Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average and the S&P 500 were rising sharply Wednesday. Each index has closed lower for four of the past five sessions.
- Tencent Music begin trading on the New York Stock Exchange Wednesday and the stock jumped 8.8% to $14.14. The initial public offering for the Chinese streaming company was priced at $13, the low end of its expected range.
- Dave & Buster's Entertainment Inc. (PLAY - Get Report) tumbled 7.88% after third-quarter same-store sales fell 1.3%, wider than the decline of 0.7% expected by analysts.
Wall Street Overview
Stocks soared on Wednesday, Dec. 12, as investors cheered progress in U.S.-China trade talks and after a report said China was planning a new program that promised greater access for foreign companies.
The Dow Jones Industrial Average jumped 157 points, or 0.64%, to 24,527, the S&P 500 rose 0.54%, and the Nasdaq was up 0.95%.
President Donald Trump told Reuters he was pleased with the early progress in trade talks with Beijing, and said he would be prepared to meet with Chinese President Xi Jinping if it would bring the sides closer to a comprehensive agreement. He also said he was willing to intervene in the legal proceedings surrounding Huawei Technologies Co. Chief Financial Officer Meng Wanzhou, who was granted bail in Canada Tuesday but still faces extradition to the United States on charges she helped the company evade sanctions on Iran.
"If I think it's good for the country, if I think it's good for what will be certainly the largest trade deal ever made - which is a very important thing - what's good for national security - I would certainly intervene if I thought it was necessary," Trump said in an interview with Reuters in the Oval Office.
The Wall Street Journal reported Wednesday that China was drafting a replacement for Made in China 2025 - Xi's blueprint to make the country a leader in high-tech industries - which would play down China's bid to dominate manufacturing and be more open to participation by foreign companies. The Journal article cited people briefed on the matter.
The market closed just as as members of Britain's ruling Conservative Party voted down a leadership challenge to Prime Minister Theresa May. It's unclear what her continuing in office means for the fate of Brexit, the country's bid to leave to European Union.
The Consumer Price Index for November was unchanged, matching economists' forecasts. Consumer prices in the U.S. over the last 12 months rose 2.2% from a reading of 2.5% in October.
Dow industrial plays Caterpillar Inc. (CAT - Get Report) and DowDuPont Inc. (DWDP) rose 1.74% and 2.08%, respectively, Wednesday. Caterpillar's rise was fueled by the company's announcement that it will maintain its quarterly cash dividend of 86 cents per share payable February 20 to shareholders of record.
Shares of Nvidia Corp. (NVDA - Get Report) rose 0.48% on Wednesday, rebounding from a 2.4% decline on Tuesday after Bloomberg reported that SoftBank Group Corp. (SFTBY) was planning to sell its stake in the giant chipmaker.
SoftBank owned roughly 4.4% of Nvidia through its Sb Investment Advisers as of the end of September, according to FactSet, with the stake currently worth about $4 billion. SoftBank hasn't disclosed how much of Nvidia it wants to sell, or even if it will sell its entire stake, according to Bloomberg's report on Tuesday.
Tencent Music Entertainment Group (TME) begin trading on the New York Stock Exchange Wednesday and the stock jumped 7.88% on Wednesday to $14.12. The initial public offering for the Chinese streaming company was priced at $13, the low end of its expected range.AEO - Get Report) rose 2.94% after declining at the open Wednesday following a weak holiday forecast from the clothing and accessories retailer.
The company reported third-quarter net income of 48 cents a share, which met analysts' estimates. Revenue of $1 billion, however, came in under expectations of $1.02 billion. Comparable-store sales also missed estimates, rising 8% but below forecasts of 8.5%.
For the fourth quarter, American Eagle said it expects earnings of 40 cents to 42 cents a share, below Wall Street estimates of 47 cents.
The company raised its revenue and earnings guidance for 2018. It expects revenue for the year of between $1.24 billion to $1.26 billion, compared with its previous outlook of $1.23 billion to $1.26 billion. Dave & Buster's said it expects earnings of $106 million to $113 million, higher than previous guidance of $101 million to $111 million.