Stocks finished higher on Wednesday as investors weighed the latest trade news. China announced that several U.S. products would be excluded from additional tariffs set to be implemented next week. The list includes cancer drugs and pesticides, but omits more prominent items, such as agricultural products. The Dow rallied 223 points to extend the index’s advance to a sixth straight session and close above the 27,000 level. The S&P 500 advanced 0.7%, while the Nasdaq Composite jumped 1.1% to snap a three day losing streak.
Ten of 11 S&P 500 sectors finished in positive territory. The Technology group paced the gains, as Apple climbed 3.0% on the heels of Tuesday’s new product unveiling. Energy stocks ended the day flat amid a slump in oil prices. WTI crude declined 2.4% to $56.03/barrel following news that President Trump is considering easing sanctions on Iran. In earnings, RH added 4.7% after the home furnishing retailer topped analyst profit and revenue estimates and lifted its forward guidance. Dave and Buster’s lost 4.6% after its comparable-store sales fell more than expected. GameStop slid 10.2% after delivering disappointing second-quarter figures.
On the data front, core producer prices (excluding food and energy) rose 0.3% last month after a slight decline in July. Another release revealed wholesale inventories rose 0.2% in July. Treasuries were little changed. The yield on the 10-year note gained one basis point to 1.74%, after an auction of the maturity garnered the highest demand since June. In commodities, COMEX gold added 0.3% to $1,497.60 despite a stronger dollar.