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Stocks - S&P Closes Higher as U.S. Temporarily Eases Huawei Restrictions

Investing.com - U.S. stocks bounced back on Tuesday from a slump a day earlier, led by tech stocks after the U.S. temporarily eased some of the restrictions on China's Huawei.

The Dow Jones Industrial Average gained 0.77%, the S&P 500 added 0.85%, while the Nasdaq Composite rose 1.08%.

The U.S. Commerce Department on Monday granted a 90-day license for U.S. mobile phone companies and internet broadband providers to work with Huawei to keep existing networks online and protect users from security risks.

Following the move, chip stocks, which were particularly vulnerable to the U.S. ban on Huawei, rallied 2%, with Intel (NASDAQ:INTC) and Qualcomm (NASDAQ:QCOM) clawing back some recent losses. Intel rose 2.1%. Qualcomm added 1.5%.

Alphabet (NASDAQ:GOOGL) also ended the day 0.85% higher after reversing its decision from a day earlier to stop providing Huawei with software updates.

Beyond trade, investors also digested mixed quarterly earnings.

Kohl's (NYSE:KSS) reported a miss on the top and bottom lines and also reported comparable-store sales that fell short of expectations, sending its shares more than 12% lower.

JC Penney (NYSE:JCP), meanwhile, reported a wider-than-expected loss and drop in same-store sales, while revenue also missed expectations. Its shares slumped more than 7%.

After hours, Nordstrom (NYSE:JWN) said it missed revenue and earnings estimates for the first quarter and cut its guidance for the year. Shares fell more than 8%.

But auto parts retailer AutoZone (NYSE:AZO) boosted the broader retail sector, rising more than 5% after topping expectations on both the top and bottom lines.

The SPDR S&P Retail ETF (NYSE:XRT) ended the day 1% higher.

Energy stocks, meanwhile, also paved the way for gains in the broader market despite a modest fall in U.S. oil prices as concerns that a prolonged trade war between the U.S. and China could hurt global oil demand offset ongoing U.S.-Iran tensions and expectations for OPEC to stick with production cuts.

In other company news, Tesla (NASDAQ:TSLA) closed off 0.1% after shares had fallen to as low as $196.04. Morgan Stanley cutting its worst-case forecast on the electric car maker's share price to just $10, citing concerns about the company’s hefty debt levels and potential weaker demand from China.

Tesla also announced it was slashing the sticker price for its Model S and Model X vehicles for the third time in about three months, the news site Electrek reported.

On the economic front, U.S. existing home sales fell for a second-straight month in April as the supply of lower-priced housing continued to weigh.

Top S&P 500 Gainers and Losers Today:

AutoZone (NYSE:AZO), DISH Network (NASDAQ:DISH) and Xilinx (NASDAQ:XLNX) were among the top S&P 500 gainers for the session.

Kohl's (NYSE:KSS), Lamb Weston (NYSE:LW) and Varian Medical Systems (NYSE:VAR) were among the worst S&P 500 performers of the session.

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