Stocks

The Dow Is Up 338 Points Because China Raised Hopes About the Trade War

The three major U.S. stock market indexes rose after Beijing said that it wouldn’t retaliate against the latest tariff increases and that further escalation of the trade war wouldn’t help the U.S., China, or the global economy.

The three major U.S. stock market indexes rose after Beijing said that it wouldn’t retaliate against the latest tariff increases and that further escalation of the trade war wouldn’t help the U.S., China, or the global economy.

Trade Bounce. The three major U.S. stock market indexes rose after Beijing said that it wouldn’t retaliate against the latest tariff increases and that further escalation of the trade war wouldn’t help the U.S., China, or the global economy.

The Dow Jones Industrial Average and the S&P 500 had each gained 1.3% shortly after midday, while the Nasdaq Composite was up 1.5%.

Midday Movers

Guess? stock (ticker: GES) rallied 27%. The company earned more than expected in its fiscal second quarter and raised its forecast for full-year profits.

Dollar General stock (DG) rose 10% after management reported stronger earnings, higher same-store sales and a better outlook than analysts expected, despite rising tariffs on goods imported from China.

PVH stock (PVH) gained 6.9% even though the apparel company lowered its financial forecasts for the full year. Its second-quarter earnings were better than expected.

Best Buy stock (BBY) sank 8.8% after it reported lower-than-expected quarterly results and as investors worried about the impact of new tariffs on important products for the company, like televisions.

H&R Block stock (HRB) lost 8.4% after the tax-preparation company reported a loss for the first quarter of its fiscal year. Revenue was slightly lower than analysts expected.

Write to Ben Walsh at ben.walsh@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.