U.S. stocks head modestly higher Thursday afternoon on the back of fresh developments on Sino-American trade and ebbing concerns about coronavirus. However, some evidence that investors have grown uneasy with the velocity of the market’s recovery from last week have been on display.
How are benchmarks faring?
The Dow Jones Industrial Average DJIA, +0.34% gained 67 points, or 0.%, to trade at 29,360, after carving out a intraday record at 29,408.05, while the S&P 500 index SPX, +0.33% rose 9 points, or 0.3% to 3,344 and the Nasdaq Composite Index COMP, +0.53% advanced 53 points, or 0.6% to 9,562.
For the week, the Dow is up 4%, the S&P 500 3.7%, and the Nasdaq has gained 4.5%. All three benchmarks are on pace for a fourth straight day of gains.
What’s driving the market?
Signs of further progress in Sino-American trade relations were being credited for positive sentiment early Thursday. A viral outbreak that reportedly originated in Wuhan City, China and has thus far claimed more than 560 lives, infecting more than 28,000, meanwhile, has been shoved in to the back burner in the minds of equity investors.
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China said that beginning Feb. 14 it would cut in half tariffs on some $75 billion of U.S. imports, as part of its phase-one trade resolution with the U.S., according to China’s Ministry of Finance.
Tariffs on an array of U.S. goods will be reduced from 10% to 5%, and from 5% to 2.5% on others, the ministry said. Retaliatory import levies were imposed in September and December as animosities between the Washington and Beijing intensified.
The ministry said the move was made “in order to promote the healthy and stable development of Sino-U.S. economic and trade relations,” according to a translation of the statement.
“China cutting tariffs is a driver of today’s gains,” said J.J. Kinahan, chief market strategist at TD Ameritrade. “If it weren’t for the huge rally we’ve already seen this week, it’s news that would have ignited the market even more than it already has.”
The tariff cuts come as investors have feared that the novel virus in China would hurt the world’s second-largest economy and make it difficult for it to adhere to promises to boost purchases of U.S. goods and services by $200 billion over two years.
Meanwhile, the Senate on Wednesday acquitted President Donald Trump on impeachment charges of abuse of power and obstruction of Congress, as expected. He delivered a speech at noon where he described the impeachment as a “terrible ordeal.”
However, markets mostly have focused on a barrage of mostly upbeat economic data.
The number of Americans newly applying for jobless benefits fell 15,000 to 202,000 during the week ended Feb. 1, near a 50-year low. Productivity growth accelerated in the fourth quarter, the Labor Department said, to 1.4%, below consensus expectations of 1.6% growth, according to a MarketWatch poll.
Investors also are hearing from Federal Reserve speakers, with Dallas Fed President Robert Kaplan telling an audience in Austin that he expects “solid” economic growth in 2020 of 2.3%, according to Reuters. Fed Vice Chairman for Supervision Randal Quarles will deliver public remarks later in the day.
Which stocks are in focus?
- Estée Lauder EL, +3.92% shares rose after an earnings beat.
- Becton Dickinson’s stock BDX, -10.53% slid 9.9% Thursday, as lowered earnings guidance offsets profit beat
- Dunkin’ Brands DNKN, -2.31% lifted its dividend and buyback target as its 2020 outlook fell shy of estimates.
- Twitter Inc.’s stock TWTR, +16.52% rallied 17.9% Thursday after it announced its first $1 billion revenue quarter, and a big user-growth beat.
- Shares of Peloton Interactive Inc. PTON, -10.46% slumped 11.1% after earnings and weak third-quarter revenue guidance.
- Casper Sleep Inc. CSPR, +17.29% made its public debut, with its shares rising 23% Thursday.
- Coach parent Tapestry TPR, +3.61% reported an earnings beat but said that the impact of the coronavirus was weighing on its outlook.
- Tyson Foods Inc. TSN, -3.77% reported fiscal fourth quarter sales that missed expectations, while earnings beat.
- Taco Bell parent Yum Brads Inc.’s YUM, -3.41% stock fell after the fast-food retailer reported fourth quarter sales that missed projections.
- Shares of Bristol-Myers Squibb Co. BMY, +2.42% rose after it reported upbeat results.
- Tesla Inc. TSLA, +1.20% shares gained more than 3%, after opening lower.
- Shares of Zynga Inc. ZNGA, +13.24% added 14.2% after beating earnings expectations, putting it on pace for its best one-day climb since 2014.
- New York Times Co. NYT, +12.75% shares soared 13.3% after the company topped earning estimates.
How are other markets trading?
Government bonds yields were nearly flat, with the yield on the 10-year Treasury note TMUBMUSD10Y, -0.21% at 1.643%.
Oil prices were mixed, with a barrel of West Texas Intermediate crude CLH20, +0.59% up 9 cents, or 0.2% to $50.85 a barrel. In precious metals, gold for April delivery GCJ20, +0.47% rose $5.68, or 0.4% to about $1,568 an ounce.
The U.S. dollar DXY, +0.20% was 0.2% higher against a basket of rivals.
In Europe, stocks rose, with the Stoxx Europe 600 SXXP, +0.44% closing 0.4% higher for a record close at 425.49.
Asia’s stocks also advanced, with the China CSI 300 000300, +1.86% adding 1.9%, Japan’s Nikkei 225 NIK, +2.38% advancing 2.4% and Hong Kong’s Hang Seng index HSI, +2.64% gaining 2.6%.
Additional reporting by Joy Wiltermuth
https://news.google.com/__i/rss/rd/articles/CBMikwFodHRwczovL3d3dy5tYXJrZXR3YXRjaC5jb20vc3RvcnkvZG93LXNldC10by1qb2luLXNwLTUwMC1uYXNkYXEtYXQtcmVjb3Jkcy1hcy1jaGluYS1zYXlzLWl0LXdpbGwtc2xhc2gtdGFyaWZmcy1vbi03NS1iaWxsaW9uLWluLXVzLWdvb2RzLTIwMjAtMDItMDbSAU9odHRwczovL3d3dy5tYXJrZXR3YXRjaC5jb20vYW1wL3N0b3J5L2d1aWQvRERCNjk2MjYtNDhDRi0xMUVBLThFQUQtMDg2Nzg0OTNBMzYw?oc=5
2020-02-06 18:54:00Z
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