Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks - Wall Street Jumps After China Trade Comments

Published 29/08/2019, 14:52
Updated 29/08/2019, 15:11
© Reuters.

© Reuters.

Investing.com – Wall Street opened higher on Thursday after comments from China helped ease trade war tensions, while revised data for the economy in the second quarter showed domestic consumption still growing strongly.

Chinese officials confirmed on Thursday that they are working with the U.S. to schedule talks in September. Chinese ministry spokesperson Gao Feng said the discussions should focus on preventing escalations and resolving trade issues calmly. The comments reassured participants that there would be no further escalations of the conflict but did nothing to stop the latest in a series of U.S. tariffs on Chinese goods coming into force at the weekend.

The Dow jumped 281 points or 1.1% by 9:51 AM ET (13:51 GMT), while the S&P 500 gained 33 points or 1.2% and the Nasdaq composite was up 118 points or 1.5%.

Walt Disney (NYSE:DIS) rose 1% after a UBS survey found that 43% of households intended to subscribe to the company’s Disney+ streaming service, which is much more than the 20% to 30% Disney projected. Guess? jumped 21.7% after its quarterly profit came in above forecasts due to stronger sales and improved expense management, while Apple (NASDAQ:AAPL) rose 1.5% and Facebook (NASDAQ:FB) gained 2.1%.

Elsewhere, Best Buy (NYSE:BBY) slumped 9% after it lowered its guidance for the rest of the year, citing the impact of higher tariffs on imported Chinese goods. Abercrombie & Fitch (NYSE:ANF) fell 11.6% after comparable store sales growth ground to a halt and the company warned that scheduled tariff increases would hit profit margins over the rest of this fiscal year.

Stronger-than-expected earnings from Dollar General (NYSE:DG) and Dollar Tree (NASDAQ:DLTR) also helped reinforce impressions of consumer strength, which was also reflected in the 4.7% growth in real consumer spending in the revised GDP data for the second quarter published earlier.

However, Oxford Economics analyst Gregory Daco warned that the strength of domestic consumption was "unlikely to last."

"Drag from business investment, trade and inventories is rising," Daco said via Twitter.

Stronger-than-expected earnings from Dollar General (NYSE:DG) and Dollar Tree (NASDAQ:DLTR) also helped reinforce impressions of consumer strength, which was also reflected in the 4.7% growth in real consumer spending in the revised GDP data for the second quarter published earlier.

However, Oxford Economics analyst Gregory Daco warned that the strength of domestic consumption was "unlikely to last."

"Drag from business investment, trade and inventories is rising," Daco said via Twitter.

In commodities, crude oil rose 1% to $56.34 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.2% to 98.322 and gold futures were flat at $1,548.75 a troy ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.