➤ S&P 500 rallies to fresh high; Morgan Stanley shares jump after earnings beat.
➤ U.S. Treasurys, dollar dip.
➤ Lira advances after Turkey's 'measured' rate cut.
Wall Street rallied to a record high following a much-anticipated U.S.-China interim trade deal, as companies continued to report earnings.
The S&P 500 and Nasdaq 100 gained 0.5% and 0.6%, respectively, around 9:32 a.m. ET. Morgan Stanley's shares jumped 6.9% after it reported EPS of $1.30 for the fourth quarter of 2019, up from the S&P Global Market Intelligence consensus estimate of $1.00.
The share price of Charles Schwab Corp. rose 1.1% as its fourth-quarter 2019 net income totaled $852 million, down 9% year over year. CSX Corp. was also due to report earnings today.
Meanwhile, retail and food sales in the U.S. registered a slower-than-expected monthly increase in December 2019 but managed to eke out gains for the full year amid fears of a potential recession.
The U.S. and China paused their nearly two-year trade conflict Jan. 15 with the signing of a "phase one" agreement that includes Beijing's pledge to purchase more than $200 billion of additional American products and services over the next two years.
"The details of the deal were broadly in line with expectations which have dampened the market impact overnight," wrote Lee Hardman, currency analyst at MUFG Bank.
U.S. President Donald Trump said tariffs imposed on some Chinese goods would remain in place until a phase two deal is signed.
Tuuli Koivu, senior analyst at Nordea Markets, expects "somewhat calmer" 2020 from a trade-war perspective, but said "challenges on free trade are far from over."
The FTSE 100 declined 0.5%. Pearson PLC's shares slumped as much as 13.5%, before reversing some of those losses to be trading 8.7% down, following the announcement that Coram Williams will step down as CFO. The company's underlying revenue was flat year over year in 2019.
Germany's DAX index dropped 0.1% while France's CAC 40 was flat.
In Asia, Japan's Nikkei 225 index edged 0.1% higher, Hong Kong's Hang Seng index gained 0.4% and the Shanghai SE Composite fell 0.5%.
The Dollar Spot Index, which measures the currency against developed-market peers, dipped 0.1% to 97.1660.
In individual currencies, the offshore Chinese yuan strengthened 0.3% versus the dollar. Sterling ticked 0.1% higher to $1.3046 and the euro was flat. The Japanese yen slipped 0.1% against the dollar.
The Turkish lira rallied 0.4% against the dollar as the Turkish central bank eased its monetary policy at the slowest rate in nearly six months in what it described as a "measured" move.
Among bonds, Treasurys' yields added 2 basis points to 1.804% while German Bunds' yields were largely flat at negative 0.212%.
In commodities, Brent crude oil jumped 0.7% to $64.44 per barrel on the ICE Futures Exchange while gold was flat at $1,553.80 per ounce.
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The day ahead:
10 a.m. ET — U.S. Fed's Michelle Bowman speaks
10 a.m. ET — U.S. business inventories (Econoday consensus: -0.1% monthly)
10 a.m. ET — U.S. housing market index (Econoday consensus: 75)
10:30 a.m. ET — U.S. EIA natural gas report
4 p.m. ET — U.S. Treasury International Capital
4:30 p.m. ET — U.S. Fed balance sheet
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