Much of the potential trade deal would include relaxed tariffs on U.S. automobiles going into China.
While the U.S. stock market has fallen following the news of the trade talks, so have General Motors (GM - Get Report) , Ford (F - Get Report) and Fiat-Chrysler (FCAU - Get Report) , with Fiat making the largest move down 2.68%.
And while some retail traders haven't piled into trade sensitive, as well as cyclical, stocks the way institutional investors evidently have, "our clients actually bought Ford in the last few months," said JJ Kinahan, chief market strategist at TD Ameritrade. It's "one of the stocks that stood out from a normal pattern," Kinahan explained, as Ford has fallen in the past year by 17%.
Aside from what may be some dose of optimism on Chinese tariffs on auto's, a reduction of U.S. tariffs on imported Chinese steel and aluminum would reduce input costs for automakers, which investors would like to see. "Any product you can make where your input costs are reduced, is going to help your bottom line significantly," Kinahan said.
Still, "some of it is speculation as to what actually gets done, so we'll see what does happen with steel," Kinahan said of the buying of Ford shares.