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Trade hopes lift S&P to record as tech leads

Stock MarketsJul 01, 2019 04:21PM ET
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By Chuck Mikolajczak

NEW YORK (Reuters) - U.S. stocks climbed on Monday, but finished off earlier highs, led by gains in technology stocks on optimism for progress in U.S.-China trade talks and signs of a likely reprieve for Chinese telecom company Huawei.

Despite losing some of its initial steam, the S&P 500 still managed to close at a record high after the United States and China agreed on Saturday to resume trade talks. In addition, President Donald Trump also offered concessions including no new tariffs and an easing of restrictions on Huawei Technologies Co Ltd [HWT.UL], while China agreed to make unspecified new purchases of U.S. farm products.

Still, stocks had given up a good portion of their earlier gains as investors contemplated whether the U.S. Federal Reserve would be as dovish as has been anticipated recently and caution crept back in for what is likely to be a lightly traded week due to the July Fourth holiday.

"There was celebration on the open and it was a case where if some of this trade uncertainty goes away, even if it is not solved, so to speak, that decreases the likelihood the Fed needs to step in, or at least step in as aggressively as people were thinking about a week and a half ago," said Willie Delwiche, investment strategist at Robert W. Baird in Milwaukee.

Tech stocks (SPLRCT), Wall Street's top performers so far in 2019, jumped 1.45%, with heavyweight Apple Inc's (O:AAPL) 1.83% gain providing the biggest boost.

Chipmakers with a sizable revenue exposure to China jumped nearly 5% at their session high before also pulling back, last showing a 2.65% gain in the Philadelphia Semiconductor index (SOX). Huawei supplier Micron Technology Inc (O:MU) gained 3.9%.

The Dow Jones Industrial Average (DJI) rose 117.47 points, or 0.44%, to 26,717.43, the S&P 500 (SPX) gained 22.57 points, or 0.77%, to 2,964.33 and the Nasdaq Composite (IXIC) added 84.92 points, or 1.06%, to 8,091.16.

Stocks saw their steepest sell-off this year in May, a 6.6% decline, after a breakdown in the U.S.-China trade talks sparked concerns of a global economic slowdown.

But hopes that the Federal Reserve would cut interest rates to preserve a strong run of U.S. economic growth, and a dovish turn by central banks around the globe, helped the S&P 500 and the Dow Jones indexes post their best June performance in decades.

Despite the latest development in talks, traders still anticipate the Fed's next move will be a rate cut of at least a quarter of a percentage point at its July 30-31 policy meeting.

Data showed growth in manufacturing cooled in the United States in June while factory activity shrank across much of Europe and Asia, further supporting expectations of a rate cut.

Gains on the Dow were held in check by a 2.1% drop in Boeing Co (N:BA) after a report that federal prosecutors had subpoenaed records relating to the production of the 787 Dreamliner in South Carolina.

Wynn Resorts Ltd (O:WYNN) jumped 5.9%, the most on the S&P, as gambling revenue in the Chinese territory of Macau rose more than expected in June. Shares of peers Melco Resorts & Entertainment Ltd (O:MLCO) and Las Vegas Sands Corp (N:LVS) also rose.

Coty Inc (N:COTY) tumbled 13.5%, falling the most on the S&P, after the company said it would overhaul its operations and write down about $3 billion in value of its brands acquired from Procter & Gamble Co (N:PG).

Advancing issues outnumbered declining ones on the NYSE by a 1.57-to-1 ratio; on Nasdaq, a 1.50-to-1 ratio favored advancers.

The S&P 500 posted 62 new 52-week highs and two new lows; the Nasdaq Composite recorded 122 new highs and 31 new lows.

About 7.04 billion shares changed hands in U.S. exchanges, compared with the 7.15 billion daily average over the last 20 sessions.

Trade hopes lift S&P to record as tech leads
 

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Comments (21)
Tracy Lee
Tracy Lee Nov 22, 2019 4:27PM ET
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Every day is trade hope? Stop using this old news. Find other excuse. The true reason is bubble created by the Fed.
Justin Bohrer
Justin Bohrer Nov 22, 2019 2:48PM ET
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Old news! That is just ridiculous.
Sab Baby
SabSabBaby Nov 22, 2019 1:57PM ET
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Are you trying to put an old news from July onto your front page title just to manipulate the market?  Geez!
Gold Fever
Gold Fever Nov 22, 2019 1:48PM ET
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This rally is all about QE4, aka corporate socialiam.. trade is just a dog and pony show now
Steven Chen
Gamer_LG Nov 22, 2019 1:48PM ET
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Elvis Durant
Elvis Durant Nov 22, 2019 1:39PM ET
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good one. old news....
Patrick Higdon
Patrick Higdon Nov 22, 2019 1:04PM ET
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What? Not true, at least not today. Maybe back in July? At least the headline topic for everything hasn't deviated, lol.
Joseph Orellana
Joseph Orellana Nov 22, 2019 12:50PM ET
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Now it says this is from july 1st lol
Ni Ag
Ni Ag Nov 22, 2019 12:37PM ET
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no one talking about Xi stating they are not afraid of trade war if deal doesnt happen.
Steven Chen
Gamer_LG Nov 22, 2019 12:37PM ET
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cuz market didn't go down. news is about taking partial facts and mix them into a story all while disregard nonsupportive statements.
Ni Ag
Ni Ag Nov 22, 2019 12:16PM ET
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they just want to resurface the old news to promote optimistic keywords so that computers can keep rallying the market.
Steven Chen
Gamer_LG Nov 22, 2019 12:03PM ET
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same trade deal from last year. lol. farm import for all tariff rollback.
niki velev
niki velev Nov 22, 2019 12:01PM ET
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why is this Article from 01. July??
Max German
7Max7 Nov 22, 2019 11:58AM ET
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whats the problem its the same like today hopes
Junk Man
Junk_Man Nov 22, 2019 11:57AM ET
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Trade deal hopes again.? There will never be a deal...!
Joseph Orellana
Joseph Orellana Nov 22, 2019 11:48AM ET
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Lol this is from march
Frank Taylor
Frank Taylor Nov 22, 2019 11:48AM ET
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this story is listed as latest news, while reading I realized it was old, looked at top of story and found it dated July 1st. ????
Satish Adewar
Satish Adewar Nov 22, 2019 11:27AM ET
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Don't you people feel ashamed of writing about the trade deal to justify the move in stock market every moment....
Jeff B
Jeff B Jul 01, 2019 10:01PM ET
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let's be honest, markets are up due to nothing but fake news. North Korea is a sesspool that can never be trusted and no China deal, it's all abpuyh the elections and lies.
Flavio Lupi
Flavio Lupi Jul 01, 2019 4:39PM ET
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"Hope" "optimism" -_-
David Ibanez
David Ibanez Jul 01, 2019 3:04PM ET
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la culpa de todo, la tiene don king Kong
Bade Sahib
Bade Sahib Jul 01, 2019 2:52PM ET
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Trap
Notvery Goodathis
Peteymcletey Jul 01, 2019 2:05PM ET
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The stock images they use sometimes can be quite humorous.
 
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