US STOCKS-Wall Street gains as U.S.-China trade talks resume

Reuters

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    * Trade-sensitive industrials gain most among S&P sectors
    * U.S. lawmakers working on deal to avoid another shutdown
    * EA gains after analysts upbeat on new game 
    * Energy shares fall on lower oil prices
    * Indexes up: Dow 0.31 pct, S&P 0.35 pct, Nasdaq 0.51 pct

 (Updates to open)
    By Amy Caren Daniel
    Feb 11 (Reuters) - U.S. stocks rose on Monday, led by
industrial companies, as the United States and China began their
latest round of trade talks to hammer out a deal before the
looming March deadline.
    China struck an upbeat note on the talks, while White House
senior counselor Kellyanne Conway also expressed confidence of a
possible deal.  urn:newsml:reuters.com:*:nL3N20614C
    Boeing Inc  BA.N , the largest U.S. exporter to China, and
Caterpillar Inc  CAT.N  both gained 1 percent and pushed the
trade-sensitive industrial sector  .SPLRCI  0.71 percent higher.
    "These trade talks are being viewed as a positive," said
Scott Brown, chief economist at Raymond James in St. Petersburg,
Florida. 
    "There is still a lot of uncertainty, but there's this
pattern of markets embracing good news a little bit more than
bad news."
    The latest talks come against the backdrop of last month's
discussions ending without a deal and the top U.S. negotiator
declaring that a lot more work needed to be done. 
    "The market is reacting to shifting news but there won't be
a significant move until we get a resolution to trade," Brown
said.
    Also on investors' watchlist is the border security funding
talks, which collapsed on Sunday after Democratic and Republican
lawmakers clashed over immigrant detention policy. A special
negotiating panel is aiming to reach a deal by Monday ahead of a
Friday deadline to avert another government shutdown.
 urn:newsml:reuters.com:*:nL1N20503N
    Trade uncertainty and worries of a global economic slowdown 
capped gains on the S&P 500  .SPX , which ended last week flat.
Still the benchmark index is nearly 16 percent above its
December lows, helped in part by a dovish Federal Reserve and
largely upbeat earnings reports.
    Of the S&P 500 companies that have reported fourth-quarter
earnings, 71.2 percent have topped estimates, according to IBES
data from Refinitiv. But analysts' estimates for first-quarter
earnings have turned negative for the first time since 2016.
 urn:newsml:reuters.com:*:nL1N2030V5
    At 9:39 a.m. ET, the Dow Jones Industrial Average  .DJI  was
up 78.62 points, or 0.31 percent, at 25,184.95. The S&P 500
 .SPX  was up 9.43 points, or 0.35 percent, at 2,717.31 and the
Nasdaq Composite  .IXIC  was up 37.41 points, or 0.51 percent,
at 7,335.61.
    The energy sector  .SPNY  fell 0.54 percent and was the only
major S&P sector to drop, as oil prices slipped.  O/R 
    The heavyweight FAANG stocks - Facebook Inc  FB.O , Apple
Inc  AAPL.O , Alphabet Inc  GOOGL.O , Netflix Inc  NFLX.O  and
Amazon.com Inc  AMZN.O  - rose between 0.4 percent and 1.4
percent. 
    Electronics Arts Inc  EA.O  gained 8.8 percent after
analysts were upbeat about a strong start to the videogame
publisher's newly launched rival to "Fortnite".  urn:newsml:reuters.com:*:nL3N2033JH
    Advancing issues outnumbered decliners by a 1.78-to-1 ratio
on the NYSE and by a 1.99-to-1 ratio on the Nasdaq.
    The S&P index recorded 15 new 52-week highs and one new
lows, while the Nasdaq recorded 34 new highs and six new lows.

 (Reporting by Amy Caren Daniel and Shreyashi Sanyal in
Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj
Kalluvila)
 ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.
+1-646-223-8780; outside U.S. +91 80 6749 9250 ; Reuters
Messaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net))

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