Wall Street gains on tech bounce, trade hopes

22

Wall Street gains on tech bounce, trade hopes

By Sruthi Shankar

(Reuters) – U.S. stocks rose in choppy trading on Tuesday as a bruised technology sector recovered and industrial stocks gained on hopes of a U.S.-China trade deal, but declines for Boeing Co (N:BA) and Home Depot Inc (N:HD) weighed on the Dow.

The S&P technology index (SPLRCT) gained 1.2 percent and shares of Apple (NASDAQ:AAPL) rose 0.4 percent following a 5 percent slump on Monday even as Goldman Sachs (NYSE:GS) cut its earnings estimates that came after several suppliers to the iPhone maker warned of an earnings hit.

Traders also pointed to a report, on China's top trade negotiator preparing to visit the United States before a meeting between the leaders of the world's two largest economies at the end of November, for easing some pressure on the markets.

The trade-sensitive industrial sector (SPLRCI) rose 1.3 percent, boosted by shares of Caterpillar Inc (N:CAT) and 3M Co (N:MMM).

China President Xi Jinping and U.S. President Donald Trump plan to meet on the sidelines of a G20 summit held in Argentina, and investors are hoping that both the countries strike a deal on tariffs and trade that roiled financial markets since the start of the year.

"There's going to be quite a bit of volatility going into the G20 meeting this month as people try to take positions," said Christopher Larkin, senior vice president of trading at E-Trade Financial in New Jersey.

"If there is more clarity on the tariff talks that are going on, that will help stabilize the market in a significant way."

At 11:46 a.m. ET the Dow Jones Industrial Average (DJI) was up 46.99 points, or 0.19 percent, at 25,434.17, the S&P 500 (SPX) was up 17.17 points, or 0.63 percent, at 2,743.39 and the Nasdaq Composite (IXIC) was up 78.22 points, or 1.09 percent, at 7,279.09.

The Dow was weighed down by shares of Home Depot Inc (N:HD), which fell 1.9 percent after the company signaled a slowing U.S. housing market and said impending tariffs could raise prices and weigh on demand.

Boeing Co's (N:BA) shares fell 1.5 percent after Indonesian investigators discovered that the situation faced by the crew of the doomed Lion Air jet was not in the flight manual, raising concerns about the safety of its best selling 737 MAX aircraft.

Energy stocks (SPNY) fell as oil prices tumbled more than 4 percent, and the defensive sectors including real estate , utilities (SPLRCU) and consumer staples (SPLRCS) also fell.

Advancing issues outnumbered decliners for a 1.95-to-1 ratio on the NYSE and a 2.40-to-1 ratio on the Nasdaq.

The S&P index recorded seven new 52-week highs and seven new lows, while the Nasdaq recorded 13 new highs and 89 new lows.

LEAVE A REPLY

Please enter your comment!
Please enter your name here