Wall St higher for fourth day on trade deal hopes, but Apple drags

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Wall St higher for fourth day on trade deal hopes, but Apple drags

By Shreyashi Sanyal

Nov 2 (Reuters) – The Dow and the S&P rose for a fourth straight day on Friday, lifted by strong earnings and optimism that the United States and China were trying to resolve their trade dispute, but Apple’s slide after a disappointing forecast curbed gains and pulled the Nasdaq lower.

President Donald Trump wants to reach an agreement with his Chinese counterpart Xi Jinping at the Group of 20 nations summit in Argentina this month, Bloomberg reported, adding to optimism from Thursday when Trump said talks were “moving along nicely.”

“Hopes of a trade deal between the U.S. and China have sent stocks around the globe into strong rallying mode,” said Peter Cardillo, chief market economist at Spartan Capital Securities, in client note.

Apple’s shares dropped 6.1 percent, taking its market value below $1 trillion, after the iPhone maker warned sales for the crucial holiday quarter would likely miss expectations.

That also dragged down shares of its U.S. suppliers, mostly chipmakers, which combined to pull the technology sector down 1.42 percent to snap a three-day winning streak.

The Labor Department’s closely watched employment report showed job growth rebounded sharply in October, pointing to further labor market tightening that could encourage the Federal Reserve to raise interest rates again in December.

The prospect of higher borrowing rates was one of the factors, along with tariffs and slowing global growth, that triggered a tumble in the stock markets last month.

Banks, which tend to benefit from higher rates, rose 0.75 percent, outpacing the gains in the broader financial sector.

At 10:16 a.m. ET the Dow Jones Industrial Average was up 90.99 points, or 0.36 percent, at 25,471.73, the S&P 500 was up 2.68 points, or 0.10 percent, at 2,743.05 and the Nasdaq Composite was down 44.40 points, or 0.60 percent, at 7,389.66.

Exxon Mobil Corp climbed 1.7 percent and Chevron Corp gained 5.2 percent after reporting strong profits and pulled up energy stocks 1.71 percent.

The consumer discretionary sector rose 0.95 percent, as Starbucks Corp and Newell Brands Inc jumped more than 10 percent after their quarterly reports.

Kraft Heinz Co tumbled 8.2 percent, the most on the S&P, after the company missed quarterly earnings estimates on steep commodity costs.

The S&P index recorded eight new 52-week highs and four new lows, while the Nasdaq recorded 32 new highs and 21 new lows.

Source: https://www.nasdaq.com/article/wall-st-higher-for-fourth-day-on-trade-deal-hopes-but-apple-drags-20181102-00598