Trade Accord Drives Stock Higher

Trade Accord Drives Stock Higher


President Donald Trump, in an interview with Reuters, said trade talks were under way with China Wednesday.

Traders said China made the 1st major purchase of US Soybean since Washington and Beijing agreed to a temporary trade truce earlier this month.

Also, President Trump said he would intervene in a case against a top executive at Huawei Technologies if it would help secure a trade deal.

The China news helped Wall Street, along with expectations Britain’s Prime Minister might keep her job for now.

The S&P 500 pared gains as the day wore on as investors were cautious about the rally’s sustainability. But they found some technical reassurance as stocks have recently bounced back multiple times intra-day after testing 2018 lows. 

11 of the S&P’s 9 major sectors were in the Green with 8 showing gains of around 1%or more. The Real Estate sector .SPLRCR was the biggest loser with a 1.4% decliner, Utilities .SPLRCU followed with a 0.4% fall showing a lack of appetite for defensive sectors.

The S&P technology sector .SPLRCT gained 1.6%, providing the biggest support to the benchmark. The sector is exposed to China trade.

Wednesday, the major US stock market indexes finished at: Dow +157.03 at 24527.27, NAS Comp +66.48 at 7098.31, S&P 500 +14.29 at 2651.07

Advancers outnumbered decliners on the NYSE by a 2.69-to-1 ratio; on Nasdaq, a 2.48-to-1 ratio favored advancers.

The S&P 500 posted 14 new 52-wk highs and 6 new lows; the NAS Comp recorded 21 new highs and 141 new lows.

Volume: Trade on the NYSE came in at 986-M/shares exchanged

  • NAS Comp +2.8% YTD
  • DJIA -0.8% YTD
  • S&P 500 -0.8% YTD
  • Russell 2000 -5.2% YTD

HeffX-LTN Overall out look for the major US stock market indexes is Bullish

Stay tuned…

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