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Stocks rise as auto tariffs are said to be delayed



Stocks reversed early losses Wednesday amid reports that the Trump administration is planning to delay auto tariffs by up to six months

<p class = "canvas-canvas-text Mb (1.0em) Mb (0) – -sm Mt (0.8em) – sm "type =" text "content =" The S & P 500 ( ^ GSPC ) rose 0.21

%, or 5.88 points, as of 11:15 am ET. The Dow ( ^ DJI ) rose 0.09%, or 21.81 points, while the Nasdaq ( ^ IXIC ) ticked up 0.57%, or 43.97 points. " data-reactid = "16"> The S & P 500 (^ GSPC) rose 0.21%, or 5.88 points, as of 11:15 a.m. ET The Dow (^ DJI) rose 0.09%, or 21.81 points, while the Nasdaq (^ IXIC) ticked up 0.57%, or 43.97 points.

<p class = "canvas-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" On Wednesday, several news & nbsp; outlets & nbsp; reported that the Trump administration is & nbsp; planning it pause & nbsp; is implementing car tariffs ahead of May 18 deadline. The Commerce Department had compiled a report earlier this year that Trump could justify imposing tariffs of as high as 25% on cars by citing a national security threat. " data-reactid = "17"> On Wednesday, several news outlets reported that the Trump administration is planning to pause to implement car tariffs ahead of the May 18 deadline. The Commerce Department had compiled a report earlier this year that concluded Trump could justify imposing tariffs of as high as 25% on cars by citing national security threats.

The news sent stocks to the green after Dow was off by many as 190 points earlier in the session.

US equity markets initially opened lower than new economic data April retail sales and industrial production came lower than expected.

Retail sales in the U.S. fell 0.2% in April, when consensus economists had expected a gain of 0.2%. In the control group, which excludes volatile car and gas sales, retail sales also fell 0.2% month-over-month. For the month before, this control group was upwardly revised to see a 1.1% gain, putting the three-month over-three-month annualized growth rate at 3.2%, a five-month high.

Analyst from JP Morgan noted that

" Whatever caused the last month's disappointment, it's a worse than households predicted; this would also be consistent with the 5.9% the general background for consumers still looks pretty good (jobs, sentiment, etc.), so we expect sequential better numbers over the remainder of the second quarter, "JP Morgan analyst Michael Feroli wrote in a note Wednesday.

Meanwhile, industrial production also unexpectedly declined in April, dropping 0.5% versus consensus expectations for no change. Manufacturing output, accounting for about three quarters of total production, fell by 0.5%. In the first three months of the year, manufacturing output fell by an average of 0.4% per month.

"Subdued global growth is clearly still taking its toll on U.S. producers, while further appreciation of the dollar over the past few months is an additional headwind, "Andrew Hunter, senior U.S. Economist for Capital Economics, wrote in a note.

The manufacturing sector accounts for just a small portion of economic activity in the US, but is closely watched as a proxy for changes in global demand.

China

China Retail sales rose by 7.2% in the year-over-year in China, marking the year-on-year in China, marking the year-on-year increase in retail sales and industrial output for April, stoking fears of a slowdown in the world's second largest economy.

China's industrial output rose 5.4% over the year in April, also missing expectations.

<p class = "canvas-atom canvas-canvas-canvas-canvas-canvas-canvas-canvas-canvas-canvas-canvas-canvas-canvas-canvas- text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" These results come after the Chinese government earlier this year unleashed a & nbsp; stimulus program & nbsp; to cut taxes and fees for companies in the effort to prop up the economy. " Data-reactid = "32"> These results come after the Chinese government earlier this year unleashed a stimulus program to cut taxes and fees for companies in the effort to prop up the economy.

<p class = "canvas-atom canvas- text mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" The evidence of weak economic growth in China has been viewed by many analysts & nbsp; as a signal that the US may have more leverage in negotiating a trade deal, as the domestic economy has shown continued resilience signs based on recent & nbsp; GDP and labor market data. "data-reactid =" 33 "> Evidence of weak economic growth in China has been viewed by many analysts as a signal that the US

<p class = "canvas-atom canvas-text Mb (1.0em) Mb ((1.0em) Mb ( 0) – sm Mt (0.8em) – sm "type =" text "content =" Meanwhile, Trump is anticipated to sign an executive order that would ban US companies from using telecommunication equipment produced by companies deemed to be national security risk – a move that would create a block in doing business with the Chinese tech giant Huawei, according to & nbsp; Reuters report. "data-reactid =" 34 "> Meanwhile, Trump is anticipated to sign an executive order that would ban the US according to a Reuters report.

Such an action would likely add to the tensions between the two countries, which have been identified as having a national security risk – a move that would create a bloc for doing business with Huawei's Chinese tech. US and China, given Huawei's focus on China's goal of scaling ranks to become a leader in global technology. The U.S. has alleged that Huawei's equipment could be used by the Chinese State to spy, but the company has repeatedly denied these claims.

<p class = "canvas-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck "data-reactid =" 36 " > Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

<p class = "canvas-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Read more by Emily: " data-reactid = "37"> Read more by Emily:

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