sunny.png
Tuesday March 19th, 2019 1:14PM

Stocks climb on trade talks and encouraging economic report

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — U.S. stocks are rising again Monday as retailers and smaller companies rally after a report showed strong orders last month for service-sector companies, where most Americans work. Representatives from the U.S. and China began another round of trade negotiations. Technology and health care companies also rose.

KEEPING SCORE: The S&P 500 index added 19 points, or 0.8 percent, to 2,550 as of 2:45 p.m. Eastern time. The Dow Jones Industrial Average climbed 106 points, or 0.5 percent, to 23,540. The Nasdaq gained 75 points, or 1.1 percent, to 6,813. The Russell 2000 index jumped 21 points, or 1.5 percent, to 1,402.

The S&P 500 is on track for its highest close in more than three weeks. It has climbed 9.5 percent since Dec. 24, but is still 13 percent below its record high from late September.

SURVEY SAYS: The Institute for Supply Management said an index of new orders for service companies rose last month. Overall, U.S. service firms kept growing, although the pace of that growth slowed somewhat. The services sector covers a broad variety of industries including banking, education, health care and construction.

Amazon rose 3 percent to $1,622 and Home Depot picked up 2 percent to $177.80 while General Motors climbed 3.6 percent to $34.53.

HIGH HOPES: Stocks have risen recently as investors hoped that the U.S. and China will finally make progress in trade talks. But they remain fearful that the trade dispute is far from a resolution. The U.S. and China both placed new tariffs on billions of dollars' worth of each other's imports in 2018, and those taxes are likely to rise in March if they don't make progress in negotiations.

Reports of the latest round of trade discussions contributed to the market's big rally Friday.

SHAKING THE TREE: Dollar Tree rose after activist investment firm Starboard value disclosed a stake in the discount retailer and pushed the company to consider changes, including selling the Family Dollar business it bought in 2015. It nominated seven candidates for seats on Dollar Tree's board of directors. The stock climbed 4.8 percent to $97.30.

POWER FAILURE: The parent company of Pacific Gas & Electric plunged after Reuters reported that the company might file for bankruptcy protection as it faces potentially huge liabilities connected to deadly wildfires in California. The cause of the Camp wildfire hasn't been determined, but PG&E reported an outage around the time and place it began. The fire killed at least 86 people and destroyed 15,000 homes. PG&E also faces lawsuits related to wildfires in 2017.

The company's stock dropped 22 percent to $19.02. PG&E stock traded at almost $70 a share in October 2017 and was valued at about $48 in November 2018.

ENERGY: Oil prices continued their recent rally. U.S. crude rose 1.2 percent to $48.52 per barrel in New York. After sinking to an 18-month low of $42.53 a barrel on Dec. 24, the price of U.S. crude has risen for seven of the last eight trading days, and is up 14 percent over that time. Brent crude, used to price international oils, rose 0.5 percent to $57.33 per barrel in London.

LILLY AND LOXO: Eli Lilly will buy Loxo Oncology for about $8 billion as it bulks up on cancer treatments that target gene abnormalities. Loxo soared 66.5 percent to $232.85 and Eli Lilly added 0.4 percent to $115.17.

The deal marks the second big pharmaceutical acquisition announced in the new year. On Thursday Bristol-Myers Squibb agreed to buy Celgene for $74 billion in cash and stock, one of the largest drug industry acquisitions of all time.

POLITICAL RISKS: The partial shutdown of the U.S. government stretched into its third week, and there were few signs of progress in staff-level talks over the weekend. That means many hundreds of thousands of federal workers aren't getting their paychecks, which could slow the economy.

SHOCK EXCHANGE: Shares of the companies that run stock exchanges fell after a group of nine banks, brokers and other companies said they are planning to launch a new exchange. The companies said the Members Exchange will reduce costs and simplify trading.

Nasdaq fell 2.9 percent to $79.58 and Intercontinental Exchange, the parent company of the New York Stock Exchange, fell 2.6 percent to $73.68. Cboe Global Markets shed 1.7percent to $96.69.

BOY TOYS: Mattel jumped 6.9 percent to $11.13 after the toy company said it's gained the rights to make dolls of the South Korean pop band BTS. Last year BTS became the first K-Pop group to reach the top slot on the Billboard Top 200. The licensing agreement also covers collectible figures and games.

BONDS: Bond prices fell. The yield on the 10-year Treasury note rose to 2.68 percent from 2.65 percent.

OTHER COMMODITIES: Wholesale gasoline dipped 0.5 percent to $1.34 a gallon and heating oil rose 0.5 percent to $1.78 a gallon. Natural gas sank 3.3 percent to $2.94 per 1,000 cubic feet.

Gold rose 0.3 percent to $1,289.90 an ounce. Silver slipped 0.2 percent to $15.76 an ounce. Copper fell 0.4 percent to $2.64 a pound.

CURRENCIES: The dollar fell to 108.59 yen from 108.51 yen. The euro rose to $1.1477 from $1.1400. The British pound rose to $1.2766 from $1.2740.

OVERSEAS: Germany's DAX shed 0.2 percent and the FTSE 100 in Britain and CAC 40 France both fell 0.4 percent.

The Japanese Nikkei 225 index gained 2.4 percent, while South Korea's Kospi rose 1.3 percent. Hong Kong's Hang Seng climbed 0.8 percent.

