By Akanksha Rana
(Reuters) – Wall Street's main indices rose for the second tight session on Tuesday, backed by broad-based gains as investors expressed hope for a resolution to the protracted US-China trade dispute despite mixed signals from both sides.
US stocks closed more than 1% Monday after US President Donald Trump tried to ease tensions by anticipating a new round of talks with Beijing. China's foreign ministry, however, reiterated on Tuesday that it had not received a recent US phone call on trade.
Global stock markets were also comforted with data showing that China's industrial companies returned to profits in July and a meeting of European countries stocks.
An escalation in trade tensions between Washington and Beijing has hit financial markets in recent days after both sides threatened to slap tariffs on each other's goods worth billions of dollars.
"There is (sentiment) still largely about trade and the prospect of an agreement with China and the markets are driven by hope more than anything else at this time," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
Technology shares (), among them most exposed to the trade war, reached 0.6%, while an increase in Johnson & Johnson (N 🙂 pushed the health care system () 0.8% higher.
The drug maker's shares rose 3% after an Oklahoma judge said J&J m I pay $ 572.1
Wall Street has struggled over a deeper line of business and damaged corporate profits and global growth, and the lack of clarity in the pace of US interest rate cuts has only added to the melancholy.
With the next Federal Reserve meeting scheduled for next month, investors are measuring the strength of the US economy following clues to the rates.
Further housing sentiment was data from the Ministry of Commerce showing the Consumer Confidence Index rising 135.1 points, beating growth estimates in August.
The Dow Jones Industrial Average () rose 111.21 points, or 0.43%, to 26.010.04, the S&P 500 () gained 14.73 points, or 0.51%, to 2,893.11 and the Nasdaq Composite () la 49.46 points, or 0.63%, to 7,903.20.
Among other stocks, Philip Morris International Inc (N 🙂 fell 5.7%, to the bottom of the S&P 500, after the tobacco manufacturer said it was in talks with peers Altria Group Inc (N 🙂 to combine in a merger of equals. Altria's shares jumped by 8.6%.
Shares in JM Smucker Co (N 🙂 slipped 9.1% after the packed food producer cut its full-year earnings forecast for the year and missed quarterly earnings and sales estimates.
Papa John's International Inc's (O 🙂 shares reached 6.2% after the pizza chain appointed Arby's Restaurant Group Inc President Rob Lynch as its CEO.
Acquiring cases comprised a plethora of decliners for a 2.66-to-1 ratio on the NYSE and a 1.79-to-1 ratio on the Nasdaq.
The S&P index recorded 22 new 52-week highs and five new lows, while the Nasdaq recorded 31 new highs and 50 new lows.