Wall Street rises on trade hopes; Boeing keeps gains in check

Cornelia Mascio
Ottobre 22, 2019

Earlier in the day, White House economic adviser Larry Kudlow told Fox Business Network that they could cancel the December tariffs if trade talks were to continue to go well with China.

A 1.2% gain in financial stocks also propped up the S&P 500 index.

Trade-sensitive technology stocks gained 0.8%, while the Philadelphia Semiconductor index climbed 1.6% on gains in US chipmakers with a large exposure to China. Semiconductor companies, which derive much of their revenue from China, especially climbed. The benchmark S&P 500 index ended Friday with its second weekly gain, while the Nasdaq rose for the third week in a row.

Stocks have also benefited from the steepening U.S. Treasury yield curve as well as better-than-expected corporate earnings thus far, said Mona Mahajan, U.S. investment strategist at Allianz Global Investors in NY. "Thus far, the early signs we're seeing are favorable".

Boeing (NYSE:BA) dragged on the Dow, as the company fell 5% after Credit Suisse (SIX:CSGN) and UBS downgraded the company to "neutral" from "buy", following reports that Boeing pilots were aware of safety issues with the 737 MAX's flight control software as long ago as 2016.

The broad-based S&P 500 gained 0.5 per cent to 3,000.14, while the tech-rich Nasdaq Composite Index advanced 0.6 per cent to 7,914.56.

This week's earnings lineup includes high-profile companies such as Boeing, Microsoft Corp MSFT.O , Procter & Gamble Co PG.N , United Parcel Service Inc UPS.N and Caterpillar Inc CAT.N .

The Dow Jones Industrial Average rose 43 points, or 0.2%, to 26,813.

Boeing is scheduled to report earnings on Wednesday.

Coty (NYSE:COTY) jumped 12.4% on news that it is planning to sell its professional beauty business that houses brands such as Wella and OPI.

The drug distributors, along with Teva Pharmaceutical Industries, reached a settlement with two OH counties related to the opioid crisis.

The S&P index recorded 35 new 52-week highs and two new lows, while the Nasdaq recorded 76 new highs and 39 new lows.

Volume on USA exchanges was 5.92 billion shares, which was below the 6.55 billion average for the last 20 trading sessions.

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