The world's largest economies are expected to sign the "Phase 1" trade agreement on Wednesday. It is being viewed as an opening to future negotiations that will deal with more complicated trade issues. Wall Street is also looking ahead to a busy opening week of corporate earnings being kicked off by major banks.
Technology stocks led the gains in the early going. Chipmakers Nivida rose 1.6% and Micron climbed 1.3%. The sector is particularly sensitive to developments in trade relations because many of the companies rely on China for sales and supply chains.Health care and energy stocks slumped. Cigna fell 2.6% and Haliburton shed 1.5%.
The yield on the 10-year Treasury rose to 1.85% from 1.82% late Friday, in another sign that investors are heading into the week with confidence.The S&P 500 index rose 0.2% as 10 a.m. Eastern time. The Dow Jones Industrial Average rose 35 points, or 0.1%, to 28,861. The Nasdaq rose 0.3%. The Russell 2000 index of smaller company stocks fell 0.1%.Hexcel rose 9.
Delta Air Lines will be the first major airline to report financial results on Tuesday. The nation's largest health insurer, UnitedHealth Group, will report earnings on Wednesday and railroad operator CSX will report on Thursday.Wall Street will also have several economic reports to consider this week. The government will release its December reports on consumer prices and wholesale prices on Tuesday and Wednesday, respectively.
The government will also release December reports for retails sales and home construction activity this week.