Dow closed higher on Thursday but gave up a large chunk of its gains after the Trump administration underestimated a report that the US was considering easing tariffs on China to accelerate a trade deal.
The closing of 0.67% at 24,370.10, below its intraday high of 24,474.46. The gain gained 0.76% and rose 0.71%.
Wall Street has cut some gains as the investor hopes a US-China trade deal may be about to happen, and that a Treasury spokesman has suffered a blow. The spokesman downplayed a Wall Street Journal report suggesting that US officials were preparing to cut tariffs on Chinese imports to persuade Beijing to consider further trade concessions.
"Neither Secretary Mnuchin nor Ambassador Lighthizer made any recommendations to anyone regarding tariffs or other parts of the negotiation with China," the spokesman told CNBC.
The US has imposed tariffs on Chinese goods worth $ 250 billion, about half the value of US imports from the country, and many expect an agreement to be agreed or at least avoid the threat of further escalation.
The 90-day truce of the trade war must end on March 1. Without an agreement, President Donald Trump threatened to impose yet another round of tariffs and raise China's import taxes from 10 percent to 25 percent.
Caterpillar (NYSE 🙂 and Boeing (NYSE :), both barometers of global trade, due to their large international exposures, closed more than 2%, sustaining industrialists and the wider market.
Industries were also pushed higher by defense actions after President Trump outlined a renewed US missile defense strategy. Northrop Grumman (NYSE 🙂 and Lockheed Martin (NYSE 🙂 ended the day higher. Fastenal (NASDAQ :), the major distributor of industrial and construction supplies, also played a role in the broader movement after it had reported profits and revenue. Stocks rose nearly 6%.
Energy names, meanwhile, played down the slide in oil prices in response to weak demand and rising US output.
Finance continued to make gains, even Morgan Stanley (NYSE 🙂 fell after its earnings and revenue for the Citigroup (NYSE :), JPMorgan Chase & Co (NYSE 🙂 and Goldman Sachs (NYSE 🙂 ended the day higher.
In other corporate earnings, Netflix (NASDAQ) shares fell more than 2 percent in the afterhours trade in a mixed fourth-quarter report that beat analysts' expectations, but revenue fell short. The broadcast giant has posted subscriber additions.
Top S & P 500 Gainers and Losers Today:
Fastenal (NASDAQ :), M & T Bank (NYSE :), PPG Industries (NYSE 🙂 were among the top S & P 500 winners for the session.
Pacific Gas & Electric Co. (NYSE :), Morgan Stanley (NYSE :), CenturyLink (NYSE 🙂 were among the worst performers of the S & P 500 session.
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