NEW YORK (AP) — Stocks are opening higher on Wall Street, following gains overseas as China reported encouraging news on its economy. Technology companies and banks rose more than the rest of the market in the first few minutes of trading Monday. Apple and Bank of America climbed. Safe-play sectors like utilities and real estate lagged behind. The S&P 500 rose 23 points, or 0.7%, to 3,190. The Dow Jones Industrial Average rose 132 points, or 0.5%, to 28,267. The Nasdaq added 69 points, or 0.8%, to 8,803. Bond prices fell. The yield on the 10-year Treasury rose to 1.86%.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Global stock markets mostly rose Monday on a positive economic report from China, last week’s long-awaited U.S.-Chinese trade deal, and greater optimism about Britain.
Wall Street looked to open higher as London, Frankfurt and Shanghai advanced and Tokyo and Hong Kong declined.
China reported unexpected strong November factory activity and spending. Industrial production rose 6.2% from a year earlier, up from the previous month’s 4.7%. Retail sales growth rose to a five-month high of 8% from October’s 7.2%.
“With some trade uncertainty removed last week, investors should start feeling more confident that China will be able to keep their economy growing at 6% or better in 2020,” said Edward Moya, economist with Oanda.
The interim “Phase 1” trade agreement announced Friday was in line with expectations. The world’s two largest economies agreed to reduce some punitive tariffs imposed in their fight over China’s technology ambitions and trade surplus. Beijing agreed to buy more American farm exports.
Britain’s FTSE 100 added 2.3% to 7,525 as the outcome of the general election made investors more upbeat about the economy and its prospects over Brexit. Germany’s DAX advanced 0.7% to 13,378 and France’s CAC 40 added 1.2% to 5,988.
On Wall Street, the future for the benchmark Standard & Poor’s 500 index climbed 0.5% to 3,190 and that for the Dow Jones Industrial Average rose 0.2% to 28,228.
In Asia, the Shanghai Composite Index gained 0.6% to 2,984.39. Tokyo’s Nikkei 225 lost 0.3% to 23,952.35 and Hong Kong’s Hang Seng index shed 0.4% to 27,568.97.
Seoul’s Kospi retreated 0.1% to 2,168.15. Sydney’s S&P-ASX 200 gained 1.6% to 6,849.70 and India’s Sensex advanced 1.6% to 41,052.73. Taiwan gained, while New Zealand retreated and Singapore was unchanged.
The U.S.-Chinese deal averted tariff hikes planned for Sunday on imports from both sides, but the impact on economic growth will be limited, said Citigroup economists.
The two sides also agreed to roll back some punitive tariffs, but investors already had factored that into their plans.
“We believe the net effect on China’s growth is largely neutral,” said Citigroup.
BOEING SLIDE: Boeing’s stock was down 4% before the opening bell on a report that the company may cut production of its troubled 737 Max or even suspend production altogether. The Wall Street Journal reported Sunday that Boeing’s board was considering its options in meetings that began over the weekend and are continuing Monday. The Max was grounded in March after deadly crashes in Indonesia and Ethiopia that killed a total of 346 people. Shares of Boeing Co., based in Chicago, are down 10% over the past 3 months.
ENERGY: Benchmark U.S. crude was flat at $60.07 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 89 cents on Friday. Brent crude, used to price international oils, gained 19 cents to $65.41 per barrel in London. It rose $1.02 the previous session to $65.22.
CURRENCY: The dollar gained to 109.42 yen from Friday’s 109.33 yen. The euro advanced to $1.1145 from $1.1120.