Sure, watch all stocks.
But the October trade talk that the U.S. and China reportedly agreed to have could do some good for a few specific companies -- those directly impacted by tariffs, which could go into effect on Dec. 15. If the two largest economies in the world agree on certain terms and the White House holds off on consumer electronics tariffs set for Dec. 15, a few stocks highly exposed to that round of taxes would benefit.
You guessed it. Apple (AAPL - Get Report) is the big stock to watch on the trade front. Seen by one analyst as the "poster child" of the U.S. and China trade war, Apple is hoping the October talks will be serious. The iPhone may be tariffed to the tune of 10% to 15% in December, which analysts say could result in a 5% hit to 2020 earnings per share, if Apple absorbs those costs. If Apple passes the added costs on to consumers, the EPS impact, would be somewhat muted. Apple shares rose 1.1% to $211.50 Thursday.
The stock could lose considerable value in the event of such an EPS hit. Still, while Apple has had a strong run in 2019, many analysts believe the removal of threatened tariffs would also remove a huge overhang for the stock, which could send shares into territory many Apple bulls see as fairly valued.
Those semiconductors that supply Apple are pulling for a trade resolution as much as Apple is.
Micron (MU - Get Report) , which makes memory chips for Apple, rose 2.01% to $47.75 Thursday. Micron has also had a strong run in 2019, as memory pricing looks to be turning positive in the next couple of years. But higher volumes of its chips would also be in the equation without tariffs.
With positive trade news came a move into stocks and out of treasuries. The S&P 500 futures rose 0.9% Thursday morning, while the 10-year treasury yield rose to 1.53%. The 30-year treasury bond rose to 2.03%. The 10-year and 3-month treasury yields remain deeply inverted, with the 3-month yield at 1.96%.
The move in treasuries, signaling ever-so-slightly less optimism of several interest rate cuts from the Federal Reserve, is a positive sign for banks' net interest margins. Banks borrow short-term money to lend long term.
Importantly, rising yields is a positive for the yield curve, but some have noted that rate cuts from the Fed, which were not the primary focus in Thursday's market, would steepen the curve, which would ultimately boost bank stocks.