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BCN-13
US-STOCKS-MARKETS
US stocks rise on report US could lift China tariffs
NEW YORK, Jan 18, 2019 (BSS/AFP) – Wall Street rose for a third straight
session Thursday boosted by a report that Washington was considering scaling
back some tariffs on China.
The Dow Jones Industrial Average rose 0.7 percent to close the day at
24,370.10, slightly below the highest point of the session.
The broad-based S&P 500 gained 0.8 percent to end at 2,635.96, while the
tech-rich Nasdaq Composite Index added 0.7 percent to finish at 7,084.46.
US stocks were little changed through early afternoon but suddenly jumped
higher after The Wall Street Journal reported that Treasury Secretary Steven
Mnuchin had proposed lifting some or all tariffs on China as a way to
reassure markets and bolster the odds of a bigger trade deal.
But the article described the idea as part of a policy debate between
Mnuchin and US Trade Representative Robert Lighthizer, who is more hawkish on
China.
The Treasury Department told AFP on Thursday that no formal recommendation
had been made by either Mnuchin or Lighthizer in the talks, which were
“nowhere near completion.”
Among those shares that got a boost, Boeing, Caterpillar and General
Motors gained at least one percent. All three depend on China for a
significant portion of sales.
The US-China trade war has been among the biggest worries of investors,
with headlines pulling shares in opposite directions on the real and
perceived ups and downs of trade negotiations.
Elsewhere on the market, Morgan Stanley sank 4.4 percent after reporting
fourth-quarter earnings of 80 cents per share, nine cents shy of analyst
expectations, as it characterized the global environment as “uncertain.”
But PPG jumped 4.8 percent as it reported better-than-expected fourth-
quarter profits. The company said it was able to pass on higher materials
costs by lifting prices.
BSS/AFP/HR/0945