US stocks tick toward another record following a US-Japan trade deal

NEW YORK AP U S stocks are ticking toward another record on Wednesday following a exchange deal between the world s No and No economies one that would lower proposed tariffs on Japanese imports coming to the United States The S P was higher in early trading coming off its latest all-time high The Dow Jones Industrial Average was up points or as of a m Eastern time and the Nasdaq composite was higher Stocks jumped even more in Tokyo where the Nikkei rallied after President Donald Trump stated a deal framework that would place a tax on imports coming from Japan That s lower than the rate that Trump had earlier revealed would kick in on Aug It s a sign of the times that markets would cheer tariffs disclosed Brian Jacobsen chief economist at Annex Wealth Management A year ago that level of tariffs would be shocking This day we breathe a sigh of relief Trump has proposed stiff taxes on imports from around the world which carry the double-edged exposure of driving up inflation for U S households while slowing the market system But various of Trump s tariffs are at this moment on pause giving time to reach deals with other countries that could lower the tax rates Trump also publicized a transaction agreement with the Philippines on Tuesday So far the U S economic system has seemed to hold up OK despite the pressures on it And tariffs in place may be having less of an effect than expected at least when it comes to the prices that U S households are paying at the moment The main lesson about tariffs so far is that passthrough to consumer prices is tracking somewhat lower than in according to Goldman Sachs economist David Mericle Tariffs are certainly having an effect to be sure as big U S companies across industries have been showing through their profit updates in up-to-date days Hasbro took a billion non-cash hit to its results for the spring to write down the value of specific of its assets following a review triggered by the implementation of tariffs It explained tariffs have had no impact yet on how much profit it s making from each of its sales but it expects to see costs ramp during the current quarter Hasbro s stock fell even though it stated a stronger profit for the latest quarter than analysts expected when not including the billion charge Like the toymaker Texas Instruments stock also fell despite delivering results for the latest quarter that were above analysts expectations It gave a forecasted range for profit in the current quarter whose midpoint fell a bit shy of Wall Street s Analysts pointed to a few cautious commentary from Texas Instruments executives about how the uncertainty created by tariffs could slow demand Its stock sank Helping to offset that was a jump for GE Vernova The resource company not only delivered a stronger profit than analysts expected it also raised its forecasts for revenue from its power and electrification businesses GE Vernova also mentioned that the inflation it s expecting to see as a consequence of tariffs may be trending toward the lower end of million to million net of mitigating actions Elsewhere on Wall Street several stocks leaped as traders search for the next meme stock that could ride a wave of online enthusiasm to high prices regardless of what the company s profits are doing Krispy Kreme which came into the day with a loss for the year so far jumped GoPro soared That s even as specific other feasible meme stocks lost their momentum Opendoor Technologies which had more than tripled between the last two Mondays fell In stock markets abroad indexes rose across Asia and Europe following Trump s announcements of commerce deals Japan s territory was the big winner where a series of automakers gave no residents reaction as their stock prices rallied Japanese companies tend to be cautious about their population reactions and a few business authorities have privately remarked in off-record comments that they hesitate to say anything because Trump keeps changing his mind Elsewhere Hong Kong s Hang Seng rose and France s CAC gained for two of the world s bigger moves In the bond sphere Treasury yields ticked higher The yield on the -year Treasury rose to from late Tuesday AP Business Writer Yuri Kageyama contributed Source