Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

S&P 500 Climbs on Strength in Industrial Sector

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/11/2019 | 11:10am EST

By Akane Otani and Michael Wursthorn

Rising shares of industrial companies pulled the S&P 500 slightly higher Monday, even as trade tensions simmered ahead of another round of negotiations with China.

Aluminum-parts manufacturer Arconic and railroad company Norfolk Southern rose more than 2% in early trading, triggering more modest gains throughout the S&P 500's industrial sector. Corporate news out of those companies precipitated the moves -- Arconic said Friday it would spin off one of its main two businesses, while Norfolk Southern unveiled a strategic plan that included boosting its dividend.

But the stock market's gains appeared to be tempered by the possibility of renewed trade tensions between the U.S. and China. Investors are starting the week with a close eye on trade talks between Washington and Beijing, with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin landing in Beijing Monday and scheduled to meet with China's vice premier later in the week.

The talks could spark fresh volatility for financial markets. Stocks rose in January on fresh hopes that the U.S. and China would be able to carve out a trade deal, but some of that optimism appeared to lose steam last week as investors parsed a stream of downbeat economic data.

"There's this belief that this is going to very quickly resolve itself, and I think the reality is that there are very complicated long-term issues on the trade relationship between the two most powerful economies around the world," said Jonathan Golub, chief U.S. equity strategist at Credit Suisse.

Although economic growth in the U.S. still looks relatively steady, Mr. Golub cautioned that an unexpected breakdown in trade talks remain a major market risk.

"I'm actually quite optimistic about the broad backdrop -- but that doesn't mean that there's no risk," he said.

The S&P 500 rose 0.1% in recent trading, paring some of its earlier gain. The Dow Jones Industrial Average turned negative after opening higher, and was recently down 33 points, or 0.1%, to 25072. The Nasdaq Composite has held on to its gain, and was up 0.2%.

Industrial stocks in the S&P 500 were the chief contributor the broad index's small gain Monday. Norfolk Southern added 3.5% to lead the sector higher after it unveiled a strategic plan focused on increased productivity and revenue growth, as well as achieving a dividend payout ratio of 33%.

Arconic rose 2.1% after the company said Friday that it would spin off either its aluminum-sheet rolling or aerospace-components unit.

Weighing on major index's were small declines among energy and health-care stocks, as well as shares of utility companies.

Although the pace of earnings releases has begun to slow down, investors are expecting to get quarterly results from companies including Vornado Realty Trust and Everest Re Group after the closing bell Monday.

Elsewhere, the Stoxx Europe 600 rose 0.8%, while major indexes in Asia ended mixed.

Data Monday showed U.K. gross domestic product grew last year at the slowest pace since 2012. The British pound fell to session lows following the report, although it pared its losses to trade down 0.1% against the U.S. dollar. The FTSE 100 -- whose multinationals tend to benefit from a weaker pound -- rose 0.3%.

In Asia, the Shanghai Composite jumped 1.4% to a two-month high, while Japan's Nikkei Stock Average was shut for a holiday and Hong Kong's Hang Seng rose 0.6%.

Write to Akane Otani at akane.otani@wsj.com and Michael Wursthorn at Michael.Wursthorn@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
CHINA-SHANGHAI COMP -1.37% 2682.39 End-of-day quote.7.39%
DJ INDUSTRIAL 1.74% 25883.25 Delayed Quote.9.05%
FTSE 100 INDEX 0.28% 7234.11 End-of-day quote.0.00%
HANG SENG -1.94% 27863.12 Real-time Quote.9.94%
NASDAQ 100 0.47% 7055.1793 Delayed Quote.11.46%
NASDAQ COMP. 0.61% 7472.4101 Delayed Quote.12.62%
NIKKEI 225 -1.13% 20900.63 Real-time Quote.4.43%
S&P 500 1.09% 2775.6 Delayed Quote.9.53%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
02/15TSX rises 0.91 percent
RE
02/15ADRs End Mostly Higher; Royal Bank of Scotland Trades Actively
DJ
02/15Industrial Stocks Are Leading the Market for the First Time in Years -- Update
DJ
02/15Health Care Up as Risk Appetite Buoys Biotech, Marijuana Stocks -- Health Care Roundup
DJ
02/15MARKET SNAPSHOT: Nasdaq Exits Bear Market, Tallies Longest Weekly Streak In 3 Years On U.S.-China Trade-talk Euphoria
DJ
02/15WALL STREET STOCK EXCHANGE : Wall Street rallies on trade optimism
RE
02/15WALL STREET STOCK EXCHANGE : After strong 2019 start for U.S. stocks, trade verdict looms
RE
02/15EUROPE MARKETS: European Stocks Log Best Weekly Gain In 3 1/2 Months As Banks Gets A Bump From ECB
DJ
02/15LONDON STOCK EXCHANGE : FTSE 100 rallies as trade talks progress; share sale hits Standard Life
RE
02/15EUROPE : Trade talk, bank support hopes send European shares to three-month highs
RE
Latest news "Markets"
Advertisement