Stocks Move Higher as Investors Regain Appetite for Risk
NEW YORK (AP) — U.S. stocks moved higher as investors continued shifting money into technology stocks and extended gains into the first day of the new quarter.
Apple and Microsoft led the tech sector higher. Chipmakers, including Intel and Nvidia, also made broad gains. Tech stocks have been on the rise since Monday when China reassured the market that trade negotiations with the U.S. will continue this month.
Industrial stocks, which are also sensitive to trade news, also rose. Caterpillar rose 1.7%.
Safe-play sectors, including utilities and makers of consumer products, fell as investors headed for the more risk-heavy, high-growth holdings.
Bond prices fell in another sign that investors were shunning safer holdings. The yield on the 10-year Treasury rose to 1.73% from 1.67% late Monday.
KEEPING SCORE: The S&P 500 index rose 0.5% as of 9:52 of a.m. Eastern time. The Dow Jones Industrial Average rose 111 points, or 0.4%, to 27,029. The Nasdaq rose 0.7%.
CHUCKING COMMISSIONS: Charles Schwab plunged 8.9% after the brokerage and financial adviser said it is eliminating trading commissions on stocks, exchanged-trade funds and options. Rival discount brokers fell even more as investors anticipated another escalation in the fight to lower trading costs for investors. TD Ameritrade sank 21.6% and ETrade Financial dropped 18.1%. All three were moving in very heavy trading.
OVERSEAS: Stocks in Europe edged lower and Asian stocks were mixed, though Chinese markets were closed for the National Day holiday marking the 70th anniversary of the founding of the People’s Republic.
Inflation in the 19 countries that use the euro weakened in September, slipping farther from the European Central Bank’s goal in a possible sign of more economic weakness. Also, The World Trade Organization cut sharply its forecasts for trade growth this year and next. It expects global trade to weaken this year to the slowest pace since the Great Recession due to the U.S.-China trade war.
SPICY PROFIT: McCormick rose 4% after the spices and flavoring maker raised its 2019 profit forecast following a third quarter profit report that beat Wall Street expectations. The company reported sales growth from spices, herbs and other consumer products in the Americas and Asia Pacific regions.
By AP reporter Damian J. Troise