(CNBC Tues.Sep.24th, 2019)- Stocks rise as optimism around US-China trade increases, Apple climbs
Stocks opened higher on Tuesday as hope around U.S.-China trade talks increased.
The Dow Jones Industrial Average rose 103 points, or 0.4%, led by Apple. The S&P 500 and Nasdaq Composite climbed 0.3% and 0.5%, respectively.
Apple, which has large exposure to the Chinese market, rose 1.1%. Chipmaker Nvidia advanced 0.8%. However, those gains were muted after several Wall Street analysts raised concern about Netflix’s upcoming results, sending the stock down about 1%.
Bloomberg News reported China granted new waivers to several companies exempting them from tariffs on at least 2 million tons of U.S. soybeans. The report added some companies have already bought about 1.2 million tons of soybeans.
Treasury Secretary Steven Mnuchin also confirmed trade talks between the world’s two largest economies would resume next month. In an interview with Fox Business, Mnuchin said negotiators from the U.S. and China had made some progress in last week’s deputy-level meetings.
President Donald Trump is scheduled to speak in front of the United Nations later on Tuesday. He is expected to comment on Iran, but could also make remarks on trade.
The dispute between Washington and Beijing has dragged on for well over a year, battering financial markets and souring business and consumer sentiment. However, the major indexes are near record highs set in July.
The Dow and S&P 500 were more than 1% below their all-time highs through Monday’s close. The Nasdaq, meanwhile, was 2.7% away from reaching its record.
“While the market remains in an uptrend, we are seeing some evidence from our technical indicators that the S&P 500 may need further time to consolidate before attempting to make a new all-time high,” JC O’Hara, chief market technician at MKM Partners, in a note. “Overall, we are still constructive on the market but believe the call is to look at individual stocks for alpha generation, rather than a broad-based market call.”
On the data front, consumer confidence data is set for release at 10 a.m. ET.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
(jdemp2003@gmail.com)