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Dow, S&P 500 and Nasdaq hit record levels after China, US agree to cancel tariffs in phases



U.S. the stock traded higher on Thursday, with the three main indicators touching new records after Washington said an agreement was reached with Beijing to cancel phased import tariffs.

The Russell 2000 index of smaller domestic-oriented companies that were more likely to join the recent rally in the market was also higher.

How are the main indicators met?

The Dow Jones industrial average

DJIA, + 0.68%

rose 237 points, or 0.87%, to 27 732, while the S&P 500 index

SPX, + 0.29%

earned 14 points, or 0.48%, at 3 091. The Nasdaq Composite Index

COMP, + 0.33%

added 53 points, or 0.6%, to 8 466.

The Dow was trading above its record high of 27 492.63, set on Tuesday. as the S&P 500 rose above its record closing time of 3,078.27 set on Monday and the Nasdaq was above its highest end time of 8,434.68, also set on Monday. All three criteria noted new intraday records Thursday morning.

On Tuesday, the Dow lost less than a point by the end of 27,492.50, while the S&P 500 index gained 2.16 points, or 0.07%, at 3,076.78. The Nasdaq Composite Index shed 24.05 points, 0.29%, closing at 8,410.63.

The Russell 2000

RUT, + 0.42%

rose 6.5 points, or 0.41%, to 1596, or more than 8% away from the record close of 1,740.75, set on August 31, 2018

What is driving the market?

Major US stock indices set new records in recent sessions, with investors encouraged by progress reports on the US-China interim trade deal.

Early Thursday Bloomberg announced China and the US will cancel the planned tariffs for the other's products in stages, with the first agreement to be signed in the next few weeks. The amount of tariff relief that will come will depend on what is in the deal, said Commerce Department spokesman Gao Feng, according to the South China Morning Post. By early afternoon, an American official confirmed the agreement.

"Surely, the sentiment continues to improve in trading," Bruce Beatles, chief investment strategist at Robert W. Baird & Co., said in an interview. "The reason that is important is that the global economy seemed to be heading for a recession due to the trade war. So the fact that we're approaching a deal, I think the markets are celebrating. "

" In addition, perhaps the European economy, Japan and even China may have reached the bottom here as their economies weaken, "he added.

Investors were also focused on development in Europe after the European Central bank issued an update on economic and monetary changes that predicted slow but positive economic growth in the second half of 2019.

In U.S. Economic Data, the Department of Labor estimates that 211,000 Americans have submitted new claims for unemployment went into the week ending November 2, with one month and below 215,000 predicted by MarketWatch economists.

"We have not seen a list of what products will be affected," says Robert Pavlik, chief investment strategist at SlateStone Wealth, but added that industry, technology, semiconductors and overseas businesses are benefiting from the fresh optimism of the trade front.

"What you have is a market that is essentially the highest at any time," he told MarketWatch.

See : The growing stock market has the biggest disagreement between CEOs and consumers about the US economy

Which stocks are in focus?

Qualcomm Inc .

QCOM, + 5.54%

reported fourth quarter fiscal earnings and sales that fell less than Wall Street predicted on Wednesday after the close, while current quarter forecasting will also lead to year-over-year earnings and revenue. Shares rose 6.25% on Thursday, up more than 60% to date.

Shares in Cardinal Health Inc .

CAH, + 3.67%

rose 4% on Thursday after reporting a $ 4.92 billion loss in the fiscal first quarter due to a principled agreement reached in October to pay 5, $ 56 billion to settle pending and potential opioid lawsuits, With the exception of these fees, earnings per share and earnings exceed analysts' estimates.

Stocks of Expedia Group Inc .

EXPE, -26,42%

fell 25% on Thursday after the travel website reported worse-than-expected profit after trading on Wednesday.

AMC Entertainment Holding Inc .

AMC, -3.10%

said Thursday that it recorded a net loss in the third quarter, which is less than a year ago but higher than analysts had forecast as revenue rose. Shares of the cinema operator fell by 3%.

Shares in PG&E Corp.

PCG, -13.15%

crashed 13% after the utility turned to a loss for the third quarter after charging $ 2.5 billion in losses related to California wildfires . The regulated utility said Thursday that it expects these costs to escalate to $ 6.3 billion.

Shares of Nielsen Holdings PLC

NLSN, -4.01%

fell nearly 4% after the media company beat third-quarter earnings expectations but also announced that it is cutting its dividend by 83% and that it plans to discontinue its Global Connect business as an independent, publicly traded company.

Shares traded in the United States on Baidu Inc .

BIDU, + 11.81%

rallied 11.8% after the Chinese Internet giant reported sales and earnings growth on Wednesday night that surpassed Wall Street estimates.

How are other assets traded?

The yield on the 10-year note of US Treasury

TMUBMUSD10Y, + 6.22%

jumped 12 basis points to 1.936% on Thursday, from 1.814% on Wednesday as trade tensions seemed to be mild.

December gold

GCZ19, -1.77%

in Comex found 1.8% lower to $ 1466.40 an ounce after 0.6% profit the day before.

West Texas Intermediate Crude Delivery December

CLZ19, + 1.51%

jumped 1.2% against the backdrop of dynamic trading to $ 57.54 a barrel on the New York Stock Exchange.

US Dollar ICE Index

DXY, + 0.19% ,

In Asia overnight, the Chinese CSI 300

000300, + 0.18%

increased 0.2%, Shanghai Composite

SHCOMP, + 0.00%

was practically unchanged. The Hang Seng Index in Hong Kong

HSI, + 0.57%

rose 0.6%, while the Japanese NIKKEI 225 index

NIK, + 0.11%

added 0.1%. In Europe, Stoxx Europe 600

SXXP, + 0.37%

is trading 0.4% higher.


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