Trade Optimism Boosts Shares of Casino, Manufacturing, Semiconductor Companies
December 12 2019 - 11:59AM
Dow Jones News
By Akane Otani
Shares of companies sensitive to U.S.-China trade policy are
rallying on hopes that the two countries may be nearing an
agreement.
The S&P 500 climbed 0.8% Thursday after President Trump said
a trade deal with China was close, and The Wall Street Journal
reported U.S. negotiators had offered to cancel fresh tariffs on
Chinese goods that were set to take place Sunday.
A few categories of stocks got an even bigger boost.
Wynn Resorts Ltd. and Las Vegas Sands Corp. rose 7% and 3.9%,
respectively. The casino operators both operate resorts in Macau, a
semiautonomous region of China, making them sensitive to Washington
and Beijing's trade rift.
Chemicals companies also jumped. Shares of Dow Inc., which makes
chemical products used in industries ranging from agriculture to
consumer goods, added 2%. The company had cut its full-year
spending forecast over the summer, citing the prolonged U.S.-China
trade fight.
Another group getting a boost Thursday: industrial stocks. One
of the key snags in the U.S. and China's trade negotiations over
the past few months has been disagreement over the level of farm
purchases China should make from the U.S. A trade deal that clears
the picture there stands to benefit farms and the companies that
make equipment for them. Deere & Co., which manufactures
equipment for farmers, along with construction companies, rose
1.2%. Caterpillar Inc. advanced 1.7%.
Semiconductor firms, whose profits rely in part on demand from
China, also outperformed the broader market. Shares of Nvidia Corp.
added 1.7%, while Micron Technology Inc. rose 3%.
Write to Akane Otani at akane.otani@wsj.com
(END) Dow Jones Newswires
December 12, 2019 11:44 ET (16:44 GMT)
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