U.S. markets had a strong open Monday morning on President Trump's announcement that U.S. and Chinese officials are willing to continue talks in an effort to de-escalate mounting trade tensions.
Speaking from the G7 summit in Biarritz, France, Trump said that Chinese negotiators had called U.S. officials and requested a new round of talks. "We'll be getting back to the table. And I think they want to do something," he said. "This is a very positive development for the world."
China's Foreign Ministry spokesperson Geng Shuang, however, said at a press conference Monday that he was not aware of any calls, but that the trade feud should be solved "through dialogue and consultation."
Meanwhile, Chinese Vice Premier Liu He said at an economics conference in Chongqing that China favored "calm negotiations" to resolve trade tension. "We resolutely oppose the escalation of the trade war, which is not beneficial for the U.S. or China. It is also not beneficial to the world," Liu said, according to multiple reports citing government transcripts.
By midday, the Dow was up more than 250 points, while the S&P 500 and Nasdaq Composite were up more than one percent. Yet the news came too late for Asian markets, which had plummeted by close Monday local time.
The Hang Seng Index in Hong Kong and the Shanghai Composite Index ended the day down 1.91 percent and 1.17 percent respectively. The Nikkei in Tokyo closed down 2.17 percent and South Korea's Kospi Index fell 1.6 percent.
On Monday, Trump also repeatedly lauded Chinese President Xi Jinping as a "great leader" and a "brilliant man" — a far cry from the "enemy" characterization that Trump gave Xi last week.
The enduring trade dispute between the U.S. and China, which has both ebbed and surged in recent months, significantly escalated last week. China announced on Friday that it would hit $75 billion worth of U.S. goods with new retaliatory tariffs and proceed with a steep tariff levied on U.S. vehicles and car parts.
In response, Trump announced that the U.S. would hike its 25 percent tariff on $250 billion worth of Chinese imports to 30 percent, and increase the forthcoming 10 percent tariff on $300 billion worth of goods to 15 percent. Friday's culmination sent U.S. stocks into a nosedive and led to an outcry from industry against the escalation.
Trump added he was confident that Liu's remarks on calm negotiations were sincere and were not a bid to quell market woes. "I think they want to make a deal. I think they should make a deal, and I think if they don't make a deal it will be very bad for China," he said during a press conference with President Emmanuel Macron of France.
At a separate event, Treasury Secretary Steven Mnuchin said Liu's remarks were "very significant statements" and that the U.S. was communicating with the vice premier, who is China's chief negotiator, through intermediaries.
China, nonetheless, urged the U.S. on Monday not to "miscalculate the situation" and to cease its "erroneous ways."
"China firmly opposes and rejects such stark trade bullying and maximum pressuring tactics," Shuang said. "I would like to remind the U.S. once again that threats and intimidation will never work on China."
In response to a question on the trade uncertainty fueling market volatility, Trump said "Sorry, it's the way I negotiate ... and it has done very well for me over the years."
The popular online gaming platform for kids, Roblox, is reportedly expanding its offerings into the educational space. Ayal Shmilovich, managing partner at Gerber Kawasaki Wealth Investment Management, joined Cheddar to provide some insight into the report from the Wall Street Journal and how Roblox plans to incorporate the metaverse concept into schools. "I definitely think it helps them expand their market to a much broader audience," Shmilovich added. He also noted that Minecraft has 35 million users on its educational platform and was even more optimistic about Roblox's prospects.
Stocks closed higher as the retail sector showed continued strength - including higher retail sales data in October and strong earnings for big-box retailers Walmart and Home Depot, which lifted the Dow. Lance Ippolito, head trader at the Future Of Wealth, joins Cheddar News' Closing Bell to discuss today's close, where investors should look for growth, and how the electric vehicle space will drive markets.
Bitcoin hit a new high last week, rising above $68,000. But the coin has tumbled since, and it's not the only coin under pressure. Crypto is down today across the board. Bobby Zagotta, CEO of Bitstamp USA, joins Cheddar News' Closing Bell to discuss the possible reasons why Bitcoin has slumped, how President Joe Biden's new crypto tax clause will impact investors, and more.
The Green Bay Packers are selling shares of their stock for just the sixth time in its 102-year history. The Packers are the only major professional sports team in the U.S. that is publicly owned and not-for-profit. Now, it is offering 300,000 shares at $300 apiece; however, fans who become shareholders will not have much power, as the Packers' stock is not technically a stock. Washington Post sports reporter Des Bieler joins Cheddar News' Closing Bell to discuss.
Katie Thomas, lead at Kearney Consumer Institute, joined Cheddar to talk about Walmart's Q3 earnings beat and what it means for the larger retail industry ahead of the gift-giving season. "Getting strong numbers from Walmart and from the retail sector overall is good news going into the holiday season. It shows that even though despite some of the news around supply constraints, consumers are still getting out there and shopping," she said. With the holiday rush nearly setting in, Thomas said a clearer view of the economy will be found after Q4 results are posted, giving some time to account for how well businesses were able to maintain amid supply constraints.
Inflation has risen to its highest level in 31 years, sending consumer prices on everything from groceries to gas to rent surging. For many businesses, that's good news as inflation typically means better profit margins. According to data from FactSet, nearly two out of three of the biggest U.S. publicly traded companies have reported fatter profit margins so far this year compared to the same stretch of 2019, before the pandemic. Gregory Daco, chief U.S. economist for Oxford Economics, breaks down how the top businesses are reaping the benefits of inflation, and when consumers can expect inflation to ease.
As the U.S. opens its borders to vaccinated international travelers after months of restrictions, the hospitality industry is preparing for a comeback. Radha Arora, President and Co-Chief Development Officer, Rosewood Hotel Group joined Cheddar's Opening Bell to discuss his outlook for the broader travel industry.
Dominick Reuter, Senior Reporter at Insider, breaks down the challenges within the labor market, and how unionization and inflation are impacting the future of work.
Roblox is getting into education. The gaming platform is investing $10 million into developing educational video games for middle schools, high schools, and colleges across the country. This marks the first time Roblox is putting money into developing games for the platform, and it comes as Roblox also plans to build a stake in the metaverse. Sarah Needleman, technology reporter for The Wall Street Journal, breaks it all down for Cheddar.
The collaboration platform Slack is launching a massive revamp at its annual customer conference, aimed at creating a more flexible and connected work experience. CEO and co-founder Stewart Butterfield joined Cheddar to provide some additional details about the digital HQ upgrade.
