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Dow posts triple-digit gains after US-China trade progress

Wall Street added another winning day to a strong week of gains
Wall Street sign
The S&P 500 had its best week since November

US markets wrapped up another positive day Friday as investors regained confidence that a resolution in US-China trade talks was on the horizon.

The S&P 500, as CNBC reported, had its best week since November. 

Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer made "concrete progress" in a phone conversation with Chinese Vice Premier Liu He, the South China Morning Post reported.

The Dow Jones Industrial Average closed up 138.9 points, or 0.5%, to 25,848.9. The Nasdaq ended the day 0.8% higher at 7,688.5, while the S&P 500 increased 0.5% to finish at 2,822.5.

The small-cap-tracking Russell 2000 grew 0.3% to close at 1,553.5. 

Up in Canada, the S&P/TSX Composite Index increased 0.3% to 16,140.4.

1:36 pm: Wall Street on pace for a winning week amid renewed confidence in trade talks

US markets are on pace for a winning week after making strong gains Friday afternoon.

Investors have renewed confidence thanks to “concrete progress” in the US-China trade talks after Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer spoke over the phone with Chinese Vice Premier Liu He, according to the South China Morning Post.

The Dow surged ahead as Boeing Co finally found its footing. The aerospace company’s stock had been taking losses nearly all week following a deadly plane crash of a 737 Max 8 plane but reversed course Friday after the announcement of an upcoming software update.

The Dow Jones Industrial Average grew 0.8% to 25,913.2, the Nasdaq jumped 1% to 7,709.9 and the S&P 500 increased 0.7% to 2,828.9.

The Russell 2000, which tracks small-cap stocks, advanced 0.8% to 1,562.4.

In Toronto, the S&P/TSX Composite Index increased 0.5% to 16,164.9.

In London, the FTSE closed 0.7% up at 7,228.3, and in Paris, the CAC finished 0.9% ahead at 5,405.3.

10:13 am: Wall Street opens higher amid positive US-China trade developments

US markets rose at the bell Friday, on a hint of renewed optimism in US-China trade talks.

Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer spoke over the phone with Chinese Vice Premier Liu He, netting “concrete progress” toward an agreement, Chinese state-run news agency Xinhua reported Friday, according to the South China Morning Post.

Wall Street has so far shaken off data from the Federal Reserve on Friday, which revealed that manufacturing production fell for the second straight month. Manufacturing dropped 0.4% in January, according to Reuters, thanks in part to declines in motor vehicles, machinery and furniture.

The Dow Jones Industrial Average gained less than 0.1% to 25,731, the Nasdaq grew 0.7% to 7,683.3 and the S&P 500 advanced 0.3% to 2,817.50.

The small-cap Russell 2000 index rose 0.3% to 1,553.8.

In Toronto, the S&P/TSX Composite Index increased 0.4% to 16,149.

In Europe, the London FTSE was up 0.5% to 7,223.1, and the French CAC jumped 0.9% to 5,400.1.

8:16 am: DJIA poised for triple-digit gain as market fears ease over global growth​

The Dow Jones Industrial Average is poised for a triple-digit gain at the open after Asian shares rose overnight and European benchmarks are also trading higher.

It was a mixed close on Thursday in the US as traders fretted about postponed trade talks with China and new data, showing a 6.9% drop in January of new home sales - a possible sign of the impact of the government shut down.

In the UK, MP's voted to agree to an extension to Article 50 allowing a delay to Brexit although that would still need to be approved by the EU.

The Dow Jones finished just seven points higher at 25,709, while the Nasdaq closed down around 12 and the Nasdaq finished just over two points.
In futures trade today, the Dow is up 128 points; the Nasdaq is ahead by over 44.5 points and the S&P 500 is ahead by 13.5.

Up in Toronto, the TSX, the largest market there, closed in the red, down around 62 at 16,087.

James Hughes, market analyst at London-based Axitrader, noted: "Wall Street may have flat-lined during yesterday’s session, but index futures are once again showing optimism that gains can be picked up before the weekend break.

"Asian markets put in a solid session, fueled in part by a timeline on progress over US-China trade talks. There’s still no guarantee that these can be concluded, but at least we’ve seen an indication that the wait will only be another three to four weeks."

On the data front today, investors will be looking out for industrial Production for February and the preliminary Michigan Sentiment print for March.

In Europe, FTSE 100 is ahead by 51 at the time of writing, the German DAX is over 107 points higher. In Asia overnight, the Nikkei 225 added over 163 points at 21,450, while the Shanghai Composite Index gained around 31.


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