Wall Street Dec. 3 reacted favorably early to tech stocks following weekend news the Trump Administration and China had reached a 90-day truce regarding proposed tariffs (taxes) on Chinese manufactured goods and raw materials.
Stocks for Roku, Apple and Amazon all climbed higher in pre-market trading as many — if not all — consumer electronics products, including the Roku Stick and branded televisions, Apple iPhone, Apple TV, Apple iPad, and Amazon Fire TV Stick are majority-made in China.
Trump had pledged to impose tariffs — beginning Jan. 1 — on $200 billion worth of Chinese-made steel and raw materials. Tariffs on another $267 billion in Chinese goods (i.e. consumer electronics) have been postponed as well.
Trump said the tariffs would be held off as trade negotiators between the two countries attempt to hammer out new trade agreements. In a Dec. 3 tweet, Trump wrote:
“My meeting in Argentina [at the G-20 summit] with President Xi [Jinping] of China was an extraordinary one. Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain, if and when a deal is completed.”
That was good enough for Tom Forte, analyst with D.A. Davidson, who upped from “neutral” to “buy” on Roku shares.
Meanwhile, Sacha Tihanyi with TD Securities, remained cautiously optimistic, writing in a note, reported by CNBC that “overarching concerns in the U.S.-China economic relationship remain … [and] are not ones that we believe can be easily tackled in a 90-day period.”