October 1, 2018
News of a trade agreement with Canada is easing concerns over trade wars and raising talk that a compromise with China could also be reached. Details of the deal include increased North American content in vehicles and greater U.S. access to the Canadian dairy market. Stocks jumped on the news with the Dow up 0.7 percent to 26,651.
Economic news includes an ISM report that once again highlights the strength of the nation's factory sector, but also a construction spending report that underscores the weakness of the housing sector.
Oil jumped more than $2 to $75.50 and a 4-year high on reports of declining exports from Iran which faces pending U.S. sanctions. Demand for bonds eased with the 10-year Treasury yield rising 3 basis points to 3.09 percent while the dollar index held firm, posting a small gain to 95.28.