Hope for trade deal lifts stocks

Stocks finished broadly higher Wednesday as investors remained optimistic that the U.S. 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 market extended its winning streak to a fourth day.

Key officials from the world’s two largest economies will 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.

Economists and analysts are optimistic that both sides will eventually hammer out an agreement that satisfies U.S. complaints that China steals or pressures U.S. companies to hand over technology.

The market briefly lost some of its momentum around midmorning Wednesday as U.S. Sen. Marco Rubio announced over Twitter plans to introduce a bill aimed at deterring companies from buying back their own stock.

Buybacks, in which companies purchase their own shares and retire them, are popular with investors because fewer shares outstanding lifts earnings per share, the most watched barometer of corporate success.

With U.S. companies nearing the end of a relatively strong earnings season, investors continued to evaluate the latest batch of quarterly results Wednesday.

Video game maker Activision Blizzard jumped 7 percent as it moved to lay off nearly 800 workers, in part to deal with a steep downturn in revenue following the best year in its history.

Higher room rates pushed hotel operator Hilton Worldwide to a strong fourth-quarter profit, beating analysts’ forecasts. Hilton’s stock rose 6.8 percent, and competitor Marriott International added 3.6 percent.