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Amazon, trade optimism power Wall Street rally for third day

Reuters 

By Sruthi Shankar

(Reuters) - U.S. stocks rose for a third straight day on Tuesday and the S&P 500 touched three-week highs, once again led by and a rally in industrials on hopes that the and China would strike a deal to end a trade war.

The rally, sparked last Friday by a robust U.S. jobs data and dovish comments on interest rates by Federal Reserve Jerome Powell, has lifted the S&P <.SPX> by over 9 percent from the 20-month lows hit around

The trade talks will continue for an unscheduled third day on Wednesday, when a statement is likely to be issued. So far, officials from both sides have sounded optimistic, with saying talks were going well.

"You're seeing some negotiations happen and the market is starting to think that perhaps we'll start to see a framework evolve," said Anik Sen, of equities at

The trade-sensitive S&P industrials sector <.SPLRCI> rose 1.05 percent. jumped 3.2 percent after reporting it had delivered record 806 aircraft in 2018 and contributed most to the Dow's rise.

But the biggest support came from the consumer discretionary sector's <.SPLRCT> 1.05 percent rise.

com Inc again led the advance with a 1.7 percent rise that took its market capitalization above $800 billion, cementing its position as the most valuable U.S. company.

At 1:15 p.m. ET, the <.DJI> was up 181.10 points, or 0.77 percent, at 23,712.45. The S&P 500 <.SPX> was up 14.33 points, or 0.56 percent, at 2,564.02 and the <.IXIC> was up 47.73 points, or 0.70 percent, at 6,871.20.

Financials <.SPSY> was the only S&P sector to log losses, led by that fell 0.91 percent as the yield curve flattened.

"What's been notable about the last week is that even as the broader market rallied, the yield curve really hasn't steepened much," said Christopher Verrone, partner and of technical and macro research at Strategas in

"The flattening of the curve again today is likely another macro headwind for financials, and banks in particular."

Gains in and pulled the up 0.51 percent, but the gains were limited by a drop in chip stocks after <005930.KS> blamed its profit drop on weak chip demand.

The Philadelphia Semiconductor index <.SOX> dropped 1.16 percent. Adding to the woes, forecast a tough year for chipmakers, particularly in the first half.

Among stocks, slid 5.6 percent after the gave a weak revenue forecast at the

shares continued to decline, falling 11.2 percent after S&P Global Ratings stripped the power utility of its investment-grade credit rating.

rose 8.3 percent after the No.1 U.S. railroad named industry veteran as operating officer.

Advancing issues outnumbered decliners by a 2.42-to-1 ratio on the NYSE and a 1.87-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs and one new low, while the Nasdaq recorded 23 new highs and 13 new lows.

(Reporting by and in Bengaluru; Editing by Sriraj Kalluvila)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 00:21 IST
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