With the major stock market indexes back near their highest levels on record, Wall Street has shaken off a wave of anxiety about trade and regional banks.<\/p>\n
The Dow is up 309 points, or 0.7%, and on track to close north of the 47,000 mark for the first time. The S&P 500, up 0.1%, is just a touch below its Oct. 8 closing high. The Nasdaq Composite is down 0.1%, but still not far off its highs.<\/p>\n
Sevens Report Research\u2019s Tom Essaye tells Barron\u2019s Wall Street is effectively back where it was prior to Oct. 10, when President Donald Trump ratcheted up trade tensions with China.<\/p>\n
\u201cNothing is fixed at all, but the market just sort of assumes as long as the U.S. and China meet, then some sort of truce will be decided again,\u201d Essaye says. \u201cMost of that opinion is just based on the idea that they both won’t choose mutually assured destruction. And that\u2019s right\u2014they\u2019re not.\u201d<\/p>\n
Essaye notes that earnings season has been strong across sectors, which is a positive sign for the economy.<\/p>\n
\u201cWe’re seeing a wide swath of companies navigating the uncertainty and doing it very well,\u201d Essaye says. \u201cThat’s awesome, but I do think it’s important that people realize that the main reason these companies are able to negotiate all of the uncertainty is because the underlying economy is still strong.\u201d<\/p>\n
There\u2019s a caveat: If the economy starts to lose steam, suddenly companies may have a tougher time navigating uncertainty coming from Washington, D.C., according to Essaye.<\/p>\n
\u201cWhat I don’t think people should do is extrapolate out resilient earnings to believe \u2018Oh, well tariffs aren\u2019t actually going to cause an earnings problem\u2019 or \u2018Never-ending policy uncertainty isn\u2019t going to cause an earnings problem’,” Essaye says. “It will, as soon as the economy stops just pushing everything higher.\u201d<\/p>\n
Beyond Tesla earnings on Wednesday and the consumer price index for September on Friday, Essaye will be watching Big Tech earnings closely to make sure they \u201chave their foot on the gas\u201d when it comes to artificial intelligence capital expenditures.<\/p>\n
\u201cThat’s probably the most important thing for the economy and the markets at this point,\u201d Essaye says.<\/p>\n","protected":false},"excerpt":{"rendered":"With the major stock market indexes back near their highest levels on record, Wall Street has shaken off…\n","protected":false},"author":2,"featured_media":141634,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,467,56,54,55],"class_list":["post-216186","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/216186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=216186"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/216186\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/141634"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=216186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=216186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=216186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}