Stocks open a bit higher on Wall Street ahead of busy week
Jan 16 2020
The Dow Jones Industrial Average gained 83.28 points, or 0.3%, to 28,907.05.
UnitedHealth Group Inc, the largest USA health insurer, rose 2.8% as it affirmed its full-year outlook for 2020 adjusted earnings.
USA and euro zone government bond yields rose as the trade deal marks a major step in ending a dispute that has cut global growth and boosted demand for such safe-haven assets as bonds, gold and currencies like the Japanese yen and Swiss franc. However, the S & P ASX 200 climbed 0.5%, exceeding an internal daily record high of 6,994.80.
KEEPING SCORE: The S&P 500 index rose 0.3% as of 10 a.m.
The Final Word: Despite the grim outlook, USA banks got off to a mostly positive start to earnings season.
Nasdaq Composite index added 95 points, or 1% to close at about 9,274.
Analysts welcomed Washington's move to drop its accusation that China manipulates its currency ahead of the expected signing of a "phase one" trade deal tomorrow. The document listed no major USA trading partner among the 20 economies it monitors for potential manipulation.
The Dow rose 0.1% to 28,939.67, while the Russell 2000 Small Business Index rose 0.4% to 1,675.74. -China trade deal as well as the start of the fourth-quarter corporate earnings season.
Major U.S. stock indexes closed mixed Tuesday, shedding most of their gains from earlier in the day, after a published report revealed that an interim trade deal between the U.S. and China does not remove tariffs on Chinese goods.
Other European automobile stocks also fell after China's top auto body reiterated predictions that sales were likely to shrink for the third consecutive year in 2020.
The modest trade pact that President Donald Trump and China's main negotiator, Liu He, have to sign eases some sanctions against China.
The trade deal may only mark a "detente" in trade tensions, said Stephen Innes of AxiTrader.
Global stocks drifted lower Wednesday as investors grew concerned that an initial U.S. The deal is expected to lower some of the tariffs, as well as increasing Chinese purchases of US agricultural products.
Many investors, however, are already looking ahead to a potentially rosier earnings outlook once Washington and China resolve their trade dispute.
WANING INTEREST: Bank of America fell 2.2% after reporting a drop in fourth-quarter profits because of the rapid decline of interest rates in late 2019. That would be the first time that earnings for the S&P 500 would have declined four quarters in a row since the period ending in mid-2016, according to FactSet.
Reference crude lost 11 cents to $ 58.12 a barrel in electronic trading on the New York Mercantile Exchange.
Benchmark crude oil fell 96 cents to settle at $58.08 a barrel.
Brent crude oil, the global standard, won 1 cent to $ 64.50 a barrel. It rose 29 cents to $ 64.49 a barrel on Tuesday.
Gold rebounded, gaining $8.00 to $1,552.60 per ounce.
The dollar fell to 109.88 Japanese yen from 109.97 yen on Tuesday.
The euro fell 0.04% at $1.1128 while the pound sterling edged up 0.25% at $1.3022.