U.S .. stocks are trading modestly higher Thursday morning, with Dow gaining a boost after busy earnings from two components, while investors weighed the latest trade trend developments after US President Donald Trump appeared to target China telecommunications group Huawei Technologies Co. with a contingency declaration against threats to US technology.
At the same time, economic data in the US labor market and housing market came out better than expected, possibly offsetting trade concerns.
How are large indexes rushing?
Dow Jones Industrial Average
DJIA, + 0.80%
rose 94 points, or 0.4%, at 25,766, while the S & P 500 index
SPX, + 0.90%
rose 9 points, or 0.3% to 2.864. Nasdaq Composite Index
rose 7 points, or 0.1
On Wednesday, the Dow Jones Industrial Average increased 115.97 points, or 0.5% to 25.648.02 and S & P 500 index 0.6% to 2,850.96. The tech-heavy Nasdaq Composite Index exceeded its peers 1.1% to 7,822.15.
Read: The woman who nailed the 2018 stock market volatility inflation has kicked off an actively managed ETF
What drove the market?
Trump administration beat a fresh salvo in a trade spit with China late Wednesday, issued an executive order prohibiting land telecom equipment considered "foreign opponents". The move seemed to target Huawei, which has been under pressure from the White House for months.
In addition, the trading department said on Wednesday night that it would add Huawei to a list of entities engaging in "activities that violate US national security and / or foreign policy interests", a feature that could greatly limit the purchases of US
A spokesman for China's Trade Department said the country opposed other countries imposing unilateral sanctions on Chinese entities, and that Washington should avoid affecting China-US relations, Reuters reported. The spokesman also said he had no information on plans for a US trade delegation to visit China. The report said.
The argument comes against the backdrop of trade tensions between the US and China that have triggered volatility across global stock markets. Huawei responded to CNBC that such a move would only put the US behind in terms of 5G development, given that the Chinese technological giant is the "outstanding leader" in the field, it said.
The executive order came after the markets received a boost from reports on Wednesday that Trump would delay a decision to introduce new tariffs on car and auto parts imports for up to six months. Earlier, Secretary of State Steven Mnuchin said that the United States "would most likely" meet Chinese delegates again in Beijing after each side fired by trade tariffs on the other.
Some incredible optimism over the trade relations between the two countries has made some statements to investors this week, with the S & P 500 now higher for dual sessions after last week's sharp losses.
Read: Can the stock market hold long enough for Trump to win a trade war?
What are financial data in focus?
The number of Americans seeking unemployed benefits fell by 16,000 a week ending May 11 to 212,000, the Labor Department said on Thursday. It is below 217,000 expected by economists asked by MarketWatch.
Construction of new homes rose 6% in April from the month before the Department of Commerce said Thursday at an annual rate of 1.24 million, above the 1.21 million pace expected by economists, per MarketWatch survey.
The Philadelphia Fed's manufacturing index rose to a four-month high in May, and now 16.6, after registering 8.5 in April.
What do analysts say?
"It's hard to keep up with Trump White House at the moment. Following the escalation of the damaging trade war that dominated each weekend, markets were received on Wednesday when reports came out, suggesting that the US was prepared to delay tariffs. on cars from Europe and Japan, "wrote Connor Campbell, financial analyst at SpreadEx.
"And then the president looked as if he was looking, and denied a national emergency to protect American computer networks from" foreign opponents "- that is, a big middle finger to China via an attack on Huawei. along with 70 of its affiliates, is now on the Entity List, which means it will require official US government approval to purchase key parts and components from US companies. "
What Stocks Are In Focus? Dow Component Walmart Inc .
WMT, + 3.92%
shares rose 1.2% before Wednesday, after the dealer reported better than expected earnings in the first quarter, but revenue fell short of analyst ratings. The same US store sales rose 3.4% and hit an expected increase of 3.2%, according to FactSet.
CSCO, + 5.02%
increased more than 3% in premark trade after the network and telecom equipment company reported quarterly results Late Wednesday that topped Wall Street forecasts and delivered a positive income forecast.
Dillard's Inc. .
share fell 8.8% on Thursday morning, following a redemption on Wednesday night, showing that the warehouse chain lacked revenue for the first quarter, while the same store sales were flat.
Read: How Cisco works around China tariffs
How do other markets trade?
Asian markets had a mixed increase, with a 1.2% decline for Korea's Kospi
and a 0.6% gain for the Shanghai Composite
SHCOMP, + 0.58%
In Europe, stocks were modestly higher, with Stoxx Europe 600
SXXP, + 0.54%
CLM9, + 1.37%
prices advanced while gold
were softer. The US dollar
DXY, + 0.19%
meanwhile, was edged higher.
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