China talks keep stocks on the rise

U.S. stocks finished broadly higher Wednesday as investors remained optimistic that the United States and China will make more progress in resolving their costly trade dispute.

Energy companies, retailers and industrial stocks accounted for much of the broad gains as the Standard & Poor’s 500 index extended its winning streak to a fourth day.

Key officials from the world’s two largest economies are scheduled to meet Thursday and Friday to try to stave off an escalation of a trade conflict that has hurt companies and consumers by raising prices on a number of products. President Trump has said he might let a March 2 deadline slide if the United States and China get close to a deal.

After March 2, additional tariffs are scheduled to kick in, making the situation worse. Economists and analysts are optimistic that both sides will eventually hammer out an agreement that satisfies U.S. complaints that China steals technology or pressures U.S. companies to hand it over.

“The president’s seemingly positive tone regarding trade has helped underpin the market, particularly the industrial names,” said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 index rose 8.30 points, or 0.3%, to 2,753.03. The Dow Jones industrial average climbed 117.51 points, or 0.5%, to 25,543.27. The Nasdaq composite edged up 5.76 points, or 0.1%, to 7,420.38. The Russell 2000 index of smallercompany stocks rose 4.71 points, or 0.3%, to 1,542.94.

Major indexes in Europe also finished broadly higher, despite a report of slumping industrial output across the 19 countries that use the euro.

Companies on both sides of the U.S.-China trade war have been battered by Washington’s tariffs and retaliatory duties imposed by Beijing. The stakes are rising as global economic growth cools, which has contributed to a dimmer outlook for company earnings this year.

Still, the White House’s remarks about the trade talks this week have helped alleviate some uncertainty for the market.

The market briefly lost momentum Wednesday morning as Sen. Marco Rubio (R-Fla.) said he plans to introduce a bill aimed at deterring companies from buying back their own stock. In a tweet, he said the argument that stock buybacks free up money for companies to reinvest in growth “isn’t backed up by the facts.” Rubio’s remarks come as corporate stock buybacks hit new highs last year, led by technology companies.

Buybacks are popular with investors because fewer shares outstanding lifts earnings per share, the most watched barometer of corporate success. Rubio’s bill would tax corporate share buybacks to the same degree as dividends, with the goal of giving “permanent preference to investments that will drive the creation of jobs and increase wages,” Rubio tweeted.

The prospect of such a bill appeared to ruffle the markets brief ly, Krosby said. But because Republicans control the Senate, “it’s hard to imagine” that Rubio’s bill would advance to the point of being voted on, she said.

Video game maker Activision Blizzard jumped 7% as it moved to lay off nearly 800 workers, in part to deal with a steep downturn in revenue.