Trade hopes move S&P 500 close to new record high
By April Joyner NEW YORK (Reuters) - The benchmark S&P 500 stock index rose within striking distance of a record high on Monday as further signs of progress toward resolution of the U.S.-China trade war boosted shares in sectors sensitive to trade and the global economy.
By April Joyner
NEW YORK (Reuters) - The benchmark S&P 500 stock index rose within striking distance of a record high on Monday as further signs of progress toward resolution of the U.S.-China trade war boosted shares in sectors sensitive to trade and the global economy.
U.S. President Donald Trump continued to strike optimistic tones, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well.
"People are continuing to be optimistic that some type of trade truce with China can be pushed forward," said Chris Zaccarelli, chief investment officer of Independent Advisor Alliance in Charlotte, North Carolina.
Trade-sensitive technology stocks <.SPLRCT> rose 1.1%, adding the most to the S&P 500. Semiconductor companies, which derive much of their revenue from China, especially climbed. The Phialdelphia SE Semiconductor Index advanced 1.9%.
The economically sensitive energy <.SPNY> and financial <.SPSY> sectors led percentage gains on the S&P 500. Energy shares gained 1.9% while financials rose 1.4%.
Stocks have also benefited from the steepening U.S. Treasury yield curve as well as better-than-expected corporate earnings thus far, said Mona Mahajan, U.S. investment strategist at Allianz Global Investors in New York. In Monday's trading, the S&P 500 rose above 3000 to come within 0.7% of its record closing high.
"We're watching for a breakout to the upside of that range," she said. "Thus far, the early signs we're seeing are favorable."
Losses in Boeing Co
The Dow Jones Industrial Average <.DJI> rose 57.44 points, or 0.21%, to 26,827.64, the S&P 500 <.SPX> gained 20.52 points, or 0.69%, to 3,006.72 and the Nasdaq Composite <.IXIC> added 73.44 points, or 0.91%, to 8,162.99.
This week's earnings lineup includes high-profile companies such as Boeing, Microsoft Corp
According to data from Refinitiv, analysts have projected the first earnings contraction since 2016 for S&P 500 companies. But of the 75 companies that have reported results so far, only 12% have come short of earnings estimates.
U.S.-listed shares of Teva Pharmaceutical Industries Ltd
Advancing issues outnumbered declining ones on the NYSE by a 1.95-to-1 ratio; on Nasdaq, a 2.09-to-1 ratio favored advancers.
The S&P 500 posted 41 new 52-week highs and two new lows; the Nasdaq Composite recorded 93 new highs and 64 new lows.
Volume on U.S. exchanges was 5.92 billion shares, which was below the 6.55 billion average for the the last 20 trading sessions.
(Reporting by April Joyner; Additional reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Chizu Nomiyama and David Gregorio)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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