FILE PHOTO – Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 29, 2018. REUTERS/Brendan McDermid
April 9, 2018
By Sweta Singh
(Reuters) – All three major U.S. indexes rose more than a percent on Monday as gains in technology shares and a softer stance by U.S. policymakers on China trade tariffs powered a rebound in stocks from last week’s selloff.
Nine of the 11 major S&P sectors were higher and 27 of the 30 Dow components were in the positive territory. Boeing <BA.N> was the biggest boost to the Dow, while gains in Apple shares <AAPL.O> led the S&P 500.
The FANG group, comprising four closely watched internet stocks: Facebook Inc <FB.O>, Amazon.com Inc <AMZN.O>, Netflix Inc <NFLX.O> and Alphabet Inc’s Google <GOOGL.O>, were up between 1.1 percent and 3.4 percent.
Earlier in the day, U.S. President Donald Trump’s economic adviser Larry Kudlow told CNBC the president may be open to forming an international coalition to grapple with Chinese trade issues.
“The president is amenable to that. He’s not necessarily out soliciting support yet, but he is amenable,” Kudlow said.
Global markets came under pressure last week as the United States and China threatened each other with tens of billions worth of tariffs. Investors remained on edge as they feared protectionist measures would hit global economic growth.
The week also marks the start of earnings season with big U.S. banks such as JPMorgan Chase <JPM.N>, Citigroup <C.N> and Wells Fargo <WFC.N> set to report first-quarter results on Friday.
Investors expect tax cuts to help corporate America show its biggest quarterly profit growth in seven years.
“Today the markets are looking positive as a probable healthy earnings helped by the recent tax benefits and a strong economy acts as a breath of fresh air,” said Andre Bakhos, Managing Director at New Vines Capital Llc In Bernardsville.
At 11:15 a.m. ET the Dow Jones industrial average <.DJI> was up 290.33 points, or 1.21 percent, at 24,223.09.
The S&P 500 <.SPX> was up 32.28 points, or 1.24 percent, at 2,636.75 and the Nasdaq Composite <.IXIC> was up 113.21 points, or 1.64 percent, at 7,028.32. Among stocks, AveXis <AVXS.O> rose 77.6 percent after Swiss drugmaker Novartis <NOVN.S> offered to buy the gene therapy company for $8.7 billion.
Merck’s <MRK.N> shares rose 3.6 percent after the drugmaker’s blockbuster cancer drug, Keytruda, met the main study goal of helping previously untreated lung cancer patients live longer.
Shares of Leucadia National <LUK.N> climbed 7.5 percent after the company said it would sell most of its non-financial assets to focus on investment banking and capital market businesses.
General Motors <GM.N> was up 1.4 percent after Morgan Stanley raised it to “overweight”.
Advancing issues outnumbered decliners on the NYSE for a 2.44-to-1 ratio on the upside. On the Nasdaq, 1,986 issues rose and 790 fell for a 2.51-to-1 ratio favoring advancers.
The S&P 500 index showed no new 52-week highs and three new lows, while the Nasdaq recorded 23 new highs and 25 new lows.
(Reporting by Sweta Singh in Bengaluru, Additional reporting by Diptendu Lahiri; Editing by Arun Koyyur)
