Trade Optimism Helps Indexes Spring Up
January 18,2019 10:23 am EST
Stocks rose on Friday as investors cheered potential progress in trade negotiations between China and the U.S.
The Dow Jones Industrial Average was propelled forward 135.31 points to 24,505.41, led by gains in Chevron and Boeing.
The S&P 500 gained 15.84 points to 2,651.80, trading out of correction territory, as the energy, tech and industrials sectors outperformed.
The NASDAQ Composite climbed 27.34 points to 7,111.80.
The major indexes were on track to post their fourth-straight week of gains. They were all up more than 1% for the week entering Friday''s session.
The gains come as the corporate earnings season kicks off. Major banks like J.P. Morgan Chase, Bank of America, Morgan Stanley and Goldman Sachs all released their quarterly results this week.
Most recently, Netflix reported better-than-expected earnings, boosted by stronger-than-forecast subscriber growth. However, the stock fell 1.8% on the back of disappointing guidance for the first quarter of 2019.
Dow member American Express also fell after reporting disappointing earnings.
On Thursday, the Wall Street Journal reported that U.S. Treasury Secretary Steven Mnuchin had floated the idea of easing tariffs on Chinese goods as the two countries continue to negotiate on trade.
The report sent the major indexes to their session highs on Thursday. However, a senior administration told media outlets that there is “no discussion of lifting tariffs now.”
Manufacturing data released by the Federal Reserve also showed the sector''s biggest gain in 10 months in December. Those numbers were boosted by strong production in motor vehicles and other goods.
Prices for the benchmark for the 10-year U.S. Treasury fell slightly, lifting yields to 2.76% from Thursday''s 2.75%. Treasury prices and yields move in opposite directions.
Oil prices gained 77 cents to $52.84 U.S. a barrel.
Gold prices sank nine dollars to $1,293.30 U.S. an ounce.
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