By Ryan Vlastelica

U.S., China set to resume trade talks

U.S. stock-index benchmarks rebounded early Thursday, as strong corporate earnings helped to overshadow Turkey's currency crisis and as China and the U.S. appeared set to resume trade talks.

What are markets doing?

The Dow Jones Industrial Average rose 284 points, or 1.1%, to 25,441, while the S&P 500 index was up 19 points to 2,837, a rise of 0.7%. The Nasdaq Composite Index added 52 points, or 0.7%, to 7,825.

Better-than-expected results from Walmart and Cisco, two Dow components, could support the blue-chip average, while Cisco could lift technology stocks, boosting the Nasdaq.

Major indexes fell sharply on Wednesday, though they ended off their lows of the session. The Dow closed at its lowest level since July 23, and both the Dow and the S&P 500 have dropped in five of the past six sessions. The Nasdaq has dropped in three of the past four trading days.

Read: The Dow just registered its longest stint in correction territory in nearly 60 years (http://www.marketwatch.com/story/dows-200-point-tumble-puts-it-at-risk-of-the-longest-stint-in-correction-territory-in-nearly-60-years-2018-08-15)

What is driving the market?

In a potentially positive development, it was reported (http://www.marketwatch.com/story/china-says-it-will-resume-trade-talks-with-us-2018-08-16) that China's commerce ministry would send a delegation to the U.S. later this month to resume trade talks, the first such meeting since July. The development comes at a period of elevated tensions between the two countries, which are major trading partners and which have been imposing tariffs on billions of dollars on each other's goods over the past several months. The prospect of a trade war has intermittently pressured equities in recent months.

Opinion:Trump is right: America was 'built on tariffs' (http://www.marketwatch.com/story/trump-is-right-america-was-built-on-tariffs-2018-08-15)

Also on the geopolitical front, recent trading has been driven by the economic crisis in Turkey, which many investors fear could spread to other regions or hurt European banks, many of which have exposure to the region.

The issue will likely continue to dictate market action in the short term, but there are signs that the situation has stabilized. On Wednesday, it was reported that Qatar would invest $15 billion in Turkey (http://www.marketwatch.com/story/lira-spikes-as-qatar-pledges-to-invest-15-billion-in-turkey-2018-08-15), which could provide something of a lifeline.

The Turkish lira was on track for its third straight session with a pronounced gain against the dollar (http://www.marketwatch.com/story/turkish-lira-on-track-for-third-straight-gain-against-the-dollar-2018-08-16), fueling hopes that the recent all-time low represented a bottom. The lira gained about 3% on the dollar Thursday, bringing its week-to-date rise against the greenback to more than 10%. However, it is still down more than 15% thus far in August.

Don't miss:Turkey's woes won't trigger a full-blown crisis across emerging markets, economist says (http://www.marketwatch.com/story/why-turkeys-crisis-doesnt-spell-doom-for-all-emerging-market-currencies-2018-08-14)

See also:How the lira selloff compares to Turkey's previous crises (http://www.marketwatch.com/story/how-the-lira-selloff-compares-to-turkeys-previous-crises-2018-08-14)

In the latest economic data, initial jobless claims fell more than expected in the latest week (http://www.marketwatch.com/story/jobless-claims-drop-again-back-near-post-recession-low-2018-08-16), nearing postrecession lows.

Meanwhile, the Philadelphia Fed manufacturing index sank to a 21-month low of 11.9 in August (http://www.marketwatch.com/story/philly-fed-index-sinks-in-august-to-lowest-reading-in-21-months-2018-08-16), a reading that was below analyst expectations.

Construction on new houses increased by less than 1% in July (http://www.marketwatch.com/story/housing-starts-creep-higher-but-construction-slows-vs-a-year-ago-2018-08-16), reflecting a recent slowdown in building that is likely tied to higher mortgage rates and growing shortages of skilled craftsmen.

What are market analysts saying?

Speaking about the trade meeting, Andrew Adams, senior research associate at Raymond James, wrote that the gathering "is unlikely to be THE resolution to the trade war, but it could be the start of progress on that front [emphasis in original]. And if President Trump feels enough progress is being made with China he could declare victory even if all the trade terms aren't worked out, which would likely be a tweet the market would welcome."

What stocks are in focus?

Cisco Systems Inc. (CSCO) late Thursday reported earnings that topped expectations (http://www.marketwatch.com/story/cisco-stock-gains-after-earnings-and-outlook-top-estimates-2018-08-15) and gave an outlook that was above analyst forecasts.

Walmart Inc.(WMT) surged after it reported adjusted second-quarter earnings that topped expectations (http://www.marketwatch.com/story/walmart-shares-jump-10-after-same-store-sales-growth-reaches-10-year-high-2018-08-16), along with revenue that was above consensus expectations. The discount retailer also boosted its adjusted 2019 earnings forecast. The stock was poised to open at a six-month high.

On the downside, J.C. Penney Co. Inc. (JCP) plummeted 21% after it reported an adjusted second-quarter loss that was much wider than expected. It also widened the loss it expects for the full year.

Federal regulators have subpoenaed (http://www.marketwatch.com/story/sec-sends-subpoena-to-tesla-in-probe-over-musk-tweets-2018-08-15-171034414)Tesla Inc. (TSLA), according to a person familiar with the matter, ramping up an investigation into whether Chief Executive Elon Musk was truthful when he tweeted last week that he had secured funding to take the electric-car maker private. That tweet sparked a rally in Tesla, sending shares up nearly 14% in August.

Bloomberg reported that Amazon.com Inc. (AMZN) was competing against other suitors (http://www.marketwatch.com/story/amazon-may-buy-movie-theater-chain-landmark-report-2018-08-16) to buy out Landmark Theatres. Other theater chains, including AMC Entertainment Holding Inc.(AMC) and Cinemark Holdings Inc. (CNK), fell following the report (http://www.marketwatch.com/story/shares-of-cinema-chains-tumble-led-by-amc-on-report-amazon-is-eyeing-landmark-theatres-2018-08-16).

Separately, a Reuters report said Amazon is considering offering a U.K. price comparison website for insurance products.

General Electric Co.(GE) could remain in focus a day after the industrial conglomerate, whose share price has struggled for years, tumbled to its lowest level since 2009 (http://www.marketwatch.com/story/bringing-bad-things-to-life-ge-shares-drop-to-levels-not-seen-since-2009-2018-08-15) as investors apparently remain unconvinced that the company's turnaround plan will stem the bleeding.

Antivirus software company Symantec Corp. (SYMC) confirmed it had received five director nominations (http://www.marketwatch.com/story/symantec-confirms-receipt-of-five-director-nominations-from-activist-shareholder-starboard-2018-08-16) from activist shareholder Starboard Value.

Two major chip makers, Nvidia Corp. (NVDA) and Applied Materials Inc.(AMAT), will report after the close of trading. While Nvidia has jumped more than 30% thus far this year.

(END) Dow Jones Newswires

August 16, 2018 09:37 ET (13:37 GMT)