Trump's trade war with China could disrupt the traditional Thanksgiving rally
As stocks enter the short Thanksgiving holiday week, investors looking for any signs of a market comeback are paying close attention to trade developments with China.
President Donald Trump gave the market a boost Friday when he said he was hopeful the U.S. and China would strike a deal on trade, a major focus for stocks. But White House officials later downplayed his comments and said there were no signs of a deal coming soon.
Stocks closed with gains in the S&P 500 and Dow on Friday and a slight loss in the Nasdaq . But the past week was the first negative week in three, with the S&P down 1.6 percent, and Nasdaq off more than 2 percent as tech took a pounding and Apple lost more than 5 percent on the week.
"Everyone knows the 800-pound gorilla in terms of risk is the meeting between Trump and Xi," said Julian Emanuel, chief equities and derivative strategist at BTIG. The market has been hanging on every development ahead of Trump's meeting with China President Xi Jinping at the G-20, which begins at the end of the month.
In the week ahead, Wednesday brings durable goods, consumer sentiment and existing home sales data. Retailers continue to report earnings, with Target, TJX, Best Buy and Kohl's all expected Tuesday.
More often than not the Thanksgiving week is a good time for stocks, but strategists have also been warning the market could retest the October lows before heading higher . According to the Stock Trader's Almanac, the Dow was up in the week before Thanksgiving 19 of the past 24 years. Since 1988, the Almanac says, the Dow was higher Wednesday and Friday of Thanksgiving week 18 of 29 times.
https://www.msn.com/en-us/money/markets/trumps-trade-war-with-china-could-disrupt-the-traditional-thanksgiving-rally/ar-BBPNi80?li=BBnb7Kz