U.S. Stocks Gain on Trade-Talks Optimism
November 25 2019 - 10:11AM
Dow Jones News
By Caitlin Ostroff
U.S. stocks edged higher Monday after Chinese officials gestured
they would step up protection of intellectual property, a lingering
issue in the U.S.-China trade fight.
The Dow Jones Industrial Average rose 78 points, or 0.3%, to
27953 shortly after the opening bell. The S&P 500 added 0.3%
and the Nasdaq Composite advanced 0.6%.
China's government called for speeding up the introduction on
penalties and punitive action for infringement of patents and
copyrights in a document released Sunday. The U.S. has indicated it
wants clearer assurances that China will follow through on the
commitments it has made on the issue, and on others such as
agricultural purchases, before negotiators will travel to Beijing
for a new round of talks for a "phase one" trade deal.
"People think China is willing to make concessions," said Lewis
Grant, a portfolio manager at Hermès Investment Management. "It
shows a willingness on China's part to come to the table and keep
talking."
Doubts about the U.S. and China's ability to reach an agreement
on trade have driven volatility throughout global markets this
year, although major indexes have nevertheless managed to climb
double-digit percentages in 2019.
Meanwhile, a flurry of deal-making activity drove swings among
individual stocks.
Tiffany shares added 5.7% after LVMH Moët Hennessy Louis Vuitton
said it reached an agreement to buy the U.S. jeweler for more than
$16 billion. LVMH shares gained 1.2% in Paris.
Charles Schwab declined 0.8% after it agreed to buy smaller
rival TD Ameritrade Holding in a stock-swap transaction valued at
about $26 billion. TD Ameritrade shares climbed 3.3%.
EBay shares jumped 3.8% after The Wall Street Journal reported
the e-commerce company was nearing a deal to sell its StubHub
ticketing business to a Switzerland-based firm, Viagogo.
Over in the U.K., the pound rose 0.3% against the U.S. dollar as
the Conservative Party maintained a lead in weekend opinion polls
after unveiling its manifesto for the Dec. 12 general elections.
Prime Minister Boris Johnson on Sunday made a series of spending
pledges and ruled out increases in income tax. The FTSE 100 index
advanced about 1%.
The market is starting to anticipate that the Conservative
Party, which has avoided taking any extreme positions in its
manifesto, will win a majority in the elections, Hermès Investment
Management's Mr. Grant said.
The pan-continental Stoxx Europe 600 Index rose 0.9%, led by
gains in the basic resources and travel and leisure sectors.
Akane Otani contributed to this article
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
November 25, 2019 09:56 ET (14:56 GMT)
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