US stocks close higher amid trade optimism
New York: US stocks closed higher as optimism around China-US trade talks lifted investors’ sentiment.
The Dow Jones Industrial Average rose 57.44 points, or 0.21 per cent, to 26,827.64. The S&P 500 went up 20.52 points, or 0.69 per cent, to 3,006.72. The Nasdaq Composite Index increased 73.44 points, or 0.91 per cent, to 8,162.99, Xinhua news agency reported on Monday.
Chinese Vice Premier Liu He said over the weekend that China and the United States have achieved substantial progress in the latest economic and trade consultations, building a key foundation for signing a phased agreement.
He said that preventing the trade war from escalating is beneficial to China, the United States and the world at large, which is a shared expectation of producers and consumers.
The two sides should properly address each other’s key concerns on the basis of equality and mutual respect, create favorable environment and achieve common goals, said Liu.
On earnings front, third quarter earnings are expected to decrease 3.1 per cent from the same period last year, according to the latest data from Refinitiv.
Of the 73 companies in the S&P 500 that have reported earnings to date, 83.6 per cent have reported earnings above analyst expectations. This compares to a long-term average of 65 per cent and prior four quarter average of 74 per cent.
Third-quarter revenue is expected to increase 3.1 per cent from a year ago. Excluding the energy sector, the growth estimate is 4.3 per cent.