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Stock Market News For Sep 6, 2019

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Markets closed higher on Thursday after the United States and China agreed to resume trade negotiations early next month. Gains for the markets were also supported by a flurry of better than expected economic reports. The three major benchmarks ended in the green.

The Dow Jones Industrial Average increased 1.4%, to close at 26,728.15. The S&P 500 increased 1.3% to close at 2,975.98. The tech-laden Nasdaq Composite Index closed at 8,116.83, gaining 1.8%. The fear-gauge CBOE Volatility Index (VIX) decreased 8.8% to close at 15.82. Advancers outnumbered decliners on the NYSE by a 1.95-to-1 ratio. On Nasdaq, a 2.70-to-1 ratio favored advancing issues.

How Did the Benchmarks Perform?

The Dow amassed 372.7 points to close in the green. Shares of Caterpillar (CAT - Free Report) and Goldman Sachs (GS - Free Report) rose 3.3% and 2.6%, respectively and supported gains for the 30-stock index.

The S&P 500 rose 38.2 points to end in positive territory. Of the 11 major sectors of the S&P 500, eight ended in the green, with technology leading the advancers. The Technology Select Sector SPDR Fund (XLK) rose 2.1% on Thursday.

Meanwhile, the Nasdaq gained 140 points to close in the green. Shares of Apple (AAPL - Free Report) gained 2% and supported gains for the Nasdaq. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

U.S. & China Agree to Resume Trade Talks in October

China’s ministry of commerce issued a statement on Sep 5 that leaders from the United States and China held a phone call related to trade talks and agreed to return to negotiations early next month. The statement also mentioned that China’s trade negotiator, Liu He spoke to U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin over the phone.

Further, both the parties mutually agreed to hold a fresh round of negotiations in Washington D.C. in October, per the commerce ministry statement.

Meanwhile, a U.S. Trade Representative spokesperson confirmed that a phone call was held. The spokesperson also mentioned that “agreed to hold meetings at the ministerial level in Washington in the coming weeks.” Such developments led to broad-based gains for the markets.

Economic Data

On the economic data front, ADP (ADP - Free Report) stated that the private sector added 195,000 jobs in August to the U.S. economy, surpassing the estimate of an addition of 150,000 jobs. Meanwhile, U.S. factory orders surged 1.4% in July, surpassing the consensus estimate of 1%.

Further, the Institute of Supply Management’s (ISM) service index increased to 56.4% in August, beating the consensus estimate of 54.2% and previous month’s reading of 53.7%.

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