December 3, 2018 / 9:29 PM / 11 days ago

US STOCKS-Relief rally boosts Wall Street on U.S.-China trade truce

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    * U.S., China agree on a trade ceasefire for talks
    * Technology, industrials sectors support S&P
    * Energy shares jump as oil prices rebound
    * Tesaro shares soar on Glaxo buyout deal
    * Indexes up: Dow 1.13 pct, S&P 1.09 pct, Nasdaq 1.51 pct 

 (Updates with close of U.S. trading)
    By Lewis Krauskopf
    Dec 3 (Reuters) - Wall Street's major indexes rallied on
Monday following a truce between the United States and China in
their trade dispute, which has clouded the outlook for the stock
market for much of the year.
    The benchmark S&P 500        climbed more than 1 percent,
building off of its biggest weekly percentage gain in nearly
seven years a week ago.
    Investors were lifted by news over the weekend that U.S.
President Donald Trump and Chinese President Xi Jinping agreed
during talks in Argentina to hold off on new tariffs for 90
days, declaring a truce following months of escalating tensions
on trade and other issues.                          
    “Today is mostly about celebrating the fact that the U.S.
and China have delayed what could have been some of the
worst-case scenarios regarding their trade relations,” said
Michael Arone, chief investment strategist at State Street
Global Advisors.
    Still, major indexes closed below their highs from earlier
in the session.
    Arone noted that "there are still some very sticky issues
that need to be resolved" between the world's two biggest
economies.
    Keith Lerner, chief market strategist at SunTrust Advisory
Services in Atlanta, called it a "bit of a relief rally."
    "The reason why you are not seeing more, why the market has
probably come off the highs, is after the dust settles, people
realize there are still a lot of question marks and it’s only 90
days for them to negotiate," he said.
     The Dow Jones Industrial Average        rose 287.97 points,
or 1.13 percent, to 25,826.43, the S&P 500        gained 30.2
points, or 1.09 percent, to 2,790.37 and the Nasdaq Composite
        added 110.98 points, or 1.51 percent, to 7,441.51.
    Last week, the S&P 500 gained 4.8 percent as investors
interpreted commentary from the Federal Reserve as signaling
that U.S. interest rate hikes may be less aggressive than
feared. The index rebounded after confirming its second 10
percent correction of the year, and is now up 4.4 percent in
2018.
    On Monday, the technology sector          , among the groups
seen as sensitive to trade tensions, gained 2.1 percent. Apple
         shares, recently hit by worries over possible tariffs
on iPhones, gained 3.5 percent.
    Shares of Boeing        and Caterpillar        , two
industrial companies viewed as trade bellwethers, gained 3.8
percent and 2.4 percent, respectively, and gave a lift to the
blue-chip Dow. The industrial sector           rose 1.2 percent.
    Energy shares         rose 2.3 percent as oil prices bounced
back from their recent swoon. Along with the U.S.-China trade
detente, oil got support as Canada's Alberta province ordered a
production cut, while exporter group OPEC looked set to reduce
supply.             
    In corporate news, shares of Tesaro          soared 58.5
percent after GlaxoSmithKline         agreed to buy the U.S.
cancer specialist for $5.1 billion.             
    Tribune Media Co          shares rose 11.7 percent after 
Nexstar Media Group Inc          said it agreed to buy its
Chicago-based peer for about $4.1 billion, making it the largest
regional U.S. TV station operator. Nexstar shares rose 6.9
percent.             
    Advancing issues outnumbered declining ones on the NYSE by a
2.96-to-1 ratio; on Nasdaq, a 1.88-to-1 ratio favored advancers.
    The S&P 500 posted 44 new 52-week highs and 1 new low; the
Nasdaq Composite recorded 73 new highs and 81 new lows.
    About 8.4 billion shares changed hands in U.S. exchanges,
above the 7.6 billion daily average over the last 20 sessions.

 (Additional reporting by Shreyashi Sanyal in Bengaluru; Editing
by Shounak Dasgupta, Jonathan Oatis and Dan Grebler)
  
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