Wall Street indexes ended the trading session on Thursday with gains, turning the trend at the start of the session, thanks to hopes for an improvement of trade relations between the United States and Mexico.
The blue-chip index Dow Jones Industrial Average added more than 180 points, or 0.71%, ending at 25,720.66 points after having gained over 700 points in the first three days of the week. The broader S&P 500 rose by 0.6% to 2,843.49 points, while the technology Nasdaq Composite rose by 0.53% to 7,615.55 points.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 0.99% to 15.93.
Dow Jones jumped by more than 500 points on Tuesday, marking its second best day for the year, and continued its strong performance on Wednesday when added more than 200 points. For the week, the index is up by nearly 3% to the closing of trading on Wednesday. The S&P 500 and Nasdaq also posted an increase of 2.7% and 1.6%, respectively, this week.
Negotiations between US and Mexico were resumed on Thursday after the two sides failed to reach an agreement on Wednesday. The ambassador of Mexico to the United States, Martha Barcena Coqui, told that the negotiators had “a very good discussion, a very good debate”.
On Wednesday, US President Donald Trump wrote in the social networks that despite the progress made in the negotiations between the two countries on immigration, there is a place of improvement.
Talks are expected to continue later during the day.
Meanwhile, the government-bond prices moved lower Thursday, led by declines in shorter-term debt, one day ahead of a much-anticipated jobs report. The yield on the benchmark 10-year US Treasury note settled at 2.124%, compared with 2.119% on Wednesday. Yields rise when bond prices fall.
Corporate stocks performance
Shares of companies with the most to lose from Mexico tariffs pared their losses on the new headlines. Shares of Ford, GM and Kansas City Southern took a noticeable jump, though the three still finished the day lower.
The energy companies had a strong performance during the session amid rising oil price with Chevron and Exxon Mobil, adding 2.58% and 1.82%, respectively.
The pharma giant Johnson & Johnson was also into the green, adding 1.71% to its market value.
The shares of ContraVir Pharmaceuticals are up to 52-week highs, adding 41.60% after announced findings from a preclinical study where CRV431, a novel cyclophilin inhibitor, significantly decreased the extent of fibrosis in a second animal model of liver fibrosis.
However, the day was much disappointing for the biopharma company Motif Bio, which shares are down to all-time lows, wiping out 45% of their value. The US drug regulator FDA indicates that additional trial required for co’s lead product iclaprim’s marketing approval. FDA is concerned about potential liver toxicity of the drug.
The top performers on the S&P 500 were Advanced Micro Devices Inc (+7.86%), International Flavors & Fragrances Inc (+5.22%) and TechnipFMC PLC (+4.10%), while on the flipside were L Brands Inc (-4.14%), Macerich Company (-3.75%) and Range Resources Corp (-3.29%).
Corporate earnings reports
The US telecommunications company Ciena Corporation came out with quarterly earnings of 0.48 USD per share, beating the analysts’ estimate of 0.40 USD per share, and increasing its earnings twice from 0.23 USD per share a year ago. For the quarter, Ciena posted revenue of 865 million USD, up 18.5% from a year ago, and well ahead of the Wall Street consensus estimate for 819 million USD.
The Tennessee-based home decor retailer Kirkland’s Inc reported a wider-than-expected loss, sales that fell more than forecast and cut its full-year profit outlook, as President Trump’s ongoing trade war takes a bite. The retailer, which operates 432 stores in 37 states, reported a fiscal second-quarter net loss that widened to 8.9 million USD, or 0.62 USD per share. Excluding non-recurring items, the adjusted loss per share was 0.53 USD, wider than the FactSet consensus for a per-share loss of 0.41 USD. Net sales fell by 9.0% to 129.6 million USD, below the consensus of 132.4 million USD, as a fall in store traffic and a decline in average ticket price offset improved conversion. Same-store sales dropped 10.7%, while the estimates of two analysts surveyed by FactSet ranged from a decline of 6.0% to a decline of 10.0%.
Guess’ (NYSE: GES) stock decreased 2% in the after-market trading as the retailer’s Q2 earnings outlook failed to impress the street. However, Q1 results came in better-than-expected. The retailer touched a new 52-week low of 15.16 USD earlier today as the investors were skeptical about the Q1 earnings. Revenue for the first quarter rose by 3% to 536.7 million USD compared to 536.58 million USD expected by the analysts. Adjusted loss per share came in at 0.25 USD, a cent better than the analyst estimates. Sales grew across most of its segments with American Wholesale recording 14% growth offset by 5% drop in the licensing division.