The News Herald (Willoughby, OH)
Stocks rise for third day in a row
Trade talks between U.S. and China encourage investors as rise led by industrial, tech, internet and energy.
NEW YORK >> Stocks climbed for the third day in a row Tuesday as the latest round of trade talks between Washington and Beijing continued. It’s the longest winning streak for U.S. indexes since late November.
News reports said the trade negotiations would be extended to a third day, a potential positive sign even though no major developments have been announced so far. Experts say it will take months for them to resolve the causes of the trade war, which include disagreements over Beijing’s handling of technology and intellectual property.
Investors have become notably more optimistic about an eventual deal, a sharp reversal of the concerns that helped send stocks plunging in October and December. An agreement between the two biggest economic powers in the world could remove a major obstacle to global economic growth, and many of the biggest gains Tuesday went to companies that usually do better in times of faster growth, including internet, technology and industrial stocks. Oil prices also kept rallying.
Kate Warne, an investment strategist for Edward Jones, said the market’s large moves in recent weeks reflect investors’ questions about major issues including economic growth, the threats of recession and trade tensions, and rising interest rates. She said it’s normal for stocks to repeatedly change course as traders grapple with those issues on a day-to-day basis.
“You have new information that’s driving stock prices both higher and lower, and that’s pretty typical when there’s uncertainty and there’s a lot of new information coming into the market,” she said.
Warne added that trading on Wall Street is typically light during the holidays, and that may have contributed to the huge swings in late December and early January.
The S&P 500 index rose 24.72 points, or 1 percent, to 2,574.41. The Dow Jones Industrial Average picked up 256.10 points, or 1.1 percent, to 23,787.45.
The Nasdaq composite climbed 73.53 points, or 1.1 percent, to 6,897. The Russell 2000 index of smaller-company stocked gained 21.19 points, or 1.5 percent, to 1,426.55.
Railroad operator Union Pacific made one of the biggest gains among S&P 500 companies. It surged 8.7 percent to $150.75 after hiring longtime Canadian National railroad executive Jim Vena as its chief operating officer. Other transportation and industrial companies also jumped. Aerospace giant Boeing rose 3.8 percent to $340.53 and trucking and logistics company J.B. Hunt rose 2.8 percent to $95.88.
Among communications companies, Facebook rose 3.2 percent to $142.53. Verizon added 2.9 percent to $58.38 after it reported strong wireless subscriber gains in the fourth quarter. Among consumer-focused companies, Amazon gained 1.7 percent to $1,656.58 and Nike shot up 1.3 percent to $76.73.