Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average closed higher Tuesday afternoon, shaking off the latest Trump comment that he expects to press ahead with higher tariffs on China-made goods.
- Apple Inc. (AAPL - Get Report) declined 0.4% after Donald Trump hinted at new tariffs on iPhones.
- United Technologies Inc. (UTX - Get Report) slid 4% after the industrial conglomerate said it would break into three separate companies by 2020.
Wall Street Overview
Stocks mainly rose on Tuesday, Nov. 27, led by Netflix (NFLX - Get Report) and Alphabet (GOOGL - Get Report) , as markets recovered from comments by President Trump that suggested his weekend summit with China's President Xi Jinping may not yield a breakthrough in trade talks between the world's two biggest economies.
In an interview with The Wall Street Journal, Trump said it was "highly unlikely" that he'll hold off on taking the current level of tariffs applied on China-made imports into the United States to 25% on Jan. 1. He also said, barring a deal on the sidelines of the G-20 summit in Buenos Aires this weekend, that he's ready to apply a further round of levies on $267 billion worth of imports, including iPhones and laptops, starting next year.
"The only deal would be China has to open up their country to competition from the United States," Trump said in the interview. "As far as other countries are concerned, that's up to them."
The Dow Jones Industrial Average rose 108 points, or 0.4%, to 24,748, the S&P 500 gained 0.3% and the Nasdaq edged higher by 0.01%.
Meanwhile, Federal Reserve Vice Chairman Richard Clarida, in a speech Tuesday, said that risks to the economy were "symmetric" and that raising interest rates too slowly could "result in rising inflation and inflation expectations down the road that could be costly to reverse" and ultimately lead to a financial crisis.
"Risks have become more symmetric and less skewed to the downside than when the current rate cycle began three years ago," Clarida said.
Fed Chairman Jerome Powell will speak Wednesday at the New York Economic Club.
Apple Inc. (AAPL - Get Report) , the maker of the iPhone, fell 0.4% after Trump suggested in his interview with the Journal that American consumers could "easily" handle an extra 10% tariff on imported iPhones and MacBooks if he were to increase levies on China-made goods next year.
"Maybe. Maybe. Depends on what the rate is," Trump said in reference to levies on mobile phones and laptops. "I mean, I can make it 10% and people could stand that very easily."
Amazon.com Inc. (AMZN - Get Report) rose 0.1% after it said Cyber Monday was the biggest single-day shopping event in the company's history, adding that consumers purchased more than 180 million items across its global platform during the five days that began on Thanksgiving.
"Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximize value creation," said United Technologies CEO Gregory Hayes.
The three companies will be United Technologies, which will house its aerospace and defense industry supplier businesses; Otis, which makes elevators, escalators and moving walkways; and the Carrier air conditioning and building systems business.
The move follows the approval last week from Chinese regulators of United Technologies' acquisition of Rockwell Collins Inc. (COL) .
An official from China Passenger Car Association said data showed Tesla sold just 211 cars in the world's largest auto market in October.
Tesla had said that tariff hikes on auto imports were hammering its sales in China, where it imports all the cars it sells there, Reuters noted.