Stocks were sharply higher in early trading following a report that trade talks have begun between the U.S. and China. Adding to the improved sentiment about a thawing in trade war tensions is a Bloomberg report claiming that China is advancing a proposal to roll back harsh tariffs imposed on U.S.-made vehicle imports. The major averages are well off the day's best levels, which may have something to do with a Washington Post report that said the Trump administration is readying a series of actions this week to call out China for its alleged continued efforts to steal U.S. trade secrets and technologies and conduct economic espionage.
ECONOMIC EVENTS: In the U.S., the Producer Prices Index rose 0.1% month-over-month in November, with the core component excluding food and energy 0.3% higher, both of which were slightly hotter than forecast.
COMPANY NEWS: Shares of AT&T (T) are fractionally higher, but also off their early session highs, after Citi analyst Michael Rollins upgraded the stock to Buy as he expects the company to further benefit from the "measured" promotional environment in wireless, while improving its competitive position from FirstNet and the marketing of its network enhancements.
Meanwhile, rival Verizon (VZ) has announced that the cost of its employee buyout plan, which will reduce its headcount by 10,400 through June 2019, will range between $1.8B-$2.1B and will be recorded in the fourth quarter. Additionally, Verizon said its Media business, branded Oath, has "experienced increased competitive and market pressures throughout 2018 that have resulted in lower than expected revenues and earnings." The company expects to record a non-cash goodwill impairment charge of approximately $4.6B, or $4.5B after-tax, in the fourth quarter of 2018 to account for Oath's "loss of market positioning to [its] competitors in the digital advertising business," Verizon stated.
Auto stocks are rising following a report that said China is moving toward cutting its tariffs on U.S.-made cars, a move President Donald Trump already boasted about as a concession won during trade discussions in Argentina. A proposal to decrease tariffs on cars produced in the U.S. to 15% from the current 40% has been submitted to China's Cabinet to be evaluated in the coming days, according to Bloomberg. Near noon, Ford (F) shares are up 1%, while General Motors (GM) has advanced over 3%.
Dell Technologies announced that it has received stockholder approval for the previously announced Class V (DVMT) transaction, which is expected to close on December 28, 2018, subject to satisfaction of closing conditions. Dell Technologies Class C shares are expected to begin trading on the New York Stock Exchange with the ticker "DELL" on the same day, the company noted.
MAJOR MOVERS: Among the noteworthy gainers was WPP (WPP), which rose 3% in New York after providing guidance and disclosing restructuring plans at its investor day. Also higher were Ascena Retail (ASNA) and DSW (DSW), which gained a respective 27% and 9% after reporting quarterly results.
Among the notable losers was CalAmp (CAMP), which slid 15% after the company's Q3 pre-announcement of a miss. Also lower was Stitch Fix (SFIX), which fell 29% after reporting quarterly results.
INDEXES: Near midday, the Dow was up 84.79, or 0.35%, to 24,508.05, the Nasdaq was up 59.96, or 0.85%, to 7,080.48, and the S&P 500 was up 15.08, or 0.57%, to 2,652.80.
AT&T
+0.16 (+0.53%)
Verizon
+0.57 (+0.98%)
General Motors
+1.27 (+3.69%)
Ford
+0.115 (+1.35%)
Dell Technologies
+ (+0.00%)
Dell Technologies
+0.25 (+0.24%)
WPP
+1.78 (+3.48%)
ASNA
+
DSW
+2.23 (+9.68%)
CalAmp
-2.66 (-15.63%)
Stitch Fix
-7.42 (-28.63%)