U.S. stock indexes on Thursday rubbed out parts of the previous session's losses, but volume was down. In the meantime, China and Turkey said separately that they were ready to talk about trade issues with the Trump administration. (For updates on this story and other market coverage, visit the Stock Market Today.)
XBlue chips were mostly up, with the Dow Jones industrial average gaining 1.4% — popping out all of Wednesday's 0.5% dent. The S&P 500 rose 0.9%, enough to take back Wednesday's 0.8% loss. The Nasdaq added 0.9% after losing 1.2% in the previous session.
Volume dropped on both major exchanges.
Turkey's Foreign Minister Mevlut Cavusoglu said Turkey was "ready to talk about everything" with the U.S. Meanwhile, China said it accepted a U.S. invitation to resume trade talks later this month in Washington.
Turkey accounts for less than 1.4% of the world's GDP while China's share is 19.7%, according to the World Bank. The U.S. accounts for 31.2% of world GDP.
The stock market appeared to like the conciliatory tone. In the 30-component Dow, a handful of stocks rose 1% or more. Gainers included Apple (AAPL), up 1.5%; American Express (AXP), 1.2%; Caterpillar (CAT), 2.4%; Boeing (BA), 3.5%; Cisco Systems (CSCO), 4%; and Walmart (WMT), 9.5%.
Walmart's earnings rocketed 46% vs. the consensus view for a 13% gain. Same-store sales grew 4.5%. The Street had expected 2.4%.
Other companies reporting quarterly results included Chinese online marketplace 58.com (WUBA), which gapped up 11% and beat views by about 20%; Madison Square Garden (MSG), which added 0.4% after topping the consensus estimate by almost 4%; and J.C. Penney (JCP), which slid 23% after missing views on earnings by 660%.
Pattern Recognition
IBD's pattern-recognition technology identified several breakouts Thursday. Cisco gapped up above a 44.91 buy point in a double-bottom base. The double bottom is shaped like the letter W with the middle peak serving as the buy point.
Dollar General (DG) opened above a 105.92 buy point but then retreated back under the entry. The retailer will report Q2 results Aug. 30 before the open.
First Interstate BancSystem (FIBK) cleared a 45.05 buy point in volume about 34% above average. The stock of the Montana-based bank is thinly traded, turning about 175,000 shares daily. The small-cap bank is expected to grow earnings 27% this year, which would be the best in five years.
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