US STOCKS-Wall St rises on trade hopes, deal to avoid govt shutdown

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

 (For a live blog on the U.S. stock market, click  LIVE/  or
type LIVE/ in a news window.)
    * Trump says he's willing to let tariff deadline slide
    * S&P 500 trades above 200-day moving average
    * Trade-sensitive industrials lift Dow
    * Amazon is biggest boost to S&P and Nasdaq
    * EA extends rally as new game attracts 25 mln players 
    * Indexes up: Dow 1.5 pct, S&P 500 1.33 pct, Nasdaq 1.43 pct

 (Updates to late afternoon; changes dateline, byline)
    By Stephen Culp
    NEW YORK, Feb 12 (Reuters) - Wall Street rallied on Tuesday
as investors were heartened by a tentative congressional
spending deal to avoid another government shutdown and by
positive developments in the U.S.-China trade negotiations.
    All three major U.S. stock indexes gained more than 1
percent, and the S&P 500 traded above its 200-day moving average
for the first time since early December.    
    President Donald Trump said he would be willing to let the
March 1 tariff deadline slide as top U.S. officials arrived in
Beijing for high-level talks later in the week to hammer out a
solution to the trade dispute between the world's two largest
economies.  urn:newsml:reuters.com:*:nL1N2070ZU 
    Congress cobbled together a tentative bi-partisan border
security deal on Monday to avert another government shutdown,
but the White House indicated that Trump has not yet decided
whether to support it. Funding for the Department of Homeland
Security and a host of other agencies is due to expire on
Friday.  urn:newsml:reuters.com:*:nL1N2070KZ 
    "It's somewhat befuddling that the possibility of no
government shutdown is driving prices up," said Oliver Pursche,
vice chairman and chief market strategist at Bruderman Asset
Management in New York. "It means the narrative, pun intended,
is trumping fundamentals," he added. "We're seeing swings based
purely on emotion." 
    The fourth-quarter earnings season is nearing the home
stretch, with 70 percent of companies in the S&P 500 having
already reported. Of those, 71 percent have beaten consensus
estimates.
    The outlook for 2019, however, is less rosy. First-quarter
earnings are now expected to post a year-on-year decline of 0.3
percent, which would be the first loss since the earnings
recession ended in the second quarter of 2016. 
    "I think it's 50/50 as to whether we enter another earnings
recession," Pursche said.
    The Dow Jones Industrial Average  .DJI  rose 376.06 points,
or 1.5 percent, to 25,429.17, the S&P 500  .SPX  gained 36.15
points, or 1.33 percent, to 2,745.95, and the Nasdaq Composite
 .IXIC  added 104.52 points, or 1.43 percent, to 7,412.43.
    Tuesday's gains were broad-based. Of the 11 major sectors of
the S&P 500, all but real estate  .SPLRCR  were trading higher.
Technology stocks  .SPLRCT  provided the biggest boost to the
S&P 500, and they also led the Nasdaq's advance.
    Tariff-sensitive industrials headed up the Dow's gain, led
by 3M Co  MMM.N , Caterpillar Inc  CAT.N , United Technologies
Corp  UTX.N  and Boeing Co  BA.N .
    Amazon.com Inc  AMZN.O  provided the biggest lift to the S&P
500 and the Nasdaq, rising 2.6 percent after Walmart Inc  WMT.N 
ended its partnership with logistics firm Devi for a rival
same-day grocery delivery service.  urn:newsml:reuters.com:*:nL1N207057
    Electronic Arts Inc  EA.N  announced its Apex Legends video
game has signed up 25 million players in the week since its
release, sending its stock up 4.5 percent. The video game
maker's shares have soared by nearly 27 percent since the game's
release.  urn:newsml:reuters.com:*:nL3N20746O
    Shares of Goldman Sachs Group  GS.N  were up 2.0 percent
after bank chief David Solomon, speaking at a conference in
Florida, said the firm intends to increase its mid-size
corporate client roster over the next few years.
    Under Armour Inc  UAA.N  jumped 6.4 percent after the
sportswear company beat analysts' profit forecasts for the
holiday quarter.  urn:newsml:reuters.com:*:nL3N2073NN
    Advancing issues outnumbered declining ones on the NYSE by a
3.48-to-1 ratio; on Nasdaq, a 2.97-to-1 ratio favored advancers.
    The S&P 500 posted 42 new 52-week highs and one new low; the
Nasdaq Composite recorded 67 new highs and nine new lows.

 (Reporting by Stephen Culp; Editing by Leslie Adler)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.