Stocks rose and each of the three major indices hit fresh intraday record highs after China said it had come to an agreement with the U.S. to remove existing tariffs in stages as part of a working trade deal. The Dow and S&P 500 each also posted record closing highs.
The Treasury yield curve steepened and gold prices slumped, as investors piled into risk assets. The 10-year yield surged by more than 15 basis points, climbing the most since 2016 and bringing it to as high as 1.9713%, its highest level since August. Treasury yields move inversely to prices.
Here’s where markets settled Thursday at the end of regular equity trading:
S&P 500 (^GSPC): +0.27%, or 8.42 points
Dow (^DJI): +0.66%, or 182.44 points
Nasdaq (^IXIC): +0.28%, or 23.89 points
WTI crude oil prices (CL=F): +0.91% to $56.86 per barrel
10-year Treasury yield (^TNX): +10.4 bps to 1.916%
Gold (GC=F): -1.57% to $1,469.60 per ounce
A spokesperson for China’s Ministry of Commerce said Thursday that the “leaders of China and the United States have carefully resolved their core concerns in the past two weeks and have carried out serious constructive discussion, agreeing to cancel the tariff increase in stages with the progress of the agreement,” according to a translation of a report from China’s state-run Global Times. A cancelation of the Trump administration’s punitive tariffs on Chinese imports has been a key conditions Beijing has demanded for reaching an eventual deal.
Later during Thursday’s session, a person familiar told Yahoo Finance there is an agreement to roll back tariffs as part of a phase one deal. Reuters, however, reported that there was some pushback in the White House to deescalate tariffs on Chinese imports.
The developments, on net, added to hopes that recent U.S.-China discussions would produce a meaningful reduction in the tariffs feared to cut into corporate profits and consumers’ wallets. It followed a report Wednesday that President Donald Trump and China’s Xi Jinping could push back a meeting to sign a Phase One trade agreement until December, which had sent stocks to session lows.
Meanwhile, overseas, the Bank of England delivered an unexpectedly split monetary policy decision, with two dissenters representing the first votes for an interest rate cut for the first time since 2016. The BOE ultimately left its main rate unchanged at 0.75%, which had been widely expected.
The dissents, however, underscored a dovish creep for the BOE, which has so far swum against the tide of easier monetary policy reflected in interest rate cuts by the Federal Reserve and other global central banks this year. In their decision, the BOE’s rate-setting committee members suggested they would move toward more accommodative monetary policy in the event that “global growth failed to stabilize or if Brexit uncertainties remained entrenched.” The British pound declined to as low as 1.2806 per U.S. dollar immediately following the decision.
STOCKS: Roku slumps on weak guidance, Qualcomm beat expectations
Roku’s (ROKU) stock sank after the company cut its full-year adjusted EBITDA guidance, overshadowing stronger-than-expected third-quarter results and earlier optimism that the connected TV company would reap benefits from the shift from cable to streaming viewing. Roku sees adjusted EBITDA of between $28 million and $33 million for 2019, below previous guidance for as much as $40 million, which it said was due in part to expenses related to its recent acquisition of ad tech company Dataxu.
Third-quarter revenue of $260 million was $3 million better-than-expected, and adjusted losses per share of 22 cents were narrower-than-expected by 2 cents, based on Bloomberg-compiled consensus data.
Qualcomm (QCOM) posted third-quarter results that beat expectations and posted current-quarter guidance that came in ahead of consensus. Fiscal fourth-quarter earnings per share of 78 cents were stronger than estimated by 7 cents, and adjusted revenue of $4.8 billion was better than the $4.71 billion expected.
Qualcomm sees first-quarter adjusted EPS of between 80-90 cents per share, and revenue of between $4.4 billion to $5.2 billion. Its guidance for shipments of MSM chips, Qualcomm’s flagship product used in smartphones, were between 145 million to 165 million, with the midpoint of this range ahead of the 149.8 million expected.
Expedia (EXPE) delivered third-quarter results that missed consensus expectations as sales growth decelerated in its vacation rental business, amid an increasingly competitive landscape for online travel businesses. Adjusted EPS of $3.38 was well below the Street’s expectation for $3.77, and revenue of $3.56 billion was just short of the $3.58 billion anticipated.
The company also lowered its full-year adjusted EBITDA growth outlook to between 5-8%, as well as profit expectations for each of its Trivago and Vrbo businesses.
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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