Stocks finished higher on Thursday as optimistic trade headlines bolstered risk sentiment. The Dow jumped 182 points and the S&P 500 added 0.3% to push both benchmark indexes to close at fresh record highs. The Nasdaq Composite gained 0.3%.
China’s Commerce Ministry said that Washington and Beijing have agreed to rescind some existing tariffs in stages, citing recent progress on a “phase one” trade deal. White House officials also confirmed the roll back in the respective duties, but stocks pared some sharper early session gains after Reuters reported fierce internal resistance to the plans. Amid the perceived “risk-on” sentiment, COMEX gold fell 1.6% to $1,469.00/ounce. Treasuries resumed their slump, with the yield on the 10-year note surging nine basis points to 1.91%, the highest level since August. On the data front, initial jobless claims came in at 211,000 in the most recent week. A separate report revealed consumer credit declined to $9.5 billion in September from August’s upwardly revised $17.8 billion figure. In commodities, WTI crude climbed 1.0% to $56.91/barrel.
Seven of 11 S&P 500 sectors ended in positive territory, with Energy stocks pacing the gains. In earnings, DISH Network added 3.5% after surprising analysts by adding subscribers during the last quarter. Fox Corp. gained 5.4% following a 5% increase in quarterly revenue. Qualcomm climbed 6.3% after topping analyst profit and revenue expectations, helped by a key licensing deal with Apple. Teva Pharmaceutical was up 3.7% following an improvement in the drugmaker’s full-year guidance. Online travel companies Expedia and TripAdvisor each slid more than 20% as both posted downbeat results.