Industrials Up on Trade Deal Optimism -- Industrials Roundup
Shares of industrial and transportation companies rose as traders bet that there would be progress in trade talks as U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin flew to China to meet with their counterparts. One brokerage warned that the outlook for earnings growth for U.S. companies is looking increasingly grim. An "earnings recession call is playing out even faster than he expected," said strategists at brokerage Morgan Stanley, in a note to clients. In the past, as markets come to terms with slowing earnings growth, "some drag on price returns and higher volatility are all to be expected."
-Rob Curran, firstname.lastname@example.org