Global stocks rise on strong earnings, deal news

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NEW YORK

World stock markets were buoyed by deal-making news and solid earnings from Dow components Cisco and Walmart on Thursday while strong economic data pushed U.S. bond yields higher even as investors struggled to make sense of the latest developments in global trade relations. A spike in US-China tensions over import tariffs has convulsed markets recently as investors seek to parse statements from government leaders to gauge the direction of negotiations.

News that US President Donald Trump is expected to delay auto tariffs appeared to improve the trade tone on Wednesday, but later in the day the Trump administration hit Chinese telecoms giant Huawei with severe sanctions. The market is really having a hard time pricing in this trade war,” said Mark Hackett, chief of investment research at Nationwide. There was a belief earlier in the week that it was going to be catastrophic and we have gained back all of that decline. In my opinion, it is probably a little too optimistic to declare victory.

On Wall Street, the Dow Jones Industrial Average rose 234.92 points, or 0.92%, to 25,882.94, the S&P 500 gained 30.83 points, or 1.08%, to 2,881.79 and the Nasdaq Composite added 85.78 points, or 1.1%, to 7,907.92. Shares of Cisco Systems and Walmart both gave boosts to the S&P 500 and the Dow after their respective earnings reports. — VoM

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