Stocks Eke Out Gain as Investors Parse Trump's Comments on Trade
By Karen Langley and Caitlin Ostroff
U.S. stocks swung between small gains and losses Tuesday, after
President Trump said the U.S. and China are close to an "phase one"
trade deal but emphasized that he will only accept an agreement
that would be good for the U.S.
Mr. Trump's remarks at the Economic Club of New York were
scrutinized for any sign of progress in trade negotiations with
China. China is "dying to make a deal. We're the ones who are
deciding whether we want to make a deal," Mr Trump said.
The stock market showed little reaction during the speech but
pared some of its earlier gains as the afternoon progressed.
The S&P 500 was essentially flat for much of the afternoon,
rising 0.2% by 4 p.m. Eastern time. The Dow Jones Industrial
Average rose 0.5 points, or less than 0.1%. The Nasdaq Composite
was up 0.3%.
Investors have been particularly sensitive to trade-related
headlines in recent months and have pushed stocks higher lately as
tensions have diffused. They have also credit the Federal Reserve's
interest rate cuts for supporting stocks.
"We don't think we're out of the woods yet," said Matt Miskin,
co-chief investment strategist at John Hancock Investment
Management. "It does not sound like a trade deal is finalized by
any means. But the Band-Aid on this all is the Fed cutting interest
Major U.S. stock indexes are at or near all-time highs, as
investors have grown more confident about the economy. The Dow
industrials notched another record close Monday, while the S&P
500 and Nasdaq Composite set multiple highs last week.
Investors have found reason for optimism in another Federal
Reserve rate cut, a corporate earnings season that has been better
than expected, and data on jobs and consumer spending that suggest
strength in the U.S. economy.
They will be watching closely Wednesday when Federal Reserve
Chairman Jerome Powell heads to Capitol Hill for two days of
congressional hearings. Mr. Powell has signaled that there will be
a high bar for additional rate cuts after the Fed's three rate
reductions this year.
Within U.S. stocks, cyclical areas that are closely tied to the
economy, such as the financial and industrial sectors, have been
doing particularly well.
"That tells me investors are not worried about recession in
2020," said Nancy Tengler, chief investment officer of Tengler
Corporate news drove moves in individual stocks. Shares of
Advance Auto Parts dropped 7.7% after the company reported
lower-than-expected third-quarter same-store sales. Rockwell
Automation climbed 11% after the Milwaukee-based industrial
technology company beat forecasts for its adjusted profit.
With more than 90% of S&P 500 companies having reported
third-quarter earnings, about three-quarters have beaten
expectations, slightly above the five-year average of 72%,
according to FactSet. Earnings from companies that have reported
dropped 2.3% from a year earlier.
Shares of Portland-based brewing company Craft Brew Alliance
more than doubled after Anheuser-Busch offered to buy the remaining
shares of the company Monday.
The yield on the 10-year U.S. Treasury was 1.909%, down from
1.930% Friday. Bond markets were closed Monday. Yields fall when
In Europe, the Stoxx Europe 600 rose 0.4% and the U.K.'s FTSE
100 gained 0.5%. Stocks traded up in Asia, where the Hang Seng rose
0.5% amid ongoing pro-democracy demonstrations. The Shanghai
Composite gained 0.2% and Japan's Nikkei 225 climbed 0.8%.
Write to Karen Langley at firstname.lastname@example.org and Caitlin
Ostroff at email@example.com
(END) Dow Jones Newswires
November 12, 2019 16:17 ET (21:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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From Nov 2019 to Nov 2020