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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.