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* China says trade deal would see tariffs removed in phases
* Trade-sensitive chipmakers rise
* Qualcomm gains, helps support S&P 500
* Indexes jump: Dow 0.7%, S&P 0.3%, Nasdaq 0.4%
(Updates to late afternoon)
By Caroline Valetkevitch
NEW YORK, Nov 7 (Reuters) - U.S. stocks were higher late on
Thursday as the latest signs of progress in U.S.-China trade
relations relieved investors, though indexes pared gains after
another report raised fresh worries about the outlook for a
deal.
China said it had agreed with the United States to remove
tariffs in phases, while state-owned Xinhua News Agency said
Beijing was also considering removing restrictions on poultry
imports. But indexes pared gains in afternoon trading after a Reuters
report, citing sources, said that the White House's plan to roll
back China tariffs faces internal opposition and that no final
decision has been made yet. An interim U.S.-China trade deal is expected to include a
U.S. pledge to scrap tariffs scheduled for Dec. 15.
"That's clearly the biggest driver from premarket on," said
Oliver Pursche, chief market strategist of Bruderman Asset
Management in New York. "The devil is in the details, but the
fact that both sides - and particularly China - has said we've
come to an agreement - I think that's what is giving this so
much credibility."
The latest batch of earnings offered some cheer to
investors.
The S&P 500 technology index .SPLRCT was up 1.1%, with
shares of Qualcomm Inc QCOM.O up 6.4% after it forecast
current-quarter profit above analysts' estimates. Together with Qualcomm, other chipmakers, which have a
sizeable exposure to China, also rose, propping the Philadelphia
Semiconductor index .SOX 1.2% higher.
The trade-sensitive industrials sector .SPLRCI was up
0.7%.
The Dow Jones Industrial Average .DJI rose 200.75 points,
or 0.73%, to 27,693.31, the S&P 500 .SPX gained 10.19 points,
or 0.33%, to 3,086.97 and the Nasdaq Composite .IXIC added
30.79 points, or 0.37%, to 8,441.42.
Also in earnings news, Ralph Lauren Corp RL.N surged 14.4%
after it topped second-quarter profit expectations, helped by a
tighter control on expenses and strong demand for its Polo
shirts and tweed jackets in China and Europe. "Corporate earnings, while down year over year, are better
than many had expected, and that's a plus," Pursche said.
Advancing issues outnumbered declining ones on the NYSE by a
1.06-to-1 ratio; on Nasdaq, a 1.30-to-1 ratio favored advancers.
The S&P 500 posted 54 new 52-week highs and five new lows;
the Nasdaq Composite recorded 112 new highs and 75 new lows.