CNBC’s Jim Cramer said President Donald Trump’s optimistic morning tweet on China trade talks was aimed at boosting Wall Street.
"The reason for the China pullback & attempted renegotiation of the Trade Deal is the sincere HOPE that they will be able to “negotiate” with Joe Biden or one of the very weak Democrats, and thereby continue to ripoff the United States (($500 Billion a year)) for years to come...." Trump tweeted.
"....Guess what, that’s not going to happen! China has just informed us that they (Vice-Premier) are now coming to the U.S. to make a deal. We’ll see, but I am very happy with over $100 Billion a year in Tariffs filling U.S. coffers...great for U.S., not good for China!" Trump concluded.
“You put this tweet out because some of the price-weighted stocks in the Dow will rally,” Cramer said on CNBC.
U.S. stocks flitted between gains and losses on Wednesday, as investors digested a mixed flow of news on trade, ahead of a critical round of talks between the United States and China, Reuters reported.
“This is all we do. We parse” tweets from Trump, Cramer said, questioning what to believe. “It’s amazing how these things matter.”
Cramer advises investors to “sit on your hands at this point” — don’t buy or sell stocks.
China’s top trade negotiator, Vice Premier Liu He, is due to visit Washington on Thursday and Friday in a last-ditch effort to strike a deal, even as the United States announced it will raise tariffs to 25% from 10% on $200 billion worth of Chinese imports on Friday.
In response to the potential additional tariffs, China’s commerce ministry said it would have to take necessary retaliatory measures.
“There has been a bipolar flow of information on trade,” said Eric Wiegand, senior investment strategist at U.S. Bank Wealth Management in New York.
“Today’s move reflects the inconclusive nature of what we are dealing with. It’s hard for investors to really position themselves after you are just hearing rhetoric and not seeing formal policies put in place.”
The spike in tensions between the world’s two largest economies renewed fears of a global economic slowdown and has resulted in the benchmark S&P 500 moving more than 2% away from its record high of 2,954.13 hit last week. [US/]
A bright spot in markets was a 1% gain in shares of iPhone maker Apple Inc AAPL.N and Walt Disney Co, which is due to report results after the bell.
At 11:37 a.m. ET, the Dow Jones Industrial Average was up 20.07 points, or 0.08%, at 25,985.16. The S&P 500 was down 0.48 points, or 0.02%, at 2,883.57 and the Nasdaq Composite was down 0.89 points, or 0.01%, at 7,962.87.
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