The major averages rebounded Tuesday after suffering the worst trading day of 2019 Monday. The Dow added 311 points and finished higher for the first time in five sessions. The S&P 500 and Nasdaq Composite both snapped six day losing streaks, advancing 1.3% and 1.4% respectively.
Investor sentiment was lifted overnight after China’s central bank expressed a willingness to stabilize the Yuan a day after the currency breached a key psychological level against the U.S. dollar. This move came after the U.S. Treasury Department labeled the Chinese as currency manipulators, underscoring the escalating trade tensions between Washington and Beijing. A separate update from White House Chief Economic Adviser Larry Kudlow suggested President Trump would be “flexible” with tariffs on Chinese goods. Treasuries were mixed, with the yield on the benchmark 10-year note down two basis points to 1.71%. On the data front, the lone update revealed the U.S. economy had 7.3 million jobs openings in June, in-line with estimates and the prior month’s reading.
Ten of 11 S&P 500 sectors finished in positive territory with Technology stocks pacing the gains. The Consumer Discretionary and Industrials sectors also outperformed as both groups advanced roughly 1.5%. In earnings, Take-Two Interactive jumped 8.0% after the video-game maker easily topped analyst earnings and revenue estimates. In M&A news, MasterCard climbed 3.1% after announcing it had acquired a portion of electronic billing platform company Nets for $3.19 billion. In commodities, WTI crude slipped 1.9% to $53.92/barrel while COMEX gold gained 0.5% to $1471.90/ounce.