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US STOCKS-Wall Street rises on Apple, trade optimism

Published 11/09/2019, 17:25
Updated 11/09/2019, 17:30
© Reuters.  US STOCKS-Wall Street rises on Apple, trade optimism
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* Apple biggest boost to tech sector

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

* Baker Hughes falls as GE looks to cut stake

* Indexes up: Dow 0.37%, S&P 500 0.39%, Nasdaq 0.76%

(Updates market action, adds comments)

By Uday Sampath Kumar

Sept 11 (Reuters) - U.S. stocks rose on Wednesday, lifted by

Apple a day after the launch of its latest iPhones and as China

moved to ease trade tensions with the United States by exempting

certain goods from additional retaliatory tariffs.

Apple Inc AAPL.O rose 2.60%, boosting all three major

indexes by the most, as it also rolled out a streaming TV

service at a price that undercuts Walt Disney Co DIS.N and

Netflix Inc NFLX.O . The gains took Apple's market valuation above $1 trillion

and lifted the wider technology sector .SPLRCT by 0.68%, the

biggest boost among the 11 major S&P 500 sectors.

Tech stocks bounced from a drop in the previous session,

which saw investors moving to more value-oriented stocks from

growth shares.

Adding to the positive momentum, China's finance ministry

moved to exempt 16 types of U.S. goods, including lubricants and

some animal feed ingredients, from additional retaliatory

tariffs, ahead of a planned meeting between trade negotiators.

While on the surface, the move is seen as a friendly gesture

to thaw relations with the United States, analysts are skeptical

about how much it will move the needle in resolving a protracted

trade war that has hurt the global economy.

The nature of the goods that are being exempted are staples

and indicates that China's decision is likely more to do with

supporting its own economy rather than extending an olive branch

to the United States, Ed Egilinsky, head of alternative

investments at Direxion said.

"There's a big difference between today's move and sitting

down at the negotiating table and actually ironing out a deal."

Comments from a senior White House adviser on Tuesday urging

investors to be patient about resolving the dispute further

downplayed expectations that a trade deal would be agreed this

year. Investors held out on big bets ahead of stimulus decisions

from central banks to stem a global slowdown. The U.S. Federal

Reserve and the European Central Bank are expected to cut

interest rates at their policy meetings over the next two weeks.

U.S. President Donald Trump on Wednesday renewed his attacks

on Fed Chairman Jerome Powell, saying that the central bank

should get interest rates down to "ZERO, or less."

At 11:56 a.m. ET, the Dow Jones Industrial Average .DJI

was up 99.22 points, or 0.37%, at 27,008.65, the S&P 500 .SPX

was up 11.71 points, or 0.39%, at 2,991.10 and the Nasdaq

Composite .IXIC was up 61.37 points, or 0.76%, at 8,145.52.

Among other stocks, shares of Micron Technology Inc MU.O

rose 2.49% after Longbow Research upgraded its stock to

"buy". Baker Hughes shares BHGE.N fell 3.63%, the most among S&P

500 companies, after parent General Electric GE.N looked to

sell a majority stake in the oilfield services provider.

Advancing issues outnumbered decliners for a 1.90-to-1 ratio

on the NYSE and a 2.25-to-1 ratio on the Nasdaq.

The S&P index recorded 22 new 52-week highs and no new low,

while the Nasdaq recorded 43 new highs and nine new lows.

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