US stocks rise for the third week as business hopes grow

Wall Street recorded a third consecutive week of gains on Friday, as the Nasdaq retreated from a bear market, as trade talks between the two countries continued to boost investor sentiment.

The shares took another leg higher to end the week. The S & P climbed 1.1 to 2,775.60, led by the financial sector, which rose 2%. Energy, up 1.6%, and health care, up 1.5%, also posted significant gains. The 11 sectors of the S & P 500 all ended Friday in positive territory, although communication services and utilities were the two main laggards.

Nasdaq Composite rose 0.6% to 7,472.41, an index more than 20% above its December 24th low, which some investors believe marks the end of the bear market for advanced technology index late last year. The Dow Jones Industrial Average jumped 1.3% to 25,883.25.

Friday's rally gave the S & P 500 its third consecutive weekly gain, with the index gaining 2.5%. The Dow and Nasdaq posted gains for the eighth consecutive week, up 3.1 percent for Dow's industrials and up 2.4 percent for Nasdaq, a technology-rich sector.

The shares started well in 2019 in the hope that the Federal Reserve will delay the rise in interest rates and that the US and China will reach a trade deal. Negotiators met again this week before the deadline of March 1, after which Washington could increase tariffs of $ 200 billion on Chinese products if an agreement did not materialize. However, President Donald Trump said he would be willing to extend the deadline if an agreement seemed close.

"The markets will depend on every word coming from China and the Trump administration regarding these negotiations and it is there that investors pay the closest attention at the present time," said Chris Zaccarelli , Director of Investments, Independent Advisor Alliance.

Investors were also encouraged by an agreement on border security that prevented a new government shutdown. Mr. Trump signed the spending bill on Friday, but declared a national emergency to seek additional funding for a US-Mexican border wall.

Investors badyzed Friday mixed reports on manufacturing in the United States. The Federal Reserve said domestic industrial production fell 0.6% in January, the first decline in eight months. But the gauge of factory activity in New York picked up last month and exceeded economists' expectations, according to the New York Fed.

Treasuries sold, with yields rising slightly, with investors favoring riskier badets such as equities. The 10-year Treasury Note yield rose 0.4 basis points to 2.626%, while the 2-year note yield jumped 2 basis points to 2.5161%.

The DXY dollar index, which measures the greenback versus weighted world currencies, fell 0.1% to 96.866, although it hit a two-month high in morning trading.

For businesses, Deere & Co reported a quarterly profit below estimates, dropping its shares by 2.1%. PepsiCo shares rose by nearly 3%, while investment acceleration plans darkened earnings prospects.

Shares of toy maker Mattel fell more than 18% at the close, under pressure of weaker than expected sales forecasts.

Oil prices continued to rise following signs of reduced supply within OPEC. Brent rose to $ 66.25 a barrel, up 2.6%. West Texas Intermediate rose 2.2% to $ 55.59 per barrel.