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US STOCKS-Wall Street edges higher on tariff delay hopes

Published 10/12/2019, 18:11
Updated 10/12/2019, 18:19
© Reuters.  US STOCKS-Wall Street edges higher on tariff delay hopes
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* U.S., China planning for delay of Dec tariff - WSJ

* Autozone up after profit beat, peers rise

* Netflix drops after Needham downgrade

* Indexes up: Dow 0.03%, S&P 500 0.09%, Nasdaq 0.20%

(Adds comments, updates price action)

By Shreyashi Sanyal and Arjun Panchadar

Dec 10 (Reuters) - Wall Street's indexes edged higher in

choppy trading on Tuesday after a report that the United States

and China were planning to delay a new round of tariffs set to

kick in on Dec. 15.

Officials from both sides also hinted at extending their

trade talks, the Wall Street Journal reported. With the trade war continuing to take a toll on global

growth, markets have been hoping for a delay in tariffs and

looking for positive headlines on the talks.

"I think that both sides are going to find a way to delay

the imposition of new tariffs on Dec. 15," said Art Hogan, chief

market strategist at National Securities in New York.

"We just don't know if that is true right now that is why

the market has been acting skittishly. I think that we are still

waiting on news."

Apple Inc AAPL.O , shares of which are often sensitive to

news on trade, gained 1%. The broader S&P 500 technology sector

.SPLRCT rose 0.4%.

The communication services sector .SPLRCL slipped, weighed

down by Netflix Inc's NFLX.O 1.7% fall after Needham

downgraded the company's shares to "underperform". Federal Open Market Committee's two-day policy meeting

kicks off on Tuesday and investors are expecting updates from

the central bank on its 2020 economic outlook.

The S&P 500 is up 25% so far this year, boosted by the

Federal Reserve's interest rate cuts and some relief over

corporate profits.

The Dow Jones Industrial Average .DJI was up 9.73 points,

or 0.03%, at 27,919.33, the S&P 500 .SPX was up 2.70 points,

or 0.09%, at 3,138.66 and the Nasdaq Composite .IXIC was up

17.49 points, or 0.20%, at 8,639.32.

On other trade-related development, Canada, Mexico and the

United States agreed to a fresh overhaul of their

quarter-century-old regional trade pact after negotiators

approved changes to a preliminary deal struck last year and

officials will sign the new agreement on Tuesday. Shares in Autozone Inc AZO.N jumped 6.7% after the auto

parts retailer beat quarterly estimates for profit. Shares of

peers Advance Auto Parts AAP.N and O'Reilly Automotive

ORLY.O also rose.

Advancing issues outnumbered decliners by a 1.20-to-1 ratio

on the NYSE and a 1.33-to-1 ratio on the Nasdaq.

The S&P index recorded 21 new 52-week highs and one new low,

while the Nasdaq recorded 53 new highs and 39 new lows.

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