Stocks Rise as Investors Parse Trump's Comments on Trade
By Caitlin Ostroff and Karen Langley
U.S. stocks held on to modest gains Tuesday as President Trump
said the U.S. and China are close to an "phase one" trade deal but
emphasized that he will only accept an agreement that would be good
for the U.S.
Mr. Trump's remarks at the Economic Club of New York were being
scrutinized for any signs of progress in trade negotiations with
China. Investors have been particularly sensitive to trade-related
headlines in recent months and have pushed stocks higher lately as
tensions have diffused.
China is "dying to make a deal. We're the ones who are deciding
whether we want to make a deal," Mr Trump said. Tuesday.
Michael Hewson, chief market analyst at CMC Markets, said
markets are hopeful that no tariffs will be placed against European
auto makers and are watching to see whether Mr. Trump goes forward
with another round of tariffs on Chinese goods, set to go into
effect Dec. 15.
The S&P 500 added 0.3%, while the Nasdaq Composite rose
0.4%. The Dow Jones Industrial Average inched up 0.2%.
Major U.S. stock indexes are at or near all-time highs, as
investors have grown more confident about the economy. The Dow
Jones Industrial Average notched another record close Monday, while
the S&P 500 and Nasdaq Composite clinched new closing highs
Investors have found reason for optimism in another Federal
Reserve rate cut, a corporate earnings season that has been better
than expected, and data on jobs and consumer spending that suggest
strength in the U.S. economy.
They will be watching closely Wednesday when Federal Reserve
Chairman Jerome Powell heads to Capitol Hill for two days of
congressional hearings. Mr. Powell has signaled that there will be
a high bar for additional rate cuts after the Fed's three rate
reductions this year.
Within U.S. stocks, cyclical areas that are closely tied to the
economy, such as the financial and industrial sectors, have been
doing particularly well.
"That tells me investors are not worried about recession in
2020," said Nancy Tengler, chief investment officer of Tengler
Corporate news drove moves in individual stocks. Shares of
Advance Auto Parts dropped 8.3% after the company reported
lower-than-expected third-quarter same-store sales. Rockwell
Automation climbed 12% after the Milwaukee-based industrial
technology company beat forecasts for its adjusted profit.
With more than 90% of S&P 500 companies having reported
third-quarter earnings, about three-quarters have beaten
expectations, slightly above the five-year average of 72%,
according to FactSet. Earnings from companies that have reported
dropped 2.3% from a year earlier.
Shares of Portland-based brewing company Craft Brew Alliance
more than doubled after Anheuser-Busch offered to buy the remaining
shares of the company Monday.
The yield on the 10-year U.S. Treasury was 1.921%, down from
1.930% Friday. Bond markets were closed Monday. Yields fall when
In Europe, the Stoxx Europe 600 rose 0.4% and the U.K.'s FTSE
100 gained 0.5%. Stocks traded up in Asia, where the Hang Seng rose
0.5% amid ongoing pro-democracy demonstrations. The Shanghai
Composite gained 0.2% and Japan's Nikkei 225 climbed 0.8%.
Write to Caitlin Ostroff at email@example.com and Karen
Langley at firstname.lastname@example.org
(END) Dow Jones Newswires
November 12, 2019 13:29 ET (18:29 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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