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 12:38 AM
Updated: Jul 19, 2018 12:38 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.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 133802

Reported Deaths: 2402
CountyConfirmedDeaths
Hennepin34033991
Ramsey14073360
Dakota9823138
Anoka8661150
Washington593272
Stearns582543
Scott338234
Olmsted325230
St. Louis296569
Wright248314
Clay229743
Nobles226816
Blue Earth20437
Carver17897
Sherburne168522
Kandiyohi16705
Rice163310
Mower151717
Winona125019
Crow Wing101022
Chisago10022
Lyon9656
Benton9409
Waseca9289
Beltrami8917
Otter Tail8627
Todd8055
Steele7593
Nicollet73017
Itasca72717
Morrison7269
Douglas6963
Freeborn6694
Polk6434
Le Sueur6235
Martin61317
McLeod5974
Goodhue58511
Watonwan5784
Becker5614
Pine5430
Isanti5415
Chippewa4353
Carlton4341
Mille Lacs40615
Dodge3940
Hubbard3902
Wabasha3780
Cass3705
Pipestone35017
Rock3284
Meeker3263
Brown3213
Unassigned29053
Yellow Medicine2836
Cottonwood2800
Murray2783
Redwood27511
Roseau2640
Fillmore2600
Renville25211
Sibley2523
Faribault2310
Wadena2313
Jackson2101
Kanabec20910
Houston2041
Swift2011
Pennington1911
Lincoln1820
Stevens1821
Aitkin1792
Koochiching1694
Pope1560
Big Stone1380
Wilkin1344
Lac qui Parle1333
Marshall1211
Lake1190
Norman1150
Mahnomen1132
Clearwater1110
Grant984
Red Lake782
Traverse560
Lake of the Woods441
Kittson400
Cook160

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 115574

Reported Deaths: 1621
CountyConfirmedDeaths
Polk18874288
Woodbury718394
Johnson584430
Black Hawk557498
Linn5513129
Dubuque518657
Scott454138
Story398918
Dallas344344
Pottawattamie323544
Sioux242516
Buena Vista225512
Marshall201436
Webster183015
Plymouth165727
Wapello152562
Clinton148326
Muscatine144258
Des Moines138610
Cerro Gordo136225
Crawford135514
Warren12477
Carroll114512
Jasper109634
Henry10545
Marion100710
Lee95410
Tama94437
Delaware77812
Dickinson7347
Wright7191
Boone7179
Mahaska68724
Bremer6719
Harrison65311
Washington65311
Jackson6283
Benton5812
Lyon5497
Clay5284
Louisa52115
Winnebago48719
Hardin4757
Winneshiek4749
Hamilton4684
Kossuth4660
Cedar4605
Poweshiek45611
Buchanan4514
Jones4444
Floyd43311
Emmet42917
Clayton4193
Iowa4059
Cherokee4022
Page3990
Mills3971
Sac3974
Guthrie39115
Cass3883
Franklin38018
Butler3782
Fayette3744
Shelby3721
Allamakee3638
Madison3603
Chickasaw3561
Clarke3493
Humboldt3233
Hancock3164
Palo Alto3102
Calhoun3074
Grundy3075
Osceola2791
Mitchell2750
Howard2699
Monroe25911
Monona2441
Jefferson2381
Taylor2362
Union2324
Appanoose2253
Pocahontas2232
Fremont2021
Lucas2016
Ida1922
Greene1860
Davis1764
Van Buren1742
Montgomery1737
Adair1611
Keokuk1601
Decatur1500
Worth1440
Audubon1421
Wayne1203
Ringgold882
Adams810
Unassigned260
Rochester
Broken Clouds
23° wxIcon
Hi: 29° Lo: 16°
Feels Like: 12°
Mason City
Clear
23° wxIcon
Hi: 28° Lo: 15°
Feels Like: 12°
Albert Lea
Clear
21° wxIcon
Hi: 27° Lo: 15°
Feels Like: 15°
Austin
Clear
25° wxIcon
Hi: 28° Lo: 16°
Feels Like: 15°
Charles City
Clear
23° wxIcon
Hi: 29° Lo: 16°
Feels Like: 12°
Another Round of Snow
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Sean's Weather 10/26

Image

Red Cross in need of volunteers

Image

'The Landing at Silver Lake Station' to open next week

Image

Trunk or treating

Image

Fiddlehead updates business model

Image

'Grateful' Byron Bears continue to dominate on the field

Image

Republicans campaign in Rochester

Image

Dr. Deborah Birx in Rochester

Image

Saturday's football highlights and scores

Image

Saturday Weather 10 pm

Community Events