NEW YORK (AP) — Technology companies and banks are rising Tuesday morning as U.S. stocks head higher for the second day in a row. Automakers are climbing after China said it will reduce auto import duties, another sign the two powers are resolving some of their differences on trade. Chipmaker Micron Technology is surging after it said it will buy back $10 billion in stock.
KEEPING SCORE: The S&P 500 index gained 6 points, or 0.2 percent, to 2,739 at 10 a.m. Eastern time. The Dow Jones industrial average rose 10 points to 25,023. The Nasdaq composite picked up 20 points, or 0.3 percent, to 7,414. The Russell 2000 index of smaller company stocks fell less than 1 point to 1,636 after closing at record highs the last four days.
DRIVE ON: The government of China said it will reduce auto import duties effective July 1 following pledges to buy more U.S. goods and end restrictions on foreign ownership in the industry. The Finance Ministry said charges for many imported vehicles will be cut from 25 percent to 15 percent to promote development of the Chinese industry and increase availability of goods for consumers. China is the world’s biggest auto market by number of vehicles sold. Purchases of SUVs, sedans and minivans totaled 24.7 million units in 2017, compared with 17.2 million for the United States, the No. 2 market.
General Motors climbed 1.1 percent to $38.50 and Ford rose 0.9 percent to $11.62. Tata Motors of India advanced 3 percent to $22.70.
Spotify Debuts at New York Stock Exchange, Valued at $30 B The Swedish company filed for a non-traditional IPO earlier in 2018 and opened on Tuesday at $165.60 per share. On Monday night, the New York Stock Exchange set a reference price for shares at $132 because the company did not set a price beforehand or use banks to underwrite the offering. Spotify has over 157 million users worldwide with 71 million paid subscribers. In 2017, the company reported its revenue at $5 million.
TRADE HOPES: This week investors have grown more hopeful that the trade dispute between the U.S. and China will be resolved without major effects on the global economy. Treasury Secretary Steven Mnuchin said this week that the two sides agreed not to place tariffs on imported goods for now and that China agreed to buy more goods made in the U.S. The U.S. had proposed raising tariffs on Chinese goods worth up to $150 billion, while China targeted $50 billion in U.S. products.
PENNEY DROPPED: J.C. Penney fell 2 percent to $2.45 as CEO Marvin Ellison leaves the department store to become the top executive at Lowe’s. Ellison worked at Lowe’s rival Home Depot for 12 years before he was hired by J.C. Penney, and he will replace Robert Niblock on July 2. Lowe’s rose 0.3 percent to $87.62.
TECHNOLOGY: Micron jumped 7 percent to $59.33 after it announced the stock buyback. The chipmaker’s shares rallied Monday after it raised its forecasts for the third quarter. Software maker Adobe Systems climbed 2 percent to $242.77 after it agreed to buy Magento Commerce for $1.68 billion.
ENERGY: Benchmark U.S. crude gained 0.2 percent to $72.38 per barrel in New York. Brent crude, used to price international oils, rose 1 percent to $80.03 per barrel in London.
BONDS: Bond prices were little changed. The yield on the 10-year Treasury note remained at 3.06 percent.
CURRENCY: The dollar fell to 110.95 yen from 111.11 yen. The euro rose to $1.1791 from $1.1772.
OVERSEAS: The German DAX, which was closed for a holiday Monday, jumped 0.9 percent and London’s FTSE 100 added 0.3 percent. France’s CAC 40 rose 0.2 percent. Tokyo’s Nikkei 225 lost 0.2 percent. Markets in Hong Kong and South Korea were closed for holidays.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP . His work can be found at https://apnews.com/search/marley%20jay
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