Wall Street jumps on news of trade progress

Wall Street jumps on news of trade progress

By Stephen Culp

NEW YORK (Reuters) - The S&P 500 and the Dow Jones Industrial average extended gains and the Nasdaq turned positive on Friday on reports of progress in talks between the United States and China and other trading partners.

Chinese and U.S. negotiators are aiming for talks to end their trade spat ahead of meetings in November, the Wall Street Journal reported on Friday. And Mexico's economy minister Ildefonso Guajardo said he hopes to conclude outstanding bilateral issues on the North American Free Trade Agreement (NAFTA) by the middle of next week.

"Any conversations we have with China to come up with a deal and any conversations we have with Mexico would be seen as a win for the U.S.," said Jeffrey Frankel, president at Stuart Frankel & Co, in New York.

For the week, the S&P and the Dow were on track to post weekly gains, but the Nasdaq appeared on track to show a loss.

Bleak forecasts from Nvidia Corp and Applied Materials Inc pushed the Philadelphia SE Semiconductor index <.SOX> 0.7 percent lower.

Among the so-called FAANG group of momentum stocks, all but Apple Inc were down.

Google parent Alphabet was trading 0.4 percent lower as its employees called for more transparency and oversight of the company's China search engine.

Netflix Inc was on its way to posting its sixth consecutive loss. The FAANG group also includes Facebook Inc and Amazon.com .

Shares of Tesla Inc dropped 8.4 percent and were on track for their worst day in over four months after Chief Executive Elon Musk's interview with the New York Times, and UBS analysts said that the electric automaker could lose $6,000 on every base Model 3 sedan due to powertrain costs.

The Dow Jones Industrial Average <.DJI> rose 134.08 points, or 0.52 percent, to 25,692.81, the S&P 500 <.SPX> gained 10.98 points, or 0.39 percent, to 2,851.67 and the Nasdaq Composite <.IXIC> added 11.39 points, or 0.15 percent, to 7,817.92.

Second-quarter earnings season nears its conclusion. Of the 467 companies in the S&P 500 that have reported, 79.2 percent have beaten consensus estimates, according to Thomson Reuters I/B/E/S.

All 11 major sectors in the S&P 500 were in positive territory.

Shares of Nordstrom Inc surged by 12.5 percent after posting better-than-expected same-store sales and raising its profit forecast. The company bucked the otherwise downbeat department store trend, following lacklustre earnings from Macy's Inc and JC Penney Co Inc .

Deere & Co's quarterly results missed analysts' estimates due to higher raw materials and freight costs, but it offered an optimistic forecast for the U.S farming economy. The farming equipment manufacturer's shares rose 2.5 percent.

Advancing issues outnumbered declining ones on the NYSE by a 2.52-to-1 ratio; on Nasdaq, a 1.43-to-1 ratio favoured advancers.

The S&P 500 posted 35 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 75 new highs and 60 new lows.

(Reporting by Stephen Culp, additional reporting by Sinead Carew; Editing by Susan Thomas)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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Updated Date: Aug 18, 2018 02:05:27 IST

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