Positive China News Helps Stocks Rise
Huawei can continue selling to U.S. suppliers -- for now
The Dow rallied today thanks to upbeat news around the U.S.-China relationship. The tech sector got a spark from news that the Trump administration is extending Huawei's license to do business with U.S. suppliers, and traders also cheered interest rate reform out of China. Rebounding Treasury yields also lifted sentiment on Wall Street. The winning session marks a third straight for the Dow and S&P, while the Nasdaq's win streak is still just at two -- though sentiment data suggests stocks could keep rebounding from last week's sell-off.
Continue reading for more on today's market, including:
2 drug stocks analysts think can triple. The blue chip option bears are targeting before earnings. How traders are playing the Kohl's quarterly report. Plus, stock hit by bankruptcy news; electronics stock surges; and Aramark jumps on a new stake.
The Dow Jones Industrial Average (DJI - 26,135.79) added about 250 points, or 1%. UnitedHealth Group (UNH) and American Express (AXP) were the only Dow losers, losing 0.4% and 0.2%, respectively. Cisco Systems (CSCO) paced the 28 advancing blue chips, adding 3.3%.
The S&P 500 Index (SPX - 2,923.65) gained about 35 points, or 1.2%, while the Nasdaq Composite (IXIC - 8,002.81) tacked on 106.8 points, or 1.4%, to mark its first finish above 8,000 since Aug. 13.
The Cboe Volatility Index (VIX - 16.88) lost 1.6 points, or 8.6%.
5 Items on our Radar Today
More data shows that Americans are spending more eating out at restaurants. Industry sales are expected to top $863 billion in 2019, which would represent an all-time high and a 3.6% gain from a year earlier. (CNBC)Social media companies Twitter (TWTR) and Facebook (FB) both said they found concerted efforts of fake accounts from China attempting to manipulate protesters in Hong Kong. Services for both companies are forbidden in mainland China. (The Verge) Bankruptcy buzz hits PG&E again. The electronics stock that rallied to fresh highs. Aramark spiked thanks to a move from a high-profile investor.
Data courtesy of Trade-Alert
Oil Gains with Stocks
Oil prices rose today alongside equities, following a drone attack on an oil facility in Saudi Arabia. October-dated crude futures added $1.33, or 2.4%, to $56.14 per barrel.
Gold, meanwhile, moved lower today, as traders turned to riskier assets. December-dated gold futures fell $12, or 0.8%, to end at $1,511.60 an ounce.