Wall Street stocks surge after US-China trade accord

AFP New York Jan 16, 2020, 08.36 PM(IST)

Trump and China’s Vice Premier Liu He attend press confrence ahead of trade deal agreement Photograph:( AFP )

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Among individual companies, Morgan Stanley gained 5.7 per cent as fourth-quarter earnings easily topped expectations

Wall Street stocks jumped early Thursday, adding to records following the signing of a US-China trade accord and solid US retail sales data.

Also Read: Key elements of the US-China trade deal

Analysts generally view the US-China deal as removing the near-term risk of an escalation between the two economic powers, even though there is skepticism it will resolve issues between the countries.

The Senate later Thursday is expected to approve a new trade accord between the United States, Mexico and Canada, another benign trade development that has boosted sentiment.

Retail sales for December rose 0.3 per cent as US consumers continued to spend freely through the key holiday shopping season.

About 25 minutes into trading, the Dow Jones Industrial Average stood at 29,178.52, up 0.5 per cent.

The broad-based S&P 500 also gained 0.5 per cent, rising to 3,305.00, while the tech-rich Nasdaq Composite Index won 0.7 per cent, moving up to 9,326.33.

The Dow and S&P 500 both closed at records on Wednesday.

Among individual companies, Morgan Stanley gained 5.7 per cent as fourth-quarter earnings easily topped expectations, making it the latest large financial group to report good results.

Among other companies reporting results, PPG Industries lost 3.7 per cent and Alcoa 7.9 per cent.