sunny.png
Friday September 20th, 2019 6:43PM

Stocks extend gains into 6th day on trade hopes

By The Associated Press

NEW YORK (AP) — U.S. stocks marched higher in early trading Tuesday on Wall Street and extended a winning streak that has recouped much of May's sharp losses.

The strong opening marks the sixth consecutive day of gains. Stocks are moving closer to erasing the 6.6% decline in May that was fueled by concerns about the trade dispute between the U.S. and China.

The rally in stocks started last week when the Federal Reserve signaled that it is open to cutting rates to stabilize the economy if trade disputes threaten the economic recovery. Investors grew more hopeful Monday after President Donald Trump suspended plans to impose tariffs on Mexican goods after the countries struck a deal on immigration. Trump also plans to meet with Chinese President Xi Jinping in Japan later this month to discuss their ongoing trade war.

Technology stocks led the early gains. Apple rose 1%, Cisco rose 1.5%, and Nvidia rose 1.5%.

Banks helped push financial stocks higher as lower bond prices pushed treasury yields higher. The sector suffered in May as investors fled to the safety of bonds and pushed yields lower, threatening to reduce the profit banks make from loans. Higher yields help push interest rates higher, generating more profits. Bank of America rose 2%.

A range of consumer-related stocks also posted gains. Amazon rose 1%, Nike rose 1.8% and Home Depot and General Motors rose 1.5%. They are among a wide range of companies that will likely suffer if trade wars escalate and economic growth slows.

Tesla gained 3.4% ahead of its annual shareholder meeting, where CEO Elon Musk is expected to be asked about the company's stock price, which is down 36% this year.

Heavy equipment maker Caterpillar rose 2.4% as mining stocks rallied.

Utilities fell as investors shifted from the safe-play sector and headed for stocks with more growth potential.

KEEPING SCORE: The S&P 500 index rose 0.7% as of 10:05 a.m. Eastern time. The Dow Jones Industrial Average rose 112 points, or 0.4%, to 26,174. The Nasdaq composite rose 0.9%.

TRIMMING THE (FAUX) FAT: Beyond Meat fell 19% after J.P. Morgan's Ken Goldman and James Allen downgraded the stock to 'neutral'. The downgrade follows a surge in the stock price from $25 to $167 since the maker of plant-based meat alternatives started trading publicly on May 2.

The sharp rise in price cost short sellers about $400 million, according to the research firm S3.

In a note to clients Tuesday, Goldman and Allen said the downgrade was "purely a valuation call."

GOOD RETURNS: Tax preparer H&R Block jumped 8.5% after hitting investors with a triple-dose of solidly good news. The company beat fiscal fourth quarter profit expectations, raised its quarterly dividend and announced an acquisition.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
New Jersey mandates panic buttons for hotel room cleaners
New Jersey Gov. Phil Murphy has signed a law requiring most of the state's hotels to provide their workers with wearable panic buttons they can press to quickly summon help in an emergency
10:26AM ( 15 minutes ago )
The Latest: Official: Lebanese freed by Iran now in Beirut
Lebanese airport official says a Lebanese businessman and U.S. resident freed by Iran has arrived in Beirut
10:24AM ( 17 minutes ago )
Democrats push new strategy for enforcing Russia subpoenas
Democrats are pushing a resolution through the House Tuesday that would make it easier to sue President Donald Trump's administration and potential witnesses
10:23AM ( 18 minutes ago )
Associated Press (AP)
Boris Johnson builds momentum in UK Conservative race
Boris Johnson has solidified his front-runner status in the race to become Britain's next prime minister by gaining backing from leading pro-Brexit lawmakers
9:57AM ( 44 minutes ago )
The Latest: White House says Biden threat remark 'laughable'
The White House says Joe Biden's plan to call President Donald Trump an 'existential threat' to the nation is 'truly laughable' as the 2 politicians converge in Iowa
9:23AM ( 1 hour ago )
Democrats reevaluating plans to hike lawmakers' pay
A bipartisan push to increase lawmakers' salaries after a decade-long pay freeze could be close to unraveling
9:16AM ( 1 hour ago )
AP Business
China mum on Trump-Xi meeting as Huawei says sales slowing
China mum on Trump-Xi meeting as Huawei says sales growth slowing
7:55AM ( 2 hours ago )
Biden and Trump head to Iowa in a potential 2020 preview
President Donald Trump and Democratic presidential candidate Joe Biden to visit Iowa, where Biden plans to criticize Trump's economic policy
7:41AM ( 3 hours ago )
Global shares rise as Trump plans to meet Chinese leader
Global shares advance as Trump says he expects to meet with Chinese leader
7:36AM ( 3 hours ago )
AP Business - Economy
Stocks rise after US deal with Mexico; car companies gain
Technology companies are helping power stocks higher on Wall Street in late-afternoon trading after the U.S. and Mexico averted a trade war and potentially damaging tariffs
3:45PM ( 18 hours ago )
Stocks rise after US deal with Mexico; car companies rise
U.S. stocks move higher after new tariff threat is lifted in a deal with Mexico
10:27AM ( 1 day ago )
Markets Right Now: Stocks rise on US deal with Mexico
Stocks are rising Monday as investors welcome a deal between the U.S. and Mexico that avoids the imposition of tariffs.
9:51AM ( 1 day ago )
AP Business - Financial Markets
New Jersey mandates panic buttons for hotel room cleaners
New Jersey Gov. Phil Murphy has signed a law requiring most of the state's hotels to provide their workers with wearable panic buttons they can press to quickly summon help in an emergency
10:26AM ( 15 minutes ago )
The Latest: Official: Lebanese freed by Iran now in Beirut
Lebanese airport official says a Lebanese businessman and U.S. resident freed by Iran has arrived in Beirut
10:24AM ( 17 minutes ago )
Democrats push new strategy for enforcing Russia subpoenas
Democrats are pushing a resolution through the House Tuesday that would make it easier to sue President Donald Trump's administration and potential witnesses
10:23AM ( 18 minutes ago )
The Latest: Drug charges against Russian journalist dropped
Russia's interior minister says all charges against an investigative journalist arrested on suspicion of drug dealing have been dropped
10:22AM ( 19 minutes ago )
Trump and Biden head to Iowa in a potential 2020 preview
President Donald Trump and Democratic presidential candidate Joe Biden to visit Iowa, where Biden plans to criticize Trump's economic policy
10:08AM ( 33 minutes ago )