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Apple and Amazon propel Wall Street to three-week high

Reuters 

By Noel Randewich

(Reuters) - The S&P 500 ascended to a three-week high on Tuesday, led by Apple, Amazon and a rally in industrials on bets that the and would strike a deal to end a trade war.

The third straight session of gains, started last Friday after robust U.S. jobs data and dovish comments on interest rates by Federal Reserve Jerome Powell, has lifted the S&P 500 <.SPX> by over 9 percent from 20-month lows hit around

The and will extend trade talks in for an unscheduled third day, a member of the U.S. delegation said, as the world's two largest economies looked to resolve their bitter trade dispute. 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, at

The trade-sensitive S&P industrials sector <.SPLRCI> rose 1.25 percent. jumped 3.4 percent after reporting it had delivered a record 806 aircraft in 2018 and contributed most to the Dow's rise.

rose 2.2 percent, regaining some ground after the company last week warned of weaker-than-expected demand for its But tech sector 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> slid 1.02 percent. Adding to the woes, forecast a tough year for chipmakers, particularly in the first half.

Other investors remained upbeat about upcoming U.S. quarterly results.

"It's the new year and investors are really stepping back and taking a look at the fundamentals, and realizing its not as bad a story as maybe we thought toward the end of the year," said Jeff Kravetz, a at

The communication services index <.SPLRCL> climbed 1.48 percent, with adding 2.89 percent.

rose 1.7 percent, increasing its market capitalization to $811 billion and cementing its position as the most valuable U.S. company.

At 2:14 pm ET, the <.DJI> was up 1.1 percent at 23,789.22 points, while the S&P 500 <.SPX> had gained 0.84 percent to 2,571.04.

The Composite <.IXIC> added 0.98 percent to 6,890.63.

Financials <.SPSY> was the only S&P index to log losses, down 0.33 percent as the yield curve flattened.

shares continued to decline, falling 9.7 percent after S&P Global Ratings stripped the power utility of its investment-grade credit rating.

rose 8.4 percent after the No.1 U.S. railroad named industry veteran as operating officer.

Advancing issues outnumbered declining ones on the NYSE by a 2.74-to-1 ratio; on Nasdaq, a 1.96-to-1 ratio favoured advancers.

The S&P 500 posted no new 52-week highs and 1 new lows; the Composite recorded 24 new highs and 14 new lows.

(Additional reporting by and in Bengaluru; Editing by Chizu Nomiyama)

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

First Published: Wed, January 09 2019. 01:11 IST
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