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* AT&T jumps after activist Elliott urges asset sales
* U.S. 10-yr, 30-yr yields hit three-week highs
* Healthcare top drag among S&P sectors
* Indexes up: Dow 0.26%, S&P 500 0.12%, Nasdaq 0.09%
(Updates market action, adds comments)
By Uday Sampath Kumar
Sept 9 (Reuters) - Wall Street's main indexes edged higher
on Monday as investors bet on increased chances of monetary
stimulus from central banks around the world to boost slowing
growth.
A rise in U.S. Treasury yields, with those on 10-year notes
US10YT=RR climbing to three-week peaks, led investors to
switch from bonds to riskier assets. Big lenders, including
Goldman Sachs (NYSE:GS) GS.N , were among the biggest beneficiaries.
Financial stocks .SPSY rose 1.39%, the biggest boost among
the 11 major S&P sectors with banks .SPXBK gaining 2.67%.
"It does feel that sentiment globally is firmer. The market
is expecting some easing from the European Central Bank at its
meeting this week and there has also been a de-escalation of
trade tensions," said Gennadiy Goldberg, senior rates
strategist, at TD Securities in New York.
Federal Reserve Chairman Jerome Powell said late last week
the central bank would "act as appropriate" to sustain economic
expansion, a phrase that financial markets have read as signs of
an interest rate cut. The Fed cut interest rates for the first time since 2008 in
July and bets of another cut rose after data on Friday showed
the U.S. economy added fewer-than-expected jobs in August.
U.S. Treasury Secretary Steven Mnuchin said he did not see
the threat of a recession as the Trump administration seeks to
revive trade negotiations with China, adding that he expected a
positive year ahead for the U.S. economy. "Investors are hopeful that both sides will get close to
agreeing on a cosmetic deal or maybe a truce," said Peter
Cardillo, chief market economist at Spartan Capital Securities
in New York.
Escalating Sino-U.S trade tensions and the inversion of a
key part of the U.S. yield curve drove a sell-off in August.
However, Monday's gains pushed the S&P 500 to just 1.5% below
its record high.
Energy stocks .SPNY led gains on the S&P 500 with a 1.97%
rise, as oil prices got a boost from the new Saudi energy
minister committing to output cuts. O/R
At 11:47 a.m. ET, the Dow Jones Industrial Average .DJI
was up 70.37 points, or 0.26%, at 26,867.83, the S&P 500 .SPX
was up 3.60 points, or 0.12%, at 2,982.31 and the Nasdaq
Composite .IXIC was up 7.10 points, or 0.09%, at 8,110.17.
Among other stocks, AT&T Inc T.N gained 2.66% after
shareholder Elliott Management Corp disclosed a $3.2 billion
stake in the company and pushed for changes. Boeing (NYSE:BA) Co BA.N fell 1.10% after it suspended load testing
of its new widebody 777X aircraft over the weekend as media
reports said a cargo door failed in a ground stress test.
Amgen Inc AMGN.O fell 3% after analysts raised questions
about data on the company's lung cancer drug, dragging the
healthcare sector .SPXHC down 1.14%. Shares of Fred's Inc FRED.O plunged 46.27% to a record low
after the discount retailer said it filed for Chapter 11
bankruptcy protection. Advancing issues outnumbered decliners by a 1.60-to-1 ratio
on the NYSE and by a 1.67-to-1 ratio on the Nasdaq.
The S&P index recorded 33 new 52-week highs and two new
lows, while the Nasdaq recorded 47 new highs and 41 new lows.