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Wall Street extends rally to second day on trade optimism; Loxo Oncology up

Fears of a global slowdown have led to a sharp pullback in the markets over the last few months and in analysts' estimates for corporate growth


Wall Street, US stocks
Representative image

and fuelled a second straight session of gains on on Monday, with the resumption of US-trade talks helping ease concerns that have pummelled the market in recent months.

The benchmark S&P 500's <.SPX> advance added to a 3.4 percent surge on Friday, when strong US jobs data eased worries over economic health and the Federal Reserve calmed nerves over interest rate hikes crimping growth.

Fears of a global slowdown have led to a sharp pullback in the over the last few months and in analysts' estimates for corporate growth. But after hitting a 20-month low on Christmas Eve, the S&P has gained over 9 percent.

has the "good faith" to work with the to resolve trade frictions, China's foreign ministry said, while U.S. said he saw "a very good chance that we will get a reasonable settlement" as the two countries started their first face-to-face talks since a 90-day truce was agreed in December.

"The main thing is the administration's implied progress on talks with That's something that market sees as very important," said Rick Meckler, partner at in New Vernon,

Ten of the 11 S&P sectors rose. The biggest gain was logged by the consumer discretionary index <.SPLRCD>, which jumped 2.64 percent, led by a 3.2 percent rise in Amazon. That made Amazon Wall Street's most valuable company at $794 billion, eclipsing Microsoft's market capitalization, which reached $789 billion following a 0.85 percent rise in its stock.

They and other high-and consumer stocks have rebounded after falling sharply in the final quarter of 2018.

Much of Monday's upbeat sentiment was an extension of the previous session's rally.

"The news on Friday was positive, and market participants are now acting more confident, and that is feeding on itself," said Tom Martin, a at in

The S&P energy index SPNY gained 1.5 percent as climbed about 3 percent on support from OPEC production cuts.

The Philadelphia Semiconductor index SOX, which includes many companies dependent on China for revenue, jumped 2.36 percent.

At 2:13 pm ET, the Dow Jones Industrial Average DJI was up 0.65 percent at 23,584.85 points, while the S&P 500 <.SPX> had gained 0.90 percent to 2,554.7.

The Composite IXIC added 1.28 percent to 6,825.16.

Utilities SPLRCU was the only sector down, dragged lower by PG&E Corp's 22 percent slump. reported that the utility is exploring filing for bankruptcy protection related to potential liabilities from wildfires.

With earnings season approaching, investors expect a slowdown in fourth-quarter profit growth and they will scrutinize forecasts for signs of further weakness.

Analysts now estimate S&P 500 companies to increase their fourth-quarter earnings per share by 15 percent. That compares to expectations of 20 percent growth three months ago, according to Refinitiv IBES data. The estimate for 2019 profit growth has fallen to about 7 percent from 10 percent.

jumped 5 percent after activist investor called on the retailer to sell its underperforming business and proposed replacing a majority of its board.

surged 66 percent after said it would buy the for about $8 billion.

Advancing issues outnumbered declining ones on the NYSE by a 4.27-to-1 ratio; on Nasdaq, a 3.17-to-1 ratio favoured advancers.

The S&P 500 posted no new 52-week highs and no new lows; the Composite recorded 27 new highs and 12 new lows.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, January 08 2019. 01:09 IST