Shares in healthcare and technology lead to early gains on Wall Street

Darnell Taylor
January 16, 2020

With the trade issue entering a new stage, Wall Street is focusing on the rollout of corporate earnings reports over the next few weeks. USA futures were little changed after technology shares Monday sent the S&P 500 and Nasdaq Composite Index to record highs. The Nasdaq slipped 0.2% to 9,251.33. The yield on 10-year German bonds dipped to minus 0.200%, from minus 0.168% on Tuesday. The earlier AP story follows below. However, there is a risk that markets will sell the fact of the signing of the phase one trade deal so some profits could be taken off and banked from these currency upside moves leading into the event. In Germany, the DAX lost 0.2% to 13,431 after new figures showed the country's economy grew just 0.6% last year, its weakest in years.

Overseas, the pan-continental Stoxx Europe 600 index ticked down less than 0.1%, and the Shanghai Composite closed 0.5% lower. The initial agreement is a key step toward de-escalating an 18-month long trade conflict between the world's largest economies. Traders were startled by the report that USA tariffs on Chinese goods would continue after a preliminary contract was signed on Wednesday.

"The only way the president will be reducing the tariffs is if there is a 'Phase 2′ part of the agreement that is also fully enforceable", Mnuchin said in an interview on Fox News.

The Wall Street Journal reported that the Trump administration was preparing to further tighten controls on technology exports to Huawei Technologies.

The US equity market finished session mixed after choppy trading on Tuesday, 14 January 2020, as investors elected to book profit made recently after reports that the US would likely maintain tariffs on Chinese goods until after November presidential election. The S&P 500 Index increased 0.7% Monday. Shares also fell in Taiwan and in Southeast Asia.

The modest trade pact that President Donald Trump and China's chief negotiator, Liu He, are scheduled to sign does ease some sanctions on China. We're also seeing the pre-signing gestures of goodwill, with the United States going back on its decision to label China a currency manipulator in August.

Traders bid up shares in Hexcel 9.6% after the company said it is being bought by rival Woodward in a deal that will create one of the largest suppliers in the aerospace and defense industry.

Buffalo hosts Vegas after Rodrigues’ 2-goal game
Pacioretty, who is on the pace for a better career season, has reached the 20 goal mark for the seventh time in his career. Smith started the comeback with his 18th goal of the season, jamming in his own rebound inside the left post.

Beijing, meanwhile, will step up its purchases of USA farm products and other goods.

Many investors, however, are already looking ahead to a potentially rosier earnings outlook once Washington and China resolve their trade dispute.

Wall Street expects corporate profits for S&P 500 companies in the last three months of 2019 to be down by 2 percent. That would be the first time the revenue for the S&P 500 would have fallen four consecutive quarters since the end of 2016, according to FactSet.

Reference crude lost 11 cents to $ 58.12 a barrel in electronic trading on the New York Mercantile Exchange. It fell 96 cents to $58.08 a barrel on Monday.

Brent crude settled down 78 cents at $64.20 a barrel, while West Texas Intermediate crude slid 96 cents to settle at $58.08 a barrel. It earned 29 cents on Tuesday to $ 64.49 per barrel.

Gold rallied to $ 7.10 at $ 1,551.70 an ounce.

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