____

Associated Press Writer Annabelle Liang contributed from Singapore

  • Associated Categories: Associated Press (AP), AP Entertainment, AP Online Recordings News, AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Clemency granted to woman sentenced to life at age 16
A woman who says she was a victim of sex trafficking when she killed a man in 2004 was granted clemency Monday by Tennessee's governor and will be released from prison
3:06PM ( 12 minutes ago )
Saudi woman seeking asylum can stay temporarily in Thailand
Authorities say a young Saudi woman who fled alleged abuse by her family and wants asylum can stay in Thailand while her case is evaluated by U.N. authorities
3:04PM ( 14 minutes ago )
World Bank President Jim Yong Kim announces his departure
World Bank President Jim Yong Kim announces his departure at end of month
2:56PM ( 21 minutes ago )
Associated Press (AP)
New York City firefighter plunges to his death from bridge
A New York City firefighter responding to a car accident in Brooklyn has died after falling from an overpass
2:22PM ( 55 minutes ago )
One more sign K-Pop is here to stay, a contract with Mattel
A big get in toy world; Mattel signs global licensing deal with K-pop sensation BTS
2:05PM ( 1 hour ago )
The Latest: Trump to address nation about 'crisis' at wall
President Donald Trump says he will address the nation Tuesday night about what says is a "crisis" at the U.S.-Mexico border
2:04PM ( 1 hour ago )
AP Business
US stocks edge higher after huge swings in recent trading
Stocks are edging higher in early trading on Wall Street as the U.S. and China begin a new round of trade talks and investors calm down, at least for now, after markets made outsized moves over the past two days of trading
10:40AM ( 4 hours ago )
Eli Lilly to spend about $8B on Loxo Oncology
Eli Lilly to buy Loxo Oncology for about $8 billion, broadening its lineup of cancer treatments.
7:49AM ( 7 hours ago )
Tesla breaks ground on factory in Shanghai
Tesla breaks ground for Shanghai factory, plans production by end of year
5:39AM ( 9 hours ago )
AP Business - Corporate News
China protests over US warship sighting as trade talks start
China urges U.S. to create good conditions for trade talks after protesting sighting of a U.S. warship
11:15AM ( 4 hours ago )
US service firms grew at slower pace in December
Survey: US service firms grew at slower pace in December with index reading of 57.6 percent
10:29AM ( 4 hours ago )
Stock markets lose shine as focus turns to US-China tensions
Stocks in Europe fall but Wall Street set for a steady opening
8:39AM ( 6 hours ago )
AP Business - Economy
The Latest: Scientific conferences fall victim to shutdown
Hundreds of government scientists are missing major scientific conferences because of partial government shutdown
7:26PM ( 19 hours ago )
Stocks swing to huge gains after jobs report, trade talks
Stocks soar on Wall Street, erasing the plunge they took a day earlier, as a string of encouraging developments relieve investors who have been worried about the U.S. economy
8:44PM ( 2 days ago )
Markets Right Now: Stocks soar, erasing Thursday's plunge
Wall Street roared back, wiping out all of the losses from the previous day, as a barrage of positive news eased concerns about the economy and interest rates.
4:12PM ( 2 days ago )
AP Business - Financial Markets
A look at Gabon, where government foiled an attempted coup
A look at Gabon, the Central West African country where the government put down an attempted coup
12:32PM ( 2 hours ago )
Sweden: No Ebola virus detected in hospital patient
Swedish health officials say a suspected Ebola case reported by a hospital has turned out to be a false alarm with tests carried out on the unidentified patient showing no signs of the deadly virus
5:21AM ( 2 days ago )
Outgoing US Interior secretary defends legacy as he leaves
As former U.S. Interior Secretary Ryan Zinke exits Washington chased by unresolved ethics investigations, he says he has lived up to the conservation ideals of Teddy Roosevelt and insists the myriad allegations against him will be proven untrue
6:29PM ( 2 days ago )
AP Business - Industries
Bristol-Myers Squibb buying Celgene in $74B deal
Bristol-Myers Squibb is buying Celgene in a cash-and-stock deal valued at about $74B
6:00PM ( 3 days ago )
AP Business - Health Care
Clemency granted to woman sentenced to life at age 16
A woman who says she was a victim of sex trafficking when she killed a man in 2004 was granted clemency Monday by Tennessee's governor and will be released from prison
3:06PM ( 12 minutes ago )
Saudi woman seeking asylum can stay temporarily in Thailand
Authorities say a young Saudi woman who fled alleged abuse by her family and wants asylum can stay in Thailand while her case is evaluated by U.N. authorities
3:04PM ( 14 minutes ago )
World Bank President Jim Yong Kim announces his departure
World Bank President Jim Yong Kim announces his departure at end of month
2:56PM ( 21 minutes ago )
Kevin Spacey pleads not guilty to groping young man at bar
Kevin Spacey has pleaded not guilty to groping an 18-year-old busboy in a Massachusetts bar in 2016
2:51PM ( 26 minutes ago )
'RBG,' 'Won't You Be My Neighbor?' get directors guild noms
'RBG,' 'Won't You Be My Neighbor?' receive Directors Guild documentary nominations; 'Atlanta,' 'Ozark' and 'Escape at Dannemora' earn nods for actor-directors
2:39PM ( 39 minutes ago )