China and U.S. stocks were on record highs Thursday after reports came that the Trump administration and Beijing agreed on a "phase one" trade deal." President Donald Trump tweeted earlier that an agreement was "very close."
In China, the exchange-traded fund X-Trackers China CSI-300 jumped more than 1%. The ASHR fund, which tracks 300 of the largest most liquid shares trading on the Shanghai and Shenzhen exchanges, leaped up to 27% year-to-date. The movement set aside the MSCI Emerging Markets Index and outperformed the S&P 500 slightly.
Stocks on Wall Street's main index, meanwhile, jumped on their highest in months. S&P 500 leaped 1.1 %. The Dow Jones Industrial Average climbed 0.51% while the Nasdaq Composite ascends 0.39%.
There was excitement elsewhere in the market hours after reports of the tentative deal came in. Jim Cramer, host of CNBC's Mad Money was immediately out with a list of U.S. stocks that investors may want to take advantage of in case the final trade deal is achieved.
Cramer noted that bank stocks will likely benefit from the outcome. He said, JP Morgan Chase, Citigroup, Goldman Sachs, Bank of America, American Express, Mastercard, and Visa are inclined to gain once a final deal is closed.
Cramer also said that Apple may recover from the development. But, the tech stock to own is Nividia, he said. The company could push through with the acquisition of Mellanox once China relaxes its policies. Also expected to move on the uptrend are Skyworks Solutions, Qorvo, Qualcomm, and Marvell Technology.
On the manufacturing front, Cramer was positive about stocks of Caterpillar, Honeywell, and Cummins. He was also optimistic about shares of toymakers Hasbro and Mattel, and stocks of retailers namely Dollar Tree, Home Depot, Walmart, and Target.
Cramer also highlights optimism on FedEx stocks as it started inching up as reports of China-US tentative deal came in. He is also excited about Union Pacific stocks, saying that it has a footprint in the Chinese market so it has a lot to gain when deals are finalized.
Cramer noted that investors may not want to put their money in these stocks for the long-term but they will make the most of their money in short-term trading.
Reports said that the world's two largest economies already agreed to a phase one trade deal which would see the Trump administration averting tariffs that supposedly will take effect on Sunday. U.S. negotiators had also reportedly agreed to cut taxes on Chinese goods by up to 50%. At the same time, China reportedly promised to buy more agricultural products from the U.S.
