WASHINGTON (dpa-AFX) - After showing a strong move to the upside early in the session, stocks remain firmly positive in mid-day trading on Monday. Earlier in the day, the Nasdaq and the S&P 500 reached new record intraday highs.
Currently, the major averages are off their best levels but still hovering in positive territory. The Dow is up 117.00 points or 0.4 percent at 27,992.62, the Nasdaq is up 99.93 points or 1.2 percent at 8,619.71 and the S&P 500 is up 18.93 points or 0.6 percent at 3,129.22.
The strength on Wall Street partly reflects continued optimism about a U.S.-China trade agreement after a tabloid run by China's ruling Communist Party discounted 'negative' media reports and said the economic superpowers are 'very close' to a phase one deal.
China also remains committed to continuing talks for a phase two or even a phase three deal with the United States, the state-backed Global Times said on Twitter.
President Donald Trump and Chinese President Xi Jinping have also recently made positive comments about a potential trade deal despite reports of complications arising that could delay the agreement until next year.
News on the merger-and-acquisition front has also generated positive sentiment, as the deals suggest companies remain confident even with the uncertainty created by the U.S.-China trade dispute.
Shares of The Medicines Company (MDCO) are moving sharply higher after the biopharmaceutical company agreed to be acquired by Swiss drugmaker Novartis for $9.7 billion or $85 per share in cash.
Jeweler Tiffany (TIF) has also shown a strong move to the upside after agreeing to be acquired by France's LVMH for $16.2 billion or $135 per share in cash.
Discount broker Charles Schwab (SCHW) also reached an agreement to acquire rival TD Ameritrade (AMTD) in an all-stock transaction valued at approximately $26 billion.
Sector News
Biotechnology stocks continue to turn in some of the market's best performances in mid-day trading, with the NYSE Arca Biotechnology Index up by 2.5 percent after reaching a seven-month intraday high.
Significant strength also remains visible among semiconductor stocks, as reflected by the 2.2 percent jump by the Philadelphia Semiconductor Index.
Nvidia (NVDA) is posting a standout gain after Morgan Stanley upgraded the graphics chip maker's stock to Overweight from Equal-weight.
Tobacco and steel stocks are also seeing considerable strength on the day, driving both the NYSE Arca Tobacco Index and the NYSE Arca Steel Index up by 1.9 percent.
Brokerage, oil service and computer hardware stocks are also seeing notable strength, reflecting broad based buying interest.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index advanced by 0.8 percent, while Hong Kong's Hang Seng Index surged up by 1.5 percent.
The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index jumped by 1 percent, the German DAX Index and the French CAC 40 Index climbed by 0.6 percent and 0.5 percent, respectively.
In the bond market, treasuries have turned higher over the course of the session after seeing initial weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 1.760 percent.
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