US STOCKS-Tech stocks lift Wall St as reports brighten hopes of trade deal

US STOCKS-Tech stocks lift Wall St as reports brighten hopes of trade deal

Reuters  | Oct 09, 2019 22:51

US STOCKS-Tech stocks lift Wall St as reports brighten hopes of trade deal

(For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window)

* Beijing open to agreeing to partial trade deal - BBG

* China offering extra U.S. agriculture purchases - FT

* Apple, Microsoft biggest boost to S&P 500

* J&J drops after jury says company must pay $8 bln in damages

* Indexes up: Dow 0.63%, S&P 500 0.81%, Nasdaq 0.98% (Updates to early afternoon, adds comments)

By Arjun Panchadar

Oct 9 (Reuters) - Wall Street rose for the first time in three sessions on Wednesday with technology stocks providing a boost, as a report that China was open to a partial trade deal soothed investor nerves ahead of high-level talks on Thursday.

Shares in Microsoft Corp MSFT.O and Apple Inc AAPL.O rose more than 1% and were among the biggest boosts to the S&P 500 .SPX . The technology sector .SPLRCT rose 1.4%.

Chipmakers with a sizable exposure to China also gained, with the Philadelphia SE Semiconductor index .SOX up about 2%.

China was still open to agreeing to a partial trade deal with the United States, despite the inclusion of top Chinese artificial intelligence startups in a trade blacklist, according to a Bloomberg report. the Financial Times said Beijing was offering to increase its annual purchases of U.S. agricultural products. are hoping for an interim deal, they aren't expecting anything big, but are cautiously optimistic," said Michael Geraghty, equity strategist at Cornerstone Capital Group.

Trade tensions, efforts to impeach President Donald Trump and signs of slowing economic growth have taken a toll on equity markets in October, with the S&P 500 and Dow Jones indexes off about 2% since the end of September.

Rising geopolitical risks have also not offered investors any respite. Turkish President Tayyip Erdogan said on Wednesday a military operation targeting Kurdish fighters in northeast Syrian had begun. sharp contraction in U.S. manufacturing data, as well as a dismal reading on business activity last week has raised bets of a third interest rate cut by the Federal Reserve this year.

Fed Chair Jerome Powell flagged openness to further rate cuts on Tuesday. At 2 p.m. ET, the central bank is due to release minutes from its September meeting. session's gains were broad-based, with all the major S&P 500 sectors trading higher and 29 of the 30 components of the blue-chip Dow Jones Industrial Average index .DJI in positive territory, with Johnson & Johnson JNJ.N the only decliner.

The drugmaker's shares dropped 2% after a jury awarded $8 billion in punitive damages to a man who accused it of failing to warn that young men using its antipsychotic drug Risperdal could grow breasts. will now turn their eye to the third-quarter earnings season, which begins next week with U.S. banks reporting, to gauge the health of the domestic economy.

Analysts expect the worst quarterly profit performance since 2016, with earnings for S&P 500 companies estimated to fall 3.1% from a year earlier, based on IBES data from Refinitiv.

"The corporate earnings growth has been stagnating and it just shows that these tariffs have hit corporate profit growth," Geraghty said.

The Dow Jones Industrial Average .DJI was up 165.11 points, or 0.63%, at 26,329.15, the S&P 500 .SPX was up 23.37 points, or 0.81%, at 2,916.43 and the Nasdaq Composite .IXIC was up 76.71 points, or 0.98%, at 7,900.49.

The communication services sector .SPLRCL posted the smallest gain among the 11 major sectors, weighed by Netflix Inc NFLX.O , which was down 1.6% after two brokerages cut price targets on the video streaming service provider's shares.

Advancing issues outnumbered decliners for a 2.11-to-1 ratio on the NYSE and a 1.66-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and 10 new lows, while the Nasdaq recorded five new highs and 86 new lows.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+