U.S. stocks gain ahead of trade deal signing

Traders work on the floor at the New York Stock Exchange in New York US Jan. 10 2020. Brendan McDermid Reuters

Traders work on the floor at the New York Stock Exchange in New York US Jan. 10 2020. Brendan McDermid Reuters

The world's largest economies are expected to sign the "Phase 1" trade agreement Wednesday.

The major averages posted record highs last week as concerns about an escalation in U.S. -Iran tensions faded, bringing down oil prices.

Large technology companies helped lead the market, with Apple winning 2.1 per cent, Facebook 1.8 per cent and Netflix 3.0 per cent. Tesla jumped almost 10 per cent following an upgrade from Oppenheimer.

Stocks were in positive territory the whole session, gaining ground following a report that the USA would formally retract its accusation that China manipulates its currency to gain unfair trade advantages. -China trade deal and hopes the start of the USA corporate earnings season will not disappoint. The S&P and Nasdaq previously set new highs last Thursday. Markets have rebounded as both Tehran and Washington desisted from further escalation after Iran retaliated for the killing with a missile attack on USA troops in Iraq. JPMorgan Chase, Wells Fargo and Citigroup will report fourth-quarter earnings Tuesday, and Bank of America will follow suit Wednesday. If that estimate holds true, it would mark the fourth straight quarter of declining earnings, FactSet data shows. "We've priced in a big rally, we expect growth and now it's time to see it". Expectations for the earnings season are low, however. They claim the market is already pricing in much stronger future earnings.

"Everything's humming along", he added. "Let's not kid ourselves".

The Dow Jones Industrial Average added 83.28 points, or 0.3%, to close at 28907.05 - just 0.2% below last week's high. The Nasdaq Composite, which is heavily weighted with technology stocks, climbed 95.07 points, or 1 percent, to 9,273.93.

Apple, Facebook Inc, Netflix Inc, Microsoft Corp and Amazon.com Inc, which have powered the longest bull run in U.S. equities, were among the top contributors to record high closes for the S&P 500 and Nasdaq.

The pan-European STOXX 600 index lost 0.18%.

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The Citizenship Amendment Act came into effect on January 10, 2020, as directed by the Centre in a Gazette notification. "Flawless example", Lekhi said on Twitter in response, and also posted Nadella's statement issued by Microsoft India ".

Other European automobile stocks also fell after China's top auto body reiterated predictions that sales were likely to shrink for the third consecutive year in 2020.

Treasury prices and yields move in opposite directions. The optimism was fueled by the signing of Phase One of the U.S.

In currency markets, the offshore Chinese yuan hit a 5-1/2-month high and the yen dropped to a 7-1/2-month low as sentiment rose on the trade outlook. Goldman Sachs shares rose 1.3%. In addition, the promise of a "Phase 1" trade deal between the USA and China has helped lift markets in recent weeks, easing investors' concerns of further escalation in the costly conflict.

Gold fell 0.6% to $1538.West Texas Intermediate crude rose 0.3% to $58.25 a barrel.

Gold, considered a safe haven during political and economic turmoil, rose last week to an nearly seven-year peak of $1,610.90 an ounce after a USA drone strike killed a top Iranian commander in Baghdad and Iran launched missiles against US troops in Iraq in retaliation.

Stocks saw modest gains across the region, while USA futures ticked higher.

The dollar rose to 109.93 Japanese yen from 109.54 yen on Friday.

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