Stocks - Dow Bags Biggest Daily Gain in Months as US-China Concerns Cool

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Stocks - Dow Bags Biggest Daily Gain in Months as US-China Concerns Cool
Credit: © Reuters. - The Dow had its best day in months as investors cheered bullish earnings from Walmart and optimism over U.S-China relations as both parties will resume trade talks.

The Dow Jones Industrial Average rose about 1.58% -- its biggest daily gain since April. The S&P 500 rose 0.85%, while the Nasdaq Composite rose about 0.42%.

A wave of buying pressure emerged across the broader averages on hopes the U.S. and China would be able to hash out their differences in trade talks slated for later this month, and pave the way for an end to their ongoing trade war.

Trade talks have stalled in recent months as both parties imposed billions of dollars' worth of tariffs on each other's goods, with the United States threatening to impose a further $200 billion in tariffs.

Caterpillar (NYSE: CAT ) and Boeing (NYSE: BA ) -- notable names most sensitive to escalating trade tensions -- closed markedly higher.

Boeing (NYSE: BA ) stock closed 4% higher, clawing back losses sustained over the previous four sessions, which followed concerns about the aircraft manufacturer's exposure to China and a rout in emerging markets.

The broader averages were also propelled higher on upbeat earnings from both Walmart and Cisco.

Walmart Inc (NYSE: WMT ) stock closed 9% higher after the retailer delivered its best quarter in a decade, smashing earnings estimates as grocery and e-commerce growth swelled. Cisco Systems (NASDAQ: CSCO ) also reported above-consensus earnings.

"Walmart's combination of physical infrastructure and ability to leverage its scale with vendors to give consumers lower prices is proving to be a powerful force when competing with Amazon (NASDAQ: AMZN )," S.G. Cowen said in a note.

Energy, which led the sharp decline in the broader market, recouped some of its losses as oil prices settled higher, shaking off concerns about waning crude demand.

On the New York Mercantile Exchange crude futures for September delivery rose 45 cents settle at $65.46 a barrel.

In other corporate news, Teva Pharma (NYSE: TEVA ) stock surged after the Food and Drug Administration approved Teva's generic version of EpiPen, the emergency allergy medication.

On the economic front, traders mulled over mixed economic data showing ongoing pressures in the housing market and an unexpected slump in the Philly Fed Index , which serves as a precursor for the ISM factory survey due in two weeks.

Top Dow Gainers and Losers Today:

Walmart (NYSE: WMT ), Bank of America (NYSE: BAC ), Caterpillar (NYSE: CAT ) among the top Dow gainers for the session.

Intel (NASDAQ: INTC ), Microsoft (NASDAQ: MSFT ) and Walt Disney (NYSE: DIS ) were among the worst Dow performers of the session.

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