US stocks closed higher on Tuesday for the third consecutive trading session as investors grew hopeful that the US and China will strike a trade pact.
By the bell, the Dow Jones Industrial Average ended 256 points higher to hit 23,787 while the tech-laden Nasdaq climbed 74 points to finish at 6,897.
The market momentum came on news that China and the US are locked in negotiations to repair their ongoing trade spat. The world’s two biggest economies will continue trade discussions in Beijing for a third day, according to a Reuters report.
The S&P industrials sector, which tracks companies exposed to international trade concerns, jumped 1.4% on the progress in Beijing. And Boeing (NYSE:BA) performed particularly well, adding 3.79% to finish at $340.53 after the aircraft maker said it broke a record by delivering 806 aircraft last year.
Apple shares (NASDAQ:AAPL) also finished nearly 2% higher to hit $150.75 after CEO Tim Cook took steps to appease investors who remain unhappy about Apple’s recent move to cut its quarterly revenue forecast. In a CNBC interview with Jim Cramer, Cook said Apple’s ecosystem of phones, tablets and computers is “probably underappreciated”.
Elsewhere, the S&P 500 added 24 points to finish at 2,574 while the Russell 2000 index of small-cap stocks popped by 21 points to end at 1,426.
Up in Canada, Toronto’s TSX rose 101 points to close at 14,605.
12:55 PM: Dow Jones index posts triple-digit gain on China trade talk progress
US stocks rose Tuesday on progress cited by the US and China in trade discussions, with the Dow Jones Industrial Average posting triple-digit gains.
In early-afternoon trading, the Dow climbed 224.49 points, or 1%, to 23,758.84. The Nasdaq advanced 0.7% to 6,868.38.
The market was looking ahead to President Donald Trump’s Tuesday evening address to the American people on the partial government shutdown. It was.triggered by a clash with Democrats over his demand for money to build a border wall. The impasse is in its third week.
Boeing Co. (NYSE:BA) was the best performer among the blue chips, climbing 3.7% to $339.89 on the trade talks' progress. Caterpillar Inc (NYSE:CAT) advanced 1.7% to $130.37. Both companies count China as a major customer.
The broader-based S&P 500 Index increased 0.6% to 2,565.70.
Small-caps had a good day, with the Russell 2000 index climbing 1% to 1,419.90.
In Canada, the S&P/TSX Composite Index edged up 0.4% to 14,560.08.
9:45AM: US stocks build on gains on optimism over US-China trade talks
US stocks got off to a positive start Tuesday, as investors hoped for a third-straight session of wins backed by optimism over trade talks between the United States and China.
All the major stock indexes were deep in the green on the back of a broad rally.
The Dow Jones Industrial Average index added 268.41 points, or 1.14% to 23,799.76 led higher by Boeing Co, Caterpillar Inc and United Health Group, which all climbed nearly 2%.
The S&P 500 climbed nearly 1% to 2,573.88, led higher by Union Pacific Corp which shot up 9% after the top US railroad named industry veteran Jim Vena as chief operating officer, prompting upgrades by several brokerages.
Meanwhile, the tech-laden Nasdaq added 80.70 points, or 1.18% to 6,904.17 points.
The Russell 2000 index of small-cap stocks climbed 0.87% to 1,417.56.
7:17AM: Wall Street seen starting higher but tech worries back on the agenda
Wall Street shares are seen starting higher after a positive close yesterday, while European benchmarks are also up, despite more negative vibes in the tech sector.
South Korean giant Samsung has warned that fourth-quarter operating profit is poised to plunge nearly 30% compared to last year.
Majority of Wall Street pros see a stock market comeback led by tech in 2019: CNBC survey https://t.co/TjpGKFvN5I— CNBC (@CNBC) 7 January 2019
It comes after shock news last week that CEO Tim Cook's behemoth Apple (NASDAQ:AAPL) was facing lower iPhones sales than previously expected, mainly because of an economic slowdown in China - which is a vital hub of global trade.
US stocks closed on Monday higher. The Dow Jones Industrial Average rose over 98 points to hit 23,531, adding to gains from last week that followed dovish comments from the Federal Reserve Chair Jerome Powell.
The Nasdaq closed up over 84 at 6,823 and the S&P 500 added almost 18 points at 2,549.
Futures trade is also up. The Dow Jones is up 153 points, while the Nasdaq is up over 38 points, while the S&P 500 is ahead by around 15 points.
In European stocks, FTSE 100 is ahead by over 68 points at 6,879. The German DAX is up 82 and the French CAC 40 is ahead by over 65 at 4,784.
Connor Campbell, analyst at spreadbetter Spreadex.com, said: "With the prospect of a decent US open on the horizon, the European markets levelled up their gains as Tuesday lunchtime approached.
"Holding out for a positive resolution to the ongoing trade talks between the US and China, the FTSE added 70 points, touching 6880 for the first time in almost 4 weeks," he noted.