U.S. stocks post weekly gains amid trade optimism, strong performing financial, tech stocks

Source: Xinhua| 2019-02-17 11:51:45|Editor: zh
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NEW YORK, Feb. 16 (Xinhua) -- U.S. stocks wrapped up the week on an upbeat note as investors were hopeful about the possibility of easing U.S.-China trade tensions, which was reflected in the performance of a batch of financial and tech-related stocks.

In the week ending Feb. 15, the Dow Jones Industrial Average rose 3.07 percent, the S&P 500 was up 2.48 percent, and the Nasdaq Composite Index gained 2.37 percent.

This week marked generally decent trading sessions for the market with a mixed start, yet a high ending. On Friday, the three major indices ended higher, closing out the week positively, as financial stocks outperformed expectations and the market was hopeful over easing U.S.-China trade tensions, after the two sides decided to continue bilateral talks next week.

Friday notched solid gains throughout the day, as a majority of blue chips in the Dow rallied, with financial stocks leading the winners.

The financial sector also stood out among the 11 primary S&P sectors around market close, extending the biggest gains in the tally.

The Dow was up 443.86 points, or 1.74 percent, to 25,883.25. The S&P 500 increased 29.87 points, or 1.09 percent, to 2,775.60. The Nasdaq rose 45.46 points, or 0.61 percent, to 7,472.41.

The market has also been buoyed by continued optimism about the prospects of trade progress to be made between the United States and China, as investors have kept a close eye on the latest updates on bilateral talks between the two countries.

Tech-related stocks' strong performance on Thursday offset part of the negative impact caused by the unexpected biggest fall of U.S. retail sales in December 2018 in nine years.

Shares of Cisco rose nearly 2 percent around market close on the week's fourth trading day, after the U.S. tech giant reported quarterly profit and revenue that exceeded analysts' estimates.

Shares of the U.S. Internet entertainment service company Netflix also rose.

Shares of Google's parent Alphabet also gained on Thursday, after U.S. investment bank Citigroup rated the company as its top pick in the latest ranking of U.S. Internet companies.

The market has long been backed by better-than-expected earnings by a batch of U.S. companies for the fourth quarter of 2018.

More than two thirds of the S&P 500 companies have posted stronger-than-expected quarterly earnings as the fourth-quarter earnings season is approaching its end, according to Reuters.

Yet in an interview with CNBC, Lael Brainard, a member of the Fed's Board of Governors, said Thursday that she was concerned about the U.S. economy due to increasing "downside risks."

"Downside risks have definitely increased relative to that modal outlook for continued solid growth," said the central bank policymaker.

Adding to market concerns, U.S. President Donald Trump declared Friday a national emergency over security at the U.S.-Mexico border, in a bid to grab more federal funds to build a border wall.

The action would help him circumvent U.S. Congress, which has sparked strong opposition in Washington.

Wall Street also digested a slew of key economic data.

U.S. industrial production fell 0.6 percent in January, which marks the first decline in eight months, the U.S. Federal Reserve said Friday.

Manufacturing alone sank 0.9 percent, the worst decrease in eight months.

U.S. retail sales plunged 1.2 percent in December 2018, marking the largest decline since September 2009, the U.S. Census Bureau said Thursday.

The data have been widely regarded as an indication of a marked slowdown in both consumer spending and economic activity by the end of 2018.

U.S. jobless claims, or the number of people applying for unemployment benefits, rose by 4,000 to 239,000 last week, the Labor Department said Thursday.

The four-week average of the claims also increased to 231,750, the highest level since January 2018.

Yet the growth still indicates low levels for the U.S. job market, as the jobless claims are normally used to gauge the unemployment rate.

U.S. job openings increased to 7.3 million in December 2018, compared with nearly 6.9 million in November, the Bureau of Labor Statistics said in its JOLTS report Tuesday.

The report, tracking monthly changes in job openings, hiring and quits, is an important indicator to gauge the strength of the U.S. labor market.

The U.S. Consumer Price Index (CPI) remained unchanged last month, as falling gasoline prices eroded increases in the cost of food and rents, the U.S. Bureau of Labor Statistics reported Wednesday.

The CPI increased 1.6 percent for the 12 months ending January, the smallest increase since the period ending June 2017.

Investors have widely believed that the data, indicating an upbeat inflation level, would help the U.S. Federal Reserve keep its interest rates steady for some time, as the Fed's not raising rates is normally favorable for stock markets.

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