* Nasdaq falls after 11 days of gains
* China's industrial profits grow at fastest in 8 months
* Consumer staples lead sectors, energy lags
* Dow up 0.08%, S&P up 0.003%, Nasdaq down 0.17%
(Updates with close of U.S. market)
By Lewis Krauskopf
Dec 27 (Reuters) - The Nasdaq snapped an 11-day streak of
gains on Friday after some late-session weakness, but the S&P
500 and the Dow scratched out record closing highs with slight
gains as a year-end rally chugged along.
With only two trading days left for the year, the benchmark
S&P 500 has climbed more than 29% so far in 2019, its biggest
annual percentage gain since 2013. Trading volume has been thin
during the holiday-shortened week and could continue to be
sparse through the New Year's holiday on Wednesday.
“For the most part, the market seems to be in a holding
pattern until year-end,” said Rick Meckler, partner at Cherry
Lane Investments in New Vernon, New Jersey.
“There has been such strong gains for the year that I think
that until the fresh money comes in after year-end for new
contributions to IRAs and other retirement accounts to start the
year, I just don't think there is a lot of push to drive this
too much higher,” Meckler said.
Data on Friday showed profits at China's industrial firms
grew at the fastest pace in eight months in November, but broad
weakness in the country's domestic demand remains a risk for
company earnings next year. Investor expectations that the United States and China will
soon sign a Phase 1 trade deal has added momentum to the stock
market heading into 2020.
"You've got expectations that the Phase 1 trade agreement is
signed in early to mid-January," said James Ragan, director of
wealth management research at D.A. Davidson.
"In a situation where you have got the trade expectation
that could help stimulate business spending next year, still low
interest rates and the strong consumer. That's a recipe for
equity values to continue to move higher," Ragan said.
The Dow Jones Industrial Average .DJI rose 23.87 points,
or 0.08%, to 28,645.26, the S&P 500 .SPX gained 0.11 points to
3,240.02 and the Nasdaq Composite .IXIC dropped 15.77 points,
or 0.17%, to 9,006.62.
Among S&P 500 sectors, consumer staples .SPLRCS , real
estate .SPLRCR and utilities .SPLRCU were the top
performers. Energy .SPNY and materials .SPLRCM lagged among
the sectors.
Aside from optimism over trade relations, the stock market
has been lifted by interest rate cuts by the Federal Reserve and
better-than-feared economic data and corporate profits.
About 5.2 billion shares changed hands in U.S. exchanges,
compared with the 6.8 billion daily average over the last 20
sessions.
Declining issues outnumbered advancing ones on the NYSE by a
1.02-to-1 ratio; on Nasdaq, a 1.52-to-1 ratio favored decliners.
The S&P 500 posted 59 new 52-week highs and no new lows; the
Nasdaq Composite recorded 96 new highs and 23 new lows.
World stock markets in 2019 https://tmsnrt.rs/399IrGu
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