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Stocks rose on Thursday as investors weigh strong earnings from Walmart and Cisco Systems against lingering trade-war fears.
The Dow Jones Industrials popped 291.44 points, or 1.1%, to break for lunch at 25,939.46, as Walmart and Cisco outperformed.
The S&P 500 picked up 37.85 points, or 1.3%, to 2,888.56
The NASDAQ Composite heightened 114.96 points, or 1.5%, to 7,937.10. Both the S&P 500 and NASDAQ also erased their losses for the week.
Walmart shares rose 3.5% after the retailer posted first-quarter earnings that topped analyst expectations. The company also said it is in a “good position” to meet its goals for 2019 despite tough comparisons for the second quarter.
Cisco Systems also reported better-than-expected quarterly earnings, sending its stock up more than 5.4%. The company also issued stronger-than-forecast revenue guidance.
The gains in Cisco and Walmart offset worries over the ongoing trade spat between China and the U.S. Investors had largely priced in the two countries striking a deal this month. Instead, the U.S. hiked tariffs on $200 billion worth of Chinese imports. China retaliated with higher tariffs on $60 billion worth of goods.
Bank shares contributed to Thursday’s gains, as yields rose on stronger-than-forecast economic data. Shares of Citigroup, J.P. Morgan Chase, Bank of America, Morgan Stanley and Goldman Sachs all gained more than 1%.
On top of that, President Donald Trump declared on Wednesday a national emergency over threats against American technology. This move is expected to be followed by a ban on U.S. firms doing business with Huawei, a Chinese telecommunications company.
The U.S. Department of Commerce announced the addition of Huawei Technologies and its affiliates to the Bureau of Industry and Security Entity List, making it more difficult for the Chinese telecom giant to conduct business with U.S. companies.
Prices for the benchmark 10-year U.S. Treasury slumped, raising yields to 2.4% from Wednesday’s 2.37%. Treasury prices and yields move in opposite directions.
Oil prices $1.26 to $63.28 U.S. a barrel.
Gold prices docked $12.50 to $1,285.300 U.S. an ounce.
