US stocks ride higher on trade op­ti­mism

The Gulf Today - Business - - FRONT PAGE -

NEW YORK: US stocks rose on Tues­day, helped by a re­bound in tech­nol­ogy stocks af­ter a volatile few ses­sions on Wall Street, amid op­ti­mism over the Us-china trade dis­pute and some up­beat earn­ings re­ports.

All the 11 ma­jor S&P sec­tors were higher, with the re­cently-bat­tered tech­nol­ogy sec­tor up 0.99 per cent.

The trade-sen­si­tive in­dus­trial sec­tor rose 1.20 per cent af­ter Pres­i­dent Don­ald Trump said he be­lieved “a great deal” on trade can be struck with China, though he warned new tariffs were ready if a deal was not pos­si­ble.

Trump’s com­ments came af­ter Bloomberg re­ported Wash­ing­ton was pre­par­ing to an­nounce tariffs on all re­main­ing Chi­nese im­ports if talks next month be­tween Trump and his Chi­nese coun­ter­part Xi Jin­ping failed.

The re­port sparked a wild ride on Wall Street on Mon­day, with the Dow fall­ing more than 900 points from its high and the S&P 500 clos­ing within a whisker of con­firm­ing cor­rec­tion ter­ri­tory, con­tin­u­ing a tur­bu­lent month for eq­ui­ties.

“Right now the mar­ket is hun­gry for sta­bil­ity and some calm­ing ac­tiv­ity, which is tem­po­rar­ily be­ing of­fered by the lat­est pos­i­tive news on trade,” said An­dre Bakhos, man­ag­ing di­rec­tor at New Vines Cap­i­tal in Bernardsville, New Jer­sey.

Tariffs and ris­ing costs have been among the fac­tors that have led to a slew of dis­ap­point­ing fore­casts from ma­jor in­dus­tri­als, chip­mak­ers and other sec­tors, adding wor­ries about slow­ing cor­po­rate growth to fears of fal­ter­ing global growth.

Coca-cola Co shares climbed 1.4 per cent af­ter beat­ing quar­terly sales es­ti­mates as more con­sumers reached for new ver­sions of its sugar-free so­das and sparkling waters. Pep­sico Inc inched up 0.5 per cent.

But, Pfizer Inc fell 0.9 per cent af­ter cut­ting the up­per end of its full-year rev­enue fore­cast, cit­ing a stronger dol­lar and lower rev­enue from its ster­ile-in­jec­tions busi­ness.

At 10:07am ET the Dow Jones In­dus­trial Av­er­age was up 228.59 points, or 0.94 per cent, at 24,671.51, the S&P 500 was up 27.60 points, or 1.04 per cent, at 2,668.85 and the Nas­daq Com­pos­ite was up 70.05 points, or 0.99 per cent, at 7,120.34.

Although healthy S&P 500 re­sults have pushed up third-quar­ter profit growth es­ti­mates to 25.3 per cent from 21.8 per cent in the past 11 days, ac­cord­ing to Refini­tiv data, con­cerns re­main about the ex­tent of a slow­down in earn­ings growth next year. Un­der Ar­mour surged 20.8 per cent af­ter beat­ing quar­terly es­ti­mates and rais­ing its full-year profit fore­cast on higher overseas sales and lower ex­penses. Nike Inc rose 1.7 per cent.

Facebook was up 0.4 per cent ahead of its quar­terly earn­ings re­port, which is due af­ter the mar­ket closes.

As­so­ci­ated Press

Traders work on the floor of the New York Stock Ex­change on Tues­day.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.