Wall Street rides trade optimism to record highs
(Reuters) – U.S. stocks inched to fresh record highs on Friday, as investors remained optimistic about improving trade relations between Washington and Beijing in the run-up to the holiday season.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., December 17, 2019. REUTERS/Brendan McDermid
All three major stock indexes have been trading at record levels for over a week, boosted by the announcement of an initial U.S.-China trade agreement and upbeat economic indicators.
U.S. Treasury Secretary Steven Mnuchin said on Thursday the long-awaited trade deal had been penned down and would be signed in early January, dispelling fears of another escalation in the tariff dispute.
Beijing, however, later dodged questions about specific details about the agreement.
“While we’re waiting to hear the details of a deal, what we’re not doing is increasing tariffs,” said Art Hogan, chief market strategist at National Securities in New York. “We’re not escalating, and that’s what the market cares about.”
The S&P 500 .SPX hit a record high for the seventh straight session on Friday, its longest streak since October 2017. With gains of nearly 28% this year, the benchmark index is eyeing its best annual performance since 2013.
(GRAPHIC: S&P 500 Records – here(5).jpg)
Markets are likely to become volatile on Friday due to “quadruple witching,” where investors unwind positions in futures and options contracts before their expiration.
At 10:12 a.m. ET the Dow Jones Industrial Average .DJI was up 82.01 points, or 0.29%, at 28,458.97, the S&P 500 .SPX was up 11.94 points, or 0.37%, at 3,217.31 and the Nasdaq Composite .IXIC was up 20.43 points, or 0.23%, at 8,907.65.
The Commerce Department said on Friday consumer spending rose 0.4% last month, in line with expectations, as households stepped up purchases of motor vehicles and spent more on healthcare.
Nike Inc (NKE.N) fell 1.7% after the world’s largest sportswear maker reported lower-than-expected growth in revenue from North America.
Carnival Corp (CCL.N) rose 8.5% and was the biggest percentage gainer on the S&P 500, after the cruise operator forecast a 2020 profit largely above estimates.
Advancing issues outnumbered decliners for a 1.85-to-1 ratio on the NYSE and 1.13-to-1 on the Nasdaq.
The S&P index recorded 66 new 52-week highs and no new low, while the Nasdaq recorded 110 new highs and 21 new lows.
Reporting by Uday Sampath and C Nivedita in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta