NEW YORK (Reuters) – Wall Street claimed Friday, with Dow and Nasdaq posting their eighth consecutive weekly gains as investors were hoping that the US and China would hammer a deal to settle their long-standing trade war.
All three major US indices ended the session higher, and for the fourth straight session, the S & P 500 held its 200-day moving average, a key technical level.
Conversations between the United States and China will resume in Washington next week, with both parties making progress towards resolving the disputed trade disputes of the two countries.
Tariff-vulnerable industry sectors gave the biggest lift to blue-chip Dow, led by bellwethers Boeing Co., 3M Co., United Technologies Inc and Caterpillar Inc.
"This can only be a false hope with the tariff situation as the tower details still needs to be agreed, says David Carter, chief investment officer at Lenox Wealth Advisors in New York. "That's good news, but it's not over yet."
In fact, the business line's effects were reflected in Deere & Cos's earnings report, which came in part under analytical estimates due to lower international trade. The equities of the agricultural equipment manufacturer fell 2.1
"Solving the trade problem can bring global growth the promise it needs," Carter added. "Without a tariff solution, growth will continue to slow . "
With nearly 80 percent of the S & P 500 companies reporting, the fourth quarter earnings season is largely in the rear-view mirror, with analysts now seeing a 16, earnings increase. 2 percent for the quarter, according to Refinitiv data.
Still, but the view continues to worsen. Earnings for the first quarter are down 0.5 percent today, the first year since mid-2016.
Dow Jones Industrial Average rose 443.86 points, or 1.74 percent to 25.883.25, S & P 500 received 29.87 points or 1.09 percent to 2.775.6 and the Nasdaq Composite increased 45.46 points, or 0.61 percent to 7,472.41.
All 11 major sectors in the S & P 500 ended the session in black.
The price-sensitive financial sector led to the S & P 500's advances and jumped back from Thursday's departure as US treasury divides slipped back.
Shares in PepsiCo increased by 3.1 per cent even after the snack and beverage company had expected a surprising decline in full-year earnings.
Nvidia Corp. rose 1.8 percent after the company's forecasts for its current fiscal year topped Wall Street expectations.
The chipmaker gave the second largest boost to the closely watched Philadelphia SE Semiconductor index, which was up 0.5 percent. The index has jumped almost 18 percent so far this year.
Amazon.com shares were down 0.9 percent after deleting plans for a headquarters in New York.
In fact, each of Amazon's other FAANG members, a group of momentum shares that also include Facebook Inc, Apple Inc, Netflix Inc and Google parent Alphabet Inc, also joined the red-eye session.
Progress issues beyond those falling on the NYSE with a 3.66 to 1 ratio; On Nasdaq, a 2.58-to-1 ratio preferred pros.
S & P 500 posted 47 new 52 week heights and no new downs; Nasdaq Composite recorded 86 new heights and 16 new precipitation.
Volume on US stock exchanges was 7.07 billion shares, compared to 7.43 billion in the last 20 trading days.
Reporting Stephen Culp; Editing by Susan Thomas