Stock Indexes Modestly Higher as Bargain Hunters Seeking Deals After Selloff

Stock indexes were higher in early trading Wednesday as bargain hunters seek deals and China’s infusion of liquidity overnight soothes risk-averse investors.

The ongoing trade war between the US and China is being closely watched. Beijing said it pledges to “fight a trade war to the end.” Still, the Dow Jones Industrial Average was poised to snap a six-day losing streak.

The People’s Bank of China added 200 billion yuan ($31 billion) in liquidity overnight, pushing the Shanghai index higher and promoting gains across Asia. Absent further trade threats by the US, the rebound was sustained during the European session.

Industrials were making a splash Wednesday, other than General Electric (GE), which lost 0.5% in early trading after the decision to remove it from the Dow Jones Industrial Average. Shares of Starbucks (SBUX) were also losing ground after the company announced the closure of 150 stores due to oversaturation and issued third-quarter sales guidance that missed expectations.

Disney (DIS) raised its offer for the entertainment assets of 21st Century Fox (FOX, FOXA) to $71.3 billion, or $38 a share, in a cash and stock deal, topping Comcast’s (CMCSA) $65 billion bid. Fox shares jumped in early trading and reached a record high.

The Dow Jones Industrial Average rose 0.1%, the S&P 500 gained 0.1% and the Nasdaq Composite added 0.6%. Globally, the FTSE added 0.6%, the Nikkei jumped 1.2% and the Shanghai Composite rose 0.3%.