Thursday's Stock Market Open: US Equities Rise On Strong Economic Data, Morgan Stanley Results

U.S. stocks traded higher Thursday on the back of some strong economic data and a huge surge in profits from banking giant Morgan Stanley.

The Dow Jones Industrial Average rose 168.83 points to 29,199.05 while the S&P 500 climbed 17.46 points to 3,306.75 and the Nasdaq Composite Index gained 56.98 points to 9,315.67.

Traders are still evaluating the ramifications of the U.S.-China trade deal signed on Wednesday.

“Given the amount of speculation by the markets and commentary by officials ahead of Wednesday’s signing, it is unsurprising markets have not rallied too strongly upon final signing,” said Hannah Anderson, a strategist at JPMorgan Asset Management. “Markets will likely continue to price in an elevated risk premium, which could be a source of volatility throughout 2020.”

U.S. Senate passed trade deal with Mexico and Canada.

During a speech on state TV, Iranian President Hassan Rouhani made vague threats, saying that U.S. troops are “insecure” in the Middle East and EU troops “might be in danger.”

Nouriel Roubini, professor at NYU’s Stern School of Business, warned that the U.S.-Iran conflict remains unresolved and could slow down global economic growth.

In economic data, initial jobless claims in the U.S. fell by 10,000 to 204,000 for the week ended Jan. 11, marking the fifth straight week of declines.

The Philadelphia Fed business activity index surged to 17 in January from 2.4 in the previous month.

U.S. retail sales rose by a seasonally adjusted 0.3% in December from the prior month to $529.6 billion, the Commerce Department said Thursday.

U.S. import prices rose by 0.3% in December, the biggest such gain in nine months.

The Commerce Department said business inventories slipped by 0.2% in November after edging up a revised 0.1% in October.

The National Association of Home Builders/Wells Fargo Housing Market Index slipped by 1 point on to 75 in January, but that figure is far higher than the 58 recorded last January. Any reading above 50 is considered positive.

“With the Federal Reserve on pause and [with] attractive mortgage rates, the steady rise in single-family construction that began last spring will continue into 2020,” said NAHB chief economist Robert Dietz. “However, builders continue to grapple with a shortage of lots and labor while buyers are frustrated by a lack of inventory, particularly among starter homes.”

Morgan Stanley (MS) posted fourth-quarter profit of $2.24 billion, or $1.30 per share, far exceeding analysts’ $0.99 estimate.

Overnight in Asia, markets finished mixed. China’s Shanghai Composite dropped 0.52%, while Hong Kong’s Hang Seng rose 0.38%, and Japan’s Nikkei-225 edged up 0.07%.

In Europe markets closed mixed, as Britain’s FTSE-100 dropped 0.43%, France’s CAC-40 edged up 0.11% and Germany’s DAX fell 0.02%.

Crude oil futures rose 1.64% at $58.76 per barrel and Brent crude climbed 1.34% at $64.86. Gold futures edged down 0.24%.

The euro slipped 0.16% at $1.1133 while the pound sterling edged up 0.34% at $1.3081.