U.S. Stocks Rise as Investors Focus on Trade Talks
11 Februar 2019 - 4:28PM
Dow Jones News
By Akane Otani
Major U.S. stock indexes rose Monday, as U.S. officials arrived
in Beijing to start another round of trade negotiations with
China.
The Dow Jones Industrial Average rose 47 points, or 0.2%, to
24152 in recent trading, while the S&P 500 added 0.2%. The
Nasdaq Composite also rose, gaining 0.3%.
Investors are starting the week with a close eye on trade talks
between Washington and Beijing, with U.S. Trade Representative
Robert Lighthizer and Treasury Secretary Steven Mnuchin landing in
Beijing Monday and scheduled to meet with China's vice premier
later in the week.
The talks could spark fresh volatility for financial markets.
Stocks rose in January on fresh hopes that the U.S. and China would
be able to carve out a trade deal, but some of that optimism
appeared to lose steam last week as investors parsed a stream of
downbeat economic data.
"There's this belief that this is going to very quickly resolve
itself, and I think the reality is that there are very complicated
long-term issues on the trade relationship between the two most
powerful economies around the world," said Jonathan Golub, chief
U.S. equity strategist at Credit Suisse.
While economic growth in the U.S. still looks relatively steady,
Mr. Golub cautioned that an unexpected breakdown in trade talks
remain a major market risk.
"I'm actually quite optimistic about the broad backdrop -- but
that doesn't mean that there's no risk," he said.
On Monday, 10 of the 11 major S&P 500 sectors notched modest
gains, led by industrial and technology stocks. Game maker
Electronic Arts led the broad index, rising more than 9%, after two
analysts raised price targets on the company's stock.
Among industrial stocks, Norfolk Southern added 4.2% after the
railroad company unveiled a strategic plan focused on increased
productivity and revenue growth, as well as achieving a dividend
payout ratio of 33%.
Although the pace of earnings releases has begun to slow down,
investors are expecting to get quarterly results from companies
including Everest Re Group and Chegg after the closing bell
Monday.
Elsewhere, the Stoxx Europe 600 rose 0.6%, while major indexes
in Asia ended mixed.
Data Monday showed U.K. gross domestic product grew last year at
the slowest pace since 2012. The British pound fell to session lows
following the report, although it pared its losses to trade down
0.1% against the U.S. dollar. The FTSE 100 -- whose multinationals
tend to benefit from a weaker pound -- rose 0.3%.
In Asia, the Shanghai Composite jumped 1.4% to a two-month high,
while Japan's Nikkei Stock Average was shut for a holiday and Hong
Kong's Hang Seng rose 0.6%.
--Michael Wursthorn contributed to this article.
Write to Akane Otani at akane.otani@wsj.com
(END) Dow Jones Newswires
February 11, 2019 10:13 ET (15:13 GMT)
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