US stocks rise for 3rd straight day
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Traders working on the floor of the New York Stock Exchange, in New York City, on April 24.
PHOTO: REUTERS
NEW YORK - Wall Street stocks rallied for a third straight session on April 24, shrugging off mixed earnings and signs US trade deals with China and the European Union aren’t imminent.
China poured water on the likelihood of a speedy deal with Washington, with a commerce ministry spokesman telling reporters the two sides were not even negotiating yet.
Meanwhile, President Donald Trump blasted China after Boeing said Chinese companies had refused plane deliveries due to the trade dispute.
France’s economy minister Eric Lombard said a trade deal between the US and the European Union is also a way off.
But stocks looked past these developments – or lack thereof – and the Dow Jones Industrial Average finished up 1.2 per cent at 40,093.40.
The broad-based S&P 500 gained 2 per cent to 5,484.77, while the tech-rich Nasdaq Composite Index jumped 2.7 per cent to 18,907.06.
The April 24 gains are part of a “relief rally” that is persisting, said Mr Adam Sarhan, of 50 Park Investments.
Markets remain buoyed by Mr Trump’s more conciliatory tone in recent days after stocks and US bonds sold off on April 21 following the Republican’s sharp criticism of Federal Reserve chairman Jerome Powell.
On April 22, Mr Trump said he had no intention to fire Mr Powell. He has also tempered his rhetoric on China.
“The last few times the market has gone down a lot, Trump has changed his stance and he’s done so quickly,” said Mr Sarhan. “When the markets move, Trump listens.”
Among companies reporting results, Procter & Gamble fell 3.9 per cent and PepsiCo dropped 4.9 per cent after both companies trimmed their forecasts amid tariff uncertainty.
But artificial intelligence player ServiceNow rocketed 15.6 per cent higher after results topped estimates. Profits jumped 33 per cent to US$460 million. AFP
