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Wednesday, October 26, 2016

U.S. Stocks Rise On Solid China, Japan Data

NEW YORK (AFP) – U.S. stocks Monday moved higher following strong economic data from China and Japan.

About 40 minutes into trade, the Dow Jones Industrial Average jumped 81.89 (0.55 percent) to 15,004.39.

The broad-based S&P 500 added 8.27 (0.50 percent) at 1,663.44, while the tech-rich Nasdaq Composite Index tacked on 21.28 (0.58 percent) at 3,681.29.

U.S. investors continued to cautiously await news on the Obama administration’s plans for a military strike on Syria and on the Federal Reserve’s intentions for scaling back its aggressive bond-buying program.

However, markets were cheered by data out of the world’s second- and third-largest economies.

China’s trade surplus grew to a greater-than-expected $28.5 billion in August after exports jumped unexpectedly.

Meanwhile, Japan’s second-quarter economic growth hit 0.9 percent, up from the previous quarter and above the 0.6 percent previously estimated.

Technology giant Apple jumped 1.3 percent ahead of Tuesday’s company event, which is expected to launch new products.

Molex, a manufacturer of electronic components, surged 31.4 percent on news it is being acquired by Koch Industries for $7.2 billion.

Computer maker Dell was trading 0.1 percent higher after activist Carl Icahn indicated he will not offer a counterproposal to the latest buyout offer from a consortium led by founder Michael Dell.

American banking giant JPMorgan Chase rose 0.5 percent after announcing two new board members in the wake of a pair of July board resignations. The move comes as JPMorgan continues to face tough scrutiny from regulators.

Online coupon company Groupon rose 5.4 percent after announcing an acquisition of last-minute travel application Blink for an undisclosed sum.

Athletic-wear company Lululemon Athletica rose 4.3 percent after Citi Research initiated coverage with a “buy” rating. Lululemon offers a differentiated product with a “culture-driven model” that “serves a niche market with few pure-play competitors,” Citi said.

Delta Air Lines rose 6.0 percent ahead of its joining the S&P 500 index after trade Tuesday.

Bond prices rose. The yield on the 10-year Treasury fell to 2.89 percent from 2.94 percent Friday, while the 30-year dropped to 3.83 percent from 3.87 percent. Prices and yields move inversely.

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