U.S. stocks rose Thursday after China said it would cut in half tariffs on $75 billion of U.S. imports, signaling it would follow through with parts of a recently signed trade agreement.
Stocks to Watch Thursday
China’s Finance Ministry said its decision to cut tariffs was meant to help “alleviate economic and trade frictions” and added that it was hoping to work with the U.S. to ultimately eliminate all increased tariffs. Analysts viewed the move as a positive, given lingering worries about Beijing’s ability to deliver on promises made as part of a phase-one trade agreement with the U.S.
“Clearly, the Chinese are trying to get back to business as normal,” said Patrick Spencer, managing director of U.S. investment firm Baird.
Another boost to stocks: the fact that the latest flurry of corporate earnings have largely beaten analysts’ expectations. More than half of S&P 500 companies have reported results for the fourth quarter, according to FactSet. Analysts project that by the time the reporting season is over, companies as a whole will have delivered modest earnings growth—showing some stabilization following multiple quarters of falling earnings.
“Since 2008, everybody looks around every corner expecting a recession, but the recent earnings numbers really justify the recent strength in the market,” Mr. Spencer said. “We needed to see it, and we’re getting it.”
The Dow Jones Industrial Average advanced 88.92 points, or 0.3%, to a record high of 29379.77. The S&P 500 added 11.09 points, or 0.3%, to 3345.78, and the Nasdaq Composite rose 63.47 points, or 0.7%, to 9572.15, with both indexes closing at fresh highs.
Twitter shares jumped $5.02, or 15%, to $38.41 after the company posted record revenue for the latest quarter.
Estée Lauder shares rose $10.21, or 5.1%, to $211.53 after reporting stronger-than-expected growth in sales for the latest quarter. Those results helped offset a cut in its profit outlook, which the company made citing expected fallout from the coronavirus outbreak in China.
Elsewhere, the Stoxx Europe 600 advanced 0.4%, boosted by gains among bank shares.
Deutsche Bank rose 13% after the bank disclosed that U.S. fund manager Capital Group has taken a 3.1% stake, one of the larger positions in Germany’s biggest bank.
Shares of steelmaker ArcelorMittal jumped 11% after the company beat analysts’ expectations for earnings and provided an upbeat outlook.
In Asia, where equity markets have been most hit by concerns over the fast-spreading coronavirus in recent weeks, indexes finished higher.
Hong Kong’s benchmark Hang Seng Index closed up 2.6% for its fourth consecutive session of gains, while the Shanghai Composite rose 1.7%.
Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com and Akane Otani at akane.otani@wsj.com
Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Business - Latest - Google News
February 07, 2020 at 04:04AM
https://ift.tt/2GZ287f
U.S. Shares Gain After China Tariff Relief - The Wall Street Journal
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "U.S. Shares Gain After China Tariff Relief - The Wall Street Journal"
Post a Comment