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US STOCKS-Trade hopes buoy Wall Street as China extends olive branch

Published 11/09/2019, 21:28
Updated 11/09/2019, 21:30
© Reuters.  US STOCKS-Trade hopes buoy Wall Street as China extends olive branch
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* S&P 500 closes above 3000

* Apple leads S&P 500, Nasdaq higher

* Boeing provides biggest boost to the Dow

* China exempts 16 types of U.S. goods from tariffs

* Indexes up: Dow 0.85%, S&P 500 0.72%, Nasdaq 1.06%

(Updates to market close)

By Stephen Culp

NEW YORK, Sept 11 (Reuters) - Wall Street moved higher on

Wednesday, led by tariff-sensitive technology and industrial

stocks after China extended an olive branch ahead of next

month's trade negotiations with the United States.

The S&P 500 closed above the 3,000 mark for the first time

since July 30.

Apple Inc AAPL.O provided the biggest boost to the S&P 500

and the Nasdaq the day after it unveiled its latest iPhone

upgrade and announced the launch date of its Apple TV+ streaming

service.

Its shares rose 3.2%, once more lifting the company's value

above the $1 trillion mark.

The blue-chip Dow, led by Boeing Co BA.N , posted its sixth

consecutive daily gain. Boeing, the largest U.S. exporter by

dollar value, gained 3.6%.

China announced tariff exemptions for a basket of U.S.

goods, a move viewed by many investors as a show of good faith

just weeks ahead of planned talks aimed at resolving the trade

war, which has bruised world economies and rattled markets for

months.

However, a senior White House adviser urged investors to be

patient in an effort to curb expectations for the trade talks

scheduled to take place next month in Washington. "The general market still believes that a real deal is

possible and all of these moves by the White House and China are

simply negotiating tactics," said Tim Ghriskey, chief investment

strategist at Inverness Counsel in New York. "(But) that belief

swings on a daily basis based on tweets and statements from

China.

"Right now we're swinging a bit toward the chance of a deal

being made in a reasonable time frame," Ghriskey added.

In a series of morning tweets, President Donald Trump called

on the U.S. Federal Reserve to slash interest rates into

negative territory, a move typically seen as a last-ditch effort

to revive sluggish economies. "The experiment of negative interest rates has certainly

proved to be flawed in both the ECB and Japan and I certainly

think it's something the United States should probably try to

avoid at all costs," said Art Hogan, chief market strategist at

National Securities in New York.

Markets still expect the Fed to cut interest rates by 25

basis points at the conclusion of its monetary policy meeting

next week.

U.S. Treasury yields rose for the third straight session

ahead of the European Central Bank's (ECB) meeting on Thursday.

The Dow Jones Industrial Average .DJI rose 227.61 points,

or 0.85%, to 27,137.04, the S&P 500 .SPX gained 21.54 points,

or 0.72%, to 3,000.93 and the Nasdaq Composite .IXIC added

85.52 points, or 1.06%, to 8,169.68.

Of the 11 major sectors in the S&P 500, all but real estate

.SPLRCR closed in the black.

Chipmaker Micron Technology Inc MU.O rose 2.2% after

Longbow Research upgraded the stock to "buy." The Philadelphia SE Semiconductor Index .SOX was up 1.5%.

Oilfield services firm Baker Hughes A GE Co BHGE.N

registered the biggest percentage drop in the S&P 500, falling

7.5%, following news that parent General Electric GE.N would

sell $3 billion in Baker Hughes shares, resulting in a loss of

GE's majority stake. Advancing issues outnumbered declining ones on the NYSE by a

2.53-to-1 ratio; on Nasdaq, a 2.97-to-1 ratio favored advancers.

The S&P 500 posted 25 new 52-week highs and no new lows; the

Nasdaq Composite recorded 58 new highs and 12 new lows.

Volume on U.S. exchanges was 7.59 billion shares, compared

with the 6.85 billion average over the last 20 trading days.

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