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US STOCKS-Apple and Merck drive Wall Street higher as trade worries abate

Published 30/09/2019, 19:46
© Reuters.  US STOCKS-Apple and Merck drive Wall Street higher as trade worries abate
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(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window.)

* Main indexes gain after two straight days of losses

* Apple up on JPM's iPhone volume forecast raise, Cook's

comments

* Merck rises after promising data from cancer drug

* Indexes: Dow +0.59%, S&P 500 +0.64%, Nasdaq +0.84%

(Updates to afternoon)

By Noel Randewich

Sept 30 (Reuters) - U.S. stocks rose on Monday, helped by

surges in Apple and Merck & Co as investors set aside worries

about the U.S.-China trade war.

Shares of Apple AAPL.O rose 2.4% after Chief Executive

Officer Tim Cook told a German daily that sales of the company's

newest iPhones were off to a strong start, while JP Morgan

raised its forecast for shipment volumes. Apple is struggling to

reverse shrinking iPhone sales amid tepid global demand for

smartphones. The S&P 500 technology index .SPLRCT and the health care

index .SPXHC both added about 1.3%, leading other sectors.

Sentiment on Wall Street also got a boost after White House

trade adviser Peter Navarro dismissed reports that the Trump

administration was considering delisting Chinese companies from

U.S. stock exchanges as "fake news." Concerns related to those reports had sent the S&P 500

.SPX and Nasdaq .IXIC to a more than three-week low on

Friday.

"This idea of using different types of levers that impact

trade negotiations is something that we will get accustomed to,"

said Phil Blancato, chief executive officer of Ladenburg

Thalmann Asset Management in New York.

U.S.-listed shares of Chinese firms Alibaba Group Holding

Ltd BABA.N and Baidu Inc BIDU.O rose over 1%. The next round of high-stakes trade talks between two of the

world's largest economies are scheduled for October.

Wall Street's main indexes are on course to end September

with the weakest quarterly performance so far this year, rattled

by a host of factors, including an escalation in U.S-China trade

tensions, the inversion of an important part of the U.S. yield

curve and political turmoil in Washington.

Click here to view the interactive graphic: https://tmsnrt.rs/2n5vkTu

At 2:36 p.m. ET, the Dow Jones Industrial Average .DJI was

up 0.59% at 26,979.04 points, while the S&P 500 .SPX gained

0.64% to 2,980.85.

The Nasdaq Composite .IXIC added 0.84% to 8,006.41.

Merck & Co MRK.N gained 2.5% as it presented promising

data for its Lynparza cancer drug, which it develops in

partnership with Britain's AstraZeneca AZN.L . Newell Brands NWL.O jumped 3.3% after SunTrust Robinson

Humphrey upgraded the household goods maker to "buy."

Investors this week will focus on economic reports,

including a key jobs report and the September ISM purchasing

managers index (PMI). August's PMI data showed a contraction in

the manufacturing sector.

Advancing issues outnumbered declining ones on the NYSE by a

1.63-to-1 ratio; on Nasdaq, a 1.62-to-1 ratio favored advancers.

The S&P 500 posted 17 new 52-week highs and 1 new lows; the

Nasdaq Composite recorded 25 new highs and 105 new lows.

Wall Street's third quarter performance interactive https://tmsnrt.rs/2n5vkTu

Wall Street's third quarter performance png https://tmsnrt.rs/2n60f29

PREVIEW-Third quarter could mark turning point in U.S. profit

cycle ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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