Trade deal signed, Dow, S&P and TSX make new highs
At last. Phase one of the long-waited U.S.-China trade deal was signed Wednesday after two years of tariffs, tension and angry tweets. As soon as the deal was announced last month, markets baked in the good news and rallied to record highs. However, there remains at least a phase two, with negotiations set to begin immediately. Investors are not out of the woods yet and should expect volatility.
In fact, as soon as the deal was signed at 11:00 am EST, New York indices sold off. The Nasdaq finished flat and the S&P barely stayed positive though also made a new high. Even better, the Dow cracked 29,000 for the first time, up 0.31%. Financials dragged down Wall Street with Goldman Sachs missed estimates, but closed down only 0.18%. The Bank of America reported modest earnings and revenue beats, but closed down 1.84% after warning that interest income will fall in the first half of 2020.
The TSX fared better, also making a new closing high, up 0.369%. Staples, tech, materials and especially real estate (up 1.5%) raised the Toronto index. CAP REIT, for example, shot up 3.36% to make its own new high. Gold and weed continued to march upwards. The shiny rock rose 0.61% and the Supreme Cannabis Company, for instance, rocketed up nearly 19%.
🏛 Goldman Sachs -0.18%
🏛 Bank of America -1.84%
🏛 Canadian Apartment Properties +3.36%
🌿 Supreme Cannabis Company, Inc +19%
