US stocks turn higher as tech shares reverse slump


US stocks reversed early losses as investors shook off disappointing earnings from General Electric and tech shares reversed a sell-off despite fresh data raised conc-ern about the strength of the housing market. Treasuries fell and the dollar rose.
The S&P 500 Index climbed, although its drop from a September record still hovers near 10 percent, putting it on the cusp of a correction.
The Nasdaq 100 Index clawed back earlier losses, although bellwethers and Netflix tumbled. GE rallied after sinking to lowest in nine years after its results disappointed. Take-Two Interactive surged on strong game sales, while Chesapeake Energy tumbled on deal news. Facebook reports after the markets close.
US stock investors remain on edge as the S&P 500 hurtles towards its worst monthly performance since the bull market began. Largely stellar earnings have not provided any relief to selling that began amid concern that rising rates will crimp economic growth and lead to a slowdown in corporate profit gains. US-China trade talks are set to be a focus for investors in coming weeks, with a looming Trump-Xi meeting at the G-20 summit scheduled for next month.
President Donald Trump on Tuesday blamed Democrats for what he called a market “pause,” as the party is favored to win control of the House in next week’s midterm election. A week ago, the president blamed the Federal Reserve.
“The largest risks are the trade war and rising rates,” said Michael O’Rourke, JonesTrading’s chief market strategist. “When it comes to the midterm elections, most people are looking at them optimistically in the sense that usually after midterms the stock market rallies. The stock market is going to do what it’s going to do whether you vote Republican or Democrat.”
The Stoxx Europe 600 Index struggled to sustain momentum from Asia — it opened higher after good earnings for BP and Volkswagen, but corporate results were mixed overall and it swung between gains and losses. The euro edged down after underwhelming economic data.
The MSCI Asia Pacific Index halted a five-day losing streak after President Donald Trump held out the possibility of a trade deal with China, even as his administration prepares for a possible expansion of tariffs. China’s stocks climbed as authorities said they’d encourage long-term funds to invest. The yuan was little changed after earlier hitting its weakest against the greenback in a decade.
Elsewhere, 10-year Treasury yields climbed back up past 3.10 percent, while oil dropped below $67 a barrel in New York.
This week’s earnings season highlights include: Facebook, Komatsu, Ping An Insurance, PetroChina, Macquarie, Apple, Alibaba, China Telecom, Fanuc, Airbus, Credit Suisse, Exxon Mobil, and Shell. Monetary policy decisions are due in Japan and the UK. The final US jobs report before the November midterm elections may show hiring improved as payrolls rose about 190,000, and the unemployment rate held at a 48-year low of 3.7 percent, analysts forecast.
The S&P 500 Index rose 0.9 percent at 9:54 am in New York. The Nasdaq 100 Index added 0.8 percent. The Stoxx Europe 600 Index lost 0.4 percent.
The MSCI Asia Pacific Index increased 0.5 percent, the first advance in more than a week and the largest climb in almost two weeks. The MSCI Emerging Market Index declined 0.2 percent, reaching the lowest in almost 20 months on its sixth straight decline.
The Bloomberg Dollar Spot Index climbed 0.1 percent to the highest in more than 17 months. The euro fell 0.1 percent to $1.1359, the weakest in almost 11 weeks. The British pound dipped 0.4 percent to $1.2745, the weakest in almost 11 weeks. The Japanese yen sank 0.4 percent to 112.83 per dollar.

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