Not long after President-elect Donald Trump threatened to slap a tax on General Motors (GM) for making their cars in Mexico, GM’s rival Ford (F) announced that it would not open a planned facility in Mexico. Ford will instead invest $700 million in Michigan and create about 700 new U.S. jobs. Ford CEO Mark Fields mentioned that this is a "vote of confidence" in the pro-business environment being created in the U.S. French far-right presidential candidate Marine Le Pen cheered this turn of events and used this an opportunity to show how "protectionism works." Critics argue, however, that over the long term protectionism ends up adversely affecting the very people it is intended to protect. So, only time will tell if Trump’s protectionist measures pan out.
U.S. stocks showed no signs of taking a breather as they continue the rally. The Dow Jones Industrial Average was up 0.07% at 19,895. Nasdaq was up 0.43% and the S&P 500 was up 0.32%.
Manjul Bhusal Sharma does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.