Wall Street advances on trade hopes, tame inflation data

NEW YORK (Reuters) – Wall Street closed greater on Wednesday as investor optimism was stoked over hopes the United States and China might iron out a trade deal, and benign inflation data recommended the Federal Reserve would maintain rates of interest regular within the close to time period.

Traders work on the ground of the New York Stock Exchange (NYSE) in New York, U.S., February 13, 2019. REUTERS/Brendan McDermid

All three main U.S. inventory indexes gained floor, with the S&P 500 and the Nasdaq posting their fourth consecutive advances. For the second straight day, the S&P 500 closed above its 200-day transferring common, a key technical stage.

Stocks briefly pared positive aspects following a late-morning tweet by U.S. Senator Marco Rubio saying he would introduce a invoice to “tax corporate buybacks the same way as dividends.”

In Beijing, U.S. Treasury Secretary Steven Mnuchin stated “so far, so good,” relating to ongoing talks aimed toward resolving the U.S.-China trade dispute, including he hoped for “productive” conferences within the days forward.

“The markets are extremely vulnerable to news,” stated Bernard Baumohl, chief international economist on the Economic Outlook Group in Princeton. “(Investors are) waiting and hoping for good news to come out of the trade negotiations with China, and for continued signs that the economy is still growing at a healthy pace without heating up inflation.”

The U.S. Labor Department reported shopper costs have been unchanged for the third consecutive month in January, in an indication the Fed might maintain rates of interest regular in the meanwhile.

Fourth-quarter earnings season is approaching the end line, with greater than two-thirds of the S&P 500 having reported.

While analysts now see fourth-quarter earnings development of 16.6 p.c, the outlook for the present quarter is much less upbeat.

First-quarter revenue is projected to fall zero.three p.c from a 12 months in the past, marking the primary loss for the reason that earnings recession that led to 2016, in response to Refinitiv data.

The Dow Jones Industrial Average rose 117.51 factors, or zero.46 p.c, to 25,543.27, the S&P 500 gained eight.three factors, or zero.30 p.c, to 2,753.03 and the Nasdaq Composite added 5.76 factors, or zero.08 p.c, to 7,420.38.

Of the 11 main sectors within the S&P 500, all however utilities and communications companies ended the session in optimistic territory.

Energy was the most important proportion gainer as oil costs noticed their largest enhance since late January.

Groupon Inc sank 11.1 p.c, one the largest losers on the Nasdaq, as decreased visitors led to a fourth-quarter revenue miss.

Generic drugmaker Teva Pharmaceuticals Industries Inc dropped 7.eight p.c after forecasting a weaker-than-expected 2019 as a result of new competitors for branded medication.

General Electric Co superior three.9 p.c following information the conglomerate booked probably the most orders for electricity-generating gasoline generators in 2018.

Levi Strauss & Co filed paperwork for an IPO after greater than three a long time as a privately-held firm. Rivals Abercrombie & Fitch, Gap Inc and American Eagle Outfitters Inc all dipped on the information.

Cisco Systems Inc shares rose in after-market buying and selling after posting better-than-expected quarterly outcomes because the community gear maker benefited from its shift to newer companies.

Advancing points outnumbered declining ones on the NYSE by a 1.86-to-1 ratio; on Nasdaq, a 1.42-to-1 ratio favored advancers.

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The S&P 500 posted 38 new 52-week highs and no new lows; the Nasdaq Composite recorded 78 new highs and 19 new lows.

Volume on U.S. exchanges was 6.91 billion shares, in comparison with the 7.45 billion common during the last 20 buying and selling days.

(This story corrects paragraph 9 to say first quarter as an alternative of fourth quarter)

Reporting by Stephen Culp; Editing by Chris Reese

Our Standards:The Thomson Reuters Trust Principles.

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