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Stocks – Trade-Talk News Gives Wall Street a Jolt

Stock MarketsJul 23, 2019 08:14PM ET
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Investing.com - Stocks shot higher Tuesday on reports the United States and China will resume trade talks next week.

U.S. Trade Representative Robert Lighthizer and aides were expected to leave for Shanghai on Monday, Bloomberg reported, with two days of talks scheduled. But the report suggested a deal wasn't near.

Nonetheless, the first face-to-face talks since May were good news for investors, already disposed to buying thanks to strong quarterly results from soft-drink giant Coca-Cola (NYSE:KO), toymaker Hasbro (NASDAQ:HAS) and paint manufacturer Sherwin-Williams (NYSE:SHW) and buying in Hershey (NYSE:HSY) ahead of its second-quarter earnings report due Thursday.

The S&P 500 jumped over 3,000 again and added 0.68%. The Dow Jones industrials also jumped 0.65%. And the Nasdaq Composite added 0.58%.

Wednesday could well be a drama-queen kind of day. Aerospace giant Boeing (NYSE:BA) reports second-quarter results before the open, and the earnings call will probably focus on issues besetting the grounded 737 Max jetliner. Facebook (NASDAQ:FB) reports second-quarter earnings after the close.

Lastly, traders will have a chance to react to a Wall Street Journal report that the Justice Department is opening a broad inquiry into whether dominant technology firms are unlawfully stifling competition. That could threaten Facebook (NASDAQ:FB), Alphabet's (NASDAQ:GOOGL) Google business, Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN), the Journal said.

The probe will look at the practices of online platforms that dominate internet search, social media and retail services, the story said.

Shares of all four were higher (barely, in Facebook's case) in regular trading but were down about 1% each in after-hours trading.

Coca-Cola was the big Dow winner, hitting a 52-week high after handily beating Street estimates for the quarter. The company cited success with new and reformulated beverages.

Hasbro (NASDAQ:HAS) was the leader among S&P 500 and Nasdaq 100 stocks, jumping nearly 10% and hitting a 52-week high as it said its tie-ins on products with Walt Disney (NYSE:DIS) blockbuster films this summer have been highly successful and should continue for some time.

Twenty-two Nasdaq 100 stocks were lower on the day. Some, like Costco Wholesale (NASDAQ:COST) and Starbucks (NASDAQ:SBUX), were modestly lower as some investors were ready to cash in profits. Both stocks have jumped more than 37% this year.

After the close, social-media company Snap's (NYSE:SNAP) shares were up more than 11% after losses narrowed and its user base grew in the latest quarter. Shares of chipmaker Texas Instruments (NASDAQ:TXN) were up 5.6% after hours after it beat estimates, even if lower than a year ago.

The one downside to Tuesday's bullishness was a disappointing existing-home-sales report from the National Association of Realtors. The seasonally adjusted sales rate in June of 4.69 million units was off 1.5% from May and 1.7% from a year ago. Chief Economist Lawrence Yun said sales were back to 2015 levels.

Homebuilder shares were pummeled. PulteGroup (NYSE:PHM) fell 8.3%. DR Horton (NYSE:DHI) dropped 2.6%. Hovnanian (NYSE:HOV) slumped 10.5%.

The bullishness about the U.S.-China news pushed oil prices higher because a deal theoretically could boost global oil demand.West Texas Intermediate crude rose 49 cents to $56.77 a barrel. Brent crude, the global benchmark, added 57 cents to $63.83.

Interest rates moved higher as investors shed bonds for stocks. The 10-Year Treasury yield rose to 2.079% from 2.043% on Monday.

Stocks – Trade-Talk News Gives Wall Street a Jolt
 

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Francesco Medici
Francesco Medici Jul 23, 2019 11:00PM ET
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The credibility of this people is less than zero. How is possible talk of the same s... since january, it is so boring and obvious try to manipulate the market
TYRONE MORGAN
TYRONE MORGAN Jul 23, 2019 10:11PM ET
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The market can't seem to resist this U.S./China trade talk headfake.
Ron Warren
Ron Warren Jul 23, 2019 9:41PM ET
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Can the DOW hit 28,000 by the 31st?
Ron Warren
Ron Warren Jul 23, 2019 9:39PM ET
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What a bunch of Pucky!! Trump's running this market into oblivion. The next downturn will be catastrophic! Isn't it a wonderful coincidence that the meeting with China coincides perfectly with the Feds rate reduction. This market is not worth it's valuation!
Hank Williams
Hank Williams Jul 23, 2019 8:10PM ET
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Who am I?Trade deal will be quick. The trade deal will be great. China has to make a deal. Ha ha ha.
bill mc
bill mc Jul 23, 2019 8:10PM ET
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Youre Hank Williams. It says it right above your message
Ivan Couto Jr
Ivan Couto Jr Jul 23, 2019 6:12PM ET
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Dont worry.... the Justice Dpt deal PLUS the tariffs Europe will impose on US products are lastly..... BULISH!!! Oh yeah....
andrew dun
andrew dun Jul 23, 2019 5:44PM ET
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Setting china up for more tariffs and the fed path to lower rates.
Andrew Gatlin
JustaGuy Jul 23, 2019 5:43PM ET
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Amazing that the market moves on the same tired story line since March.
Kenneth Gold
Kenneth Gold Jul 23, 2019 4:24PM ET
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Mnuchin and Lighthizer going out for carry out...will report to Trump about quality of dim sum and steamed dumplings
Kenneth Gold
Kenneth Gold Jul 23, 2019 4:24PM ET
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meanwhile markets close higher on this happy note.
sai teja
sai teja Jul 23, 2019 4:21PM ET
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"Interest rates moved higher as investors shed bonds for stocks." SHOULD BE CORRECTED AS...YIELDS moved higher as investors shed bonds for stocks.
Andulile Mbogela
Andulile Mbogela Jul 23, 2019 4:16PM ET
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what is going to happen there
Winston Hendo
Hendo Jul 23, 2019 4:16PM ET
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The same thing that happens every few months. Some talk, zero give, US announces China is giving up concessions, China loudly yells they are not, investors panic and run back to bonds.
Richard FW
Richard FW Jul 23, 2019 4:16PM ET
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Nothing. Political game on.
 
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