US stocks rebounded after a slow start Tuesday, led by retail giant Walmart Inc (NYSE:WMT) as well continued optimism about US-China trade talks.
Shares of the world’s largest retailer rose 2.2% to $102.23 on the Dow Jones Industrial Average after posting better-than-expected quarterly results that were encouraging following a weak December print for retail sales. The Dow added just 8.6 points to 25891.32 after getting starting the session in the red.
Stocks are also rose on hopes that the US and China will strike a permanent trade pact. Discussions between the world’s two biggest economies are expected to continue this week in Washington on the back of talks last week in Beijing.
Meanwhile, Wynn Resorts Ltd (NASDAQ:WYNN) provided plenty of action on the Nasdaq, as separate reports indicated growing gaming revenue in the US and the gambling enclave of Macau. Wynn shares rose 3.1% to $128.36, leading Nasdaq fractionally higher to 7486.77.
And copper digger Freeport-McMoRan Inc. (FCXNYSE:) gave a boost to the S&P 500 after an upgrade to Buy from Neutral from analysts at Citi, rising 4.8% to $12.87 as the S&P gained just 4 points to 2779.76 after a rough start.
Among small-cap stocks, Kraton Corp (NYSE:KRA) shares soared on the Russell 2000 after its board said it was considering selling off its Cariflex business. Shares of the Houston specialty chemicals maker surged 25% to $36.36.
Up north, Toronto’s TSX edged up 0.63% to 15,937.44.
1:30 pm: Stocks reverse course as optimism grows about US-China trade pact
US stocks moved higher in afternoon trade as rosy results from Walmart and optimism about US-China trade talks boosted market sentiment.
Walmart shares (NYSE:WMT) surged 3.7% to $103.66 after the retailer posted better-than expected quarterly results.
Stocks are also on the rise thanks to hopes that the US and China will strike a permanent trade pact. Discussions between the world’s two biggest economies are expected to continue this week in Washington on the back of talks last week in Beijing.
At the time of writing, the Dow Jones Industrial Average added almost 10 points or 0.04% to 25,892, lifted by Walmart, Walgreens Boots Alliance and Dow DuPont.
The S&P 500 also nudged up by 0.14% to 2,779, led by a 7.5% rise from Freeport-McMoRan Inc and 4.5% jump by Noble Energy Inc.
Elsewhere, tech-laden Nasdaq climbed 0.2% or 15.96 points, led by Wynn Resorts, JD.com and American Airlines Group.
Up in Canada, Toronto’s TSX jumped by 0.48% to 15,913 while the Russell 2000 index of small-cap stocks popped by 0.25% to 1,573.
10 am: Stocks slip as US and China kick off latest round of trade talks
Wall Street edged lower Tuesday after another round of US-China trade negotiations aimed at easing a trade dispute between the world's two largest economies began in Washington.
China is currently the top priority for the Trump trade team, as the administration has given Beijing a March 1 deadline to commit to concrete, broad economic changes.
Failing that, the administration has said the current 10% U.S. tariffs on $200 billion worth of Chinese imports will be boosted to 25%—although the president has said he might be willing to extend the deadline if advances are evident.
The Dow Jones Industrial Average fell 16 points, or 0.1% to 25,866, led lower by Goldman Sachs, JPMorgan Chase and Nike.
Meanwhile, the S&P 500 was off 4 points, or 0.3%, to 2,769, led lower by Electronic Arts, Conagra Brands and Mattel Inc. Shares in Walmart surged 3.4% after it reported earnings and revenue for the holiday quarter that topped analysts' expectations, as its e-commerce sales surged 43% thanks to more shoppers using its online grocery delivery service.
The Nasdaq Composite index edged into the green at 7,477.08. Advanced Micro Devices, NetEase Inc and Wynn Resorts were among the top boosts to the tech-laden Nasdaq.
Elsewhere, the Russell 2000 index of small-cap stocks was flat at 1,568.44.
7.15 am: Wall Street seen starting lower after long weekend as traders still jittery on trade
Wall Street shares are set to open lower after the extended holiday due to President's Day as European markets are also in the red.
US stocks on Friday closed well ahead, with the Dow Jones Industrial Average adding almost 444 points to close at 25,883. The tech-heavy Nasdaq index added around 45 at 7,472.
The S&P 500 index added nearly 30 to finish at 2,775.
Up in Toronto, markets were also higher Friday. The TSX zoomed up over 142 points, while the Venture exchange gained over seven.
In US futures Tuesday, the Dow Jones is off 81 points; the Nasdaq is down 23.5 and the S&P 500 futures are around ten points lower.
It comes as traders expect another slew of earnings, notably from retail giant Walmart Inc (NYSE:WMT) before the bell, where attention will be on how the holiday season went for the store.
In the UK, Japanese car giant Honda has announced that it will close a factory in 2021 that provides 3,500 people with jobs. Commentators have suggested that Brexit was likely to have played a part in the decision.
In London, the FTSE 100 is down around 47 points at the time of writing; the German DAX is down around 24 and the French CAC 40 is down 26 at 5,141.
Connor Campbell, a financial analyst at spreadbetting group Spreadex said that after "having Monday off, the Dow Jones is going to ease back into action, with the futures pointing to a 90 point decline when the bell rings on Wall Street".
He suggests that the "big thing" for the US this week is the latest round of trade talks in Washington.
James Hughes, market analyst at Axitrader added: "US economic data is set to be thin on the ground in the day ahead, with Federal Reserve comments on the economic outlook and monetary policy being the most likely to hold any significant sway in the near term. The threat of protracted legal disputes over Trump’s border wall funding gambit could start to take the edge off any momentum for the market too, but as it stands, unless there are any surprises, equities could well be in for a rather quiet day ahead. What’s more, with US fundamentals not set to pick up until Thursday, this could prove to be a recurring theme, too."