US stocks gain for 3rd straight day; Dow up 1.1%

Wall Street stocks advanced for the third straight session on Thursday, bouncing after selling off for most of October, and helped by new optimism over US-China trade relations.

The Dow Jones Industrial Average finished up 1.1% at 25 380.74.

The broad-based S&P 500 also advanced 1.1% to 2 740.37, while the tech-rich Nasdaq Composite Index jumped 1.8% to 7 434.06.

US stocks were in the green most of the day, picking up momentum after US President Donald Trump reported on Twitter after a discussion with Chinese President Xi Jinping that talks were "moving along nicely" over a trade fight that has upset investors.

While investors are likely to take Trump's comment with a grain of salt so soon to next week's congressional elections, the statement was still encouraging, said Maris Ogg, president at Tower Bridge Advisors.

"We've learned in the last year that tariffs are probably not a strategy but a tactic," Ogg said. "So the market gets a little encouraged when it seems there might be some light at the end of the tunnel."

Ogg also cited "momentum carryover" after positive sessions the prior two days helped the market to correct an "oversold" situation.

Some companies that had faltered in October scored strong gains, including Amazon, up 4.2%, Caterpillar, up 2.8% and Hasbro, up 6.4%.

DowDuPont shot up 8.1% after reporting third-quarter earnings of 74 cents per share, three cents above analyst expectations.

But Google parent Alphabet fell 0.6% as thousands employees from around the world staged the "Google Walkout For Real Change" in protest of the company's handling of sexual misconduct claims.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
ZAR/USD
17.04
(-0.38)
ZAR/GBP
21.81
(-0.11)
ZAR/EUR
19.90
(-0.12)
ZAR/AUD
12.03
(-0.12)
ZAR/JPY
0.16
(-1.12)
Gold
1860.65
(+0.03)
Silver
22.87
(+0.11)
Platinum
844.51
(+0.50)
Brent Crude
42.23
(-0.12)
Palladium
2207.00
(+0.59)
All Share
53587.11
(-1.22)
Top 40
49547.74
(-1.16)
Financial 15
9401.28
(-1.95)
Industrial 25
72949.70
(-1.72)
Resource 10
53453.42
(-0.10)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1368 votes
It depends on how the funds are used.
73% - 8860 votes
No. We should have gotten the loan elsewhere.
16% - 1959 votes
Vote