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Stocks Rise on Trade Progress          10/11 16:30

   The S&P 500 finished with its first weekly gain in four weeks Friday as 
investors welcomed a thaw in the punishing trade war between the U.S. and China.

   (AP) -- The S&P 500 finished with its first weekly gain in four weeks Friday 
as investors welcomed a thaw in the punishing trade war between the U.S. and 

   After two days of negotiations in Washington, the U.S. agreed to suspend a 
planned hike in tariffs on $250 billion of Chinese goods that had been set to 
kick in Tuesday. Beijing, meanwhile, agreed to buy $40 billion to $50 billion 
in U.S. farm products.

   Word of the trade concessions filtered out in the last half-hour of trading 
and pushed the Dow Jones Industrial Average 517 points higher, though the 
momentum faded near the close.

   "The market is welcoming any progress here, because (trade) has been the 
biggest overhang on growth," said Ben Phillips, chief investment officer at 
EventShares. "Any sort of deal, even if it's a super light, mini-deal, still 
gets the market constructive and saying, 'OK, we're moving in the right 

   The S&P 500 index closed higher for the third-straight day, adding 32.14 
points, or 1.1%, to 2,970.27. Earlier it had been up 1.9%. The Dow rose 319.92 
points, or 1.2%, to 26,816.59.

   The Nasdaq gained 106.26 points, or 1.3%, to 8,057.04. The Russell 2000 
index of smaller company stocks outpaced the broader market, climbing 26.54, or 
1.8%, to 1,511.90. The indexes all notched gains for the week.

   Treasury yields rose as investors felt less need for safety and dumped 
bonds. The yield on the 10-year Treasury, a benchmark for mortgages and many 
other kinds of loans, jumped to 1.73% from 1.65% late Thursday.

   The rally got going early, reflecting optimism among investors that 
Washington and Beijing would reach at least a limited deal on trade. The 
U.S.-China trade dispute has been a drag on economic growth and slowed 
manufacturing around the world.

   Investors got encouragement from President Donald Trump, who said "Good 
things are happening," before meeting with Chinese Vice Premier Liu He for 
trade talks at the White House.

   Later in the day, after emerging from the meeting to announce the partial 
trade deal, Trump told the Chinese delegation "You're very tough negotiators."

   The White House said the two sides made some progress on the thornier 
issues, including China's lax protection of foreign intellectual property. But 
more progress will have to be made on key differences in later negotiations, 
including U.S. allegations that China forces foreign countries to hand over 
trade secrets in return for access to the Chinese market.

   Markets around the world have swung sharply on every morsel of progress or 
dissonance dribbling out about the U.S.-China trade war.

   The concessions agreed upon by the U.S. and China Friday mark a sharp 
turnaround after expectations were lowered earlier in the week when the U.S. 
blacklisted a group of Chinese technology companies over alleged human rights 

   The Trump administration has already raised tariffs on more than $360 
billion worth of Chinese imports, but the stakes were set to rise. The U.S. had 
planned to raise tariffs on $250 billion in Chinese imports from 25% to 30% 
Tuesday. Those are now suspended. But the two sides did not mention tariffs on 
$160 billion of goods scheduled for Dec. 15.

   Technology stocks, which often do lots of business with China, helped power 
the indexes higher Friday. Apple climbed 2.7%, and edged ahead of Microsoft as 
the most valuable company in the S&P 500. Broadcom added 2.4%.

   Industrial stocks also notched solid gains. Caterpillar climbed 4.7% and 
farm equipment maker Deere gain 1.9%.

   The jump in bond yields helped send bank stocks higher on expectations of 
bigger profits for making loans. JPMorgan Chase rose 1.7%, and Bank of America 
gained 1.6%.

   Stocks jumped across Europe on hopes that the United Kingdom and European 
Union can reach a trade deal ahead of London's pending exit from the bloc. The 
German DAX surged 2.9%, while the CAC 40 in France jumped 1.7%. The FTSE 100 in 
London rose 0.8%, held back in part by a stronger British pound, which adds 
pressure on British exporters.

   A missile strike on an Iranian tanker revived concerns about oil supplies 
and pushed energy prices higher. The explosion follows other attacks earlier 
this year on tankers in the Persian Gulf, through which about 20% of all oil 
traded worldwide passes.

   Benchmark crude oil rose $1.15 to settle at $54.70 a barrel. Brent crude 
oil, the international standard, gained $1.41 to close at $60.51 a barrel. The 
rise in energy prices lifted oil and energy services companies. Exxon rose 1.1% 
and Schlumberger climbed 4.5%.

   Fastenal surged 17.2% after the maker of fasteners and other industrial 
products reported surprisingly good first quarter profit and revenue. The 
company reported solid growth from its industrial vending and onsite services 

   Newmont Goldcorp was among the biggest decliners in the S&P 500 after gold 
prices fell $12.10, or 0.8%, to $1,482.70 per ounce, as investors shifted to 
more risky holdings. Newmont shares slid 3.4%.

   Investors will be focusing on the health of Corporate America next week as 
companies begin reporting their results for the third quarter. Expectations are 
generally low, with analysts forecasting a drop of 4.1% from a year ago. The 
results, plus what CEOs say about their spending and revenue forecasts, should 
give a better picture of the economy's potential direction.

   "You're going to see a little soft earnings (results) this quarter, is our 
expectation, largely on the manufacturing and global companies, but also a 
little softness on services," Phillips said.

   In other commodities trading Friday, wholesale gasoline rose 2 cents to 
$1.64 per gallon. Heating oil climbed 4 cents to $1.96 per gallon. Natural gas 
fell 1 cent to $2.21 per 1,000 cubic feet.

   Silver fell 6 cents to $17.46 per ounce and copper rose 1 cent to $2.62 per 

   The dollar rose to 108.52 Japanese yen from 107.91 yen on Thursday. The euro 
strengthened to $1.1041 from $1.1006.


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