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US STOCKS-Wall St rides trade optimism, healthy consumer spending to record highs

Published 20/12/2019, 18:12
© Reuters.  US STOCKS-Wall St rides trade optimism, healthy consumer spending to record highs
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* Nike falls as North America revenue disappoints

* Carnival Corp top pct gainer on S&P 500

* Consumer spending rose 0.4% last month

* Dow and Nasdaq hit record highs for second straight

session

* Indexes up: Dow 0.4%, S&P 0.6%, Nasdaq 0.4%

(Adds comment)

By Uday Sampath Kumar and C Nivedita

Dec 20 (Reuters) - The S&P 500 extended its run of record

highs for the seventh straight session on Friday, its longest

streak in over two years, as investor optimism continued on

improving U.S.-China trade relations and strength in domestic

consumer spending.

All three major stock indexes were on pace to end the week

at record levels, boosted by the announcement of an initial

U.S.-China trade agreement last Friday and upbeat economic

indicators.

U.S. President Donald Trump tweeted on Friday he "Had a very

good talk" with Chinese President Xi Jinping about the

long-awaited deal. (https:// Trump's comments came a day after U.S. Treasury Secretary

Steven Mnuchin said the treaty would be signed in early January,

dispelling fears of another escalation in the tariff

dispute. "What investors like is that we seem very, very close to

signing a phase one deal," said Michael Geraghty, equity

strategist at Cornerstone Capital Group.

"The details will be important and interesting, but I think

for investors, what's important right now is that finally China

and the U.S. seem to be on the same page."

Consumer spending, a major focus for investors as the key to

U.S. economic growth, rose 0.4% last month, adding to a string

of upbeat data that have helped put behind recession fears,

which had dogged markets earlier this year.

At 11:42 a.m. ET the Dow Jones Industrial Average .DJI was

up 121.16 points, or 0.43%, at 28,498.12, the S&P 500 .SPX was

up 18.46 points, or 0.58%, at 3,223.83 and the Nasdaq Composite

.IXIC was up 37.73 points, or 0.42%, at 8,924.95.

The Dow Industrials .DJI and Nasdaq .IXIC touched

all-time highs for the second straight session.

Markets are likely to be volatile on Friday due to

"quadruple witching," where investors unwind positions in

futures and options contracts before their expiration.

Nike Inc NKE.N fell nearly 2%, after the world's largest

sportswear maker reported lower-than-expected growth in revenue

from North America.

Carnival Corp CCL.N rose 7.3%, and was the biggest

percentage gainer on the S&P 500, after the cruise operator

forecast a 2020 profit largely above estimates. U.S. Steel Corp X.N tumbled 8.5%, after forecasting a

bigger-than-expected fourth-quarter loss. Advancing issues outnumbered decliners for a 2.15-to-1 ratio

on the NYSE and a 1.28-to-1 ratio on the Nasdaq.

The S&P index recorded 71 new 52-week highs and no new low,

while the Nasdaq recorded 138 new highs and 28 new lows.

S&P 500 Records https://tmsnrt.rs/2Mf6LNo

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