Stocks rose on Wednesday ahead of the U.S. and China signing a so-called phase one trade deal while the corporate earnings season picked up steam.
The Dow Jones Industrial Average traded 160 points higher, or 0.6% to reach an all-time high. The S&P 500 gained 0.4% and also hit a record, while the Nasdaq Composite advanced 0.5%.
Also helping sentiment Wednesday morning were comments from White House economic advisor Larry Kudlow, who said the Trump administration would unveil more tax cuts later this year.
President Donald Trump is expected to sign the deal at around 11:30 a.m. ET. Investors have been eagerly awaiting the signing of the so-called phase one trade agreement as the conflict between the world’s largest economies has dragged on for nearly two years.
However, Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer said in a joint statement Tuesday that existing U.S. tariffs on Chinese goods would stay in place even after the deal was signed.
There’s also concern over the details of the phase one agreement. A U.S. Trade Representative document said the deal includes a “dramatic expansion of U.S. food, agriculture and seafood product exports.” The USTR has also said China will buy at least $200 billion in U.S. products over a two-year period.
Wall Street also kept an eye on Corporate America as the earnings season. Bank of America reported quarterly results that beat analyst expectations as bond-trading revenue ripped higher.
Goldman Sachs posted a revenue for the quarter that surpassed estimates. BlackRock, UnitedHealth and PNC Financial also posted quarterly earnings that beat analyst expectations.
So far, about 30 S&P 500 companies have released their quarterly numbers. Of those companies, 82% have posted better-than-expected profits, according to FactSet data.
Expectations for corporate profits were downbeat heading into the reporting period. FactSet estimated