U.S. stocks had their best January in the last 30 years and President Donald Trump’s potential trade deal with China could help keep the trend going.
“I will not forecast where the stock market’s going, but I’m going to tell you that it just had a terrific month of January,” Fox Business host Stuart Varney said on “Fox & Friends” Friday.
“Interest rates [are] tame, not going up as we thought they might go up. The feds are not going to jack up interest rates. We’ve got a China trade deal that’s now looking kind of positive and that’s very good news for the market,” he continued “Profits, they’re running 18 percent above where they were this time last year. That is a very strong gain in profitability. And that’s the bedrock of stock prices. Profits equal stock prices. That’s what we’ve got. 25,000 on the Dow. That’s where we are.”
Varney said Trump’s press conference offered the opportunity for a televised parlay with China and laid the foundation for a potential deal in the near future.
“If you saw that press conference — well it wasn’t really a press conference it was a televised discussion of China trade issues. It was brilliant actually,” he said.
“I really loved it. That seemed to me to clear the decks for a deal in the future where Mr. Trump and President Xi get together and finalize a deal. It was a deck clearing exercise. And that is very promising indeed. Look, we’ve got a strong economy now. It can get stronger if we get a solid deal with China.”