The Dow Is Soaring Because the Stock Market Cares More About Walmart Than Huawei

Illustration by Michael George Haddad

11:14 a.m. Who care about trade wars when you have strong earnings from Cisco Systems (CSCO) and Walmart (WMT), and stronger housing data to boot? Not the Dow Jones Industrial Average.

After yesterday’s close, U.S. President Donald Trump signed an executive order banning telecommunications equipment from “foreign adversaries,” an obvious attack on China’s Huawei. That’s also a clear escalation of the trade war, one that was met by a comments from China’s Commerce Ministry that increased tariffs “severely hampered” negotiations.

But is the stock market down? No way. The Dow has advanced 243.21 points, or 1%, to 25,891.23, while the S&P 500 has risen 1.2% to 2884.35, and the Nasdaq Composite has gained 1.3% to 7920.63.

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