US stocks edge higher on industrials; dollar flattens
Jul 13, 2018 (TREND News Agency via COMTEX) —
The benchmark S&P 500 hit a more than five-month high on Friday on gains in industrials and energy companies, while the safe-haven US dollar flattened after touching a two-week high, Reuters reported.
Gold slipped to seven-month lows and Treasury prices rose after the Federal Reserve reinforced views of strong US economic growth in a report to Congress, reinforcing expectations of higher interest rates.
The Fed reiterated that it “expects that further gradual increases” in interest rates would be appropriate given “solid” growth.
An absence of rhetoric overnight about a US-China trade war helped industrial stocks, as did remarks on Thursday from US Treasury Secretary Steven Mnuchin, who said that the United States and China might reopen trade talks.
“Despite the ominous headlines about a trade war with China, we’re comfortable with US equities at current prices amid favorable macro trends and surging earnings growth,” said Mike Bailey, director of Research at FBB Capital Partners in Maryland.
Gains from Boeing (BA.N), Caterpillar (CAT.N) and 3M (MMM.N) helped offset a drop in financials after three big Wall Street banks reported mixed quarterly earnings.
The Dow Jones Industrial Average .DJI rose 104.19 points, or 0.42 percent, to 25,029.08, the S&P 500 .SPX gained 3.66 points, or 0.13 percent, to 2,801.95 and the Nasdaq Composite .IXIC added 0.04 points, or 0 percent, to 7,823.96.
The pan-European FTSEurofirst 300 index .FTEU3 rose 0.26 percent and MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.24 percent.
The greenback initially got a boost from the Fed report and from data showing China’s trade surplus with the United States swelled to a record in June, which could further inflame a trade dispute between Shanghai and Washington.