Tech leads Wall St. rebound on upbeat trade talk - Metro US

Tech leads Wall St. rebound on upbeat trade talk

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 13, 2019. REUTERS/Brendan McDermid
By Stephen Culp

By Stephen Culp

NEW YORK (Reuters) – U.S. stocks on Tuesday reclaimed some of the ground lost in the prior day’s steep sell-off, with tariff-sensitive technology stocks leading the S&P 500 and the Nasdaq higher as investors were heartened by a tonal shift in U.S.-China trade rhetoric.

All three major U.S. indexes closed in the black, although they pared gains late in the day and clawed back less than half of Monday’s losses, which were the largest one-day percentage drops in months. The bellwether S&P 500 remains nearly 4% below its all-time high reached two weeks ago.

Investors’ nerves were calmed after U.S. President Donald Trump referred to the escalating trade war with China as “a little squabble,” and added, “We have a good dialogue going.”

Beijing echoed that sentiment. A Chinese Foreign Ministry spokesman told reporters: “My understanding is that China and the United States have agreed to continue pursuing relevant discussions.”

“(Today) was a good buying opportunity in terms of how low prices got yesterday,” said Jim Bell, chief investment officer at Bell Investment Advisors in Oakland, California. “And now Trump is trying to smooth the waters.

“I assume a lot of people still take the president seriously when he makes these comments,” Bell added. “There’s still strong support for his policies and people want to believe what he’s saying, that it’s going to end well.”

Boeing Co provided the biggest boost to the Dow, rising 1.7% as tariff-vulnerable industrials buoyed the blue chip index.

Ralph Lauren Corp fell 3.7% after the apparel company posted quarterly results that included disappointing North American sales.

Uber Technologies and ride-hailing rival Lyft Inc reversed course after their post-debut slides. Their stocks advanced 7.7% and 4.9%, respectively.

Uber’s shares rose another 6.4 percent in after-the bell trading after a U.S. labor agency said it had concluded that the company’s drivers were independent contractors, not employees.

Walt Disney Co announced it would take control of Comcast Corp’s Hulu in a move to challenge Netflix and others in the global video streaming war.

Disney stock climbed 1.4%, while Comcast gained 1.5%. Netflix edged up 0.1%.

The Dow Jones Industrial Average rose 207.06 points, or 0.82%, to 25,532.05, the S&P 500 gained 22.54 points, or 0.80%, to 2,834.41, and the Nasdaq Composite added 87.47 points, or 1.14%, to 7,734.49.

Of the 11 major sectors of the S&P 500, all but utilities closed in the black. Technology stocks posted the largest percentage gains, climbing 1.6%.

Chipmakers enjoyed a reprieve, with the Philadelphia SE Semiconductor Index rising 2.4% after suffering its worst one-day percentage loss since Jan. 3.

The first-quarter earnings season is winding down, with 453 of the S&P 500 companies having reported. Of those, 75.3% beat analyst expectations, slightly below the 76% beat rate for the last four quarters.

Advancing issues outnumbered declining ones on the NYSE by a 3.16-to-1 ratio; on Nasdaq, a 2.67-to-1 ratio favored advancers.

The S&P 500 posted 25 new 52-week highs and six new lows; the Nasdaq Composite recorded 51 new highs and 86 new lows.

Volume on U.S. exchanges was 6.62 billion shares, compared to the 7.01 billion average over the last 20 trading days.

(Reporting by Stephen Culp; Editing by Leslie Adler)

More from our Sister Sites