The Dow Jones Industrial Average rose over 150 points, while the S&P 500 gained 0.8 percent and the Nasdaq Composite rose 0.6 percent Friday on news that U.S.-China trade negotiations are making progress.
China purportedly offered to fix the trade imbalance with the United States by increasing purchases of U.S. goods, according to a Bloomberg News report. Per the report, China offered to increase its annual import of U.S. goods by over $1 trillion.
“That’s the key factor,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “If we don’t get that issue resolved, the market going to hit upside headwinds no matter what happens.”
“If we get that issue out of the way, which will boost business and consumer confidence, there is still plenty of room for the market to do really well,” added Frederick.
Banks Kick Off Fourth-Quarter Earnings
It’s been a solid week for the big names in the financial sector. Citigroup reported stronger-than-expected earnings with $1.61 in profit per share, besting Wall Street expectations of $1.55 per share.
Goldman Sachs generated $6.04 per share in profit for the fourth quarter of 2018, versus the $4.45 per share estimate of analysts surveyed by data company Refinitiv. The investment bank also posted revenue of $8.08 billion, beating estimates of $7.55 billion.