Dow increases 200 points as investor hopes rise for trade growth in the US and China
The market bulls attempted to expand a winning knit to a fourth day Friday, buoyed by news reports stoked hoping for progress in the US-China trade negotiations.
The stock markets will be closed on Monday in compliance with Martin Luther King Jr. Day.
How are benchmarks going?
Dow Jones Industrial Average
+ 1.15%
increased 217 points, or 0.9% to 24.585; The S&P 500 index
SPX, + 1[ads1].21%
received 27 points, or 1% to 2,662; and the Nasdaq Composite
COMP, + 1.17%
added 66 points, or 0.9% to 7.148.
For the week, S & P and Nasdaq are each up 2.5% and Dow looks at a gain of 2.4%.
Brexit Brief: General election talk gets higher in Westminster
What drives the market?
Progress on trading expectations was reinforced by a Bloomberg report that Chinese officials have offered to increase US imports by $ 1 trillion over the next six years, planning to bring the US trade deficit to China by zero by 2024.
It comes after the shares received a late lift Thursday from a report by The Wall Street Journal that US officials discussed a possible light tariff on Chinese imports, to give Beijing an incentive to make deeper concessions over the trade conflict.
A Treasury spokesman immediately returned to the report and told the newspaper that any negotiating positions remain "at the stage of discussion". The source also said that neither finance minister Steven Mnuchin nor US trade representative Robert Lighthizer made any specific trade-related recommendations, and conversations were still ongoing.
At the same time, investors continue to digest a new revenue round, such as those from Netflix Inc.
NFLX, -2.81%
who reported strong subscriber and profit growth after the clock on Thursday, but lost on revenue. The shares are traded lower, but the 32% increase this year is reflected by half of the glass that has overtaken markets in recent weeks.
What do the analysts say?
"With the shutdown slowly taking 0.1 percentage point of GDP every week, the president knows a victory in resolving the trade war can give him the leverage to continue his battle with democrats on his border funding," Edward Moya, market analyst at OANDA wrote in a Friday morning note.
"Yesterday's Wall Street Journal reports that Secretary of State Steven Mnuchin allegedly proposed the idea of lifting some or all of the charges, given the stocks a strong bid. It was quickly refuted by the Treasury, but history shows how anxious markets are looking for positive momentum for to continue trading talks, "he added.
"The result continues to be better than feared," says Tom Essaye, wrote the president in the seventh report on a Friday morning note to clients. "Industrielle has presented solid results so far in the earnings season, and it is positive if it continues throughout the rest of the season."
Meanwhile, "the market continues to act resiliently," in light of any bad news, such as Morgan Stanley's disappointing earnings, he wrote.
What data and Fed speakers are investors to see?
New York Fed President John Williams, a voter member of the Federal Reserve Market Committee, says the Federal Reserve should answer "cautiously" to a US economy that seems to slow down, in a speech to the New Jersey Bankers Association & # 39; s Economic Leadership Forum.
"" But let me be clear: a softer economic outlook does not mean we should prepare ourselves doom and gloom, "he added.
US industrial production increased by 0.3% in December, the Federal Reserve reported on Friday Morning, in line with expectations, by MarketWatch survey by economists
University magazine's consumer confidence index fell to a more than two-year low of 90.7 in January, down from 98.3 in December and well below expectations of 97 , 5, according to a MarketWatch Finance Start.
Philadelphia Fed President Patrick Harker, a nonvoting member of the FOMC, will give a speech on the future of Philadelphia at 11:00 am [19659003] What stocks are in focus?
Inc .
TSLA, -8.94%
shares fell 9.1% after the company announced job cuts and warned about profits.
Netflix
NFLX, -2.81%
shares withdrew 3.3% early Friday, indicating investor's dissatisfaction with the streaming video giant's fourth quarter and busy talks from Wall Street analysts.
American Express Co .
AXP, + 0.31%
traded 0.7% lower Friday after the financial company reported mixed fourth quarter results Thursday night.
SunTrust Banks Inc.
STI, + 5.05%
shares rose 4.4% in premarket measures after the bank reported better than expected profits.
Shares on Tiffany & Co.
TIF, + 4.64%
increased by 3.3% even after the luxury jewelry retailer reported holiday season sales declining from a year ago and yielding a negative full-year result and sales outlook. The shares have fallen almost 35% over the past six months. Eli Lilly and Co .
LLY, -2.91%
stock was down 3.2% early Friday, after the company said that a late stage in the treatment of sarcoma did not reach its main goal.
Stocks of VF Corp .
VFC, + 11.73%
rose 11.7% after the parent company of Vans and The North Face reported better than expected earnings and sales.
How did the references go yesterday?
] On Thursday, Dow deleted a previous loss to rise 162.94 points, or 0.7% to 24.370.10 in choppy trading. The blue-chip meter was up 267 points on its increase high. The S & P 500 increased by 0.8% to 2,635.96 and Nasdaq eventually gained 0.7% at 7,084.46.
How do other markets trade?
Markets in Asia increased, led by a 1.4% jump for China's Shanghai Composite Index
SHCOMP, + 1.42%
In Europe, Stoxx Europe 600 has
[SXXP, + 1.78%] rose 1.6%.
Crude
CLG9, + 2.92%
also moved higher, while gold
GCG9, -0.77%
fall and US dollar
DXY, + 0.29%
was stable.
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