Dow Jones Jump Triple Digits
The Dow Jones Industrial Average advanced 320.11 points (+1.3%) on Monday to close higher for a third straight session. It was the best day in a month for the blue-chip index. The broad rally of U.S. stocks was precipitated by strong economic data which appears to offset trade worries.
For the first time in nearly three weeks, the Dow Jones closed above its 50-day moving average. It’s a good sign now that the index turned positive for 2018. Bank stocks led gainers as the financials sector posted its biggest one-day advance in over three months. The industrials sector also had a great Monday as it rose 1.8%.
The S&P 500 Index climbed 24.35 points (+0.9%) while the tech-heavy Nasdaq Composite Index rose 67.81 points (+0.9%). Just like the Dow, the two indexes finished higher for a third session in a row.
EU Council Head Chides Trump to Respect Allies
Since United States President Donald Trump kept berating NATO allies over military investment levels, the European Council President retorted. Donald Tusk, a former Polish premier, said on the eve of an alliance summit on Tuesday, “Dear America, appreciate your allies, after all you don’t have that many.”
The European Council Head said those words after signing the statement on cooperation between the European Union and the North Atlantic Treaty Organization (NATO).
China to Raise Tariffs on U.S. Optical Fiber Products
In the continuing trade war saga, China’s commerce ministry said on Tuesday that effective Wednesday, July 11, there will be an upward adjustment in the “anti-dumping tariff rates” for some optical fiber products coming from the U.S.
The new anti-dumping tariff rates for American-imported dispersion unshifted single-mode optical fiber will increase anywhere from 33.3% to 78.2%. The previous rate range set in 2011 was 4.7% to 18.6%. Corning Inc., Draka Communications Americas Inc., OFS Fitel, and LLC are among the American firms named in the commerce ministry’s website that shall be affected.
Xiaomi Rebounds on 2nd Day of Trading
After a weak debut in HK on Monday, Xiaomi shares sizzled and jumped as much as 15% on its second day of trading. The shares of the Chinese smartphone maker lost 5.9% before ending its first day lower than its IPO price.
The public listing of Xiaomi is the world’s biggest tech IPO since Alibaba’s (BABA) huge 2014 listing in NY. The rally on Tuesday lifted the stock price securely above their IPO price of HK$17.00 ($2.17).
Facebook Faces Lawsuit Down Under
Facebook Inc. (FB) is facing a lawsuit in Australia should litigation funder IMF Bentham Ltd pursues its plan to sue the social media giant over sharing of users’ data with political consultancy Cambridge Analytica.
The world’s largest social network admitted last April that Cambridge Analytica got hold of data of up to 87 million people. Data of about 311,000 users in Australia may have been used without authorization. The revelation came out after the country’s Information Commissioner began to investigate.
It was the IMF that elevated the complaint to the Australian Information Commissioner. They allege breaches of privacy laws over the data sharing. IMF said a class action lawsuit seeking compensation for users could ensue depending on the regulator’s response.