US STOCKS-Wall Street bounces as Huawei reprieve sparks rally

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.)
    * U.S. eases restrictions on China's Huawei
    * Philadelphia Chip Index set to snap 3-day losing streak
    * Kohl's, J.C. Penney tumble as same-store sales disappoint
    * Home Depot edges lower on slowing comp sales growth  
    * Indexes up: Dow 0.54%, S&P 0.68%, Nasdaq 0.87% 

 (Updates to open)
    By Shreyashi   Sanyal
    May 21 (Reuters) - U.S. stock indexes rose in a broad-based
rally on Tuesday, as Washington's decision to temporarily ease
curbs on China's Huawei Technologies allayed concerns over a
further escalation in trade war between the two countries.  
    Chipmakers, which bore the brunt of Monday's sell-off, rose
after the United States granted the Chinese telecoms equipment
maker a license to buy U.S. goods until Aug. 19.  urn:newsml:reuters.com:*:nL2N22W19U
    The Philadelphia Semiconductor Index  .SOX  gained 1.61% and
was on track to end a three-day slump. Companies that have been
supplying to Huawei including Intel Corp  INTC.O , Qualcomm Inc
 QCOM.O , Xilinx Inc  XLNX.O  and Broadcom Inc  AVGO.O  rose
between 1% and 2%. 
    The broader S&P 500 technology sector  .SPLRCT  rose 1.08%,
the most among the 11 major S&P sectors trading higher.   
    "The easing up on Huawei is being seen as a sign that while
the United States and China are unhappy with each other, neither
side wants to burn the negotiation bridge at the moment," said
Connor Campbell analyst at Spreadex in London. 
    U.S. President Donald Trump added Huawei  HWT.UL  to a trade
blacklist last week, leading several companies to suspend
business with the world's largest telecom equipment maker and
triggering fears that the decision could deeply impact the
global technology sector. 
    Reuters reported on Sunday that Alphabet Inc's  GOOGL.O 
Google would stop providing Huawei access to its proprietary
apps and services. But Huawei said on Tuesday it was working
closely with the U.S. company to resolve the restrictions.
 urn:newsml:reuters.com:*:nL5N22X36N
    Wall Street has been impacted by mounting concerns about a
prolonged trade war, with the S&P 500  .SPX  set to post its
worst monthly decline since the December sell-off. The benchmark
index is trading 3.3% below its all-time high hit earlier in
May. 
    "This is a pure case of cautiousness and we're stuck in a
trading range. The recent behavior is of indecisiveness," Peter
Cardillo, chief market economist at Spartan Capital Securities
in New York, said.
    At 9:49 a.m. ET the Dow Jones Industrial Average  .DJI  was
up 137.73 points, or 0.54%, at 25,817.63. The S&P 500  .SPX  was
up 19.20 points, or 0.68%, at 2,859.43 and the Nasdaq Composite
 .IXIC  was up 67.04 points, or 0.87%, at 7,769.41.
    Investors also focused on earnings reports from a handful of
retailers, which proved to be disappointing. 
    Home Depot Inc  HD.N  shares dipped 0.5%, the most on the
Dow, after the home improvement chain reported its slowest
growth in quarterly same-store sales in at least three
years. urn:newsml:reuters.com:*:nL4N22X2TB      
    Kohl's Corp  KSS.N  plunged 12.4%, the most among S&P 500
companies, after the department store operator cut its full-year
profit forecast and reported quarterly same-store sales and
profit that missed expectations.  urn:newsml:reuters.com:*:nL4N22X2XB  
    Rival J.C. Penney Co Inc  JCP.N  fell 7.4% after the company
reported a bigger-than-expected fall in quarterly
comparable-store sales.  urn:newsml:reuters.com:*:nL4N22X2XH
    Advancing issues outnumbered decliners by a 3.78-to-1 ratio
on the NYSE and by a 2.78-to-1 ratio on the Nasdaq.
    The S&P index recorded 21 new 52-week highs and four new
lows, while the Nasdaq recorded 30 new highs and 29 new lows.

 (Reporting by Shreyashi Sanyal and Sruthi Shankar in Bengaluru;
Editing by Sriraj Kalluvila and Arun Koyyur)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;
Reuters Messaging:
Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

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.