Stocks Dip As Mnuchin Admits Trade Talks With China Have Broken Down

Confirming the same headline from yesterday, Treasury Secretary Stephen Mnuchin warned today that "many of our trade talks with China have broken down."

Mnuchin added that "China remains very important in cooperation over North Korea."

Dow futures dropped - though remain up around 200 points on the day - on heavy volume...

As Nanex's Eric Scott Hunsader notes, 1500 S&P500 futures contracts sold at once through 3 ticks is what caused that little tsunami of quotes at 12:41:21 ET

Mnuchin's comment came right as the S&P erased the post-tariffs plunge...

Of course, we doubt this dip will last as it appears once again that buying US stocks during a trade war is the path of least resistance.

Comments

666D Chess cheoll Thu, 07/12/2018 - 13:01 Permalink

With Mr.Pig Eyes in office any news in good news: Trade war? Good news! No trade war? Even better news. Thermonuclear war? Dow +2000! I'm even considering starting trading. Just buy calls on the S&P 500 and enjoy life. The only thing that would bother me is that I won't receive that call at 2 o'clock in the morning to get out.

In reply to by cheoll

666D Chess tmosley Thu, 07/12/2018 - 13:13 Permalink

I'm not complaining about any thermonuclear war tmosley, I'm just trying to illustrate in a satiric way that no matter what happens everything is great news for this 100% rigged market courtesy of a professional conman, your beloved Mr.Pig Eyes. Hey, by the way did you enjoy seeing Hillary put in a police car and taken to prison? Oh, hang on, that was a dream. Sorry. 

In reply to by tmosley

gdpetti 666D Chess Thu, 07/12/2018 - 15:35 Permalink

True... but then Trump is the last puppet in chief (most likely as time is running out.. 9.5 years tops), as the SG change the game... what they are doing is global regime change.. global chaos production... 'out with their OWO, in with their NWO'... chaos...  negative energy... like empires in general... war, death and destruction, rape, pillage and theft... all the 'dark arts' on full open display... for the small minority paying attention and able to 'wake up' and choose sides.... stay or go (Plato's Cave analogy.... or Matrix, Maze etc back in time).

China isn't the weak ass country from a few hundred years ago.. and they remember all the OPium Wars, monetary manipulation from Roosevelt (as a recent article here mentions)... Xi isn't like past Chinese leaders, be it Chang or Mao.. both worked for the west at times.... both got played...

Trump is up against someone who knows the "Art of the Deal" through long historical traditions... like The Art of War... Trump won't know what hits him... but then he isn't there  is know anything, but just to play the part of trickster, court jester... to help the SG bring down the curtain on their OWO. Look at the hands pulling the strings... look behind that curtain in Oz.... see through the Matrix....

In reply to by 666D Chess

Roger Ramjet Thu, 07/12/2018 - 12:53 Permalink

Yea, but Bloomberg broke this news this morning. 

If you figure that both the US and China have implemented $34 billion of tariffs against each other, it looks like a draw (in terms of shots fired).  But China's currency has weakened, which perhaps might give them a bit of an edge.

So do you think Trump is going to call it quits here?  No way, much more to come.

spastic_colon Thu, 07/12/2018 - 12:53 Permalink

yes well it is phony earnings season (which will last until almost sept)..........so good luck with any shorting.....last chance to sell FANG's?? obviously a lot of index buying today as the top weightings are outperforming.

it appears that most of the trade war rhetoric is aimed at demlib controlled companies that are merely laundry services for their campaign contributions; neither party wants to eliminate any regs that allow stock buybacks (insider trading) so they must attack each others strongholds........any guesses as to whom is at risk of missing earnings??.........there seems to be a fair amount of desperation in many names.

666D Chess Thu, 07/12/2018 - 12:55 Permalink

Stocks dip... come on ZeroHedge... with the orange swine at the helm everything is good news for the market, you bulls out there need to pray to God for a nuclear war, the Dow Jones would shoot up +2000 on a single trading day!