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US STOCKS-Wall Street advances as China extends trade olive branch

Published 11/09/2019, 19:27
Updated 11/09/2019, 19:30
© Reuters.  US STOCKS-Wall Street advances as China extends trade olive branch
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Apple leads indexes higher

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

* Baker Hughes falls as GE looks to cut stake

* Indexes up: Dow 0.52%, S&P 500 0.45%, Nasdaq 0.79%

(Updates to late afternoon, changes dateline, byline)

By Stephen Culp

NEW YORK, Sept 11 (Reuters) - Wall Street was pushed higher

on Wednesday by tariff-sensitive technology and industrial

shares after China extended an olive branch ahead of next

month's trade negotiations with the United States.

Apple Inc AAPL.O led the charge, buoying all three major

stock averages the day after it unveiled its latest iPhone

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

service. Its shares gained 2.6%, lifting the company's value

above the $1 trillion mark.

The blue-chip Dow was on course for its sixth straight daily

advance.

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

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

just days ahead of planned talks aimed at resolving the

long-running trade war, which has rattled markets and bruised

world economies.

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. "There's an element of improved trade optimism," said Chuck

Carlson, chief executive at Horizon Investment Services in

Hammond, Indiana. "But the bigger element is what we've seen

over the last few days where investors are more willing to put

more money into the value side of the equation."

"To see value (stocks) having some nice days speaks to this

idea of improving breadth in the market," Carlson 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

revive sluggish economies. "It's been this raging friction between Trump and the Fed,"

said Mark Luschini, chief investment strategist at Janney

Montgomery Scott in Philadelphia. "At the moment the market ...

still believes the Fed's going to act independently and not

allow itself to be politicized regardless of what Trump may be

saying or tweeting."

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. The Dow Jones Industrial Average .DJI rose 139.52 points,

or 0.52%, to 27,048.95, the S&P 500 .SPX gained 13.42 points,

or 0.45%, to 2,992.81 and the Nasdaq Composite .IXIC added

63.58 points, or 0.79%, to 8,147.73.

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

.SPNY and real estate .SPLRCR were in the black.

Chipmaker Micron Technology Inc MU.O rose 2.0% after

Longbow Research upgraded the stock to "buy." The Philadelphia SE Semiconductor Index .SOX was up 1.1%.

Oilfield services firm Baker Hughes A GE Co BHGE.N saw the

biggest percentage drop in the S&P 500, falling 6.1%, 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. Positive trade news sent shares of Boeing Co BA.N 3.4%

higher, providing the biggest boost to the Dow. The planemaker

is the largest U.S. exporter by dollar value.

Advancing issues outnumbered declining ones on the NYSE by a

2.18-to-1 ratio; on Nasdaq, a 2.75-to-1 ratio favored advancers.

The S&P 500 posted 22 new 52-week highs and no new lows; the

Nasdaq Composite recorded 47 new highs and 11 new lows.

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