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Wall Street rebounds as technology, industrial stocks rise

Reuters 

By Amy Caren Daniel

(Reuters) - Technology and industrial stocks led Wall Street higher on Thursday as some big deals and optimism about the earnings season helped offset fears about a U.S-trade war.

jumped 18.1 percent, the most on the benchmark 500 index, after chipmaker announced a surprise $18.9 billion deal to buy the U.S. company. fell 16.8 percent, leading losers.

gained 0.7 percent after it made a $34 billion bid for European pay-TV group Sky, trumping an offer from Shares of Rupert Murdoch's company inched up 0.3 percent.

Nine of the 11 sectors were higher, led by the technology sector's 1 percent gain. The industrial sector rose 0.6 percent.

On Wednesday, industrials led a slide on Wall Street after the U.S. threatened to impose tariffs on an additional $200 billion worth of Chinese goods. said on Thursday the two countries have not been in touch about restarting talks and while it does not want a trade war, it would fight if necessary.

"There still seems to be some hope that common sense will prevail and a full-blown trade war will be averted." Craig Erlam, at Oanda, said in a note.

and Caterpillar, which have been among the hardest hit by the recent trade dispute, rose about 1 percent and were among the Dow's biggest boosts.

At 10:05 a.m. EDT the was up 169.07 points, or 0.68 percent, at 24,869.52, the was up 14.72 points, or 0.53 percent, at 2,788.74 and the was up 55.48 points, or 0.72 percent, at 7,772.09.

Shares of and Microsoft, both up around 1 percent, and rising 1.3 percent, led the gains in the

dropped 1.3 percent after the carrier cut its full-year earnings forecast. The stock was higher in premarket trading after its quarterly profit topped estimates due to higher average fares.

The earnings season kicks off in earnest on Friday, and overall S&P 500 companies are expected to post second-quarter profit growth of around 21 percent, according to I/B/E/S.

Labor market conditions remained robust in early July, while a report indicated the underlying trend in consumer prices continued to point to a steady buildup of inflation pressure that could keep the Federal Reserve on a path of gradual interest rate hikes.

Advancing issues outnumbered decliners for a 1.54-to-1 ratio on the NYSE and a 1.48-to-1 ratio on the Nasdaq.

The S&P index recorded 26 new 52-week highs and two new lows, while the Nasdaq recorded 56 new highs and 21 new lows.

(Reporting by in Bengaluru; Editing by Shounak Dasgupta)

(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: Thu, July 12 2018. 20:47 IST
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