FYI: U.S. stocks and government bond yields climbed Thursday as signs of progress in trade talks with China fueled investors’ appetite for risky assets.
The Dow Jones Industrial Average gained 182 points, or 0.66%, in afternoon trading. The S&P 500 advanced 0.27%, while the tech-heavy Nasdaq Composite was up 0.28%.
All three indexes are trading at records, lifted by a resilient U.S. jobs market, a series of interest-rate cuts by the U.S. Federal Reserve, hopes that the trade spat with Beijing is easing and a strong corporate earnings season.
Following negotiations over the past two weeks, China and the U.S. agreed to remove tariffs at the same time and by the same amount when they sign the initial accord, a Chinese Commerce Ministry spokesman said Thursday. He described recent talks as “careful and constructive.”
The yield on 10-year Treasurys rose to 1.945% from 1.814% Wednesday, reaching levels last seen in July, as investors sold U.S. government debt, seen as a haven asset.
utures on gold, another haven, fell $26 a troy ounce, or 1.7%, to $1464.20. Meanwhile, U.S. crude oil futures gained 80 cents a barrel, or 1.4%, to $57.15 on expectations that economic growth would drive energy demand.
Meanwhile, investors continued to parse quarterly earnings reports.
Shares of Qualcomm rose 6.3% after the chip maker signaled a strong year ahead for 5G phone sales. Ralph Lauren jumped 14%, making it the best performer in the S&P 500, after the fashion house’s quarterly results beat consensus expectations.
Among Thursday’s underperformers, Expedia tumbled 26% after the online travel company’s earnings missed analysts’ expectations. Roku, a maker of streaming-media devices that has been an investor darling this year, fell 15% after it issued a disappointing outlook for fourth-quarter revenue growth.
After markets close, major U.S. corporations including The Wall Street Journal’s parent, News Corp. , and Walt Disney, are set to report earnings.
Of the 430 companies in the S&P 500 that have reported earnings through Thursday morning, nearly three-quarters have beaten analyst expectations, according to Refinitiv.
Overseas, the benchmark Stoxx Europe 600 rose 0.4%. In Asia, the Hang Seng Index climbed 0.6% in its sixth consecutive session of gains, while the Shanghai Composite Index was little changed.
The British pound fell 0.3% against the dollar after Bank of England Governor Mark Carney hinted at a possible rate cut. The WSJ Dollar Index, which measures the U.S. dollar against a basket of currencies, ticked up 0.1%.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-11-07/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/stock-futures-climb-after-report-china-us-agree-to-cancel-tariffs-in-stages-2019-11-07/printWSJ:
https://www.wsj.com/articles/stocks-rise-on-signs-of-progress-in-u-s-china-talks-11573123080Bloomberg:
https://www.bloomberg.com/news/articles/2019-11-06/asia-stocks-look-mixed-on-trade-signing-roadblock-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/the-big-picture/stock-market-rally-powers-new-highs-china-trade-news/CNBC:
https://www.cnbc.com/2019/11/07/stock-markets-wall-street-in-focus-amid-us-china-trade-deal-hopes.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/trade-fueled-rally-pushes-wall-street-to-fresh-record-high-idUKKBN1XH1QRU.K:
https://uk.reuters.com/article/uk-britain-stocks/uk-midcaps-jump-on-rising-rate-cut-prospects-upbeat-earnings-idUKKBN1XH10TEurope:
https://www.reuters.com/article/us-europe-stocks/trade-optimism-upbeat-earnings-send-european-shares-to-four-year-peak-idUSKBN1XH0ZKAsia:
https://www.cnbc.com/2019/11/07/asia-stocks-november-7-us-china-trade-earnings-currencies.htmlBonds:
https://www.cnbc.com/2019/11/07/us-treasury-yields-amid-focus-on-us-china-trade-developments.htmlCurrencies:
https://www.cnbc.com/2019/11/07/forex-markets-us-china-trade-bank-of-england-in-focus.htmlOil
https://www.cnbc.com/2019/11/07/oil-markets-us-china-trade-in-focus.htmlGold:
https://www.cnbc.com/2019/11/07/gold-markets-us-china-trade-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
