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Wall Street gains on trade optimism, progress to avert government shutdown

Reuters 

By Amy Caren Daniel

(Reuters) - Wall Street rose on Tuesday, fueled by a tentative deal reached by lawmakers to avoid another partial government shutdown and optimism that the and could reach an agreement during their ongoing trade talks.

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

"What investors are taking from this is that the government stays open, whether or not Trump signs on the deal is secondary," said Peter Cardillo, at in

"There is a lot of optimism around the trade talks and hopes for some kind of a deal in the making."

The talks resumed on Monday and Treasury 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 tariffs on Chinese imports will come into force.

Trade-sensitive industrials rose 0.96 percent, boosted by Boeing Inc, and

Chipmakers, which depend on for a huge chunk of their revenue, also gained and pushed the chip index 1.64 percent higher. The rose 0.81 percent.

Trade war topped the list of biggest tail risks for the ninth straight month, followed by a slowdown in China, according to Lynch's February survey of fund managers.

The S&P 500 index is just 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 9:41 a.m. ET, the was up 232.44 points, or 0.93 percent, at 25,285.55. The S&P 500 was up 22.40 points, or 0.83 percent, at 2,732.20 and the was up 65.29 points, or 0.89 percent, at 7,373.20.

Energy rose 1.63 percent, the most among the S&P sectors, after jumped 2 percent supported by OPEC-led production cuts.

surged 14 percent, the most on the S&P, after German conglomerate said it planned to hike its stake in the

jumped 4.7 percent after the videogame maker's newly launched battle royale game gained traction. Rival Take-Two lost 5.6 percent following a downgrade by a 5-star

fell 4.2 percent after its liver disease drug failed a late-stage study.

Advancing issues outnumbered decliners by a 4.14-to-1 ratio on the NYSE and by a 4.31-to-1 ratio on the Nasdaq.

The S&P index recorded 21 new 52-week highs and one new low, while the Nasdaq recorded 39 new highs and three 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. 21:46 IST
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