Wall Street indexes ended Wednesday’s trading session with moderate gains thanks to the new hopes for a US-China trade deal.
The blue-chip index Dow Jones Industrial Average added more than 110 points, 0.46%, to a level of 25,543.27 points. The broader benchmark S&P 500 increased by 0.3% to 2,753.03 points, driven by industrial and energy sector growth, the second marking an increase of over 1%. The technology index Nasdaq Composite rose 0.08% to a level of 7,420.38 points.
The energy sector has been boosted by higher oil prices. The light US crude oil WTI rose by 1.64% to 53.97 USD per barrel, while the futures on the international variety Brent added 1.95% to 63.64 USD per barrel.
Gold went down by 0.4% to 1,308.90 USD per ounce.
The US President Donald Trump said he is ready to postpone the deadline of the Trade Truce with China, which expires on March 1st. The markets have always believed that the deadline of March 1 is flexible, but that confirms it. A possible trade deal could reduce the worries about economic growth and allow the rally of the markets to continue in 2019.
Earlier on Wednesday, Chinese media reported that President Xi Jinping will meet with the US delegates on Friday in an attempt to reach an agreement.
The positive mood of the markets was also related to the agreement on the border with Mexico, which would prevent a new blockade of the administration. President Donald Trump said he was not happy with the proposal, but added that he would examine the details.
Wednesday’s growth is a continuation of the rally from the previous session, where Dow scored a growth of more than 350 points.
In the bond markets, the yields on 10-year and 30-year US Treasuries rose to 2.709% and 3.037%, respectively.
The dollar index, which measures the strength of the greenback against a basket of competing currencies, rose by 0.47% to 97.17 points.
The Consumer Price Index was unchanged in January, below estimates that called for an increase of 0.1%. The core CPI, which excludes food and energy prices, rose by 0.2%. Consumer prices over the last 12 months rose 1.6%, down from 1.9% in December.
Corporate stocks performance
The shares of Hilton Worldwide jumped more than 6% after the company reported better-than-expected earnings. The hotel operator said higher hotel-room rates boosted its bottom line.
Freeport-McMoRan surged by nearly 7% following an upgrade by an analyst at Morgan Stanley. The analyst said the stock could get a bounce from higher copper prices.
Activision Blizzard rose by 7% after the video game maker unveiled a stock buyback and cost-cutting program that offset a weaker-than-expected profit outlook for what the company called a “transition year” in 2019.
Johnson & Johnson rose by 0.2% after the company announced that it was purchasing privately held surgical robotic technologies manufacturer Auris Health for about 3.4 billion USD in cash.
Twilio Inc fell by 7.3% after fourth-quarter revenue topped analysts’ estimates but earnings fell flat and it issued a weak profit outlook for the first quarter.
Corporate earnings reports
Groupon Inc reports missed fourth-quarter profit expectations. The company earned 46.2 million USD, or 0.08 USD per share, in the quarter. Adjusted for one-time items, Groupon earned 60.0 million USD. The revenue fell by 8% to 799.9 million USD, which the company pinned on “lower customer traffic and our continued focus on revenue generation that maximizes long-term gross profit”.
Hyatt Hotels Corporation reported fourth-quarter 2018 financial results with net income of 44 million USD or 0.40 USD per diluted share. Adjusted EBITDA increased by 5.0% to 182 million USD, up 6.8% in constant currency.
CBRE Group reported fourth-quarter 2018 adjusted earnings per share of 1.21 USD. The figure also compares favorably with the prior-year tally of 0.96 USD. Results indicate strong revenue growth, driven by leasing and occupier outsourcing. Reflecting upbeat market sentiments, the company’s shares are up more than 4% in today’s pre-market trading. CBRE Group reported year-over-year leasing revenue growth of 22% (24% local currency), backed by double-digit increases across all three regions. Global occupier outsourcing revenues increased 14% (17% local currency), while fee revenues jumped 17% (20% local currency). This was driven by double-digit growth in occupier outsourcing revenues and fee revenues by all three regions.