Pages

Monday, October 22, 2018

China stocks are popping and history shows that means these Dow stocks should be winners today

China's Shanghai Composite Index surged more than 4 percent on Monday as authorities took steps to boost equities prices in the face of a slowing economy. History shows certain U.S. stocks are positively correlated to big up moves by China's equities.

One in particular — Caterpillar —tends to do really well.

CNBC used analytics tool Kensho to look at what happens to members of the Dow Jones Industrial Average when the Shanghai composite jumps 2 percent or more in a single day.

Here are the biggest winners when U.S. trading opens following a big day for China stocks:

Source: Kensho

Caterpillar's success is closely tied to global manufacturing so as China takes steps to support its markets, that should give a boost to the company. Caterpillar shares were up 1.6 percent in premarket trading Monday.

Other winners include Disney, Cisco and Boeing.

This could be a quick trade however. If the Chinese governments efforts don't work and Chinese stocks return to their bear market, Caterpillar and other Dow stocks could suffer.

Let's block ads! (Why?)

from Top News & Analysis https://ift.tt/2q6Ks0Y
via IFTTT

No comments:

Post a Comment