Left Menu
Development News Edition

US stocks on the rise after trade talks near with China


US stocks on the rise after trade talks near with China
Image Credit: Pixabay

U.S. stocks extended a rally from the prior session on Wednesday, powered by rising expectations that the United States and China could strike a deal during their ongoing trade talks, with benign inflation data also lifting sentiment.

"So far, so good," U.S. Treasury Secretary Steven Mnuchin said about the U.S.-China trade talks in Beijing, a day after President Donald Trump said he would be willing to let a March 1 deadline slide if the two sides were close to a deal. Trade-sensitive industrials rose 0.5 per cent, while chipmakers, which depend on China for a large portion of their revenue, also gained, with the Philadelphia chip index up 0.4 per cent.

"The trade talks are going well. The main focus today is on trade and the government shutdown and both of those things seem to be moving nicely," said Art Hogan, chief market strategist at National Securities in New York. The U.S. House of Representatives will vote on bipartisan legislation to fund the government, including border security, on Thursday, ahead of a Friday deadline to avert another partial shutdown of federal agencies.

It was still not immediately clear whether Trump would sign the deal, but a source familiar with the situation said he likely would. U.S. consumer prices were unchanged for a third straight month in January, leading to the smallest annual increase in inflation in more than 1-1/2 years, which could allow the Federal Reserve to hold interest rates steady for a while.

"Benign inflation numbers are certainly going to be viewed as a positive," Hogan said. The data pushed U.S. treasury yields higher, helping the financials sector rise 0.90, which provided the biggest boost to the S&P 500 index.

At 11:02 a.m. ET, the Dow Jones Industrial Average was up 193.35 points, or 0.76 per cent, at 25,619.11. The S&P 500 was up 15.39 points, or 0.56 per cent, at 2,760.12 and the Nasdaq Composite was up 28.37 points, or 0.38 per cent, at 7,442.99. Only the utilities sector was trading lower.

Analysts' expectations for first-quarter profit have turned sour, after a largely upbeat fourth-quarter earnings. They now estimate current-quarter profit to decline 0.3 per cent, which would be the first loss since the second quarter of 2016. Dish Network Corp dropped 7.4 per cent, the most among S&P companies, after the U.S. satellite TV service provider lost more-than-expected pay-TV subscribers in the fourth quarter.

TripAdvisor Inc was a close second, down 7.3 per cent as the online travel company's quarterly profit missed estimates. Activision Blizzard Inc rose 5.2 per cent after the videogame maker announced a share buyback plan, job cuts and investments to boost its pipeline.

Advancing issues outnumbered decliners by a 1.94-to-1 ratio on the NYSE and by a 1.56-to-1 ratio on the Nasdaq. The S&P index recorded 33 new 52-week highs and no new low, while the Nasdaq recorded 55 new highs and nine new lows.

(With inputs from agencies.)


TRENDING

OPINION/BLOG/INTERVIEW

Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...

Videos

Latest News

Oman's Qaboos heads to Belgium for medical checkup

Muscat, Dec 7 AFP Sultan Qaboos of Oman will head to Belgium on Saturday for a medical checkup, a royal court statement said. Qaboos, 79, believed to be suffering from colon cancer, has rarely appeared in public since undergoing lengthy tre...

Rifles theft: 'Duo spent nearly 2 hrs at Army camp'

The two suspects who stole two loaded INSAS rifles from the Army camp in Madhya Pradeshs Pachmarhi early Friday by posing as Army officers prima facie spent nearly two hours at the spot during which sentries rushed inside to obey their orde...

Nepal SBI posts 13 pc growth in net profit for FY19

Nepal SBI Bank, a subsidiary of State Bank of India, has posted a Rs 229.25 crore net profit for 2018-19, registering a growth of 13.29 per cent. The bank mobilised total deposit of Rs 9,792.45 crore and extended loans and advances of Rs 8,...

Women contribute to country's GDP and yet they are being killed: Cong leader Renuka Chowdhary

Expressing dismay over the death of Unnao rape victim after she was set ablaze by her tormentors, former Union Minister and Congress leader Renuka Chowdhary on Saturday said that women contribute to the countrys gross domestic product GDP a...

Give Feedback