Wall Street finishes up sharply, reassured by Sino-US meeting in October

US STOCKS-Stimulus hopes buoy Wall Street, financials lead gains
September 9, 2019
US STOCKS-Stimulus hopes buoy Wall Street, financials lead gains
September 10, 2019

Wall Street finishes up sharply, reassured by Sino-US meeting in October

Wall Street closed sharply higher on Thursday, boosted by the announcement of a bilateral meeting next month between Washington and Beijing on trade issues and by US economic indicators deemed encouraging.

The leading index of the New York Stock Exchange, the Dow Jones Industrial Average, climbed 1.41% to 26,728.15 points.

The Nasdaq, with strong technological color, took 1.75%, to 8,166.83 points, and the expanded S & P 500 index gained 1.30% to 2,976.00 points.

Chinese and American negotiators will meet “early October” in Washington for new trade talks, said Thursday the Chinese Ministry of Commerce.

These bilateral discussions should have been held this month, on an unspecified date, but have been staggered due to further reciprocal surcharges, which came into effect on 1 September.

“Credible sources have suggested that there may be real breakthroughs this time around,” said Peter Cardillo of Spartan Capital Securities.

“It does not mean that there will be an agreement, but one of the prospects is the continuation of the dialogue, perhaps even until next year, and a possible truce,” added Cardillo.

According to the expert, this could involve a suspension of the reciprocal tariffs that the first two world economies inflict on themselves.

Additional tariffs on billions of dollars worth of Chinese products came into effect on Sunday in the United States.

Beijing retorted by increasing tariffs on $ 75 billion worth of US goods in two stages, with a first deadline on the same date of September 1.

Altice USA launches its mobile offer

Market participants also reacted to several economic indicators deemed encouraging.

Business in the US rebounded in August after slowing in June and July and hit its lowest level in three years, the ISM trade association said Thursday.

The US private sector, meanwhile, created 195,000 new jobs last month, a figure well above analysts’ expectations, according to ADP’s monthly survey released Thursday.

The official employment figures will be released on Friday.

On the bond market, the 10-year rate on the US debt jumped to 1.565% around 20:20 GMT against 1.466% the day before the closing, symbol of an appetite found investors for assets deemed riskier.

On the securities front, Goldman Sachs gained 2.6%. The US bank is negotiating the departure of a dozen of its leaders by the end of the year, including Elisha Wiesel, the son of former Nobel Peace Prize winner Elie Wiesel, according to a source close to the dossier confirming Wall Street Journal information.

Altice USA, the US subsidiary of the media and telecoms empire of French tycoon Patrick Drahi, climbed 1.9% after the launch of its own mobile offering in the United States on Thursday.

General Motors appreciated by 2.3% at the start of particularly sensitive wage negotiations with the powerful UAW auto syndicate. Thursday, the general manager of the car manufacturer Mary Barra met Donald Trump at the White House.

The action of Mallinckrodt laboratory, implicated in the opiate crisis, collapsed by 39%. According to a confidential source confirming a Bloomberg article, the company has recruited a law firm to explore its options in the event of bankruptcy.