SEVERE WX : Freeze Watch View Alerts
STREAMING NOW: Watch Now

What's rattling investors?

There's a reason investors aren't reacting more strongly to the trade war.Months ago, the market would swing w...

Posted: Jul 19, 2018 1:38 AM
Updated: Jul 19, 2018 1:38 AM

There's a reason investors aren't reacting more strongly to the trade war.

Months ago, the market would swing wildly as trade tensions heightened. Now, new tariffs barely register in the Dow.

That's because investors likely don't see escalations with China and US allies like Canada, the European Union and Mexico as a long-term threat, said Leo Grohowski, chief investment officer of BNY Mellon Wealth Management.

"The daily headlines - trade, tariffs, geopolitical issues - they're not unimportant, certainly not unimportant to daily performance," Grohowski told CNN anchor Zain Asher on "Markets Now" on Wednesday.

"If we're really thinking about the next year or two or three, it's about earnings and interest rates."

For now, he said, the trade war isn't expected to severely impact earnings or economic growth. As long as those remain unchanged, the markets won't react.

But "when investors sense that risks are greater to things like earnings and GDP down the road, those are the days the market really struggles," he said.

Related: Watch 'Markets Now' here every Wednesday at 12:45 p.m. ET

Some experts, like Allianz Chief Economic Adviser Mohamed El-Erian, think that the trade war could ultimately benefit the United States. But he thinks the Trump administration's aggressive approach is risky.

Grohowski agrees. He told Asher that there is "clearly" a risk that the tariffs could eventually hurt the economy and companies' bottom lines.

CNNMoney's "Markets Now" streams live from the New York Stock Exchange every Wednesday at 12:45 p.m. ET. Hosted by CNNMoney editor-at-large Richard Quest and others, the 15-minute program features incisive commentary from experts.

Recent guests include El-Erian, BlackRock's Rick Rieder, Stifel Chief Economist Lindsey Piegza and bitcoin bull Mike Novogratz.

You can watch "Markets Now" at CNNMoney.com/MarketsNow from your desk or on your phone or tablet. If you can't catch the show live, check out highlights online and through the Markets Now newsletter, delivered to your inbox every afternoon.

Lafayette
Partly Cloudy
47° wxIcon
Hi: 67° Lo: 36°
Feels Like: 44°
Kokomo
Clear
44° wxIcon
Hi: 65° Lo: 34°
Feels Like: 41°
Rensselaer
Clear
36° wxIcon
Hi: 59° Lo: 32°
Feels Like: 31°
Lafayette
Partly Cloudy
47° wxIcon
Hi: 63° Lo: 36°
Feels Like: 44°
Danville
Partly Cloudy
43° wxIcon
Hi: 65° Lo: 37°
Feels Like: 39°
Frankfort
Partly Cloudy
43° wxIcon
Hi: 67° Lo: 35°
Feels Like: 37°
Frankfort
Partly Cloudy
43° wxIcon
Hi: 65° Lo: 32°
Feels Like: 37°
Monticello
Partly Cloudy
42° wxIcon
Hi: 65° Lo: 34°
Feels Like: 38°
Monticello
Partly Cloudy
42° wxIcon
Hi: 63° Lo: 35°
Feels Like: 38°
Logansport
Partly Cloudy
41° wxIcon
Hi: 64° Lo: 33°
Feels Like: 41°
Some More Frost & Light Freezing Ahead......
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 707111

Reported Deaths: 13216
CountyCasesDeaths
Marion963501718
Lake51613944
Allen39106671
Hamilton34449405
St. Joseph33979539
Elkhart27255432
Vanderburgh22060394
Tippecanoe21765212
Porter17945298
Johnson17507374
Hendricks16786310
Clark12681190
Madison12338337
Vigo12204244
Monroe11443166
LaPorte11118204
Delaware10341184
Howard9652211
Kosciusko9114114
Hancock7964139
Bartholomew7880155
Warrick7681155
Floyd7555176
Wayne6895198
Grant6837171
Boone6541100
Morgan6390138
Dubois6079117
Marshall5779108
Dearborn569876
Cass5683102
Henry5572100
Noble540683
Jackson493069
Shelby478495
Lawrence4338118
Gibson427989
Harrison427670
Clinton418653
Montgomery417786
DeKalb409184
Huntington378680
Whitley377939
Miami372465
Knox365989
Steuben364457
Putnam352560
Jasper350146
Wabash347678
Adams337952
Ripley334568
Jefferson312980
White308154
Daviess289299
Wells286281
Decatur278792
Fayette277162
Greene270685
Posey268533
Scott261053
Clay253244
LaGrange252470
Randolph235280
Washington230731
Spencer227631
Jennings224747
Fountain208445
Sullivan207742
Starke203952
Owen192156
Fulton191439
Jay186029
Carroll185720
Perry180236
Orange177253
Rush170724
Vermillion166043
Franklin165635
Tipton160943
Parke144616
Blackford133831
Pike130234
Pulaski113645
Newton103534
Brown100040
Crawford97614
Benton96713
Martin82615
Warren79615
Switzerland7698
Union69910
Ohio55711
Unassigned0408

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events