Wall St hits fresh record high on trade progress

Marco Green
November 8, 2019

Banks also rose after bond yields made a big jump.

Energy (+1.6%) topped today's S&P sector leaderboard as WTI crude oil climbed 1.4% to $57.15/bbl, followed by communication services (+0.7%), information technology (+0.7%) and financials (+0.7%).

The S&P 500 rose 8.40 points, or 0.27 percent, to 3,085.18.

The Dow ended up 0.7%, or 182 points, logging its third record of the week, while the S&P 500 climbed 0.3%. Qualcomm rose sharply after reporting solid earnings.

The higher yields dampened buying interest in the rate-sensitive utilities (-1.4%) and real estate (-1.1%) sectors, while consumer discretionary (-0.6%) and consumer staples (-0.4%) were the other two sectors that finished lower.

US stocks surged Thursday after China said it has worked out a deal with the United States that removes some tariffs in a phase one trade deal.

The Russell 2000 index of small company stocks was outpacing the broader market in the early going with a gain of 1.1%.

The Nasdaq Composite climbed 0.3%, putting it just below the all-time high it set on Tuesday.

Later in the day, major USA corporations including The Wall Street Journal's parent, News Corp., as well as Walt Disney, will report earnings.

Overseas, the benchmark Stoxx Europe 600 rose 0.3%. Both nations have agreed to a truce, but the terms are still vague and they have yet to sign a deal.

Still, major issues, such as intellectual-property protections for USA companies operating in China, still confront the U.S-Chinese trade negotiations. Wall Street has been anxious that tariffs will crimp corporate and economic growth.

China said it had agreed with the United States to remove tariffs in phases, while state-owned Xinhua News Agency said Beijing was also considering removing restrictions on poultry imports. The index hit a trading-day record high during market hours. More than 85% of companies within the S&P 500 have reported so far.

Shares of Qualcomm rose 8.5% after the chip maker signaled a strong year ahead for 5G phone sales.

Several companies that focus on travel were punished by investors after reporting weak results. TripAdvisor plunged 22.4% and Expedia plummeted 24.1%.

Other reports by Click Lancashire

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