Stocks rise amid US-China trade optimism

Traders
work on the floor of the New York Stock Exchange shortly after
the opening bell in New York
Thomson
Reuters

Stocks jumped Thursday following a lower-than-expected US
inflation reading and optimism that Washington and Beijing could
avoid further escalations in a trade war that has put nearly all
products shipped between the two countries at risk of facing
import taxes. The dollar fell, and Treasury yields inched
higher. 

Here’s the scoreboard:

Dow Jones industrial
average: 
26,146.06
 
+147.14 (+0.57%)

S&P
500: 2,900.23 +11.31 (+0.39%)

Nasdaq
Composite: 8,013.71+59.48 (+0.75%)

1. The US and China plan to
   head back to the negotiating
   table. Senior US officials invited
   Chinese counterparts to sit down for trade talks before the US
   follows through with proposed
   tariffs on roughly $200 billion worth of Chinese
   products. 
2. Consumer prices in the US rose
   less than expected in August. The consumer
   price index increased 0.2% last month, compared with economist
   expectations for a 0.3% rise, as increasing energy costs
   were offset by declines in apparel and healthcare costs.
3. The Central Bank of the Republic of
   Turkey raised its benchmark interest rate sharply.
   
   The 625 basis point hike to
   24% underscored the central bank’s
   intent to remain independent of Turkish
   President Recep Tayyip Erdogan, a self-proclaimed
   “enemy” of interest rates who has increasingly tried to wield
   influence over monetary policy since his reelection this
   year. 
4. Citing uncertainty over
   Brexit, the Bank of England
   held rates steady at 0.75%. Separately, the
   European Central Bank kept policy
   unchanged and confirmed plans to end a large
   scale bond-buying
   program this year.  
5. Global oil supply hit a record high last
   month. Production around the world hit
   100 million barrels a day for the first time in August, the
   Energy Information Administration said, despite falling output
   in several OPEC member countries. Crude prices slipped nearly
   3% following the report. 

And a look at the upcoming economic calendar:

• US retail sales numbers are out. 
• The University of Michigan reports its latest consumer
  sentiment reading.