US STOCKS-Wall St rallies on trade optimism, hopes of avoiding govt shutdown

Reuters

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    * Caterpillar, Boeing lift trade-sensitive industrials
    * Eight of the major S&P sectors gain over 1 pct
    * Amazon biggest boost to S&P, Nasdaq
    * EA up as new game continues to gain traction 
    * Indexes up: Dow 1.35 pct, S&P 1.22 pct, Nasdaq 1.32 pct

 (Updates prices to afternoon)
    By Amy Caren Daniel
    Feb 12 (Reuters) - Wall Street's main indexes extended gains
on Tuesday, in a broad-based rally after American lawmakers
reached a tentative deal to avoid another partial government
shutdown and on hopes of an agreement during the ongoing
U.S.-China trade talks.
    President Donald Trump comments that he did not anticipate
another government shutdown added to sentiment, even though he
expressed unhappiness about the agreement that includes funds
for U.S.-Mexican border security but not for his promised wall.
 urn:newsml:reuters.com:*:nL1N2070KZ
    The S&P 500  .SPX  index crossed its 200-day moving average
price on Tuesday, a technical level that indicates long-term
momentum, for the first time since Dec. 4.
    The benchmark index is now just about 7 percent away from
its Sept. 20 record closing high, boosted by an upbeat
fourth-quarter earnings season, a dovish Federal Reserve and
trade optimism.
    "The fact that lawmakers want to leave the government open
sounds like one of the biggest drivers for markets today," said
Gary Bradshaw, portfolio manager with Hodges Funds in Dallas.
    "Investors like that fact that we are getting closer to
trade issues improving. They are taking a risk-on stance,
everyone is buying today." 
    Top U.S. officials arrived in the Chinese capital on Tuesday
for high-level trade talks as the world's two largest economies
attempt to strike a deal before a March 1 deadline and avoid
another escalation of tariffs.  urn:newsml:reuters.com:*:nW1N1XN02D
    Trump said he would consider pushing the deadline if the two
sides were close to a deal.
    Trade-sensitive industrials  .SPLRCI  climbed 1.52 percent,
boosted by Boeing Inc  BA.N  and Caterpillar Inc  CAT.N .
    Chipmakers, which depend on China for a huge chunk of their
revenue, also rose and pushed the Philadelphia chip index  .SOX 
1.92 percent higher. 
    The broader technology sector  .SPLRCT  rose 1.28 percent,
lifted by gains in Apple Inc  AAPL.O , Microsoft Corp  MSFT.O 
and Intel Corp  INTC.O .
    Amazon.com Inc  AMZN.O  rose 2.24 percent and was the
biggest boost to the S&P 500 and Nasdaq  .IXIC .
    In the latest data underscoring the economy's strength, U.S.
job openings surged to a record high in December.  urn:newsml:reuters.com:*:nL1N2070SO
    At 12:41 p.m. ET, the Dow Jones Industrial Average  .DJI 
was up 337.49 points, or 1.35 percent, at 25,390.60. The S&P 500
 .SPX  was up 32.98 points, or 1.22 percent, at 2,742.78 and the
Nasdaq Composite  .IXIC  was up 96.36 points, or 1.32 percent,
at 7,404.27.
    Eight of the 10 major sectors trading higher posted gains of
more than 1 percent. Only the real estate  .SPLRCR  sector was
trading lower.
    About 71 percent of the S&P companies that have posted
earnings have topped expectations, 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:*:nL1N2060OM
    Electronic Arts Inc  EA.O  jumped 4.3 percent after the
videogame maker's newly launched battle royale game gained
traction. Rival Take-Two  TTWO.O  lost 4.2 percent following a
downgrade by a 5-star analyst.
    Advancing issues outnumbered decliners by a 3.34-to-1 ratio
on the NYSE and by a 3-to-1 ratio on the Nasdaq.
    The S&P index recorded 39 new 52-week highs and one new low,
while the Nasdaq recorded 61 new highs and nine new lows.

 (Reporting by Amy Caren Daniel and Shreyashi Sanyal in
Bengaluru; Editing by 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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