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Wall Street climbs on trade optimism, hopes of averting government shutdown

Reuters 

By Amy Caren Daniel

(Reuters) - Wall Street's main indexes rose over 1 percent on Tuesday, in a broad-based rally fueled by a tentative deal reached by lawmakers to avoid another partial government shutdown and hopes that the U.S.-trade talks could result in an agreement.

It was unclear, however, if would accept the deal as congressional aides said it did not contain the $5.7 billion he wants for a border wall.

"Even though Trump hasn't settled on a deal, the way investors are looking at it is that this is more positive than what we had on Monday," said Randy Hare, at in Cincinnati,

"The on trade right now may not be as strong but it is still being viewed as a positive."

Trade talks resumed on Monday and and Trade arrived in on Tuesday, ahead of high-level talks scheduled later this week.

The world's two biggest economies are seeking to strike a deal before a March 1 deadline, when additional U.S. tariffs on Chinese imports will come into force.

Trade-sensitive industrials climbed 1.3 percent, boosted by Boeing Inc, and

Chipmakers, which depend on for a huge chunk of their revenue, also rose and pushed the chip index 1.86 percent higher.

The rose 1.19 percent, lifted by gains in Apple Inc, and Intel Corp.

The S&P 500 index is just about 7 percent away from its Sept. 20 record closing high, driven by optimism on trade, a largely upbeat fourth-quarter earnings season and a dovish Federal Reserve.

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.

At 11:06 a.m. ET, the was up 278.90 points, or 1.11 percent, at 25,332.01. The S&P 500 was up 29.53 points, or 1.09 percent, at 2,739.33 and the Composite was up 96.78 points, or 1.32 percent, at 7,404.68.

Seven of the 10 major sectors trading higher posted gains of more than 1 percent, with the financial group's 1.49 percent rise the steepest, supported by higher bond yields.

Only the was trading lower.

surged 14.4 percent, the most on the S&P, after German conglomerate said it planned to hike its stake.

jumped 3.4 percent after the videogame maker's newly launched battle royale game gained traction. Rival Take-Two lost 5.2 percent following a downgrade by a 5-star

Advancing issues outnumbered decliners by a 3.63-to-1 ratio on the NYSE and by a 3.56-to-1 ratio on the

The S&P index recorded 31 new 52-week highs and one new low, while the recorded 56 new highs and seven 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: Tue, February 12 2019. 22:15 IST
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