Close Update: US Stocks Close Higher as Investors Regain Confidence in Interim Trade Deal With China

Wednesday, December 4, 2019 4:38 PM | MT Newswires

US stocks closed higher Wednesday, rebounding from three consecutive sessions of declines after US investors regained confidence in the possibility of an interim trade deal between the US and China.

The Dow Jones Industrial Average was up 0.5%, the S&P 500 was 0.6% higher and the Nasdaq Composite Index was gaining by 0.5%. Almost all the sectors in the S&P 500, except materials, ended the session higher, posting gains between 0.2% and 1.7%, led by energy.

Negotiators for the US anticipate that a phase-one agreement will be reached with China before increased US tariffs on Chinese goods take effect on Dec. 15, Bloomberg reported, citing people familiar with the discussions. US President Donald Trump also said at a meeting in London with German Chancellor Angela Merkel, that the talks with China are going very well. "We will make a lot of progress," Bloomberg News quoted him as saying.

Trump is also proposing to impose tariffs of up to 100% on $2.4 billion worth of French products in response to France's new digital services tax that would affect US tech companies such as Alphabet's (GOOGL, GOOG) Google, Facebook (FB), Apple Inc (AAPL) and Amazon (AMZN), two days after threatening to increase tariffs on steel and aluminum coming from Argentina and Brazil.

In commodities, West Texas Intermediate crude oil futures rose 4% to $58.36 per barrel. Natural gas was down 1.3% to $2.41 per 1 million BTU. Gold futures were down 0.3% to $1,480.10 an ounce, while silver was off 2% to $16.92 an ounce.

Among energy ETFs, the United States Oil Fund was up 3.7% to $12.19, while the United States Natural Gas Fund was down 0.9% to $18.51. Among precious-metal funds, the Vectors Gold Miners ETF was down 1% to $27.48, while SPDR Gold Shares were down 0.1% to $138.92. The iShares Silver Trust fell 1.8% to $15.76.

US MARKETS

NYSE Composite Index was up 91.91 points (+0.7) to 13,458.00

Dow Jones Industrial Average was up 146.97 points (+0.5%) to 27,649.78

S&P 500 was up 19.56 points (+0.6%) to 3,112.76

Nasdaq Composite Index was up 46.03 points (+0.5%) to 8,566.67

GLOBAL SENTIMENT

FTSE 100 was up 29.74 points (+0.4%) to 7,188.50

DAX was up 151.28 points (+1.2%) to 13,140.57

CAC 40 was up 72.46 points (+1.3%) to 5,799.68

Nikkei 225 was down 244.58 points (-1.1%) to 23,135.23

Hang Seng Index was down 328.74 points (-1.3%) to 26,062.56

Shanghai China Composite Index was down 6.58 points (-0.2%) to 2,878.12

UPSIDE MOVERS

(+) RAPT (+10%) Grants Hanmi license for drug in Asia, price target raised at UBS

(+) VAL (+10%) Investor Luminus Management calls for change to board

(+) MED (+6%) Boosts quarter dividend by 51%

DOWNSIDE MOVERS

(-) RVNC (-18%) Prices 6.5 million shares at $17 per share

(-) DT (-7%) Some company stockholders plan to sell 27.5 million shares

(-) INST (-8%) Agrees to be bought for $47.60, below its current price

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