Stocks finish higher Thursday, as investors became more optimistic about recent trade developments. The Dow added 150 points, while the S&P 500 and Nasdaq Composite both gained 0.6%.
High level negotiations between the U.S. and China took place in Washington today, although reports indicated this week’s mid-level talks had not resulted in any progress on key issues. However, investor sentiment was boosted after President Trump confirmed a meeting with Chinese Vice Premier Liu He on Friday. Reports indicated possible progress with the White House considering rolling out a previously agreed upon currency pact that would suspend planned tariff increases next week.
Ten of 11 S&P sectors ended the day in positive territory, with Energy outperforming as WTI crude jumped 2.1% to $53.70/barrel. Elsewhere, Financials rose more than 1.0% after an uptick in yields. In corporate news, Delta Air Lines fell 1.5% after its quarterly revenue missed analyst forecasts. Costco ticked up 0.8% after the retailer’s comparable-store sales figure came in above expectations. Netflix climbed 4.8% after a Wall Street analyst was positive on the streaming giants ability to grow despite increased competition.
On the data front, consumer prices were flat in September, the weakest reading since January. However, the annualized core CPI remained steady at a one-year high of 2.4%. Separately, initial jobless claims came in at 210,000, the lowest in three weeks. Treasuries weakened with the yield on the 10-year note adding eight basis points to 1.66%. In commodities, COMEX gold lost 0.8% to $1,494.80/ounce.