U.S. equities rebounded on Tuesday thanks to yet another “The White House isn’t planning on taking down Amazon” headline flashes; easing concerns about President Trump’s ongoing Twitter tirade against Amazon and its CEO and Founder Jeff Bezos.
That pushed the S&P 500 up 1.3% to close above its 200-day moving average after closing below that technical threshold for the first time since June 2016 on Monday.
Spotify (NYSE:SPOT) debuted after an unusual direct listing, gaining 13%, but falling roughly that amount from its intra-day high.
Tesla Inc (NASDAQ:TSLA) gained 6% after reporting Model 3 production just below its target and reaffirming its production outlook.
And Ford Motor Company (NYSE:F) gained 2.7% after reporting a 3.4% year-over-year rise in sales.
While the S&P 500’s bounce off of its 200-day average looks cute, headwinds remain, including Friday’s non-farm payroll report sure to show more evidence of wage-push inflation. That, as you remember, was the original reason for the market’s chaotic selloff in early February.
Watch for the selling pressure to continue on Wednesday, after China released its counter-tariffs to Trump’s $50 billion worth of tariffs against the country for intellectual property violations. Last night, China articulated a 25% tariff on U.S. exports that’s also equivalent to $50 billion. This includes 106 items.
Check out Serge Berger’s Trade of the Day for April 4.
Today’s Trading Landscape
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.
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