Tuesday, September 18, 2018
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[Most Recent Quotes from www.kitco.com]
[Most Recent Quotes from www.kitco.com]



Market Digest Online WEDNESDAY, SEPTEMBER 19, 2018..... Stocks rose on Tuesday as the latest tariffs on U.S. and Chinese goods are not as bad as previously feared. Strong gains in tech also lifted the broader market. The Dow Jones Industrial Average surged 185 points as Nike and Boeing outperformed. The S&P 500 gained 0.5 percent, led by tech and industrials. The Nasdaq Composite advanced 0.8 percent as Amazon, Apple, and Alphabet closed higher.

China announced tariffs targeting more than 5,000 U.S. products will go into effect on Sept. 24. The goods targeted are worth approximately $60 billion. However, China will put a 10 percent tariff on some goods it had previously earmarked for a 20 percent levy. The announcement comes after the Trump administration announced the U.S. will impose 10 percent tariffs on $200 billion worth of Chinese imports, and those duties will rise to 25 percent at the end of the year.

"The market is thinking this wasn't the worst-case scenario," said Daniel Deming, managing director at KKM Financial. "That's why you're seeing this pseudo-rally taking place."

Deming added that strong gains in Asian markets also lifted investor sentiment. "Once we saw the Asian market had the ability to rally, most of the major indexes across the globe got their cue from that," he said. The Shanghai Composite rose nearly 2 percent while the Japanese Nikkei gained 1.4 percent overnight.

Commerce Secretary Wilbur Ross said the new tariffs are aimed at modifying China's behavior and leveling the playing field for U.S. companies there. China is "out of bullets" to retaliate, Ross said. The tariffs from both countries come after multiple news outlets reported U.S. officials were trying to restart U.S.-China trade talks.

Caterpillar and Boeing — considered trade bellwethers for their large overseas exposure — rose 2 percent and 2.7 percent, respectively.

Tech shares bounced back after steep losses in the previous session. Amazon rose 1.7 percent after posting its worst day since April on Monday. Netflix and Apple, meanwhile, rose nearly 5 percent and 0.2 percent, respectively. The overall tech sector rose 0.6 percent after dropping 1.4 percent on Monday.


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