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Stocks snap 3-day skid after report says trade deal can still be reached ahead of tariff increase

Jonathan Garber

Stocks snapped their three-day losing streak Wednesday after a Bloomberg report said a phase one deal could still be done before the Dec. 15 tariff deadline.

President Trump’s comments Tuesday, which downplayed the possibility of a trade deal being reached in the next couple of weeks and sent U.S. equity markets tumbling, were “off the cuff” and should not be taken as a sign that talks are at an impasse, according to the report, which cites people familiar with the matter.

Economic data out Wednesday morning showed private sector job growth slowed in November. The ADP Private National Employment Report showed private payrolls increased by 67,000 jobs last month, missing the 140,000 addition that was expected and down sharply from the 121,000 jobs added in October.

All three of the major averages finished higher with the Dow Jones Industrial Average up 147.85 points, or 0.5 percent. The S&P 500 and Nasdaq were higher by 0.6 percent and 0.5 percent, respectively.

Trade sensitive names mostly bounced back after coming under pressure Tuesday. AMD, Apple, Boeing and Caterpillar were all higher.

Johnson & Johnson gained after the consumer-products maker said tests showed there was no asbestos in its baby powder. The Food and Drug Administration pushed back against those findings, saying it stood by its own which showed the powder was contaminated.

Elsewhere, Alphabet shares gained after co-founders Larry Page and Sergey Brin announced late Tuesday that they were stepping away from their roles. Google Chief Executive Sundar Pichai was named CEO of the parent company Alphabet.

GoPro rallied after announcing record Black Friday and Cyber Monday sales.

Expedia's stock was higher after the company announced its CEO and CFO resigned.

On the earnings front, Campbell Soup cut its full-year sales forecast but gained market share in soup for the first time in 10 quarters. Shares were higher.

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West Texas Intermediate crude oil climbed 4 percent to near $58.35 a barrel after a surprise drop in U.S. crude oil inventories. OPEC and its allies are expected to extend production curbs on Thursday. Meanwhile, gold was lower by 0.3 percent to near $1,481 an ounce.

U.S. Treasurys were under pressure with selling running the yield on the 10-year note up 6.5 basis points to 1.774 percent.

In Europe, London's FTSE was up 0.4 percent, Germany's DAX gained 1.2 percent and France's CAC added 1.3 percent.

Asian markets were lower with Japan's Nikkei down 1 percent, Hong Kong’s Hang Seng off 1.2 percent and the Shanghai Composite retreating 0.2 percent.

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FOX Business' Ken Martin and The Associated Press contributed to this report.

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