Breaking News
0

Wall Street rallies on trade optimism, hopes of avoiding government shutdown

Stock MarketsFeb 12, 2019 01:19PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Trader works on the floor of the NYSE in New York

By Amy Caren Daniel

(Reuters) - Wall Street's main indexes extended gains on Tuesday, in a broad-based rally after American lawmakers reached a tentative deal to avoid another partial government shutdown and on hopes of an agreement during the ongoing U.S.-China trade talks.

President Donald Trump comments that he did not anticipate another government shutdown added to sentiment, even though he expressed unhappiness about the agreement that includes funds for U.S.-Mexican border security but not for his promised wall.

The S&P 500 index crossed its 200-day moving average price on Tuesday, a technical level that indicates long-term momentum, for the first time since Dec. 4.

The benchmark index is now just about 7 percent away from its Sept. 20 record closing high, boosted by an upbeat fourth-quarter earnings season, a dovish Federal Reserve and trade optimism.

"The fact that lawmakers want to leave the government open sounds like one of the biggest drivers for markets today," said Gary Bradshaw, portfolio manager with Hodges Funds in Dallas.

"Investors like that fact that we are getting closer to trade issues improving. They are taking a risk-on stance, everyone is buying today."

Top U.S. officials arrived in the Chinese capital on Tuesday for high-level trade talks as the world's two largest economies attempt to strike a deal before a March 1 deadline and avoid another escalation of tariffs.

Trump said he would consider pushing the deadline if the two sides were close to a deal.

Trade-sensitive industrials climbed 1.52 percent, boosted by Boeing (NYSE:BA) Inc and Caterpillar Inc (NYSE:CAT).

Chipmakers, which depend on China for a huge chunk of their revenue, also rose and pushed the Philadelphia chip index 1.92 percent higher.

The broader technology sector rose 1.28 percent, lifted by gains in Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT) and Intel Corp (NASDAQ:INTC).

Amazon.com Inc (NASDAQ:AMZN) rose 2.24 percent and was the biggest boost to the S&P 500 and Nasdaq.

In the latest data underscoring the economy's strength, U.S. job openings surged to a record high in December.

At 12:41 p.m. ET, the Dow Jones Industrial Average was up 337.49 points, or 1.35 percent, at 25,390.60. The S&P 500 was up 32.98 points, or 1.22 percent, at 2,742.78 and the Nasdaq Composite was up 96.36 points, or 1.32 percent, at 7,404.27.

Eight of the 10 major sectors trading higher posted gains of more than 1 percent. Only the real estate sector was trading lower.

About 71 percent of the S&P companies that have posted earnings have topped expectations, according to IBES data from Refinitiv. But analysts' estimates for first-quarter earnings have turned negative for the first time since 2016.

Electronic Arts Inc (NASDAQ:EA) jumped 4.3 percent after the videogame maker's newly launched battle royale game gained traction. Rival Take-Two (NASDAQ:TTWO) lost 4.2 percent following a downgrade by a 5-star analyst.

Advancing issues outnumbered decliners by a 3.34-to-1 ratio on the NYSE and by a 3-to-1 ratio on the Nasdaq.

The S&P index recorded 39 new 52-week highs and one new low, while the Nasdaq recorded 61 new highs and nine new lows.

Wall Street rallies on trade optimism, hopes of avoiding government shutdown
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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
Gabe Domen
Gabe Domen Feb 12, 2019 12:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So, the modus operandi is to break something promising to make a change. Later not get any better situation, other than a lot of press and some cosmetic changes, and everybody happy (market party) when danger is averted from having no solution. Really?
Reply
4 1
Michael Chen
Michael Chen Feb 12, 2019 9:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Interesting
Reply
2 0
 
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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email