Wall Street rallies as China is ready to resume trade talks with the United States

InvestingOnline.com 16/08/2018, 14:45

US stocks market opened sharply higher on Thursday as investors welcomed speculations of new trade talks between China and the United States. The market also cheered a strong quarterly earnings report from Walmart.

In CNBC, National Economic Council Director Larry Kudlow confirmed that the United States would hold a fresh round of trade talks with China later in August. Turkey is still an issue, but market sentiment jumped and risk appetite resumed with all major indexes posting significant gains.

Walmart reported a Q2 EPS of $1.29, better than expectations by $0.07. On revenues, the giant store made $128 billion, a 3.8% increase from the same quarter in 2018, and a beat by a significant $2.03 billion.

SP 500 daily chart August 16

Equities are up sharply today as the DJIA crosses above its 20-day moving average and it is gaining 1.24% or 312.49 points to 25,474.90. DJIA is still 0.14% negative in the last five sessions.

The S&P 500 also crosses above its 20-day moving average as the index is adding 18.61 points or 0.66% gains to trade at 2,836.98. During the last five trading days, the S&P 500 is 0.55% down.

The NASDAQ Composite is advancing 0.69% or 53.60 points to break above its 20-day moving average and trade at 7,827.78. The S&P is still negative in the last five days with a 0.82% decline.

All sector are higher on Thursday with the telecommunications services and financial sectors performing the best so far on the day.

The Telecommunication Services is posting 0.75% gains on the day, but it is currently trading below its negatively sloping 200-day moving average which implies the longer term trend has yet to improve.

Financials is trading 0.56% positive on the day, while the industrials sector is 0.37% up on Thursday. The laggards are utilities with a 0.08% gain and real estate with a 0.12% addition on the day.