U.S Stocks Gain on China and US Renewed Trade Deal Optimism
Stocks rose Friday after top negotiators from China and the United States vowed in a phone call to continue to support phase one of the trade deal.
China's Vice-Premier Liu He, U.S Secretary of Treasury Steven Mnuchin, and U.S Trade Representative Robert Lighthizer pledged to implement the trade deal and enhance cooperation on public health, as Chinese state media Xinhua News Agency reported.
"Both sides agreed that good progress is being made on creating the governmental infrastructures necessary to make the agreement a success," the Office of the U.S Trade Representative said in a statement following the call.
U.S. President Donald Trump expressed doubt in a Fox & Friends interview: "Look, I'm having a very hard time with China."
He continued, "I made a great trade deal months before this whole thing happened. And it was kicking in, you know, a month ago and starting to kick in and starting to produce and then this happens and it sort of overrides so much."
The news comes as Trump threatened to rip up the phase one agreement if China backs off the terms, which includes purchasing $200 billion worth of U.S goods.
While the U.S. economy lost 20.5 million jobs in April, it was still better-than-expected. Wall Street was projecting job losses of 22 million. As a result, U.S. benchmarks were sent higher today. The Dow Jones rose 1% to 24,211.54 points and the S&P 500 gained more than 36 points to 2,917.99.
As the country continues to make progress on reopening, Michigan Gov. Gretchen Whitmer said auto and other manufacturing workers can return to work on Monday. That's good news for the native-based Ford Motor Co., (NYSE: F) which suffered a net loss of nearly $2 billion in the first quarter. The stock in Ford was trading up nearly 5%, at $5.10 per share, by midday Friday.
Ride-sharing company Lyft Inc. (Nasdaq: LYFT) rose on generating better-than-expected revenue in the first quarter. At intraday, Lyft rose 3% to 32.87 per share, while Uber Technologies, Inc., (NYSE: UBER) gained nearly 5% at $32.34 per share.
While the economy is starting to slowly reopen in the U.S., the last thing the markets need right now is prolonged trade tensions.