 Summit, which will be held in Osaka Japan.
“Any good news on trade is good news for the equity markets. As long as the two countries are negotiating, it’s a good thing and that’s what is going moving markets at this time,” said an analyst and portfolio manager in Chicago.
Memory-chip and semiconductor maker Micron received the most bullish results for the day. Micron’s shares surged by 11 percent, which beat analysts’ expectations.
According to an analyst, “Micron investors have long expected chip prices to come down from the highs of 2017/2018, and the company’s most recent results have confirmed these fears.”
Sanjay Mehrotra, Chief Executive of Micron, said, “We determined that we could lawfully resume shipping a subset of current products because they are not subject to export administration regulations and entity list restrictions.”
“However, there is considerable ongoing uncertainty surrounding the Huawei situation, and we are unable to predict the volumes or time periods over which we will be able to ship products to Huawei,” Mehrota added.
“Micron independently came to its determination that certain of our products were OK to ship,”
Apple was surged higher by 2.3 percent and Boeing inched up 0.6 percent higher.
Intel spiked by 3.2%, while Netflix gained 1.5 percent near market-close.
On the other side of the page, General Mills fell 8.2 percent as it reported a decline in the purchases of snacks in North America, while Coca-Cola was down 0.5%.
“Many brokerage firms have already submitted their reports for KO stocks, with Morgan Stanley repeating the rating for KO shares by setting it to “Overweight”. The predicted price for KO socks in the upcoming period according to Morgan Stanley is $55 based on the research report published on May 14, 2019,” according to an analyst emphasizing on Coca Cola’s state.
Coca-Cola will open an arcade in the style of Stranger Things’ setting, Hawkins in the year 1985. This is an homage to the year Coke launched in the United States originating in Shoreditch, East London.