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Wall Street rises on optimism over U.S.-China trade talks

Reuters 

By and Shreyashi Sanyal

(Reuters) - Wall Street's main indexes traded higher on Wednesday, though off session highs, boosted by rising expectations that the and could reach a deal during their ongoing trade talks, with benign data offering support.

"So far, so good," said about the U.S.-trade talks in Beijing, a day after said he would be willing to let a March 1 deadline slide if the two sides were close to a deal.

Trade-sensitive industrials rose 0.44 percent, while chipmakers, which depend on for a large portion of their revenue, also gained, with the chip index up 0.62 percent.

"The optimism is really about the trade talks with China and a deal getting done, but relief about the government staying open is also helping," said Jimmy Lee, founder and of The in Las Vegas,

left his options open on whether to sign a funding deal that would avert another partial government shutdown, but a source familiar with the situation said he would likely back the bipartisan agreement.

"We're back with a risk-on attitude but there's still a little bit of profit-taking as the stock market has been up a lot this year," said Lee.

The benchmark S&P 500 is set for its fourth session of gains and has rallied nearly 10 percent this year, helped by a dovish Federal Reserve, optimism on trade and a largely upbeat fourth-quarter earnings season.

Markets also took heart from data that showed U.S. consumer prices were unchanged for a third straight month in January, suggesting that the Fed will hold interest rates steady for a while.

yields rose, taking financials 0.4 percent higher. The sector provided a boost to the S&P 500.

At 12:42 p.m. ET, the was up 78.85 points, or 0.31 percent, at 25,504.61. The S&P 500 was up 6.35 points, or 0.23 percent, at 2,751.08 and the was up 12.64 points, or 0.17 percent, at 7,427.26.

Analysts' expectations for first-quarter profit have turned sour, after a largely upbeat fourth-quarter earnings. They now estimate current-quarter profit to decline 0.3 percent, which would be the first loss since the second quarter of 2016.

dropped 9.6 percent, the most among S&P companies, after the U.S. service provider lost more-than-expected pay-TV subscribers in the fourth quarter.

rose 6 percent after the owner of and Conrad reported a better-than-expected quarterly profit.

rose 4.6 percent after the announced a share buyback plan, job cuts and investments to boost its pipeline.

Advancing issues outnumbered decliners by a 1.64-to-1 ratio on the NYSE and by a 1.27-to-1 ratio on the Nasdaq.

The S&P index recorded 34 new 52-week highs and no new low, while the Nasdaq recorded 66 new highs and 15 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, February 13 2019. 23:57 IST
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