#Reuters – U.S. stocks ride higher on trade optimism

Commentary, News, Stocks
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 29, 2018. REUTERS/Brendan McDermid
(Reuters) – U.S. stocks rose on Tuesday, helped by a rebound in technology stocks after a volatile few sessions on Wall Street, amid optimism over the U.S.-China trade dispute and some upbeat earnings reports.

All the 11 major S&P sectors were higher, with the recently-battered technology sector up 0.99 percent.

The trade-sensitive industrial sector rose 1.20 percent after President Donald Trump said he believed “a great deal” on trade can be struck with China, though he warned new tariffs were ready if a deal was not possible.

Trump’s comments came after Bloomberg reported Washington was preparing to announce tariffs on all remaining Chinese imports if talks next month between Trump and his Chinese counterpart Xi Jinping failed.

The report sparked a wild ride on Wall Street on Monday, with the Dow falling more than 900 points from its high and the S&P 500 closing within a whisker of confirming correction territory, continuing a turbulent month for equities.

“Right now the market is hungry for stability and some calming activity, which is temporarily being offered by the latest positive news on trade,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

Tariffs and rising costs have been among the factors that have led to a slew of disappointing forecasts from major industrials, chipmakers and other sectors, adding worries about slowing corporate growth to fears of faltering global growth.

Coca-Cola Co shares climbed 1.4 percent after beating quarterly sales estimates as more consumers reached for new versions of its sugar-free sodas and sparkling waters. PepsiCo Inc inched up 0.5 percent.

Read the full article at Reuters.com

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