Wall Street bounces back as investors shrug off impeachment risk
By Caroline Valetkevitch NEW YORK (Reuters) - The S&P 500 notched its biggest daily gain in two weeks on Wednesday as investors shrugged off the news of an impeachment inquiry into President Donald Trump, while Nike shares jumped on upbeat quarterly results. Democratic lawmakers on Tuesday moved to launch a formal inquiry into whether to impeach Trump, and indexes weakened briefly early Wednesday after the White House released a summary of a telephone call between Trump and Ukraine's president that is at the centre of the inquiry
By Caroline Valetkevitch
NEW YORK (Reuters) - The S&P 500 notched its biggest daily gain in two weeks on Wednesday as investors shrugged off the news of an impeachment inquiry into President Donald Trump, while Nike shares jumped on upbeat quarterly results.
Democratic lawmakers on Tuesday moved to launch a formal inquiry into whether to impeach Trump, and indexes weakened briefly early Wednesday after the White House released a summary of a telephone call between Trump and Ukraine's president that is at the centre of the inquiry.
Stocks rose as investors digested the news, recovering from losses on Tuesday as the impeachment push gained momentum.
"We'll see what the Democrats do from here, whether they move forward or not. It just doesn't appear that it's going to be the distraction that yesterday the market thought it might become. So the market's having a good day based on that," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, New York.
Helping sentiment, data showed that sales of new U.S. single-family homes rebounded more than expected in August, a sign that the struggling housing market was starting to get a lift from lower borrowing rates.
The Dow Jones Industrial Average <.DJI> rose 162.94 points, or 0.61%, to 26,970.71, the S&P 500 <.SPX> gained 18.27 points, or 0.62%, to 2,984.87 and the Nasdaq Composite <.IXIC> added 83.76 points, or 1.05%, to 8,077.38.
Among the day's top sector performers were technology and communication services. The S&P 500 technology index <.SPLRCT> was up 1.2%, while the Philadelphia chip index <.SOX> gained 1.8%.
"Good economic data is fighting with political noise and good data is winning," said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.
Adding to the stronger tone, Trump said a trade deal with China could happen sooner than expected, comments that were in contrast to his harsh rhetoric the day before.
Also on the trade front, Trump and Japanese Prime Minister Shinzo Abe announced initial details of an emerging trade deal between the two countries, with Trump saying it would open up Japanese markets to $7 billion worth of American products.
Shares in Philip Morris
Advancing issues outnumbered declining ones on the NYSE by a 1.50-to-1 ratio; on Nasdaq, a 1.42-to-1 ratio favoured advancers.
The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite recorded 29 new highs and 103 new lows.
Volume on U.S. exchanges was 6.67 billion shares, compared to the 7.2 billion average for the full session over the last 20 trading days.
(Additional reporting by Sinead Carew, Sruthi Shankar and Ambar Warrick in Bengaluru; Editing by Cynthia Osterman and Sonya Hepinstall)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.