Major US stocks rose significantly after U.S. President Trump wrote on Twitter that the United States was “very close to a major deal with China,” and WSJ reported that U.S. resellers proposed lowering Chinese import tariffs by 50% $360 billion worth of goods, as well as canceling a new round of tariffs on Chinese goods, the introduction of which is scheduled for December 15.
However, the Chinese publication Global Times was skeptical about Trump's tweet, saying the US president’s announcement of the deal "could just be another trick to stimulate stock markets." It also added that “China wants to see real actions, not just words.”
Market participants also studied US data. According to a report from the Department of Labor, producer prices in the US did not change in November, as rising food and gas prices were offset by lower costs of services, indicating moderate inflation despite recent consumer price increases. In the 12 months to November, the producer price index rose 1.1%, which corresponds to the growth in October, which was the smallest increase since October 2016. Economists predicted that the consumer price index would rise by 0.2% per month and increase by 1.2% year on year.
In a separate report, the Department of Labor reported that the number of Americans applying for unemployment benefits rose to more than a two-year high last week, but this probably does not signal an increase in layoffs, since the data tends to be unstable since Thanksgiving . Initial jobless claims increased by 49,000 to 252,000, seasonally adjusted for the week ending December 7, which is the highest since September 2017. Economists forecast that the number of applications will increase to 213,000.
Almost all DOW components completed trading in positive territory (28 out of 30). The biggest gainers were Cisco Systems Inc. (CSCO; + 3.26%). Outsider were the shares of The Boeing Co. (BA; -0.87%).
Most S&P sectors recorded an increase. The raw materials sector grew the most (+ 1.6%). The decrease was shown by the conglomerate sector (-0.3%) and the utilities sector (-0.3%).
At the time of closing:
Dow 28,132.05 +220.75 + 0.79%
S&P 500 3,168.57 +26.94 + 0.86%
Nasdaq 100 8,717.32 +63.27 + 0.73%
U.S. stock-index futures traded flat on Thursday, as investors continued to digest the latest Fed’s statements on the economy, while waiting for U.S. President Donald Trump to meet with his top trade advisors ahead of a key deadline with China.
Today's Change, points
Today's Change, %
(company / ticker / price / change ($/%) / volume)
ALTRIA GROUP INC.
Amazon.com Inc., NASDAQ
Cisco Systems Inc
Citigroup Inc., NYSE
Deere & Company, NYSE
Exxon Mobil Corp
FedEx Corporation, NYSE
Freeport-McMoRan Copper & Gold Inc., NYSE
General Electric Co
Home Depot Inc
International Business Machines Co...
Johnson & Johnson
JPMorgan Chase and Co
Merck & Co Inc
Starbucks Corporation, NASDAQ
Tesla Motors, Inc., NASDAQ
The Coca-Cola Co
Twitter, Inc., NYSE
United Technologies Corp
Verizon Communications Inc
Walt Disney Co
Yandex N.V., NASDAQ
Home Depot (HD) target lowered to $210 from $220 at Telsey Advisory Group
Home Depot (HD) downgraded to Accumulate from Buy at Gordon Haskett; target $230
Starbucks (SBUX) upgraded to Overweight from Neutral at JP Morgan; target raised to $94
General Electric (GE) upgraded to Buy from Neutral at UBS
lululemon athletica (LULU) reported Q3 FY 2019 earnings of $0.96 per share (versus $0.75 in Q3 FY 2018), beating analysts’ consensus estimate of $0.93.
The company’s quarterly revenues amounted to $0.916 bln +22.5(% y/y), beating analysts’ consensus estimate of $0.898 bln.
The company also issued in-line guidance for Q4 FY 2019, projecting EPS of $2.10-2.13 vs. analysts’ consensus estimate of $2.13 and revenues of $1.315-1.330 bln vs. analysts’ consensus estimate of $1.32 bln.
It also raised FY 2019 EPS to $4.75-4.78 from $4.63-4.70; revenues to $3.895-3.910 bln from $3.80-3.84 bln.
LULU fell to $225.29 (-3.39%) in pre-market trading.
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