By Mark DeCambre, MarketWatch , Sunny Oh
Fed to buy $60 bln Treasury bills per month into 2020
U.S. stocks surged Friday as investors turned hopeful about the
outcome of a second day of trade talks between the U.S. and China,
with President Trump set to meet China's Vice Premier Liu He later
Friday.
How did the benchmarks perform?
The Dow Jones Industrial Average rose 428 points, or 1.6%, to
26,925, the S&P 500 index advanced 49 points, or 1.7%, to
2,986, while Nasdaq Composite Index gained 147 points, or 1.8%, to
8,097.
On Thursday
(http://www.marketwatch.com/story/us-stock-index-futures-drift-lower-as-beijing-washington-tariff-talks-take-focus-2019-10-10),
the Dow rose 150.66 points, or 0.6%, to 26,496.67. The S&P 500
index climbed 0.6%, or 18.73 points, to 2,938.13. The Nasdaq picked
up 47.04 points, or 0.6%, to finish at 7,950.78.
For the week, the Dow is poised to rise 1.3%, while the S&P
500 and Nasdaq are on pace to post 1.1% and 1.4% rise,
respectively.
What drove the stock market?
(http://www.marketwatch.com/story/trump-says-hell-meet-with-chinese-vice-premier-on-friday-2019-10-10)President
Donald Trump tweeted that 'good things are happening
(https://twitter.com/realDonaldTrump/status/1182654371714211840)'
at the trade negotiations.
(http://twitter.com/realDonaldTrump/status/1182654371714211840)
He is expected to meet China's Vice Premier Liu He later Friday.
The Wall Street Journal reported
(https://www.wsj.com/articles/trump-to-meet-with-china-s-top-trade-negotiator-on-friday-11570716458?mod=article_inline)that
terms for a possible tentative deal could include China offering
more agriculture purchases, a joint pact to deter Beijing from
devaluing its currency, and, on the U.S. side, suspending planned
tariffs and relaxing export bans against blacklisted Chinese
telecom giant Huawei Technologies Co.
(http://www.marketwatch.com/story/trump-says-hell-meet-with-chinese-vice-premier-on-friday-2019-10-10)
China overnight Friday set a timetable for opening its finance
industries
(https://www.apnews.com/3e0a248000c64959abd24916f2de6953). The
China Securities Regulatory Commission said Friday overseas
financial service companies in futures, securities and mutual funds
will be able to apply for total control of onshore ventures
starting in 2020. The move came as the country speeds up its
financial markets opening.
"The whole U.S.-China trade negotiations have been a cloud over
the markets in the last few weeks. If this partial breakthrough
comes to fruition, it will give at least a temporary boost to the
markets, and we're seeing that reflected in stocks this morning,"
said Michael Arone, chief investment strategist for State Street
Global Advisors, in an interview with MarketWatch. "There seems to
be relief that there will some type of progress on these
discussions. The biggest positive that could come as a result of
the negotiations is a freeze on new U.S. tariffs set to take place
in a couple of days," he said.
On the data front, University of Michigan's preliminary consumer
sentiment report came in at 96 , above economists' estimates for a
reading of 92, according to Econoday. Meanwhile, the import price
index
(http://www.marketwatch.com/story/import-inflation-climbs-in-september-on-higher-cost-of-oil-but-most-prices-still-tame-2019-10-11)climbed
0.2% last month, the government said Friday. The cost of goods
imported into the U.S. rose in September for the first time in four
months, but most of the increase stemmed from higher oil
prices.
The Federal Reserve announced that it would buy $60 billion of
Treasury bills every month
(http://www.marketwatch.com/story/fed-says-it-will-start-to-buy-treasury-bills-next-week-to-ease-money-market-pressure-2019-10-11-1191242)
at least into the second-quarter, starting from next week. The
central bank also said it would conduct overnight repurchase
agreements at least through January of next year in order to reduce
pressures in funding markets.
Investors also will watch for comments from Boston Fed President
Eric Rosengren
(https://www.bostonfed.org/news-and-events/press-releases/2019/statement-of-eric-s-rosengren.aspx)
-- one of three dissenters in the Fed's last decision -- set to
speak at the American Economic Challenges Symposium in Madison,
Wis., at 1:15 p.m., while Dallas Fed President Robert Kaplan, is
expected to moderate a panel in San Francisco at 3 p.m. Kaplan
isn't a voting member of the rate-setting Federal Open Market
Committee.
See also: Bank stocks surge as U.S.-China trade hopes lift
Treasury yields
(http://www.marketwatch.com/story/bank-stocks-surge-as-us-china-trade-hopes-lift-treasury-yields-2019-10-11)
Which stocks are in focus?
Shares of Apple Inc.(AAPL) advanced 1.7% as analysts at Wedbush
raised its stock price target to $265 from $245. If the stock
closes above $232.07, it will set a new all-time high.
The stock for Voxx International Corp.(VOXX) fell 3.3% even
after the technology manufacturer reported that its operating
losses fell in the first half of the year.
Shares of Bed Bath & Beyond(BBBY) rose 5.4% after it named
Target Corp.'s(TGT) head of merchandising as its new chief
executive.
How did other assets trade?
The yield on the 10-year U.S. Treasury note climbed to 1.739%,
compared with 1.649% on Thursday.
(http://www.marketwatch.com/story/gold-edges-higher-ahead-of-trade-talks-2019-10-09)Gold
futures held below the psychologically significant level at $1,500.
December gold was most recently down 1.2% at $1,482.30 an
ounce.
West Texas Intermediate crude for November delivery jumped 83
cents to $54.37 a barrel on the New York Mercantile Exchange, after
an oil tanker attack in the Middle East
(http://www.marketwatch.com/story/oil-prices-jump-after-reports-of-iranian-tanker-blast-2019-10-11).
In Asia overnight Friday, Hong Kong's Hang Seng Index surged
2.3% to 26,308.44, the China CSI 300 rose 1% to reach 3,911.73, and
Japan's Nikkei 225gained 1.2% to 21,798.87. The Stoxx Europe 600,
meanwhile, advanced 1.6% to 388.91. And the FTSE 100 gained 0.3% to
7,186.36, even as the pound jumped 1.8% against the dollar, amid
renewed Brexit optimism
(http://www.marketwatch.com/story/uk-stocks-drift-before-trade-talks-as-gdp-edges-lower-in-august-2019-10-10).
(END) Dow Jones Newswires
October 11, 2019 11:40 ET (15:40 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024