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Home / Business / Dow, S & P 500 and Nasdaq reach record levels after China and the US have agreed a gradual tariff cancellation

Dow, S & P 500 and Nasdaq reach record levels after China and the US have agreed a gradual tariff cancellation



US. Equities traded higher on Thursday, with all three major benchmarks setting new records after Washington reached an agreement with Beijing to phase out scheduled import tariffs.

The Russell 2000 benchmark index for smaller domestically focused companies, which were more resistant to the recent market recovery, also rose.

How do the main benchmarks compare?

The Dow Jones Industrial Average

DJIA, + 0.94%

surged 237 points, or 0.87%, to 27,732, while the S & P 500 Index

SPX, + 0.52%

gained 14 points or 0.48% to 3,091. The Nasdaq Composite Index

COMP, + 0.64%

added 53 points or 0.6% to 8.446.

The Dow was above 27.492,63 record high on Tuesday as the S & P 500 rose above its record The Nasdaq closed at 3,078.27 on Monday and above the all-time high of 8,434.68, also on Monday , All three benchmarks also set new intraday records on Thursday morning.

On Tuesday, the Dow lost less than one point to finish at $ 27,492.50, while the S & P 500 index edged up 2.16 points or 0.07% to hit 3,076.78. The Nasdaq Composite Index lost 24.05 points (0.29%) to close at 8,410.63.

The Russell 2000

RUT, + 0.40%

increased by 6.5 points, or 0.41%, to 1,596 or more than 8% over the record-breaking 1,740.75 set on August 31, 2018.

What drives the market?

Major US stock indices have set new records in recent sessions. Investors were encouraged by reports of progress on a US-China inter-trade agreement.

Bloomberg reported on early Thursday that China and the US will gradually phased out tariffs planned for each other's products. The first agreement is due to be signed in the next few weeks. The size of the upcoming tariff reductions will depend on the agreement, said the Ministry of Commerce spokesman Gao Feng of the South China Morning Post. In the early afternoon, a US official confirmed the agreement.

"Certainly the mood in the trade is getting better," said Bruce Bittles, Chief Investment Strategist at Robert W. Baird & Co., in an interview. "The reason, which is important, is that the global economy was heading for a recession as a result of the trade war. The fact that we are approaching an agreement seems to me that the markets are celebrating. "

" In addition, the European economy, Japan and even China may have bottomed out here. The economies are weakening, "he added.

Investors also watched developments in Europe after the European Central Bank issued an update on economic and monetary developments that predicted slow but positive economic growth in the second half of 2019.

US Economic Data The Department of Labor estimated that 211,000 Americans filed new jobless claims in the week ending November 2, a monthly low and among the 215,000 forecasted by MarketWatch surveyed economists.

"We did not see it A list of product implications," said Robert Pavlik, SlateStone Wealth's chief investment strategist, adding that industry, technology, semiconductor, and foreign-related businesses are all out of the box Fresh benefited optimism on the trade front.

"What you have is a market that is essentially at all-time highs," he told MarketWatch.

Check out : An emerging equity market refutes the biggest disagreement between CEOs and consumers about the US economy that has long been known.

Which stocks are in focus?

Qualcomm Inc. .

QCOM, + 6.68%

reported fourth quarter earnings and revenues below Wall Street expectations on Wednesday after the close. For the current quarter, a decline compared to the previous year is expected profit and sales. Equities rose 6.25% on Thursday and have risen more than 60% since the beginning of the year.

Shares of Cardinal Health Inc .

CAH, + 3.81%

rose 4% on Thursday after reporting a loss of $ 4.92 billion in the first fiscal quarter as a general agreement was reached in October over the payment of $ 5.56 billion to settle pending and potential opioid claims. Excluding these costs, earnings per share and revenue outperformed analysts' forecasts.

Stocks of Expedia Group Inc .

EXPE, -26.54%

fell 25% on Thursday, after the travel website had reported worse-than-expected results after the close on Wednesday.

AMC Entertainment Holding Inc. .

AMC, -2.99%

announced on Thursday to report a net loss in the third quarter that was smaller than the same period last year but larger than forecast by analysts, while revenue was up. The holdings of the cinema chain operator dropped by 3%.

Shares in PG & E Corp.

PCG -12.57%

fell 13% after the utility suffered a third-quarter loss after suffering $ 2.5 billion in California-related losses had forest fires. The embattled utility company announced on Thursday that these costs are expected to rise to $ 6.3 billion. Shares of Nielsen Holdings PLC

NLSN -3.48%

fell nearly 4% after the media company surpassed third-quarter earnings expectations, but also announced that Cut dividend by 83% and plans to spin off Global Connect as an independent, publicly traded company.

US-traded shares of Baidu Inc .

BIDU, + 11.94%

rebounded 11.8% after the Chinese Internet giant posted record revenue and earnings growth on Wednesday evening surpassing Wall Street estimates.

How are other assets traded?

The yield on the 10-year US Treasury note

TMUBMUSD10Y, + 7.37%

rose 12bp to 1.936% on Thursday from 1.814% late Wednesday as trade tension eased.

December Gold

GCZ19, -1.86%

on Comex declined 1.8% to $ 1,466.40 an ounce after 0.6% a day before.

West Texas Intermediate Crude for delivery in December

CLZ19, + 2.18%

climbed to $ 57.54 a barrel on the New York Mercantile Exchange as trading volumes improved.

The ICE US Dollar Index

DXY, + 0.22% ,

A benchmark for the performance of the greenback against six major competitors was an increase of 0.2%.

In Asia, the China CSI 300 overnight increased

000300, + 0.18%

Shanghai Composite rose 0.2%

SHCOMP, + 0.00%

was virtually unchanged. Hong Kong's Hang Seng Index

HSI, + 0.57%

climbed 0.6%, while the Japanese NIKKEI 225 index

NIK, + 0.11%

added 0.1%. In Europe the Stoxx Europe 600

SXXP, + 0.37%

were traded 0.4% higher.


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