Stocks Rally Late As Trump Trade Tariffs Exempt Mexico, Canada | Stock News & Stock Market Analysis

Stocks gained strength in the final hour of trading Thursday as details on new trade tariffs showed Mexico and Canada would be spared.


 The Nasdaq composite closed 0.4% higher to mark its fifth straight gain. The S&P 500 added nearly 0.5% and touched its 50-day moving average for the first time since Feb. 28.

The Dow Jones industrial average climbed 0.4%, with consumer and medical companies Johnson & Johnson (JNJ), Pfizer (PFE), Nike (NKE), McDonald’s (MCD) and Coca-Cola (KO) making the best percentage gains. Pfizer rose back above its 50-day moving average but has yet to make a solid move above the line.

Small caps broke a trend of outperformance, as the Russell 2000 lost 0.3%.

Volume rose on the Nasdaq and fell on the NYSE, according to preliminary data. Advancers topped decliners by about 9-to-7 across the board.

The market was dull for much of the day as it awaited news on the Trump administration’s tariffs on steel and aluminum imports. Late in the day, the Associated Press reported that steel and aluminum tariffs would not be imposed on Mexico and Canada, but tariffs for other countries would take effect within 15 days.

Airline, casino, tobacco, generic drugs and data storage were Thursday’s top industry groups. Except for pharmaceuticals (the SPDR S&P Pharmaceuticals ETF (XPH) was up more than 1%), no single sector stood out in Thursday’s session.

Metals and mining stocks — including some affected by trade tariffs — were among the weakest. Department stores, supermarkets, RVs, managed care and apparel were others in the bottom of the industry performance table.

Leading stocks were mixed, with the IBD 50 almost evenly split among risers and decliners.

Thinly traded Emergent BioSolutions (EBS) broke out of a V-shaped base with a 51.35 buy point. But volume was weak. The company is best known for its anthrax vaccine.

Collegium Pharmaceutical (COLL) surged past the 26.87 buy point of an irregular base in heavy volume after the company reported earnings late Wednesday. Sales of the company’s painkiller Xtampza easily beat expectations, and momentum is expected to continue this year. Collegium is expected to become profitable next year, with EPS of 61 cents. This year analysts expect a loss of 82 cents.

Use IBD’s MarketSmith For Free Until March 11
See stocks near a buy point, get chart pattern recognition and run custom screens. Start Now

Marvell Technology (MRVL) edged above a seven-week formation as it climbed to a new high in active trading. The chip company was due to report earnings after the close.


Trump Tariffs Go Easy On Canada, Mexico; Dow Jones, S&P 500 Climb

This Biotech Flirts With Breakout Amid Battle With Opioid Makers

Virgin Atlantic Follows Delta, United, American With New Economy Class

Source link

Originally posted 2019-09-19 23:10:38.


No comments.

Leave a Reply

error: Content is protected !!