Wall Street rises for third straight day on data, earnings

Cisco Systems stock saw its biggest percentage jump since February 2016, gaining 6.7 per cent after better-than-expected quarterly results.

On the economic front, groundbreaking on new US homes increased more than expected in April, according to the Commerce Department, as declining interest rates provided support to the struggling housing sector.

The S&P 1500 Homebuilding index advanced 1.2 per cent.

In a separate report from the Labor Department, 16,000 fewer Americans applied for unemployment last week, beating economist estimates.

“If you look at the overall economy, we’re in a fundamentally strong position and this is a reinforcement of that,” said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts.

Regarding US-China trade negotiations, Keator believes the worst may be over.


“Things had to get worse before they could get better,” Keator added. “With tariffs now in place, the Administration has something to give up.”

Washington placed Huawei on a blacklist which bans it from acquiring components and technology from US firms without prior approval.

Shares of Huawei suppliers Qorvo, Skyworks Solutions, Qualcomm, Xilinx and Micron Technology lost ground.

The Philadelphia SE Semiconductor index ended the session down 1.7 per cent.

Electric automaker Tesla dropped 1.6 per cent following safety agency reports that the Autopilot feature was engaged during a fatal crash in Florida in March.

Ride-hailing rivals Uber and Lyft posted their third straight day of gains after spending much of their post-debut trading days in negative territory. Their shares were up 4.1 per cent and 2.9 per cent, respectively.

The Dow Jones Industrial Average rose 214.66 points, or 0.84 per cent, to 25,862.68, the S&P 500 gained 25.36 points, or 0.89 per cent, to 2,876.32 and the Nasdaq Composite added 75.90 points, or 0.97 per cent, to 7,898.05.

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