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US STOCKS-U.S.-China trade deal hopes lift Wall Street

Published 10/10/2019, 16:00
Updated 10/10/2019, 16:10
© Reuters.  US STOCKS-U.S.-China trade deal hopes lift Wall Street
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* China willing to reach agreement with U.S. - Xinhua

* Trump to meet Chinese Vice Premier Liu He on Friday

* Apple rises as brokerage sees higher iPhone demand

* Cisco falls on report of GS downgrade

* Indexes up: Dow 0.61%, S&P 500 0.63%, Nasdaq 0.63%

(Updates to open)

By Shreyashi Sanyal

Oct 10 (Reuters) - U.S. stocks gained on Thursday on hopes

that top-level U.S.-China trade talks would yield at least a

partial deal, while a rise in Apple's shares lifted the

technology sector.

Wall Street's main indexes moved higher after President

Donald Trump tweeted he would meet Chinese Vice Premier Liu He

on Friday for further trade talks. "The tweet ... is giving market participants a reason to

believe that perhaps a trade deal or at least a partial trade

deal might be announced as early as tomorrow," said Robert

Pavlik, chief investment strategist at SlateStone Wealth LLC in

New York.

Separately, Liu said Beijing was willing to reach an

agreement with Washington to prevent any further escalation in

the trade war, Chinese state news agency Xinhua reported.

The latest comments fueled optimism that had been dulled

earlier after China urged the United States to stop unreasonable

pressure on Chinese companies, while the South China Morning

Post reported that two sides made no progress in deputy-level

trade talks earlier in the week.

But Bloomberg said late on Wednesday that the United States

was weighing a currency pact with China as part of a partial

deal. "Some sort of agreement towards currency is fine but it

would not get us anywhere near from where we started this

issue," Pavlik said.

Equity markets have also been rankled by weak economic

indicators showing a sharp contraction in U.S. manufacturing and

a bleak reading on business activity, bolstering bets of another

interest rate cut by the Federal Reserve to combat a slowdown.

Apple Inc AAPL.O rose 1.2%, lifting the technology sector

.SPLCRT by 0.7%, after Longbow Research upgraded the company's

stock to "buy", citing higher iPhone 11 demand.

Apple suppliers Skyworks Solutions Inc SWKS.O and Qorvo

Inc QRVO.O gained 6% and 5%, respectively, after Cowen and Co

upgraded its rating on both the companies, expecting them to

benefit from higher iPhone demand.

At 10:38 a.m. ET the Dow Jones Industrial Average .DJI was

up 160.81 points, or 0.61%, at 26,506.82, the S&P 500 .SPX was

up 18.27 points, or 0.63%, at 2,937.67 and the Nasdaq Composite

.IXIC was up 50.16 points, or 0.63%, at 7,953.90.

If Thursday's gains hold, the three main indexes will log

their second straight day of gains this week.

Cisco Systems Inc CSCO.O dropped 1.8%, after a report that

Goldman Sachs downgraded the network gear maker's shares to

"neutral".

Advancing issues outnumbered decliners for a 1.93-to-1 ratio

on the NYSE and a 1.69-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and two new

lows, while the Nasdaq recorded eight new highs and 58 new lows.

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