Stocks surge on US-China trade progress and healthy jobs data

AP Photo/Andy Wong, Pool

• Stocks soared on Thursday after the US and China agreed to meet for another round of trade negotiations in October, granting investors some hope that the countries will strike a deal.
• Chinese Vice Premier Liu He told US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin during a phone call on Thursday morning that he come would to Washington in early October to continue trade talks.
• Major US indexes rose higher after data from the ADP Research Institute showed US companies added the most jobs in four months in August.
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Stocks surged on Thursday after the US and China announced a new round of talks will take place in Washington in October, sparking hope that the world's two largest economies might hammer out a resolution to the trade war.

Lie He, China's Vice Premier agreed to visit Washington in early October to resume trade negotiations during a phone call on Thursday morning with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

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The announcement is welcoming news for traders that have been growing increasingly concerned about a prolonged trade war between the two countries. The US and China imposed new rounds of tariffs on billions of dollars worth of products starting September 1.

Stocks extended gains after the ADP Research Institute said US companies added the most jobs in fourth months in August. The data stands in contrast to recent readings on manufacturing activity and consumer sentiment that sparked worries of slowdown in the US economy.

The Bureau of Labor statistics in scheduled to release the official jobs report for August on Friday, which investors will be watching closely for signs of slowing job growth.

Here's a look at the major indexes as of the 4 p.m. close on Wednesday:

• The S&P 500 rose 1.30%, to 2,976.
• The Dow Jones Industrial Average climbed 1.41%, to 26,728.15.
• The Nasdaq Composite jumped 1.75%, to 8,116.83.

Shares of Slack plunged as much as 16% after the company's first earnings report showed a larger net loss for the quarter than analysts expected. Slack attributed a portion of the loss to an two-hour service outrage that led the company to miss out on $8.2 million in revenue. The company also cut its financial outlook for the second half of fiscal 2020.

Goldman Sachs is shrinking its top ranks, according to a report from the Wall Street Journal. David Solomon, the firm's chief executive officer, reportedly thinks there's too many partners at the firm and that it needs to reduce headcount at the top in order to retain the exclusivity of the position.

Within the S&P 500, these were the largest gainers:

• Tapestry: 8.4%
• IPG Photonics: 7.8%
• Capri Holdings: 7%

And the largest decliners:

• Newmont Mining: (-4.1%)
• Concho Resources: (-3.6%)
• Church & Dwight: (-3.4%)

Technology stocks led the S&P 500 gaining more than 2%. Industrials, consumer discretionary, and communications jumped more than 1.7%. Utilities fell 1.2%, while real estate slipped 0.9%.