Wall St. clings to gains on trade hopes
REUTERS: U.S. stocks gained on Friday, ahead of a long Memorial day weekend, after U.S. President Donald Trump predicted a swift end to the ongoing trade war with China.
Trump said on Thursday that Huawei Technologies Co Ltd could also be included in the trade deal, while at the same time calling the Chinese telecommunications giant “very dangerous.”
However, no high-level talks have been scheduled since the last round of negotiations in Washington two weeks ago.
The S&P 500 index is on pace to end the week 1per cent lower, which would make it the third straight week of losses for the benchmark index, as markets worried that the trade war would result in a global economic slowdown.
“The markets seem to be struggling to hold on to gains right now because people don’t want to be too long heading into the holiday weekend,” said Marc Pfeffer, chief investment strategist at CLS Investments in Omaha, Nebraska.
Adding to concerns about a slowing broader economy, data showed that U.S.-made capital goods fell more than expected in April.
“The positive trade narrative has trumped data today,” said Mike Dowdall, investment strategist for BMO Global Asset Management, in Chicago.
At 12:55 p.m. ET the Dow Jones Industrial Average was up 115.03 points, or 0.45per cent, at 25,605.50. The S&P 500 was up 9.31 points, or 0.33per cent, at 2,831.55 and the Nasdaq Composite was up 31.70 points, or 0.42per cent, at 7,659.99.
Technology shares, that were among the hardest hit this week, rose 0.53per cent boosted by gains in chipmaker Intel Corp and iPhone maker Apple Inc.
Financials gained 0.61per cent, as U.S. treasury yields rose for the first time in three days.
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However markets were off their session highs, with traders saying volatile trading and thin volumes were likely as market participants geared up for the long weekend.
Foot Locker Inc plunged 17.1per cent, the most on the S&P, after the footwear retailer, one of the biggest U.S. retailers of Nike Inc shoes, missed quarterly profit and same-store sales estimates. Shares of Nike dipped 0.2per cent.
Total System Services Inc jumped 13.4per cent after Bloomberg reported Global Payments Inc has held preliminary tie-up talks with the payment solutions provider. Global Payments’ shares rose 5.5per cent.
Autodesk Inc fell 4.5per cent after the software maker reported quarterly earnings below expectations.
Advancing issues outnumbered decliners by a 1.99-to-1 ratio on the NYSE and a 1.94-to-1 ratio on the Nasdaq.
The S&P index recorded 36 new 52-week highs and 16 new lows, while the Nasdaq recorded 33 new highs and 86 new lows.
(Reporting by Shreyashi Sanyal and Amy Caren Daniel in Bengaluru; Editing by Arun Koyyur and Anil D’Silva)