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* China says in close contact with Washington on trade pact
* Tesla gains as Wedbush hikes price target
* Amazon gains on report of robust U.S. holiday online sales
* Indexes rise: 0.17%, S&P 0.27%, Nasdaq 0.47%
(Updates prices)
By Manas Mishra
Dec 26 (Reuters) - The Nasdaq breached the 9,000-point mark
for the first time and the S&P 500 hit a fresh record high on
Thursday, boosted by optimism over U.S.-China trade relations
and gains in Amazon.com after a report signaled robust online
holiday sales.
Shares of the retail giant AMZN.O rose 3.2% after
Mastercard's report showed U.S. shoppers spent more online
during the holiday shopping season, with e-commerce sales
hitting a record high. Amazon lifted the consumer discretionary index .SPLRCD by
0.8%, the most among the 11 major S&P sectors.
"The important part is that the online sales were much
stronger than expected. The brick-and-mortar were less than
expected, so the online sales, and principally Amazon, saved the
day," said John Conlon, director, equity strategy at People's
United Advisors.
Traders returned from the Christmas break to Beijing's
reaffirmation that it was in close contact with Washington about
the initial trade agreement, which is widely expected to be
signed in early January. President Donald Trump on Tuesday confirmed the pact would
be formalized at a signing ceremony, but did not disclose a date
or location. Hopes of a breakthrough in the prolonged trade war, combined
with a loose monetary policy and robust domestic data, have
powered U.S. stocks to record highs in the past few weeks.
The S&P 500, which has touched all-time intraday highs in
two out of three sessions this week alone, is about one
percentage point short of its best year since 1997.
The Nasdaq was on track for an 11 session winning streak.
At 12:46 p.m. ET, the Dow Jones Industrial Average .DJI
was up 49.82 points, or 0.17%, at 28,565.27 and the S&P 500
.SPX was up 8.72 points, or 0.27%, at 3,232.10. The Nasdaq
Composite .IXIC was up 42.17 points, or 0.47%, at 8,995.06.
Trading volumes are expected to remain thin this week.
A Labor Department report on Thursday showed the number of
Americans filing for unemployment benefits fell last week,
indicating resilience in the labor market. The energy sector .SPNY gained 0.4%, supported by higher
oil prices. O/R
Tesla Inc TSLA.O rose 1.2% as Wedbush boosted its price
target on the electric-car maker's stock, partly on expectations
of strong U.S. demand for Model 3 sedans.
Advancing issues outnumbered decliners for a 1.53-to-1 ratio
on the NYSE and a 1.09-to-1 ratio on the Nasdaq.
The S&P index recorded 25 new 52-week highs and no new low,
while the Nasdaq recorded 103 new highs and 17 new lows.