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* Boeing extends fall after brokerages downgrade
* Coty jumps on plan to sell professional beauty business
* Chipmakers, tech stocks rise on trade hopes
* Indexes up: Dow 0.12%, S&P 500 0.52%, Nasdaq 0.73%
(Updates market action, adds comments)
By Shreyashi Sanyal
Oct 21 (Reuters) - Wall Street rose on Monday on signs of
progress in resolving the prolonged U.S.-China trade war, while
a second straight session of declines for Boeing pressured the
blue-chip Dow index.
White House adviser Larry Kudlow said tariffs scheduled for
December could be withdrawn if talks go well, adding to optimism
after China said it will work with the United States to address
each other's core concerns. Trade-sensitive technology stocks .SPLRCT gained 0.8%,
while the Philadelphia Semiconductor index .SOX climbed 1.6%
on gains in U.S. chipmakers with a large exposure to China.
"It is a bit more confirmation from China as to what was
agreed with the U.S. in discussions towards the stage one trade
deal" said Jon Adams, investment strategist at BMO Global Asset
Management.
A 1.2% gain in financial stocks .SPSY also propped up the
S&P 500 index .SPX . Big banks posted largely upbeat quarterly
results last week in a strong start to the earnings season.
"The earnings estimates are too low this year for both Q3
and Q4. We should be able to surprise on the upside and we are
seeing that in early stages of Q3," Adams added.
Shares of Boeing Co BA.N were on track for their worst
two-day fall in over a decade as multiple brokerages downgraded
the stock following reports that call into question the timing
of the grounded 737 MAX jet's return to service. The planemaker maker's shares fell 3.4%.
Signs of progress in trade talks have helped Wall Street
recover from a rough start to the month. The benchmark S&P 500
index ended Friday with its second weekly gain, while the Nasdaq
rose for the third week in a row.
At 11:09 a.m. ET, the Dow Jones Industrial Average .DJI
was up 32.84 points, or 0.12%, at 26,803.04, the S&P 500 .SPX
was up 15.58 points, or 0.52%, at 3,001.78. The Nasdaq Composite
.IXIC was up 59.37 points, or 0.73%, at 8,148.91.
Investors are now gearing up for earnings reports this week
from high-profile companies including Boeing, Microsoft Corp
MSFT.O , Procter & Gamble Co PG.N , United Parcel Service Inc
UPS.N and Caterpillar Inc CAT.N .
Analysts have projected the first earnings contraction since
2016 for S&P 500 companies, but of the 75 companies that have
reported results so far, only 12% have come in below estimates,
according to Refinitiv data.
Halliburton Co HAL.N gained 6.3%, reversing earlier
losses, after the oilfield services provider detailed plans of
further cost reductions. Coty Inc COTY.N was the biggest gainer among S&P 500
companies after the cosmetics maker said it was planning to sell
its professional beauty business that houses brands such as
Wella and OPI. Cardinal Health Inc CAH.N , McKesson Corp MCK.N and
AmerisourceBergen Corp ABC.N led declines on the benchmark
index.
The drug distributors, along with Teva Pharmaceutical
Industries TEVA.TA , reached a settlement with two Ohio
counties related to the opioid crisis. Advancing issues outnumbered decliners by a 2.50-to-1 ratio
on the NYSE and by a 2.53-to-1 ratio on the Nasdaq.
The S&P index recorded 35 new 52-week highs and two new
lows, while the Nasdaq recorded 76 new highs and 39 new lows.