Benchmarks closed higher on Thursday as President Trump said he would meet China’s Vice Premier at the White House to settle trade disputes.
The Dow Jones Industrial Average (DJI) rose 0.6% or 150.66 points to close at 26,496.67. The S&P 500 gained 0.7% to close at 2,938.13. The Nasdaq Composite Index closed at 7,950.78 gaining 0.6%. The fear-gauge CBOE Volatility Index (VIX) decreased 6.1% to close at 17.57. Advancers outnumbered decliner issues on the NYSE by a 1.93-to-1 ratio. On Nasdaq, a 1.69-to-1 ratio favored advancers issues.
How Did the Benchmarks Perform?
In spite of the consecutive two days gain, The S&P 500 lost 0.5% this week along with the Dow and the Nasdaq posting loss of 0.3% and 0.4%, respectively. The S&P 500 posted one new 52-week highs and two new lows, while the Nasdaq Composite recorded eight new highs and 58 new lows.
Market Gain as Trade Talks Progress
As the high-level trade talks begun on Thursday, investors finally saw a progress in resolution of the two-year long trade war between the United States and China. A series of events lifted investors’ sentiment. In a tweet, President Donald Trump said that he would be meeting Chinese Vice Premier Liu He on Friday to make progress on the trade deal.
Bloomberg on Thursday reported that the White House may put into effect the previously agreed upon currency deal with China and suspend tariffs hike to 30% from 25% effective from Oct 15 on $250 million Chines goods very soon. The report also cited that the currency deal would be the first phase of a trade agreement, while a deal on intellectual-property rights and forced technology transfers would follow in later time.
Further on the night of Oct 9, the New York Times reported that Trump had approved licenses issue for some U.S. companies to do business with blacklisted Huawei Technologies. The licensed companies can now sell non-sensitive products to Huawei.
Positive news on the trade front fueled optimism among investors and pushed shares of trade bellwethers like Caterpillar Inc. (CAT - Free Report) , up 2.7%. Shares of Apple Inc. (AAPL - Free Report) rose 1.4% boosting the S&P 500 Technology sector by 0.7%. Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Made Headline
Delta Beats on Q3 Earnings, Stock Down on Dull Q4 View
Delta Air Lines (DAL - Free Report) , which kick-started the third-quarter 2019 earnings season in the airline space, reported earnings per share (excluding 1 cent from non-recurring items) of $2.32 per share, which surpassed the Zacks Consensus Estimate by 5 cents. (Read More)
Spirit Stock Up on Improved Q3 Unit Revenue View
Spirit Airlines (SAVE - Free Report) issued an upbeat projection on total revenue per available seat miles (TRASM: a key measure of unit revenues) for third-quarter 2019 at an investor update. (Read More)
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