FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., December 21, 2016. REUTERS/Andrew Kelly/File Photo
December 10, 2019
By Shreyashi Sanyal and Arjun Panchadar
(Reuters) – Wall Street’s indexes edged higher in choppy trading on Tuesday after a report that the United States and China were planning to delay a new round of tariffs set to kick in on Dec. 15.
Officials from both sides also hinted at extending their trade talks, the Wall Street Journal reported.
With the trade war continuing to take a toll on global growth, markets have been hoping for a delay in tariffs and looking for positive headlines on the talks.
“I think that both sides are going to find a way to delay the imposition of new tariffs on Dec. 15,” said Art Hogan, chief market strategist at National Securities in New York.
“We just don’t know if that is true right now that is why the market has been acting skittishly. I think that we are still waiting on news.”
Apple Inc <AAPL.O>, shares of which are often sensitive to news on trade, gained 1%. The broader S&P 500 technology sector <.SPLRCT> rose 0.4%.
The communication services sector <.SPLRCL> slipped, weighed down by Netflix Inc’s <NFLX.O> 1.7% fall after Needham downgraded the company’s shares to “underperform”.
The Federal Open Market Committee’s two-day policy meeting kicks off on Tuesday and investors are expecting updates from the central bank on its 2020 economic outlook.
The S&P 500 is up 25% so far this year, boosted by the Federal Reserve’s interest rate cuts and some relief over corporate profits.
The Dow Jones Industrial Average <.DJI> was up 9.73 points, or 0.03%, at 27,919.33, the S&P 500 <.SPX> was up 2.70 points, or 0.09%, at 3,138.66 and the Nasdaq Composite <.IXIC> was up 17.49 points, or 0.20%, at 8,639.32.
On other trade-related development, Canada, Mexico and the United States agreed to a fresh overhaul of their quarter-century-old regional trade pact after negotiators approved changes to a preliminary deal struck last year and officials will sign the new agreement on Tuesday.
Shares in Autozone Inc <AZO.N> jumped 6.7% after the auto parts retailer beat quarterly estimates for profit. Shares of peers Advance Auto Parts <AAP.N> and O’Reilly Automotive <ORLY.O> also rose.
Advancing issues outnumbered decliners by a 1.20-to-1 ratio on the NYSE and a 1.33-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and one new low, while the Nasdaq recorded 53 new highs and 39 new lows.
(Reporting by Shreyashi Sanyal and Arjun Panchadar in Bengaluru; Editing by Anil D’Silva)
