The major indices snapped a 3-day losing streak after news that the U.S. and China might be close to a trade deal.
Bloomberg reported that people familiar with talks say that the two countries are closer to an agreement on tariff roll backs that would solidify a Phase One deal. According to the report, the deal is expected to be done before the tariff increase on December 15th.
Today’s rally came in spite of some disappointing data.
ADP Non-Farm Jobs (private payrolls) increased by just 67,000. This was a big miss compared to the 150,000 jobs that were forecast.
And ISM Non-Manufacturing PMI data was worse than expected with a 53.9 reading (the forecast was 54.5).
Stocks opened higher and rallied. After making highs in the morning, stocks traded sideways for most of the session.
Here’s where the major indices ended the day:
The S&P finished with a 0.7% gain. Up 20 points, the S&P ended at 3,113.
The DOW ended higher by 0.5%. Adding 147 points, the DOW closed at 27,503.
The NASDAQ was up 0.5%. With a 46 point gain, the NASDAQ finished at 8,567.
Crude Oil (CL) finished higher for the 3rd straight day with a HUGE rally. Up 4.2%, CL ended the day at $58.43 a barrel. Today’s gains helped erase losses from last Friday’s slide. Crude Oil Inventories dropped by 4.9 million barrels compared to the 1.6 million barrel decrease in U.S. stockpiles that was expected.
Salesforce (CRM) was one of the biggest losers in the S&P today. The company reported better than expected earnings but lost 3.2%.
There were also some CEO shake ups in the news.
Alphabet’s (GOOG) CEO Larry Page and President Sergey Brin have stepped down from the company and Sundar Pichal has taken over CEO duties. The stock was higher by 2.0%. And Expedia (EXPE)jumped 6.2%after the company’s CEO and CFO stepped down.