Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Wall Street jumps but ends off highs after partial trade deal

Stock Markets Oct 11, 2019 06:03PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
US500
-0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.56%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
+0.19%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FAST
+0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
+0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SPLRCI
+1.59%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks ended more than 1% higher on Friday though well off the day's highs after the announcement of a partial trade deal between the United States and China.

Indexes cut their gains late in the session as the deal was announced amid worries over the possibility of further flare-ups before the agreement is finalized, strategists said.

President Donald Trump, speaking to reporters after talks with Chinese Vice Premier Liu He, said the United States and China had come to a substantial phase-1 trade deal, reaching agreement on intellectual property, financial services and big agricultural purchases.

The preliminary, partial deal was the biggest step toward resolving a 15-month tariff war between the world's two largest economies.

The market had risen in recent days due to optimism for an agreement and the S&P 500 (SPX) was up as much as about 1.9% earlier in the session.

"The main reason the market rallied the past couple of days was hope that there would be an agreement, even a small agreement, and that this trade war would be done for the foreseeable future," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

"It looks like while there is an agreement, this is still going to ... drag out and be an issue."

Top-level discussions between the two countries concluded their second day on Friday.

Cyclicals were among the day's best-performing groups, with the S&P industrial index (SPLRCI) up about 2% ahead of the third-quarter earnings season, which is set to begin next week.

The Dow Jones Industrial Average (DJI) rose 319.92 points, or 1.21%, to 26,816.59, the S&P 500 (SPX) gained 32.14 points, or 1.09%, to 2,970.27 and the Nasdaq Composite (IXIC) added 106.27 points, or 1.34%, to 8,057.04.

Indexes also gained for the week, with the Dow and Nasdaq up 0.9% each and the S&P 500 up 0.6%.

The timing of the trade news had a lot to do with the late-day volatility, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

"There were 15 minutes to go in the trading day on a Friday ... after the Dow had risen 700 points in the last two days," he said. "Anything that was less than a comprehensive agreement was likely to see some degree of market sell off."

Analysts expect S&P 500 earnings to have declined 3.2% year-on-year in the third quarter, which would mark the first fall since 2016, according to IBES data from Refinitiv.

Bets for another interest rate cut by the Federal Reserve fell after data showed a rise in consumer sentiment for the month of October.

Apple's stock (O:AAPL) rose 2.7% as Wedbush raised its price target, citing confidence in the company's new video streaming service.

The S&P industrial index was boosted by a 17.2% jump in shares of Fastenal Co (O:FAST) after the industrial distributor beat quarterly profit expectations.

Advancing issues outnumbered declining ones on the NYSE by a 3.14-to-1 ratio; on Nasdaq, a 3.08-to-1 ratio favored advancers.

The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 44 new highs and 60 new lows.

Volume on U.S. exchanges was 7.59 billion shares, compared to the roughly 7 billion average for the full session over the last 20 trading days.

Wall Street jumps but ends off highs after partial trade deal
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (21)
Oct 12, 2019 7:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
u better short everything way to expensive dow has gaps on 500 and 400 dax has some either
Malaki Philippines
BuyDipsSellTips Oct 11, 2019 8:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hahaha trade deal probably for soy beans and NBA only
Danis Ko
Danis Ko Oct 11, 2019 7:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think that he is trying to pretend good deal. However, it is not true. This is even worse for market. Because FED does not have any reason to lower rate this month. So, I think that it’s time to sell stocks before market notices this.
Andrew Hook
Andrew Hook Oct 11, 2019 6:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Where is the tremendous deal, no even a tweet from Don Corleone. Lol should be an awesome he will keep secret now phase 1 is done
jiaming wang
jiaming wang Oct 11, 2019 5:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
we need see the confirmation from Trump's weekend's Twitter
Rob Hunter
Rob Hunter Oct 11, 2019 5:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More *** Sell the news. China stalling again
Bin John
Bin John Oct 11, 2019 5:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
??? : Diablo Immortal = ??? : phase one deal
Steve Bucher
Steve Bucher Oct 11, 2019 4:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
From what I have read, the US is the only party making concessions. The only concession that China has made is a trap to allow more foreign investment while President Trump is promoting restrictions on investment. I believe that it is time for Americans to free themselves of the socialist manipulation. The price we have paid for cheap labor is too high when you include the loss of technology and patent rights.
Andrew Hook
Andrew Hook Oct 11, 2019 4:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sources please : From what I have read (fake news)
Roland Gessler
DreamRight Oct 11, 2019 4:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ahhh - now that AAPL and CAT and CISCO made a fortune with the extended Chinese and other east-Asian workbench, a fortune that allows them to dominate US politics, now you suddenly detect moral issues and the danger that comes with the dependencies? You knew that before, you wanted it, you loved it, you profited from it - and SUDDENLY you realize that it all comes with a price? SHAME on YOU!!!
chris cp
chris75 Oct 11, 2019 4:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump's Twitter is full of "LOVE" today, looks like he is in a good mood for a deal, or at least a partial deal with the Chinese.
Juan Treviño
Juan Treviño Oct 11, 2019 4:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How many hours will this agreement last?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email