Nation & World

Stocks rise on earnings as shutdown deal fuels optimism

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 17, 2019. REUTERS/Brendan McDermid
FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 17, 2019. REUTERS/Brendan McDermid

Stocks rose Friday as corporate earnings bolstered confidence in the economy and President Donald Trump said he and lawmakers agreed to re-open the government on an interim basis.

Treasuries yields rose and the dollar weakened against most of its major peers.

The Dow Jones Industrial Average and Nasdaq Composite indexes erased their first weekly declines of the year to finish in the green, while the S&P 500 finished marginally lower.

The rally in emerging-market assets picked up steam on speculation the arrival of a Chinese delegation in Washington, D.C., next week may help pave the way for a trade deal.

Adding to optimism were reports that the Federal Reserve is weighing an end to a program of reducing its balance sheet sooner than previously expected, a move that could ease measures of financial conditions.

“My sense is there’s potential for the risk taking channel to kick in,” said Tim Alt, a portfolio manager at Aviva Investors.

The shutdown deal came as the president’s job approval plunged, air travel was disrupted and smooth processing of tax refunds was threatened.

The S&P 500 index rose 0.9 percent to 2,664.76 as of 4:05 p.m. Eastern Time, while the Nasdaq Composite Index gained 1.3 percent.

The Dow Jones Industrial Average increased 0.8 percent.

Gold, meanwhile, rose 1.5 percent to $1,300 an ounce.

Give us feedback

We value your trust and work hard to provide fair, accurate coverage. If you have found an error or omission in our reporting, tell us here.

Or if you have a story idea we should look into? Tell us here.

CONTINUE READING

Give us feedback

We value your trust and work hard to provide fair, accurate coverage. If you have found an error or omission in our reporting, tell us here.

Or if you have a story idea we should look into? Tell us here.