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Indexes climb on fresh hopes for U.S.-China trade deal

Published 10/10/2019, 04:48 PM
Updated 10/10/2019, 04:48 PM
© Reuters. Traders work on the floor at the NYSE in New York

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks rose on Thursday on hopes that top-level U.S.-China trade talks would yield at least a partial deal, while a jump in Apple's shares also boosted the market.

Top U.S. and Chinese negotiators met on Thursday for the first time since late July to try to find a way out of a 15-month trade war.

After the bell, the S&P e-minis jumped and were last up about 1%, as U.S. President Donald Trump said the talks with China went "very well today."

He had tweeted earlier that he would meet with China's top negotiator, Vice Premier Liu He at the White House on Friday.

Chinese officials had indicated more willingness to negotiate, according to a Chinese state news agency Xinhua report, while a senior U.S. Chamber of Commerce official said U.S. and Chinese negotiators were working toward an "early harvest" of confidence-building agreements, including one to avoid currency manipulation.

Cyclical groups including energy, financials, industrials and materials were the day's best-performing sectors, while the Dow Jones transportation average (DJT) jumped 1.3%.

"There's still some hope that something happens here," said Bucky Hellwig, senior vice president at BB&T (NYSE:BBT) Wealth Management in Birmingham, Alabama.

"But there seems to be an acceptance that this thing may not be finished."

Apple Inc (O:AAPL) jumped 1.3% after Longbow Research upgraded the company's stock to "buy", citing higher iPhone 11 demand.

The Dow Jones Industrial Average (DJI) rose 150.66 points, or 0.57%, to 26,496.67, the S&P 500 (SPX) gained 18.73 points, or 0.64%, to 2,938.13 and the Nasdaq Composite (IXIC) added 47.04 points, or 0.6%, to 7,950.78.

Stocks have been volatile in recent weeks because of weak economic indicators showing a contraction in U.S. manufacturing and a bleak reading on business activity, bolstering bets of another interest rate cut by the Federal Reserve to combat a slowdown.

Data on Thursday showed U.S. consumer prices were unchanged in September, while underlying inflation retreated.

Among other stocks, Delta Air Lines Inc (N:DAL) fell 1.5% after the carrier forecast disappointing current-quarter profit.

Focus will shift even further to earnings next week when the reporting period begins in earnest. Analysts are forecasting a 3.1% decline in earnings for the third quarter from a year ago, based on IBES data from Refinitiv, and that could mark a recent low point in year-over-year quarterly changes.

Advancing issues outnumbered declining ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 1.27-to-1 ratio favored advancers.

The S&P 500 posted six new 52-week highs and four new lows; the Nasdaq Composite recorded 15 new highs and 128 new lows.

© Reuters. Traders work on the floor at the NYSE in New York

Volume on U.S. exchanges was 6.16 billion shares, compared to the roughly 7 billion average for the full session over the last 20 trading days.

Latest comments

Well sure. They are out of pork chop suey
They will definitely wait until the market is closed. Then they'll have all weekend to pump , pump, pump for Monday.
Thinking maybe a spill come nwxt monday?
cant wait until tommorow on end of us session with us saying no deal but concessions made for talks in january lmao
How it always works
Word to episode 78.
its episode 78 guys
LOL
So, it's a perfect time to sell first then buy back after panic moment, tomorrow? #TrumpTweet #TradeDeal #LiuHe
"..giving market participants a reason to believe that perhaps.." --- Crowd psych of the talking heads and WS propaganda machine ... "Wer's glaubt wird seelig" say the German natives (ie if you believe it you'll become blessed) :)
Let's hope for a pop'n drop, tmr at the open
Market = Charlie Brown,   Potential Trade Deal = Lucy with a football
LOL
It's all manipulation. Keep an eye on cboe pcall, VIX, and audjpy.
trade fear 2days ago, then trade hope yesterday, and vanishing of trade in 6 hours ago then hope now, media
Media nowadays.. they dont report news, they make news
Please help at exactly this time why is pound gaining strength on GBPUSD pair because there are no economic news released?
https://www.bbc.com/news/uk-politics-49995133
LoL Keep on hoping
Nothing will work with adamant President of USA and neither with PM of India
from.2 years market is suffering from trade deal..hope it happends tommorow...
trump is making money every tweet! this should be BANNED!
  -- 'insider trading' by a prez of big country -- bet the SEC will look the other way, while us little guys get stiffed with big taxes and fines --- This should be banned. --- I bet Trump, a billionaire has committed income tax fraud, judging by the way he stalls the returns, by taking money from the common citizens. --- This should be banned. --- With such fiscal discipline America will never make progress against the commies.
Haha, yes, he buys after he makes a negative tweet, then sells after he makes a positive tweet
lets hope for better conclusion on trade deal..thus will be in the interest of global market too..
Any progress with the commies will be PROGRESS FOR HUMANITY
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