Thursday, May 13

Wall Street gains on trade reprieve ahead of long weekend

(Reuters) – U.S. stocks gained on Friday, ahead of a long Memorial day weekend, as investors breathed a sigh of relief after President Donald Trump indicated that the protracted trade war with China could end soon.

Trump said on Thursday that Huawei Technologies Co Ltd could be included in the trade deal. However, no high-level talks have been scheduled since the last round of negotiations in Washington two weeks ago.

The positive news came after a slump in markets on Thursday. The S&P 500 index is on pace to end the week 1% lower, which would make it the third straight week of losses for the benchmark index, as markets worried that the trade war would result in a global economic slowdown.

Adding to concerns that the broader economy was slowing, data showed that U.S.-made capital goods fell more than expected in April.

“The positive trade narrative has trumped data today,” said Mike Dowdall, investment strategist for BMO Global Asset Management, in Chicago.

“There has been a reversal in sentiment in trade, which has helped stocks bounce back. Markets are watching each small statement that is coming out to decipher broadly where talks are going.”

At 11:03 a.m. ET the Dow Jones Industrial Average was up 34.87 points, or 0.14%, at 25,525.34, the S&P 500 was up 2.14 points, or 0.08%, at 2,824.38 and the Nasdaq Composite was up 18.30 points, or 0.24%, at 7,646.58.

Technology shares, that were among the hardest hit this week, rose 0.27%, boosted by gains in chipmaker Intel and iPhone maker Apple Inc.

Financials gained 0.29%, as U.S. treasury yields rose for the first time in three days, and gave a lift to markets.

However markets were off their session highs, with traders saying volatile trading and thin volumes were likely as market participants geared up for the long weekend.

Foot Locker Inc plunged 16.8%, the most on the S&P, after the footwear retailer missed quarterly profit and same-store sales estimates.

Total System Services Inc jumped 10.6% after Bloomberg reported Global Payments Inc has held preliminary tie-up talks with the payment solutions provider. Global Payments’ shares rose 3.0%.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 23, 2019. REUTERS/Brendan McDermid

Autodesk Inc fell 5.8% after the software maker reported quarterly earnings below expectations.

Advancing issues outnumbered decliners by a 1.77-to-1 ratio on the NYSE and by a 1.85-to-1 ratio on the Nasdaq.

The S&P index recorded 36 new 52-week highs and 10 new lows, while the Nasdaq recorded 30 new highs and 58 new lows.

Reporting by Shreyashi Sanyal and Amy Caren Daniel in Bengaluru; Editing by Arun Koyyur

Our Standards:The Thomson Reuters Trust Principles.

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