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The Trump Administration agreed on a pause in its tariffs war with China over the weekend. For the next 90 days at least, China will lower tariffs on imported U.S. goods to 10%, and the U.S. will cut tariffs on imported Chinese goods to 30%. In a press release, the White House noted that “other U.S. measures will remain in place,” a vague statement, but one that suggests that per-ton fees imposed on Chinese-built ships arriving in U.S. ports, for example, will continue.
The President called the weekend deal “a win for the United States,” and investors seem to agree. The Vanguard S&P 500 ETF (NYSEMKT: VOO) is up 3% in pre-market trading.
Earnings
In earnings news, S&P 500 component company NRG Energy (NYSE: NRG) reported $2.68 per share in profit on $8.6 billion in revenue this morning, beating on both the top and bottom lines. Media magnate Fox Corporation (Nasdaq: FOX), also a component, reported $1.10 per share on $4.4 billion in sales, likewise beating on top and bottom lines.
Fruit company Dole (NYSE: DOLE) missed on earnings, but said its $0.34 per share profit “was ahead of our own expectations,” and raised its guidance for the full year to $380 million in EBITDA.
Analyst Calls
Jefferies upgraded hotel chains and S&P 500 components Marriott International (Nasdaq: MAR) and Hilton (NYSE: HLT) to buy, predicting “long-term fee, EBITDA and FCF growth” and arguing that “the earnings growth & durability of MAR and HLT justify a higher valuation.”
Morgan Stanley downgraded oil company BP plc (NYSE: BP) to underweight after the stock rose last week on takeover speculation.
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